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HSBC Managed FundsHSBC Global Money FundsAnnual Report 2017

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Contents

1. HSBC MANAGED FUNDS

1.1 HSBC MANAGED BALANCED FUND

Investment Adviser’s Report 3Trustee’s Report 4Independent Auditors’ Report to the Unitholders 5Statement of Financial Position 7Statement of Comprehensive Income 8Statement of Changes in Net Assets Attributable to Unitholders 9Cash Flow Statement 10Distribution Statement 11Notes to the Financial Statements 12Portfolio Statement (Unaudited) 32Statement of Movements in Portfolio Holdings (Unaudited) 52Performance Record (Unaudited) 54

1.2 HSBC MANAGED GROWTH FUND


1.3 HSBC MANAGED STABLE FUND


1.4 HSBC MANAGED STABLE GROWTH FUND

Investment Adviser’s Report 161Trustee’s Report 162Independent Auditors’ Report to the Unitholders 163Statement of Financial Position 165Statement of Comprehensive Income 166Statement of Changes in Equity 167Cash Flow Statement 168Notes to the Financial Statements 169Portfolio Statement (Unaudited) 187Statement of Movements in Portfolio Holdings (Unaudited) 207Performance Record (Unaudited) 209

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Contents

2. HSBC GLOBAL MONEY FUNDS

2.1 HSBC GLOBAL MONEY FUNDS - HONG KONG DOLLAR

2.2 HSBC GLOBAL MONEY FUNDS - US DOLLAR

Investment Adviser’s Report 210Trustee’s Report 211Independent Auditors’ Report to the Unitholders 212Statement of Financial Position 214Statement of Comprehensive Income 215Statement of Changes in Net Assets Attributable to Unitholders/Statement of Changes in Equity 216Cash Flow Statement 217Notes to the Financial Statements 218Portfolio Statement (Unaudited) 231Statement of Movements in Portfolio Holdings (Unaudited) 234Performance Record (Unaudited) 235

3. ADMINISTRATION 236

4. BOARD OF DIRECTORS OF HSBC INVESTMENT FUNDS (HONG KONG) LIMITED 241

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HSBC Managed Balanced Fund

Market review

In the 1 year period ended July 2017, the Fund delivered a positive return mainly driven by the favorable performance of equities amid a constructive economic and policy background with growth positive almost everywhere in the world. In particular, the year has seen a strong return from Hong Kong and Chinese equities as the Chinese activity data continues to show growth stabilization on the back of a benign macro environment. The fourth quarter of 2016 has seen the surprise election of Donald Trump as US President, an increase in interest rates from the US Fed and ongoing uncertainties over the political situation in Europe. However, despite these apparently negative events, it seems that the global economy is gaining momentum with economic data generally beating expectations and inflation moving steadily. Although central bankers are beginning to talk about tightening policy, the low level of inflation means there is no pressure to move sharply so that the liquidity background remains favorable. Corporate profits have been and are expected to continue growing, and this seems to be feeding through to more investment spending by companies which has the potential to drive the next leg of the ongoing economic expansion.

With the macro and liquidity background still favourable we maintain a diverse portfolio including equities and bonds exposure where there is selective value. We increased equity weightings again in early July and will continue to adjust portfolio weightings as the macro and market background unfolds over the coming months.

HSBC Global Asset Management (Hong Kong) Limited27 November 2017

Investment Adviser’s Report

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HSBC Managed Balanced Fund (“the Fund”)

We hereby confirm that, to the best of our knowledge, the Manager of the Fund has, in all material respects, managed the Fund in accordance with the provisions of the Trust Deed dated 18 January 1990, as amended, for the year ended 31 July 2017.

) Bertha TAM ) For and on behalf of Eva WONG ) HSBC Trustee (Cayman) Limited, ) Trustee

Trustee’s Report

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Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of HSBC Managed Balanced Fund (the “Fund”) set on page 7 to 31, which comprise the statement of financial position as at 31 July 2017, the statement of comprehensive income, the statement of changes in net assets attributable to unitholders, the cash flow statement and the distribution statement for the year then ended and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the financial statements give a true and fair view of the financial disposition of the Fund as at 31 July 2017, and its financial transactions and cash flows for the year then ended in accordance with Hong Kong Financial Reporting Standards (“HKFRSs”) issued by the Hong Kong Institute of Certified Public Accountants (“HKICPA”).

Basis for Opinion

We conducted our audit in accordance with Hong Kong Standards on Auditing (“HKSAs”) issued by the HKICPA. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Fund in accordance with the HKICPA’s Code of Ethics for Professional Accountants (“the Code”) together with the ethical requirements that are relevant to our audit of the financial statements in Cayman Islands, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Information Other than the Financial Statements and Auditors’ Report Thereon

The Manager and the Trustee of the Fund are responsible for the other information. The other information comprises the information included in the annual report, but does not include the financial statements and our auditors’ report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially

misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Manager and the Trustee of the Fund for the Financial Statements

The Manager and the Trustee of the Fund are responsible for the preparation and fair presentation of financial statements in accordance with HKFRSs issued by the HKICPA and for such internal control as the Manager and the Trustee of the Fund determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Manager and the Trustee of the Fund are responsible for assessing the Fund’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Manager and the Trustee of the Fund either intend to liquidate the Fund or to cease operations, or have no realistic alternative but to do so.

In addition, the Manager and the Trustee of the Fund are required to ensure that the financial statements have been properly prepared in accordance with the relevant provisions of the Trust Deed, as amended, (“the Trust Deed”) and the relevant disclosure provisions of Appendix E of the Code on Unit Trusts and Mutual Funds (“the SFC Code”) issued by the Hong Kong Securities and Futures Commission.

Auditors’ Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. This report is made solely to you, as a body, in accordance with our agreed terms of engagement, for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with HKSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. In addition, we are required to assess whether

Independent Auditors’ Report to the Unitholders

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the financial statements of the Fund have been properly prepared, in all material respects, in accordance with the relevant provisions of the Trust Deed and the relevant disclosure provisions of Appendix E of the SFC Code.

As part of an audit in accordance with HKSAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit 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 Fund’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Manager and the Trustee of the Fund.

• Conclude on the appropriateness of the Manager’s and the Trustee’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Fund’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the

related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Fund to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the Manager and the Trustee of the Fund regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Report on matters under the relevant provisions of the Trust Deed and the relevant disclosure provisions of Appendix E of the SFC Code

In our opinion, the financial statements have been properly prepared, in all material respects, in accordance with the relevant provisions of the Trust Deed and the relevant disclosure provisions of Appendix E of the SFC Code.

KPMGP.O. Box 493Century Yard, Cricket SquareGrand Cayman KY1-1106Cayman Islands

27 November 2017

The accompanying report of KPMG is for sole and exclusive use of the Fund. Further, the report of KPMG is as of 27 November 2017 and KPMG has carried out no procedures of any nature subsequent to that date which in any way extends that date.

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HSBC Managed Balanced Fundas at 31 July 2017

2017 2016Note HKD HKD

ASSETSFinancial assets at fair value through profit or loss 5, 7(f), 12(g), 13 2,215,953,478 2,120,107,533Interest and dividends receivable 8,408,052 6,449,882Subscriptions receivable 4,980,056 14,419,050Amounts due from brokers 6, 7(b) 36,082,659 15,743,730Cash and cash equivalents 7(b), 16 64,748,165 177,713,640

2,330,172,410 2,334,433,835

LIABILITIESFinancial liabilities at fair value through profit or loss 5, 7(h), 12(g), 13 2,981,115 579,177Bank overdrafts 7(b), 16 10,827 –Redemptions payable 5,371,367 4,706,051Amounts due to brokers 6 14,362,881 16,211,195Distributions payable 11 3,466,426 1,965,982Other payables 7(a), 7(c), 7(d) 4,474,839 3,847,720

30,667,455 27,310,125

NET ASSETS ATTRIBUTABLE TO UNITHOLDERS 2,299,504,955 2,307,123,710

Representing:Financial liabilities 2,299,504,955 2,307,123,710

Total number of units in issue

“A” class income units 9(a) 13,609,680 14,042,727

Provident class units 9(b) 49,318,374 58,735,663

Accumulation units 9(c) 6,433,421 6,566,215

Net asset value per unit

“A” class income units 29.07 25.58

Provident class units 36.52 31.61

Accumulation units 15.94 13.88

Approved by the Trustee and the Manager on 27 November 2017


) Guillermo Eduardo MALDONADO-CODINA ) For and on behalf of Chun Pong Stephen TAM ) HSBC Investment Funds ) (Hong Kong) Limited, ) Manager

The notes on pages 12 to 31 form part of these financial statements.

Statement of Financial Position

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HSBC Managed Balanced Fundfor the year ended 31 July 2017


Interest income 7(b) 497,484 58,909Dividend income 7(f) 50,238,182 50,547,422Net gains/(losses) from financial instruments

at fair value through profit or loss 3 309,927,559 (61,109,674)Net foreign exchange gain/(loss) 654,126 (2,383,189)Other income 7(c), 7(d) 5,007,764 –

TOTAL REVENUE/(LOSSES) 366,325,115 (12,886,532)

Management fees 7(a) 20,272,467 19,214,120Transaction fees 7(c), 7(d), 7(e) 2,307,459 2,022,639Trustee’s fees 7(c) 2,602,360 2,178,855Administrative fees 7(a), 7(g) 753,940 843,090Auditors’ remuneration 170,274 (344,420)Registrar’s fees 7(a) 105,000 60,506Legal and professional fees 110,954 31,533Safe custody fees, bank charges and miscellaneous expenses 7(d) 986,801 1,472,481

TOTAL OPERATING ExPENSES 27,309,255 25,478,804

NET PROFIT/(LOSS) FROM OPERATIONS BEFORE TAxATION 339,015,860 (38,365,336)

Taxation 4 (6,660,893) (6,264,198)

NET PROFIT/(LOSS) FROM OPERATIONS BEFORE DISTRIBUTIONS 332,354,967 (44,629,534)

Distributions to holders of “A” class income units 11 (3,466,426) (1,965,982)

INCREASE/(DECREASE) IN NET ASSETS ATTRIBUTABLE TO UNITHOLDERS AND TOTAL COMPREHENSIVE INCOME FOR THE YEAR 328,888,541 (46,595,516)


Statement of Comprehensive Income

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Balance at the beginning of the year 2,307,123,710 2,359,456,259

Increase/(decrease) in net assets attributable to unitholders and total comprehensive income for the year 328,888,541 (46,595,516)

Subscriptions of units (excluding equalisation)“A” class income units 20,336,090 16,228,355Provident class units 130,340,789 215,172,028Accumulation units 5,512,210 6,019,845

Redemptions of units (excluding equalisation)“A” class income units (32,436,063) (38,214,114)Provident class units (445,598,308) (194,891,371)Accumulation units (7,290,462) (9,787,617)

Income equalisation on subscriptions and redemptions 10 (7,371,552) (264,159)

(336,507,296) (5,737,033)

Balance at the end of the year 2,299,504,955 2,307,123,710


Statement of Changes in Net Assets Attributable to Unitholders

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OPERATING ACTIVITIESInterest received 497,484 58,909Dividends received 49,286,491 48,927,186Management fees paid (20,061,463) (19,415,484)Trustee’s fees paid (2,443,340) (2,363,140)Payments on purchase of investments (1,375,116,683) (1,190,004,175)Proceeds from sale of investments 1,569,099,891 1,292,730,204Taxes paid (6,567,661) (6,244,443)Other operating income received/(expenses paid) 1,391,325 (7,180,369)Margin deposits placed with brokers (693,378) –

Cash provided by operating activities 215,392,666 116,508,688

FINANCING ACTIVITIESProceeds from issue of units including equalisation 168,149,848 238,787,055Payments on redemption of units including equalisation (494,552,834) (254,898,331)Distributions paid (1,965,982) (149,361)

Cash used in financing activities (328,368,968) (16,260,637)

Net (decrease)/increase in cash and cash equivalents (112,976,302) 100,248,051

Cash and cash equivalents at the beginning of the year 177,713,640 77,465,589

Cash and cash equivalents at the end of the year 16 64,737,338 177,713,640


Cash Flow Statement

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Amount available for distribution brought forward 348,099,805 321,227,526

Profit for the year available for distribution * 34,542,742 29,102,420

Income equalisation on subscriptions and redemptions 10 (7,371,552) (264,159)

Distributions to unitholders 11 (3,466,426) (1,965,982)

Amount available for distribution carried forward 371,804,569 348,099,805

Distribution history“A” class income unitsDistribution per unit 0.254703 0.140000

Date of distribution 28 July 2017 29 July 2016

* Profit for the year available for distribution is the adjusted total comprehensive income for the year, for which the calculation basis is in accordance with the relevant clauses of the Trust Deed.


Distribution Statement

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Notes to the Financial Statements


1 The Fund

HSBC Managed Balanced Fund (“the Fund”) is an open-ended unit trust established under a trust deed dated 18 January 1990, as amended (“the Trust Deed”), and governed by the laws of the Cayman Islands. The Fund registered under the Mutual Funds Law of the Cayman Islands on 13 March 1997. The purpose of the Fund is to invest in a diversified portfolio of investments with steady long-term capital growth that will exceed Hong Kong inflation.

The Fund is authorised by the Hong Kong Securities and Futures Commission (“SFC”) under section 104 of the Hong Kong Securities and Futures Ordinance (“HKSFO”) and is governed by the Hong Kong Code on Unit Trusts and Mutual Funds issued by the SFC.

2 Significant accounting policies

(a) Statement of compliance

The financial statements have been prepared in accordance with all applicable Hong Kong Financial Reporting Standards (“HKFRSs”), which collective term includes all applicable individual Hong Kong Financial Reporting Standards, Hong Kong Accounting Standards (“HKASs”) and Interpretations issued by the Hong Kong Institute of Certified Public Accountants (“HKICPA”), accounting principles generally accepted in Hong Kong, the relevant provisions of the Trust Deed and the relevant disclosure provisions of the Hong Kong Code on Unit Trusts and Mutual Funds issued by the SFC. A summary of the significant accounting policies adopted by the Fund is set out below.

(b) Basis of preparation of the financial statements

The functional and presentation currency of the Fund is Hong Kong dollar reflecting the fact that the participating redeemable units of the Fund are issued and redeemed in Hong Kong dollars.

The financial statements are prepared on a fair value basis for financial assets and financial liabilities at fair value through profit or loss and derivative financial instruments. Other financial assets and financial liabilities are stated at amortised cost or redemption amount (redeemable units).

The preparation of financial statements in conformity with HKFRSs requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The accounting policies have been applied consistently by the Fund and are consistent with those used in the previous year.

(c) Changes in accounting policies

The Fund has not applied any new standard or interpretation that is not yet effective for the current accounting period (see note 17).

(d) Foreign currency translation

Foreign currency transactions during the year are translated into Hong Kong dollars at the exchange rates ruling at the transaction dates. Monetary assets and liabil ities denominated in foreign currencies that are stated at fair value are translated into Hong Kong dollars at the exchange rates ruling at the date of the statement of financial position. Foreign currency exchange differences arising on translation and realised gains and losses on disposal or settlement of monetary assets and liabilities are recognised in profit or loss.

Foreign currency exchange differences relating to investments at fair value through profit or loss are included in net gains or losses from financial instruments at fair value through profit or loss. All other foreign currency exchange differences relating to monetary items including cash and cash equivalents are presented separately in profit or loss.

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(e) Financial instruments

(i) Classification

All of the Fund’s investments are classified as financial assets or financial liabilities at fair value through profit or loss. This category comprises financial instruments held for trading, which are instruments that the Fund has acquired principally for the purpose of short-term profit-taking. These include investments in equities, debt securities, unit trusts, rights and forward contracts.

All derivatives in a net receivable position (positive fair value) are reported as financial assets. All derivatives in a net payable position (negative fair value) are reported as financial liabilities.

Financial assets at amortised cost that are classified as loans and receivables include interest and dividends receivable, subscriptions receivable and amounts due from brokers.

Financial liabilities at amortised cost include bank overdrafts, redemptions payable, amounts due to brokers, distributions payable and other payables. Financial liabilities arising from the redeemable units issued by the Fund are carried at the redemption amount.

(ii) Recognition

The Fund recognises financial assets and financial liabilities on the date it becomes a party to the contractual provisions of the instrument.

A regular way purchase or sale of financial assets is recognised by using trade date accounting. From this date any gains and losses arising from changes in fair value of the financial assets or financial liabilities are recorded.

Financial liabilities are not recognised unless one of the parties has performed their obligations under the contract or the contract is a derivative contract not exempted from the scope of HKAS 39.

(iii) Measurement

Financial instruments are measured initially at fair value (transaction price). Transaction costs on financial assets and liabilities at fair value through profit or loss are

expensed immediately, while on other financial instruments they are amortised.

Subsequent to initial recognition, all instruments classified at fair value through profit or loss are measured at fair value with changes in their fair value recognised in profit or loss.

Financial assets classified as loans and receivables are carried at amortised cost using the effective interest rate method, less impairment losses, if any.

Financial liabilities other than those at fair value through profit or loss are measured at amortised cost using the effective interest rate method. Financial liabilities arising from the redeemable units issued by the Fund are carried at the redemption amount representing the unitholders’ right to a residual interest in the Fund’s assets.

(iv) Fair value measurement principles

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal, or in its absence, the most advantageous market to which the Fund has access at that date. The fair value of a liability reflects its non-performance risk.

When available, the Fund measures the fair value of an instrument using the quoted price in an active market for that instrument provided such price is within the bid-ask spread. A market is regarded as active if transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. In circumstances where the quoted price is not within the bid-ask spread, the manager of the Fund will determine the points within the bid-ask spread that are most representative of the fair value.

When there is no quoted price in an active market, the Fund uses valuation techniques that maximise the use of relevant observable inputs and minimise the use of unobservable inputs. The chosen valuation technique incorporates all the factors that market participants would take into account in pricing a transaction.

The best evidence of the fair value of a financial instrument at initial recognition is normally the transaction price – i.e. the fair value of the consideration given or received. If the Fund determines that the fair

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value at initial recognition differs from the transaction price and the fair value is evidenced neither by a quoted price in an active market for an identical asset or liability nor based on a valuation technique that uses only data from observable markets, the financial instrument is initially measured at fair value, adjusted to defer the difference between the fair value at initial recognition and the transaction price. Subsequently, that difference is recognised in profit or loss on an appropriate basis over the life of the instrument but no later than when the valuation is supported wholly by observable market data or the transaction is closed out.

Portfolios of financial assets and financial liabilities that are exposed to market risk and credit risk that are managed by the Fund on the basis of the net exposure to either market or credit risk, are measured on the basis of a price that would be received to sell a net long position (or paid to transfer a net short position) or a particular risk exposure. Those portfolio-level adjustments are allocated to the individual assets and liabilities on the basis of the relative risk adjustment of each of the individual instruments in the portfolio.

The Fund recognises transfers between levels of the fair value hierarchy as of the end of the reporting period during which the change has occurred.

(v) Amortised cost measurement principles

The amortised cost of a financial asset or liability is the amount at which the financial asset or liability is measured at initial recognition, minus principal repayments, plus or minus the cumulative amortisation using the effective interest method of any difference between the initial amount recognised and the maturity amount, minus any reduction for impairment.

(vi) Impairment

Financial assets that are stated at cost or amortised cost are reviewed at each date of the statement of financial position to determine whether there is objective evidence of impairment. If any such indication exists, an impairment loss is recognised in profit or loss 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.

If in a subsequent period the amount of an impairment loss recognised on a financial asset carried at amortised cost decreases and the decrease can be linked

objectively to an event occurring after the write-down, the write-down is reversed through profit or loss.

(vii) Derecognition

The Fund derecognises a financial asset when the contractual rights to the cash flows from the financial assets expire or it transfers the financial asset and the transfer qualifies for derecognition in accordance with HKAS 39.

The Fund uses the weighted average method to determine realised gains and losses on derecognition.

A financial liability is derecognised when the obligation specified in the contract is discharged, cancelled or expired.

(viii) Offsetting

Financial assets and liabilities are offset and the net amount is reported in the statement of financial position when the Fund has a legally enforceable right to offset the recognised amounts and the transactions are intended to be settled on a net basis or simultaneously, e.g. through a market clearing mechanism.

(ix) Specific instruments

Cash and cash equivalents

Cash comprises current deposits with banks. Cash equivalents are short-term highly liquid investments that are readily convertible to known amounts of cash, are subject to an insignificant risk of changes in value, and are held for the purpose of meeting short-term cash commitments rather than for investment or other purposes.

(f) Revenue recognition

Provided it is probable that the economic benefits will flow to the Fund and the revenue and costs, if applicable, can be measured reliably, revenue is recognised in profit or loss as follows:

(i) Dividends

Dividend income from listed investments is recognised when the share price of the investment goes ex-dividend. Dividends from other investments are recognised in profit or loss as dividend income when

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declared. In some cases, the Fund may choose to receive dividends in the form of additional shares rather than cash. In such cases, the Fund recognises the dividend income for the amount of the equivalent cash dividend with the corresponding debit treated as an additional investment.

(ii) Interest income

Interest income is recognised in profit or loss as it accrues, using the effective interest rate method. Interest income on bank deposits is disclosed separately on the face of profit or loss. Interest income on debt securities is included in net gains or losses from financial instruments at fair value through profit or loss.

(g) Expenses

All expenses are recognised in profit or loss on an accrual basis.

(h) Foreign exchange gains and losses

Foreign exchange gains and losses on financial assets and financial liabilities at fair value through profit or loss are recognised together with other changes in the fair value. Included in profit or loss line item Net foreign exchange gain/(loss) are net of foreign exchange gains and losses on monetary financial assets and financial liabilities other than those classified as fair value through profit or loss.

(i) Related parties

(a) A person, or a close member of that person’s family, is related to the Fund if that person:

(i) has control or joint control over the Fund;

(ii) has significant influence over the Fund; or

(iii) is a member of the key management personnel of the Fund.

(b) An entity is related to the Fund if any of the following conditions applies:

(i) The entity and the Fund are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others).

(ii) One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member).

(iii) Both entities are joint ventures of the same third party.

(iv) One entity is a joint venture of a third entity and the other entity is an associate of the third entity.

(v) The entity is a post-employment benefit plan for the benefit of employees of an entity related to the Fund.

(vi) The entity is controlled or jointly controlled by a person identified in (a).

(vii) A person identified in (a)(i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity).

(viii) The entity, or any member of a group of which it is a part, provides key management personnel services to the Fund.

Close members of the family of a person are those family members who may be expected to influence, or be influenced by, that person in their dealings with the entity.

(j) Subscriptions and redemptions

The Fund recognises unitholders’ subscriptions and allots units upon receipt of a valid subscription application and derecognises them upon receipt of a valid redemption application.

(k) Units in issue

The Fund classifies financial instruments issued as financial liabilities or equity instruments in accordance with the substance of the contractual terms of the instruments.

The Fund has multiple classes of redeemable units in issue “A” class, Provident class and Accumulation class. All the classes belong to the most subordinate class of financial instruments in the Fund and rank pari passu in all material respects and have the same terms and conditions other than different management fee rates and distribution rights. The redeemable units provide unitholders with the right to require redemption for cash at a value proportionate to the

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unitholders’ share in the Fund’s net assets at each daily redemption date, and also in the event of the Fund’s liquidation. The redeemable units are classified as financial liabilities and are measured at the present value of the redeemable amounts.

(l) Distributions to holders of redeemable units

Distributions to holders of redeemable units of “A” class, Provident class and Accumulation class classified as financial liabilities are recognised in profit or loss as finance cost when they are authorised and no longer at the discretion of the Fund.

For Provident class and Accumulation class of the Fund, all dividend income and interest arising is accumulated within the Fund and will not be distributed to the unitholders.

(m) Segment reporting

An operating segment is a component of the Fund that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Fund’s other components, whose operating results are reviewed regularly by the chief operating decision maker to make decisions about resources allocated to the segment and assess its performance, and for which discrete financial information is available. Segment results that are reported to the chief operating decision maker include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. The chief operating decision maker of the Fund is identified as the manager, HSBC Investment Funds (Hong Kong) Limited.

3 Net gains/(losses) from financial instruments at fair value through profit or loss

2017 2016HKD HKD

Net realised gains/(losses) 109,817,691 (15,363,429)Net unrealised gains/(losses) 200,109,868 (45,746,245)

309,927,559 (61,109,674)

4 Taxation

There are currently no taxes on income or gains under Cayman Islands law. Accordingly, no provision for Cayman Islands taxes is included in these financial statements.

No provision for Hong Kong profits tax has been made in the financial statements as the Fund is exempt from taxation under section 26A(1A) of the Hong Kong Inland Revenue Ordinance.

Dividend income received by the Fund may be subject to non recoverable withholding tax imposed in the country of origin. Dividend income is recorded gross of such taxes and the withholding tax is recognised in profit or loss as incurred.

Capital gains realised in certain jurisdictions may be subject to capital gains tax. Capital gains tax is charged to profit or loss on an accrual basis, using tax rates enacted or substantively enacted at the date of the statement of financial position.

Foreign Account Tax Compliance Act (“FATCA”)

On 18 March 2010, the Hiring Incentives to Restore Employment Act of 2010 added chapter 4 to Subtitle A (“Chapter 4”) of the US Internal Revenue Code (the “Code”). The provisions in Chapter 4 are commonly referred to as the Foreign Account Tax Compliance Act (“FATCA”). US Treasury regulations providing guidance on the due diligence, reporting, and withholding obligations under FATCA were passed and came into effect in January 2013 (“the Regulations”).

The Regulations require foreign financial institution (“FFI”) to provide the Internal Revenue Service (“IRS”) with information on certain U.S. persons invested in accounts outside of the U.S. and for certain non U.S. entities to provide information about any U.S. owners. The obligations of an FFI under FATCA may be modified by an Intergovernmental Agreement (“IGA”) between the US and the FFI’s country of organization. The Cayman Islands entered into a Model 1 IGA on 29 November 2013, which provides for reporting and enforcement by FFIs to be facilitated by local authorities. The Cayman Islands also entered into a similar IGA with the United Kingdom. Therefore, all Cayman Islands domiciled “financial institutions” are subject to domestic legislation and regulations that implement both the Foreign Account Tax Compliance Act (“US FATCA”) and its UK equivalent (“UK FATCA” and together, “FATCA”). The due diligence and reporting regimes introduced by the domestic legislation and regulations apply to all such financial institutions irrespective of whether they have US or UK based account holders and/or have US or UK assets or source income.

The Fund is a non-reporting financial institution and such is not required to register for a Global Intermediary Identification Number (“GIIN”) for US FATCA purposes.

17


Taxation in profit or loss represents:

2017 2016HKD HKD

Overseas withholding tax 6,256,877 6,264,198Capital gains tax 404,016 –

6,660,893 6,264,198

5 Financial assets and financial liabilities at fair value through profit or loss

2017 2016HKD HKD

Financial assets at fair value through profit or loss

Equities

Listed shares 1,595,713,856 1,608,057,390

Debt securities

Listed bonds 437,942,029 289,975,259Unlisted but quoted

certificates of deposit 118,397,758 –

556,339,787 289,975,259

Other investments

Listed unit trusts 12,215,663 13,112,992Unlisted unit trusts 50,119,114 208,961,810Foreign currency forward

contracts 1,565,058 –Rights – 82

63,899,835 222,074,884

2,215,953,478 2,120,107,533

2017 2016HKD HKD

Financial liabilities at fair value through profit or loss

Foreign currency forward contracts (2,981,115) (579,177)

2,212,972,363 2,119,528,356

Net investments, at cost 1,915,918,129 2,021,577,511Net unrealised appreciation in

value of investments 297,054,234 97,950,845

Net investments, at fair value 2,212,972,363 2,119,528,356

6 Amounts due from/(to) brokers

2017 2016HKD HKD

Balances due from brokers

Amounts receivable on sale of investments 35,389,281 15,743,730

Margin deposits 693,378 –

36,082,659 15,743,730

Balances due to brokers

Amounts payable on purchase of investments 14,362,881 16,211,195

7 Transactions with the Trustee, Manager and Connected Persons

The following is a summary of significant related party transactions or transactions entered into during the year between the Fund and the Trustee, the Manager and their Connected Persons. Connected Persons are those as defined in the Code on Unit Trusts and Mutual Funds issued by the SFC. All transactions during the year between the Fund and the Manager and its Connected Persons were entered into in the ordinary course of business and under normal commercial terms. To the best of the knowledge of the Trustee and the Manager, the Fund did not have any other transactions with Connected Persons except for those disclosed below.

18


(a) The Fund is managed by HSBC Investment Funds (Hong Kong) Limited (“the Manager”), which receives a management fee, payable monthly in arrears, equivalent to a percentage per annum of the net asset value of the Fund as follows:

For “A” class income units 1.50%For Provident class units 0.75%For Accumulation units 0.75%

In addition, the Manager, as the registrar’s agent, receives registrar’s fees per annum for each class of units and fees for various administrative functions performed on behalf of the Fund.

2017 2016HKD HKD

(i) Management fees for the year 20,272,467 19,214,120

(ii) Registrar’s fees and other administrative fees for the year 216,453 368,312

(iii) Management fees payable at year end 1,769,258 1,558,254

(iv) Registrar’s fees and other administrative fees payable at year end 61,250 61,250

(b) Bank accounts are maintained with members of the HSBC Group. The balances of these accounts amounted to $21,792,340 (2016: $177,713,640) at year end. Interest income arising from these accounts amounted to $44,877 (2016: $27). Bank overdraft in bank account maintained with members of the HSBC Group at year end was $10,827 (2016: $nil). Margin accounts are maintained with HSBC Bank Plc Futures Wholesale Trading Operations and Global Markets Operations, which is fellow subsidiary of the Manager within the HSBC Group. The balances of margin deposits amounted to $693,378 (2016: $nil) at year end.

(c) The trustee of the Fund is HSBC Trustee (Cayman) Limited (“the Trustee”), a fellow subsidiary of the Manager within the HSBC Group, which receives a monthly fee equivalent to 0.1% (2016: 0.1%) per annum of the net asset value of the Fund, subject to a minimum monthly fee of $10,000 (2016: $10,000). Effective from 1 July 2017, the Trustee receives a monthly fee equivalent to 0.07% per annum of the net asset value

of the Fund and charges the Fund financial reporting service fee of US$3,000 per set of financial statements. During the year, the Trustee rebated trustee’s fee to the sub-funds (2016: $nil).

In addition, the Trustee provides valuation services to the Fund in return for a daily fee of $580 (2016: $580). Effective from 1 July 2017, the daily valuation service fee is US$100 for each valuation per share class. Also, the Trustee provides services in connection with purchases and sales transactions, for which the Trustee receives a transaction fee of $400 (2016: $400) for each trade handled. This transaction fee was waived with effect from 19 November 2015. No rebate was made with regards to valuation fees paid to the Trustee.

2017 2016HKD HKD

(i) Trustee’s fees for the year 2,602,360 2,178,855

(ii) Trustee’s fees payable at year end 187,999 28,979

(iii) Transaction fees for the year – 326,400

(iv) Rebate of trustee’s fees 1,673,704 –

(d) The custodian of the Fund is HSBC Trustee (Cayman) Limited, a fellow subsidiary of the Manager within the HSBC Group, which receives a monthly fee equivalent to 2.5 – 30 (2016: 2.5 – 30) basis points based on sub-custodian value of the securities. The custodian also receives a transaction fee of US$10 – 175 (2016: US$10 – 175) for each trade handled. During the year, the Trustee rebated safe custody fees and safe custody transaction fees to the Fund (2016: $nil).

19


2017 2016HKD HKD

(i) Safe custody fees for the year 628,143 639,120

(ii) Safe custody fees payable at year end 38,651 51,932

(iii) Safe custody transaction fees for the year 923,866 561,443

(iv) Safe custody transaction fees payable at year end 168,761 31,273

(v) Rebate of safe custody fees 1,484,568 –

(vi) Rebate of safe custody transaction fees 1,801,872 –

(e) In its purchases and sales of investments, the Fund utilises the brokerage services of HSBC Investment Funds (Hong Kong) Limited, The Hongkong and Shanghai Banking Corporation Limited, HSBC Bank plc, HSBC Markets Limited and HSBC Global Asset Management (UK) Limited, which are members of the HSBC Group. Details of transactions effected through these companies are as follows:

HSBCInvestment Funds

(Hong Kong) Limited

The Hongkong and Shanghai Banking

Corporation Limited2017 2016 2017 2016HKD HKD HKD HKD

Commission paid for the year - - - -

Average rate of commission - - - -Total aggregate value of such

transactions for the year 218,099,000 40,000,000 96,057,161 16,071,153Percentage of such

transactions in value to total transactions for the year 7.39% 1.61% 3.25% 0.65%

HSBC Bank plcHSBC

Markets Limited2017 2016 2017 2016HKD HKD HKD HKD

Commission paid for the year 4,694 4 – –

Average rate of commission 0.01% 0.00% – –

Total aggregate value of such transactions for the year 73,646,393 56,477,483 2,390,068 11,891,149

Percentage of such transactions in value to total transactions for the year 2.49% 2.27% 0.08% 0.48%

HSBC Global AssetManagement (UK) Limited

2017 2016HKD HKD

Commission paid for the year – –

Average rate of commission – –

Total aggregate value of such transactions for the year 102,063,454 40,387,368

Percentage of such transactions in value to total transactions for the year 3.46% 1.62%

The figures for commission paid do not include any trading margin which may be reflected in the market price of transactions with these entities on any transactions by the Fund during the year.

(f) The Fund has invested in equities issued by entities within the HSBC Group during the years ended 31 July 2017 and 2016. The details of the market value of these investments and dividend income earned for the year are as follows:

HSBC Holdings plc Hang Seng Bank Limited2017 2016 2017 2016HKD HKD HKD HKD

Market value 60,228,973 54,255,036 5,051,720 5,154,416Dividend income 3,569,999 3,748,112 208,809 353,469

20


As at 31 July 2017, the Fund also held investments in HSBC Index Tracker Investment Fund – Japan Index Fund, which is managed by the fellow subsidiaries of the Manager within the HSBC Group. As at 31 July 2016, the Fund also held investments in HSBC Global Investment Fund – Indian Equity Fund, HSBC Index Tracker Investment Fund – Japan Index Fund, HSBC Index Tracker Investment Fund – Pacific Index Fund and HSBC Pooled Investment Fund HSBC Pooled Asian Bond Fund, which are managed by the fellow subsidiaries of the Manager within the HSBC Group. The market value of the investment at year end was $50,119,114 (2016: $208,961,810).

(g) HSBC Life (International) Limited, a fellow subsidiary of the Manager and the Trustee within the HSBC Group, receives a quarterly administrative fee equivalent to 0.7% (2016: 0.7%) per annum of the net asset value of Accumulation units in return for providing certain management services to holders of Accumulation units.

2017 2016HKD HKD

(i) Administrative fees for the year 642,487 843,090

(ii) Administrative fees payable at year end 59,826 49,638

(h) During the year, the Fund has entered into foreign currency forward contracts with The Hongkong and Shanghai Banking Corporation Limited. The details of the outstanding forward foreign exchange contracts as at year end are as follows:

2017 2016HKD HKD

Payable on forward contracts – 579,177

8 Soft commission arrangements

No soft commission arrangements were entered into with brokers by the Fund during the year.

9 Units issued and redeemed

(a) “A” class income units

2017 2016

Number of units in issue brought forward 14,042,727 14,935,630

Units issued during the year 752,904 657,921Units redeemed during the year (1,185,951) (1,550,824)

Number of units in issue carried forward 13,609,680 14,042,727

(b) Provident class units

2017 2016


Units issued during the year 4,066,421 7,175,390Units redeemed during the year (13,483,710) (6,506,550)


(c) Accumulation units

2017 2016


Units issued during the year 383,091 451,730Units redeemed during the year (515,885) (731,816)


(d) The capital of the Fund is represented by the net assets attributable to unitholders which are subject to subscriptions and redemptions of units. The Fund does not have any externally imposed capital requirements.

Units may be acquired and redeemed on any valuation date at the unit value determined on that day. The valuation date is every business day, which is also a day on which banks in China are normally open for business, or such other day(s) as the Manager may determine. The minimum initial investment amount for the Fund is $10,000 for “A” Class Units, with subsequent minimum investments of no less than $10,000. No minimum initial and subsequent investment amounts apply to Accumulation Units and Provident Class Units.

21


Units may be redeemed on any valuation date, at the redemption price applicable as at the close of business in Hong Kong on such day. The minimum amount which can be redeemed at any one time is $10,000 for “A” Class Units. No minimum redemption amounts apply to Accumulation Units and Provident Class Units. A unitholder may not make a partial redemption if this would result in his holding being less than the minimum holding of $10,000 for “A” Class Units. No minimum holding applies to Accumulation Units and Provident Class Units.

10 Income equalisation

Income portion of received and receivable on issue of units or paid and payable on redemption of units is calculated based on the portion of the unit price related to undistributed accumulated net investment income and accumulated expenses of the unit at the date of issue or redemption.

11 Distributions

2017 2016HKD HKD

“A” class income unit

(a) Distributions attributable to the year

Distributions declared of $0.254703 per unit on 13,609,680 units as at 28 July 2017 (2016: $0.140000 per unit on 14,042,727 units as at 29 July 2016) 3,466,426 1,965,982

(b) Distributions attributable to the previous financial year and paid during the year

Distributions declared during the previous financial year and paid during the year of $0.140000 per unit on 14,042,727 units as at 29 July 2016 (2016: $0.010000 per unit on 14,936,069 units as at 30 July 2015) 1,965,982 149,361

12 Financial instruments and associated risks

The Fund maintains an investment portfolio in a variety of listed and unlisted financial instruments as dictated by its investment management strategy. The investment objective of the Fund is to achieve steady long-term capital growth that will at least exceed Hong Kong inflation. The Fund’s investment portfolio comprises equities, debt securities, unit trusts, rights and forward contracts.

The Fund’s investing activities expose it to various types of risks that are associated with the financial instruments and markets in which it invests. The Manager and the Trustee have set out below the most important types of financial risks inherent in each type of financial instrument. The Manager and the Trustee would like to highlight that the following list of associated risks only sets out some of the risks but does not purport to constitute an exhaustive list of all the risks inherent in an investment in the Fund. Unitholders should note that additional information in respect of risks associated with financial instruments in the Fund can be found in the Fund’s offering document.

The nature and extent of the financial instruments outstanding at the date of the statement of financial position and the risk management policies employed by the Fund are discussed below.

(a) Price risk

Price risk is the risk that value of the instrument will fluctuate as a result of changes in market prices, whether caused by factors specific to an individual investment, its issuer or all factors affecting all instruments traded in the market.

The impact of a 15% (2016: 15%) increase in value of the investments at 31 July 2017, with all other variables held constant, is shown below. An equal change in the opposite direction would have reduced the net assets attributable to unitholders by an equal amount.

22


Marketexposures

Change innet assets ifinvestment

valueincreased

by 15%HKD HKD

As at 31 July 2017

Equities 1,595,713,856 239,357,078Unit trusts 62,334,777 9,350,217Rights – –

As at 31 July 2016

Equities 1,608,057,390 241,208,609Unit trusts 222,074,802 33,311,220Rights 82 12

(b) Interest rate risk

Interest rate risk arises from changes in interest rates which may affect the value of debt instruments and therefore result in potential gain or loss to the Fund. The Fund’s interest rate risk is managed on an ongoing basis by the Manager.

The following table indicates the period in which the interest bearing assets mature at the date of statement of financial position.

All amounts stated in ‘000

2017

1 yearor less

Over 1 yearto 5 years

Over5 years

Non interestbearing Total

HKD HKD HKD HKD HKD

Financial assets at fair value through profit or loss 183,868 137,482 234,990 1,659,613 2,215,953

Total interest bearing assets 183,868 137,482 234,990

2016

1 yearor less


Over5 years

Non-interest bearing Total

HKD HKD HKD HKD HKD

Financial assets at fair value through profit or loss 36,809 77,842 175,325 1,830,132 2,120,108


Interest rate sensitivity

At the date of the statement of financial position, assuming all other factors unchanged, it is estimated that an increase in interest rate of 100 basis points (2016: 50 basis points) would result in a decrease in the net assets attributable to the unitholders and the profit for the year by $30,976,368 (2016: $11,644,066); an equal change in the opposite direction would result in an increase in the net assets attributable to unitholders by an approximately equal amount.

(c) Currency risk

The Fund may invest in financial instruments and enter into transactions denominated in currencies other than its functional currency. Consequently, the Fund is exposed to risks that the exchange rate of its functional currency relative to other foreign currencies may change in a manner that has an adverse effect on the value of that portion of the Fund’s assets or liabilities denominated in currencies other than Hong Kong dollars.

The fluctuations in the rate of exchange between the currency in which the asset or liability is denominated and the functional currency could result in an appreciation or depreciation in the fair value of that asset or liability. The Manager may attempt to mitigate this risk by using financial derivative instruments. The Manager monitors the Fund’s currency exposures on an ongoing basis.

Currency sensitivity

At 31 July 2017, had the Hong Kong dollar (“HKD”) weakened by 5% (2016: 5%) in relation to respective currencies, with all other variables held constant, net assets attributable to unitholders would have increased while the profit for the year would have increased by the amounts shown below.

23


Net exposure

Change innet assets if

HKD weakenedby 5%

HKD HKD

As at 31 July 2017

CurrenciesArgentine peso 104,280 5,214Australian dollar 64,959,536 3,247,976Canadian dollar 31,095,573 1,554,779Chinese yuan 59,813 2,991Czech koruna 539,295 26,965Danish krone 10,201,190 510,060Euro 297,074,005 14,853,700Indian rupee 26,419,649 1,320,982Indonesian rupiah 7,821,072 391,054Japanese yen 260,391,824 13,019,591Malaysian ringgit 6,299,260 314,963Mexican peso 2,612,607 130,630New Taiwan dollar 30,673,717 1,533,686New Zealand dollar 946,000 47,300Norwegian krone 5,467,791 273,390Philippine peso 2,395,655 119,783Polish zloty 4,158,085 207,904Pound sterling 167,081,786 8,354,089Russian ruble 4,484,745 224,237Singapore dollar 11,948,854 597,443South African rand 789,012 39,451South Korean won 47,709,401 2,385,470Swedish krona 22,548,809 1,127,440Swiss franc 42,744,421 2,137,221Thai baht 8,119,781 405,989Turkish lira 3,281,553 164,078

Total 1,059,927,714 52,996,386

Net exposure


HKD weakenedby 5%

HKD HKD

As at 31 July 2016

CurrenciesArgentine peso 121,683 6,084Australian dollar 73,026,098 3,651,305Canadian dollar 27,225,159 1,361,258Danish krone 11,597,860 579,893Euro 248,564,489 12,428,224Indonesian rupiah 6,309,439 315,472Japanese yen 270,147,077 13,507,354Malaysian ringgit 8,682,210 434,111Mexican peso 2,008,812 100,441New Taiwan dollar 34,833,530 1,741,677New Zealand dollar 549,149 27,457Norwegian krone 6,760,637 338,032Polish zloty 3,352,188 167,609Pound sterling 162,827,012 8,141,351Philippines Peso 985,329 49,266Singapore dollar 12,458,924 622,946South African rand 750,535 37,527South Korean won 51,497,200 2,574,860Swedish krona 17,634,903 881,745Swiss franc 46,074,009 2,303,700Thai baht 6,983,281 349,164

Total 992,389,524 49,619,476

As the HKD is pegged to the United States dollar (“USD”), the Fund does not expect any significant movements in USD/HKD exchange rate. A 5% (2015: 5%) appreciation of the HKD against the above currencies would have resulted in an equal but opposite effect on the financial statements, on the basis that all other variables remain constant.

(d) Credit risk

(i) Analysis of credit policy and concentration of credit risk

Credit risk is the risk that a counterparty to a financial instrument will fail to discharge an obligation or commitment that it has entered into with the Fund. The Fund’s exposure to credit risk is monitored by the Manager on an ongoing basis.

24


At 31 July 2017 and 2016, all of the Fund’s financial assets were exposed to credit risk. These include investments and cash and cash equivalents placed with banks and the custodian.

At the date of the statement of financial position, the Fund invested in debt securities with the following credit quality expressed as a percentage of debt securities:

Rating (Moody’s/S&P/Fitch) % of debt securities

2017 2016Aaa/AAA/AAA 35.16 32.15Aa1/AA+/AA+ 6.12 8.79Aa2/AA/AA 5.71 9.30Aa3/AA-/AA- 0.13 0.25A1/A+/A+ 38.18 26.06A2/A/A 0.35 0.53A3/A-/A- 0.47 0.69Baa2/BBB/BBB 12.36 16.13Baa3/BBB-/BBB- 0.14 –NR 1.38 6.10

Total 100.00 100.00

Credit risk is managed by the reviewing and monitoring of the credit quality of debt instruments held by the Fund or the issuers of the debt instruments held by the Fund on an ongoing basis.

Credit risk arising from transactions with brokers relates to transactions awaiting settlement. Risk relating to unsettled transactions is considered small due to the short settlement period involved and the high credit quality of the brokers used.

A majority of the cash held by the Fund is deposited with the HSBC Group. Bankruptcy or insolvency of the bank may cause the Fund’s rights with respect to the cash held by the bank to be delayed or limited. The Manager monitors the credit rating and financial position of the bank on an ongoing basis.

Substantially all of the assets of the Fund are held by the custodian. Bankruptcy or insolvency of the custodian may cause the Fund’s rights with respect to securities held by the custodian to be delayed or limited. The custodian is a group company of the HSBC, for which the credit risk is considered insignificant.

The carrying amounts of financial assets best represent the maximum credit risk exposure at the date of statement of financial position.

As at 31 July 2017 and 2016, there were no significant concentrations of credit risk to counterparties except to the custodian.

(ii) Offsetting financial assets and financial liabilities

None of the financial assets and financial liabilities is offset in the statement of financial position.

At 31 July 2017, the disclosure set out in the table below include financial assets and financial liabilities that are subject to an enforceable master netting arrangement.

The enforceable master netting arrangements do not meet the criteria for offsetting in the statement of assets and liabilities. This is because they create a right of set-off of recognised amounts that is enforceable only following on event of default, insolvency or bankruptcy of the Fund or its counterparties. In addition, the Fund and its counterparties do not intend to settle on a net basis or to realise the assets and settle the liabilities simultaneously.

At 31 July 2016, no financial assets or financial liabilities were subject to enforceable master netting arrangements.

25


31 July 2017

Financial assets subject to enforceable master netting arrangements

Gross amounts of recognised

financial assets


financial liabilities

offset in the statement

of financial position

Net amounts of financial

assets presented in

the statement of financial

position

Amounts of financial

instruments (including non-cash collateral)

Cash collateral received Net amount

HKD HKD HKD HKD HKD HKD

Derivative financial instruments:– Forward foreign exchange

contracts– Counterparty A 1,565,058 – 1,565,058 (1,027,894) – 537,164– Counterparty B – – – – – –

Financial liabilities subject to enforceable master netting arrangements




financial assets offset

in the statement



liabilities presented in


position



Cash collateral pledged Net amount



contracts– Counterparty A (1,027,894) – (1,027,894) 1,027,894 – –– Counterparty B (1,953,221) – (1,953,221) – – (1,953,221)

The gross amounts of recognised financial assets and financial liabilities and their net amounts presented in the statement of financial position disclosed in the above tables have been measured in the statement of financial position at fair value.

The tables below reconcile the “Net amounts of financial assets and financial liabilities presented in the statement of financial position”, as set out above, to the line items presented in the statement of financial position.

Reconciliation to the net amounts of financial assets and financial liabilities presented in the statement of financial position.

26


31 July 2017

Financial assets

Net amounts

Carrying amount in statement


Financial assets not in scope of

offsetting disclosures

HKD HKD HKD

Financial assets at fair value through profit or loss:

– Forward foreign exchange contracts

– Counterparty A 1,565,058 1,565,058 –– Counterparty B – – –

Financial liabilities

Net amounts




not in scope of


HKD HKD HKD

Financial liabilities at fair value through profit or loss:


– Counterparty A (1,027,894) (1,027,894) –– Counterparty B (1,953,221) (1,953,221) –

(e) Liquidity risk

Liquidity risk is the risk that the Fund will encounter difficulty in meeting obligations arising from its financial liabilities that are settled by delivering cash or another financial asset, or that such obligations will have to be settled in a manner disadvantageous to the Fund. The Fund is exposed to daily liquidity risk on redemption of units.

The Fund’s policy is to regularly monitor current and expected liquidity requirements to ensure that it maintains sufficient reserves of cash and readily realisable marketable securities to meet its liquidity requirements in the short and longer term.

The Fund’s listed investments are considered to have insignificant exposure to liquidity risk as they are all readily realisable under normal market conditions. The Fund, however, also invests in unlisted investments such as unlisted bonds, unit trusts and rights which are not publicly traded on exchanges and may become illiquid.

As at 31 July 2016, the Fund’s financial liabilities are due within three months, except for redemptions payable, bank overdrafts and net asset attributable to unitholders which are repayable on demand.

(f) Capital management

The Fund’s capital as at the year end date is represented by its redeemable units, which is classified as financial liabilities.

The Fund’s objective in managing the capital is to ensure a stable and strong base to achieve long term capital growth, and to manage liquidity risk arising from the redemptions. The Manager manages the capital of the Fund in accordance with the Fund’s investment objectives and policies stated in the Fund’s Explanatory Memorandum.

There were no changes in the policies and procedures during the year with respect to the Fund’s approach to its capital management.

The amount and the movement of net assets attributable to unitholders are stated in the statement of changes in net assets attributable to unitholders. As the redeemable units are redeemed on demand at the unitholders’ option, the actual level of redemption may differ significantly from historical experience.

(g) Specific instruments

Rights

As at 31 July 2017, the Fund did not have holdings in rights.

As at 31 July 2016, the Fund’s holdings in rights translated into HKD were as specified in the following table.

As at 31 July 2016

Type of contract Expiration Underlying

Fair value assets

HKD

Rights July 2016 Iberdrola SA 38Rights July 2016 Zardoya Otis SA 44

82

27


Forward contracts

Forward contracts are commitments either to purchase or sell a designated financial instrument, currency, commodity or index at a specified future date for a specified price and may be settled in case or the underlying financial asset.

Forward contracts result in exposure to market risk based on changes in market prices relative to contracted prices. Market risks arise due to the possible movement in foreign currency exchange rates, indices, and securities’ values underlying these instruments. In addition because of the low margin deposits normally required in relation to notional contract sizes, a high degree of leverage may be typical of a forward contract and may result in substantial losses to the Fund. Forward contracts are generally subject to liquidity risk.

At 31 July 2017 and 2016, the Fund’s holdings in foreign currency forward contracts were as specified in the following tables.

As at 31 July 2017

Buy SellSettlement

dateFair value

assetsHKD

Fair value(liabilities)

HKD

GBP4,720,000 HKD47,037,538 11 August 2017 1,565,058 –HKD47,353,353 GBP4,720,000 11 August 2017 – (1,249,242)HKD23,686,758 JPY345,000,000 14 August 2017 – (703,979)

HKD8,156,274 EUR930,0001 September

2017 – (414,448)HKD24,156,090 JPY350,000,000 6 October 2017 – (613,446)

1,565,058 (2,981,115)

As at 31 July 2016

Buy SellSettlement

dateFair value

assetsHKD

Fair value(liabilities)

HKD

HKD20,420,287 JPY275,000,00030 September

2016 – (180,254)HKD15,544,155 JPY212,100,000 28 October 2016 – (398,923)

– (579,177)

13 Fair value information

The Fund’s financial instruments are measured at fair value on the date of the statement of financial position. Fair value estimates are made at a specified point in time, based on market conditions and information about the financial instruments. Usually, fair values can be reliably determined within a reasonable range of estimates. For certain other financial instruments, including interest and dividends receivable, subscriptions receivable, amounts due from brokers, cash and cash equivalents, bank overdrafts, redemptions payable, amounts due to brokers, distributions payable and other payables, the carrying amounts approximate fair values due to the intermediate or short term nature of these financial instruments.

Valuation of financial instruments

The Fund’s accounting policy on fair value measurements is detailed in significant accounting policy in note 2(e)(iv).

The Fund measures fair values using the following fair value hierarchy that reflects the significance of the inputs used in making the measurements.

– Level 1: Inputs that are quoted market prices (unadjusted) in active markets for identical instruments.

– Level 2: Inputs other than quoted prices included within Level 1 that are observable either directly (i.e. as prices) or indirectly (i.e. derived from prices). This category includes instruments valued using: quoted market prices in active markets for similar instruments; quoted prices for identical or similar instruments in markets that are considered less than active; or other valuation techniques in which all significant inputs are directly or indirectly observable from market data.

– Level 3: Inputs that are unobservable. This category includes all instruments for which the valuation technique includes inputs not based on observable data and the unobservable inputs have a significant effect on the instrument’s valuation. This category includes instruments that are valued based on quoted prices for similar instruments but for which significant unobservable adjustments or assumptions are required to reflect differences between the instruments.

28


When fair values of listed and quoted investments at the reporting date are based on quoted market prices or binding dealer price quotations in an active market, without any deduction for transactions costs, the instruments are included within Level 1 of the hierarchy. When fair values of debt securities at the reporting date represent quoted prices in markets that are considered less than active or consensus prices derived by third parties using valuation techniques where all significant inputs are directly or indirectly observable from market data, those debt securities are included within Level 2 of the hierarchy. For all other financial instruments, the Fund determines fair value using valuation techniques.

The Fund uses widely recognised valuation models for determining the fair value of the unit trusts which do not have quoted market prices in active markets. Valuation techniques include net present value, discounted cash flow models, comparison to similar instruments for which market observable prices exist, comparison to quoted prices for identical instruments that are considered less than active and other valuation models.

The following analyses financial assets at fair value through profit or loss at the date of the statement of financial position, by the level in the fair value hierarchy into which the fair value measurement is categorised.

Financial instruments at fair value through profit or loss

Level 1 Level 2 Level 3 TotalHKD HKD HKD HKD

31 July 2017

Financial assets

Equity securities 1,594,347,044 – 1,366,812 1,595,713,856Debt securities – 556,339,787 – 556,339,787Unit trusts 62,334,777 – – 62,334,777Forward contracts – 1,565,058 – 1,565,058Rights – – – –

1,656,681,821 557,904,845 1,366,812 2,215,953,478


Forward contracts – 2,981,115 – 2,981,115


31 July 2016

Financial assets

Equity securities 1,608,057,390 – – 1,608,057,390Debt securities – 289,975,259 – 289,975,259Unit trusts 222,074,802 – – 222,074,802Rights – 82 – 82

1,830,132,192 289,975,341 – 2,120,107,533


Forward contracts – 579,177 – 579,177

As of 31 July 2017, Level 3 financial instruments include Hanergy Thin Film Power Group Limited, Safeway PDC LCC CVR (Casa Ley) and Safeway PDC LCC CVR (PDC) and China Hongqiao Group Ltd. As of 31 July 2016, Level 3 financial instruments includes Hanergy Thin Film Power Group Limited, Safeway PDC LCC CVR (Casa Ley) and Safeway PDC LCC CVR (PDC).

For Hanergy Thin Film Power Group Limited, it has been suspended for trading and in these financial statements, it is revalued and priced based on relevant news and information and its value was written down to zero. For Safeway PDC LCC CVR (Casa Ley) and Safeway PDC LCC CVR (PDC), no observable input is available for these financial instruments since Safeway Inc. was acquired by AB Acquisition LLC in 2015. These financial instruments are valued at zero as at year end. For China Hongqiao Group Ltd., it has been suspended for trading in March 2017 and in these financial statements, it is revalued and priced using last traded price before suspension with the adjustment based on relevant news and information.

The table below presents the reconciliation from the beginning balances to the ending balances for fair value measurements in Level 3 of the fair value hierarchy.

29


As at1 August

2016

Net lossesincluded

in thestatement of

comprehensiveincome

HKDPurchase

HKD

Transfer in ofLevel 3

HKD

As at31 July 2017

HKD

* Unrealised gains HKD

Equities – – – 1,366,812 1,366,812 –

* The change in unrealised gains or losses for the year is included in the statement of comprehensive income for financial assets and financial liabilities held at the reporting date.

During the year ended 31 July 2016, there were no transfer of financial instruments between the fair value hierarchy levels.

Quantitative information of significant unobservable inputs – Level 3

The table below sets out information about significant unobservable inputs used at 31 July 2017 and 2016 in measuring financial instruments categorised as Level 3 in the fair value hierarchy.

Description

Fair value at31 July 2017

HKD


HKD

Valuationtechniques

Unobservableinput

Equities 1,366,812 Nil Provision onthe total cost

Discountprovision

The significant unobservable inputs used in the fair value measurement categorised within Level 3 of the fair value hierarchy together with a quantitative sensitivity analysis is as shown below:

Description Input

Change inthe relevant

input

Effect on thenet assets

attributable tounitholders

HKD

As at 31 July 2017Equities Discount provision 5%/(5)% (46,322)/239,980

As at 31 July 2016Equities Discount provision 5%/(5)% -/193,658

Valuation of financial instruments not measured at fair value

The financial instruments not measured at fair value through profit or loss are short-term financial assets and financial liabilities whose carrying amounts approximate fair value.

The following table sets out the fair values of financial instruments not measured at fair value and analyses it by the level in the fair value hierarchy into which each fair value measurement is categorised.

31 July 2017


Financial assets

Interest and dividends receivable - 8,408,052 - 8,408,052

Subscriptions receivable - 4,980,056 - 4,980,056

Amounts due from brokers - 36,082,659 - 36,082,659

Cash and cash equivalents - 64,748,165 - 64,748,165

- 114,218,932 - 114,218,932


Bank overdrafts - 10,827 - 10,827Redemptions

payable - 5,371,367 - 5,371,367Amounts due to

brokers - 14,362,881 - 14,362,881Distributions

payable - 3,466,426 - 3,466,426Other payables - 4,474,839 - 4,474,839Net assets

attributable to unitholders - 2,299,504,955 - 2,299,504,955

- 2,327,191,295 - 2,327,191,295

30


31 July 2016


Financial assets

Interest and dividends receivable – 6,449,882 – 6,449,882

Subscriptions receivable – 14,419,050 – 14,419,050

Amounts due from brokers – 15,743,730 – 15,743,730

Cash and cash equivalents – 177,713,640 – 177,713,640

– 214,326,302 – 214,326,302


Redemptions payable – 4,706,051 – 4,706,051

Amounts due to brokers – 16,211,195 – 16,211,195

Distributions payable – 1,965,982 – 1,965,982

Other payables – 3,847,720 – 3,847,720Net assets

attributable to unitholders – 2,307,123,710 – 2,307,123,710

– 2,333,854,658 – 2,333,854,658

14 Segment information

The Manager makes the strategic resource allocation on behalf of the Fund and determines the operating segments based on the internal reporting used to make strategic decisions.

The Manager’s asset allocation decisions are based on one single and integrated investment strategy, and the Fund’s performance is evaluated on an overall basis. Accordingly the Manager considers that the Fund has one single operating segment which is investing in a portfolio of financial instruments to generate investment returns in accordance with the investment objective stipulated in its Explanatory Memorandum. There were no changes in the operating segment during the year.

All revenues and losses generated from investments by the Fund are disclosed in note 3. The segment information provided to the Manager is the same as that disclosed in the statement of comprehensive income and the statement of financial position.

15 Involvement with unconsolidated structured entities

The Fund has concluded that the listed and unlisted investment funds in which it invests, but that it does not consolidate, meet the definition of structured entities because:

– the voting rights in the funds are not dominant rights in deciding who controls them as they relate to administrative tasks only;

– each fund’s activities are restricted by its prospectus; and

– the funds have narrow and well defined objectives to provide investment opportunities to investors.

The table below describes the types of structured entities that the Fund does not consolidate but in which it holds an interest.

Type of structured entity

Nature andpurpose

Interest held by the Fund

Investment funds To manage assets on behalf of third party

investors and generate fees for the investment manager

These vehicles are financed through the

issue of units to investors

Investment in units issued by the funds

The table below sets out interests held by the Fund in unconsolidated structured entities. The maximum exposure to loss is the carrying amount of the financial assets held.

31


31 July 2017

Number ofinvestee funds

Total net assets(based onunaudited

information)

Carrying amountincluded in

“Financial assetsof fair value

through profitor loss”

HKD HKD

Listed investment funds 11 1,929,641,000,000 12,215,663

Unlisted investment funds 1 11,224,000,000 50,119,114

31 July 2016


Total net assets(based onunaudited

information)

Carrying amount included in

“Financial assets of fair value

throughprofit or loss”

HKD HKD


Unlisted investment funds 4 1,134,496,000,000 208,961,810

During the year, the Fund did not provide financial support to unconsolidated structured entities and has no intention of providing financial or other support.

The Fund can redeem units in the above investment funds on any respective dealing day.

16 Cash and cash equivalents

2017HKD

2016HKD

Cash at bank 64,748,165 177,713,640Bank overdrafts (10,827) –

Cash and cash equivalents in the cash flow statement 64,737,338 177,713,640

17 Possible impact of amendments, new standards and interpretations issued but not yet effective for the annual accounting year ended 31 July 2017

Up to the date of issue of these financial statements, the HKICPA has issued a few amendments and new standards which are not yet effective for the year ended 31 July 2017 and which have not been adopted in these financial statements. These include the following which may be relevant to the Fund:

Effective for accounting periods beginning on or after

Amendments to HKAS 7, Statement of cash flows: Disclosure initiative 1 January 2017

HKFRS 9, Financial instruments 1 January 2018

The Fund is in the process of making an assessment of what the impact of these amendments is expected to be in the period of initial application. So far it has concluded that the adoption of them is unlikely to have a significant impact on the Fund’s results of operations and financial position.

32

Portfolio Statement (Unaudited)


HoldingsMarket

value

% ofnet

assetvalue

HKD

EquitiesListed investments

AustraliaADELAIDE BRIGHTON LTD 25,517 894,167 0.04ANSELL LTD 6,814 933,437 0.04ANZ BANKING GROUP LTD 20,948 3,870,142 0.17APA GROUP 9,399 505,175 0.02ARISTOCRAT LEISURE LTD 5,054 638,136 0.03ASX LTD 4,196 1,368,327 0.06AURIZON HOLDINGS LTD 37,802 1,183,236 0.05AUSNET SERVICES LTD 101,397 1,033,703 0.04BHP BILLITON LTD 21,108 3,402,204 0.15CALTEX AUSTRALIA LTD 2,600 504,829 0.02COCHLEAR LTD 520 463,166 0.02COMMONWEALTH BANK OF

AUSTRALIA 12,880 6,724,340 0.29CSL LTD 3,211 2,522,688 0.11CSR LTD 12,986 317,405 0.01DULUXGROUP LTD 22,104 908,257 0.04FLIGHT CENTRE TRAVEL GROUP LTD 2,409 653,399 0.03FORTESCUE METALS GROUP LTD 35,762 1,279,930 0.06IOOF HOLDINGS LTD 18,103 1,134,408 0.05MACQUARIE ATLAS ROADS GROUP 16,828 583,391 0.03MACQUARIE GROUP LTD 2,390 1,279,056 0.06MAGELLAN FINANCIAL GROUP LTD 3,662 603,031 0.03MEDIBANK PRIVATE LTD 29,787 505,183 0.02METCASH LTD 31,050 507,242 0.02NATIONAL AUSTRALIA BANK LTD 17,979 3,357,492 0.15NEWCREST MINING LTD 6,884 867,052 0.04ORIGIN ENERGY LTD 15,800 681,735 0.03OZ MINERALS LTD 26,351 1,370,301 0.06PERPETUAL LTD 3,146 990,218 0.04PLATINUM INVESTMENT

MANAGEMENT LTD 26,601 907,273 0.04QANTAS AIRWAYS LTD 33,694 1,117,679 0.05QBE INSURANCE GROUP LTD 10,132 748,628 0.03RAMSAY HEALTH CARE LTD 1,514 666,285 0.03RIO TINTO LTD 3,245 1,331,151 0.06SONIC HEALTHCARE LTD 9,218 1,281,148 0.06SOUTH32 LTD 43,572 790,593 0.03SUNCORP GROUP LTD 6,300 561,339 0.02TABCORP HOLDINGS LTD 29,872 778,562 0.03TELSTRA CORP LTD 49,962 1,277,251 0.06

HoldingsMarket

value

% ofnet

assetvalue

HKD

WESFARMERS LTD 6,437 1,634,747 0.07WESTPAC BANKING CORP 25,530 5,065,283 0.22WOODSIDE PETROLEUM LTD 8,177 1,487,247 0.06

56,728,836 2.47

AustriaANDRITZ AG 1,272 606,371 0.03ERSTEGROUPBANK AG 4,020 1,299,846 0.06TELEKOMAUSTRIA AG 14,704 1,033,484 0.04VIENNA INSURANCE GROUP AG

WIENER VERSICHERUNG GRUPPE 4,422 1,037,508 0.04VOESTALPINE AG 3,380 1,333,958 0.06

5,311,167 0.23

BelgiumANHEUSER BUSCH INBEV NV 2,395 2,245,052 0.10BPOST SA 3,404 725,471 0.03ETABLISSEMENTEN FRANZ

COLRUYT NV 1,571 685,400 0.03KBC GROEP NV 2,480 1,598,538 0.07PROXIMUS SA 3,156 862,966 0.04SOFINA SA 322 373,001 0.01

6,490,428 0.28

CanadaARC RESOURCES LTD 6,913 742,165 0.03BANK OF MONTREAL 1,357 801,393 0.04BANK OF NOVA SCOTIA 2,076 1,007,022 0.04BCE INC 2,663 973,271 0.04BROOKFIELD ASSET MANAGEMENT

INC 1,902 575,998 0.03CANADIAN IMPERIAL BANK OF

COMMERCE 1,502 1,015,163 0.04CANADIAN NATIONAL RAILWAY CO 1,271 782,039 0.03CANADIAN NATURAL RESOURCES

LTD 2,880 685,832 0.03CANADIAN UTILITIES LTD CLASS A 3,156 779,940 0.03CENOVUS ENERGY INC 8,768 573,331 0.03CI FINANCIAL CORP 2,867 486,313 0.02CRESCENT POINT ENERGY CORP 8,900 544,721 0.02ENBRIDGE INC 2,059 664,565 0.03

33



HoldingsMarket

value

% ofnet

assetvalue

HKD


GREAT-WEST LIFECO INC 2,300 511,084 0.02IMPERIAL OIL LTD 2,942 657,418 0.03INTER PIPELINE LTD 4,451 684,390 0.03METRO INC 3,235 853,206 0.04POTASH CORPORATION OF

SASKATCHEWAN INC 5,804 808,333 0.04POWER CORPORATION OF CANADA 4,086 773,724 0.03ROGERS COMMUNICATIONS INC

CLASS B 2,495 1,010,194 0.04ROYAL BANK OF CANADA 2,681 1,557,345 0.07SHAW COMMUNICATIONS INC 3,454 598,825 0.03SUNCOR ENERGY INC 3,419 868,424 0.04TECK RESOURCES LTD 5,999 1,013,830 0.04TORONTO-DOMINION BANK 3,316 1,331,009 0.06TOURMALINE OIL CORP 4,018 693,846 0.03TRANSCANADA CORP 3,431 1,364,955 0.06TRISURA GROUP LTD 9 1,444 0.00TURQUOISE HILL RESOURCES LTD 32,239 825,513 0.04WASTE CONNECTIONS INC 1,200 609,004 0.03

23,794,297 1.04

Czech RepublicMONETA MONEY BANK AS 19,229 539,295 0.02

DenmarkCOLOPLAST A/S 1,486 993,584 0.04DANSKE BANK A/S 3,827 1,205,974 0.05ISS A/S 3,388 1,081,060 0.05NOVO NORDISK A/S 6,571 2,181,324 0.10PANDORA A/S 580 519,228 0.02TRYG A/S 4,262 747,782 0.03VESTAS WIND SYSTEMS A/S 1,091 829,440 0.04

7,558,392 0.33

FinlandFORTUM OYJ 7,155 910,523 0.04KONE OYJ-B 2,788 1,129,841 0.05METSO OYJ 3,280 811,851 0.03

HoldingsMarket

value

% ofnet

assetvalue

HKD

NESTE OYJ 3,012 1,015,933 0.04NOKIA OYJ 29,196 1,446,368 0.06NOKIAN RENKAAT OYJ 3,421 1,086,159 0.05ORION OYJ CLASS B 2,661 1,047,010 0.05UPM-KYMMENE OYJ 5,275 1,117,667 0.05WARTSILA ABP OYJ 1,310 677,321 0.03

9,242,673 0.40

FranceAIR LIQUIDE SA 808 771,549 0.03AIRBUS GROUP SE 1,176 764,514 0.03ALSTOM SA 2,200 613,513 0.03ARKEMA SA 1,324 1,172,589 0.05ATOS SE 420 496,771 0.02AXA SA 4,605 1,058,394 0.05BIOMERIEUX SA 750 1,286,266 0.06BNP PARIBAS SA 3,407 2,057,077 0.09BOUYGUES SA 3,222 1,075,343 0.05CARREFOUR SA 5,349 1,000,112 0.04CNP ASSURANCES SA 6,668 1,252,561 0.05COMPAGNIE DE SAINT-GOBAIN 3,495 1,509,039 0.07CREDIT AGRICOLE SA 5,153 704,628 0.03DANONE SA 1,944 1,129,354 0.05ELECTRICITE DE FRANCE SA 12,784 1,009,072 0.04ENGIE SA 1,743 218,358 0.01ESSILOR INTERNATIONAL SA 927 914,202 0.04EURAZEO SA 206 130,790 0.01FAURECIA SA 344 148,656 0.01INGENICO GROUP SA 677 552,451 0.02LEGRAND SA 1,288 692,631 0.03L’OREAL SA 921 1,484,974 0.06LVMH MOET HENNESSY LOUIS

VUITTON SE 559 1,094,845 0.05MICHELIN (CIE GENERALE DES

ETABLISSEMENTS) 1,513 1,593,119 0.07ORANGE SA 8,798 1,152,011 0.05PEUGEOT SA 6,225 1,042,380 0.05PUBLICIS GROUPE SA 996 586,140 0.03RENAULT SA 722 506,334 0.02SAFRAN SA 2,325 1,711,220 0.07SANOFI SA 4,136 3,074,220 0.13SARTORIUS STEDIM BIOTECH SA 1,000 554,516 0.02

34



HoldingsMarket

value

% ofnet

assetvalue

HKD


SCHNEIDER ELECTRIC SE 2,402 1,467,530 0.06SCOR SE 1,805 591,948 0.03SEB SA 1,083 1,499,357 0.07SOCIETE BIC SA 836 762,644 0.03SOCIETE GENERALE DE PARIS SA 4,319 1,972,596 0.09TECHNIPFMC PLC 4,601 1,022,522 0.04THALES SA 1,563 1,346,981 0.06TOTAL SA 9,310 3,682,876 0.16VALEO SA 2,666 1,437,097 0.06VINCI SA 2,792 1,947,215 0.09

47,088,395 2.05

GermanyADIDAS AG 889 1,579,910 0.07ALLIANZ SE 1,425 2,365,267 0.10BASF SE 3,862 2,865,937 0.12BAYER AG 3,485 3,436,632 0.15BAYERISCHE MOTOREN WERKE AG 1,555 1,112,706 0.05BEIERSDORF AG 1,370 1,176,152 0.05BRENNTAG AG 717 318,414 0.01CECONOMY AG 4,008 350,647 0.02CONTINENTAL AG 536 940,227 0.04COVESTRO AG 1,687 1,019,353 0.04DAIMLER AG 4,272 2,336,596 0.10DEUTSCHE BOERSE AG 914 751,152 0.03DEUTSCHE LUFTHANSA AG 6,740 1,127,996 0.05DEUTSCHE POST AG 4,320 1,304,760 0.06DEUTSCHE TELEKOM AG 12,477 1,774,481 0.08DEUTSCHE WOHNEN AG 1,779 548,529 0.02EVONIK INDUSTRIES AG 3,880 1,028,957 0.05FIELMANN AG 1,482 926,325 0.04FRAPORT FRANKFURT AIRPORT

SERVICES WORLDWIDE AG 1,645 1,281,776 0.06FRESENIUS MEDICAL CARE AG & CO

KGAA 1,837 1,349,680 0.06FUCHS PETROLUB SE 1,471 602,830 0.03FUCHS PETROLUB SE PREFERENCE

SHARES 2,363 1,092,297 0.05GEA GROUP AG 3,250 1,020,495 0.04HANNOVER RUECK SE 1,185 1,164,276 0.05

HoldingsMarket

value

% ofnet

assetvalue

HKD

HEIDELBERGCEMENT AG 700 540,280 0.02HELLA KGAA HUECK & CO 206 84,791 0.00HENKEL AG & CO KGAA

PREFERENCE SHARES 1,236 1,362,910 0.06HUGO BOSS AG 1,000 585,870 0.03INFINEON TECHNOLOGIES AG 9,920 1,679,378 0.07KION GROUP AG 303 204,596 0.01LINDE AG 841 1,251,891 0.05MERCK KGAA 604 516,407 0.02METRO WHOLESALE & FOOD

SPECIALIST AG 4,008 629,806 0.03MUENCHENER

RUECKVERSICHERUNGS-GESELLSCHAFT AG 808 1,347,048 0.06

OSRAM LICHT AG 2,193 1,423,844 0.06PORSCHE AUTOMOBIL HOLDING SE 1,081 481,626 0.02PROSIEBENSAT.1 MEDIA SE 2,672 832,853 0.04SAP SE 3,417 2,821,719 0.12SIEMENS AG 2,511 2,651,620 0.12SUEDZUCKER AG 1,700 283,335 0.01TALANX AG 2,887 926,850 0.04TELEFONICA DEUTSCHLAND

HOLDING AG 18,464 740,265 0.03UNITED INTERNET AG 2,460 1,166,356 0.05VOLKSWAGEN AG PREFERENCE

SHARES 487 583,417 0.03VONOVIA SE 2,226 702,138 0.03

52,292,395 2.27

GreeceMOTOR OIL HELLAS CORINTH

REFINERIES SA 4,960 870,061 0.04

Hong KongAAC TECHNOLOGIES HOLDINGS INC 26,919 2,829,187 0.12AGILE PROPERTY HOLDINGS LTD 200,794 1,867,384 0.08AGRICULTURAL BANK OF CHINA LTD

H SHARES 976,291 3,563,462 0.16AIA GROUP LTD 483,638 29,767,919 1.29AIR CHINA LTD H SHARES 140,000 988,400 0.04ALUMINUM CORP OF CHINA LTD 170,000 833,000 0.04

35



HoldingsMarket

value

% ofnet

assetvalue

HKD


ANHUI CONCH CEMENT CO LTD H SHARES 62,806 1,815,093 0.08

ANHUI EXPRESSWAY CO LTD 76,000 448,400 0.02ANTA SPORTS PRODUCTS LTD 39,634 1,062,191 0.05ASM PACIFIC TECHNOLOGY LTD 7,800 789,360 0.03AVICHINA INDUSTRY &

TECHNOLOGY CO LTD 118,000 565,220 0.02BAIC MOTOR CORP LTD 61,500 432,345 0.02BANK OF CHINA LTD H SHARES 3,091,023 11,900,439 0.52BANK OF COMMUNICATIONS CO

LTD H SHARES 304,417 1,762,574 0.08BANK OF EAST ASIA LTD 67,994 2,274,399 0.10BEIJING CAPITAL INTERNATIONAL

AIRPORT CO LTD H SHARES 67,659 832,206 0.04BEIJING JINGNENG CLEAN ENERGY

CO LTD 398,000 899,480 0.04BOC AVIATION LTD 21,800 885,080 0.04BOC HONG KONG HOLDINGS LTD 142,392 5,474,972 0.24BRILLIANCE CHINA AUTOMOTIVE

HOLDINGS LTD 55,739 1,102,517 0.05BYD CO LTD 26,500 1,290,550 0.06CAFE DE CORAL HOLDINGS LTD 18,000 452,700 0.02CGN POWER CO LTD H SHARES 303,444 649,370 0.03CHEUNG KONG PROPERTY

HOLDINGS LTD 124,003 7,843,190 0.34CHINA BLUECHEMICAL LTD 304,000 668,800 0.03CHINA CINDA ASSET MANAGEMENT

CO LTD H SHARES 628,595 2,042,934 0.09CHINA CITIC BANK CORP LTD H

SHARES 322,251 1,633,813 0.07CHINA COMMUNICATIONS

CONSTRUCTION CO LTD H SHARES 153,726 1,601,825 0.07

CHINA COMMUNICATIONS SERVI H SHARES 114,000 484,500 0.02

CHINA CONCH VENTURE HOLDINGS LTD 106,910 1,552,333 0.07

CHINA CONSTRUCTION BANK CORP H SHARES 3,587,323 23,317,599 1.01

CHINA DONGXIANG (GROUP) CO LTD 370,000 536,500 0.02

HoldingsMarket

value

% ofnet

assetvalue

HKD

CHINA EVERBRIGHT BANK CO LTD H SHARES 157,937 598,581 0.03

CHINA EVERGRANDE GROUP 55,820 1,214,085 0.05CHINA GALAXY SECURITIES CO H

SHARES 263,473 1,815,329 0.08CHINA GAS HOLDINGS LTD 73,948 1,397,617 0.06CHINA HONGQIAO GROUP LTD 193,874 1,366,812 0.06CHINA LIFE INSURANCE CO LTD H

SHARES 301,718 7,467,520 0.32CHINA MACHINERY ENGINEERING

CORP 104,000 549,120 0.02CHINA MENGNIU DAIRY CO LTD 84,116 1,280,246 0.06CHINA MERCHANTS BANK CO LTD H

SHARES 146,388 3,762,172 0.16CHINA MERCHANTS HOLDINGS

INTERNATIONAL CO LTD 21,562 529,347 0.02CHINA MINSHENG BANKING CORP

LTD H SHARES 255,554 2,008,654 0.09CHINA MINSHENG FINANCIAL

HOLDING CORP LTD 1,813,100 834,026 0.04CHINA MOBILE LTD 213,027 17,841,011 0.78CHINA NATIONAL BUILDING

MATERIAL CO LTD 138,000 658,260 0.03CHINA NATIONAL MATERIALS CO

LTD 396,000 1,255,320 0.05CHINA OVERSEAS LAND &

INVESTMENT LTD 148,731 3,941,371 0.17CHINA PACIFIC INSURANCE GROUP

CO LTD H SHARES 130,132 4,489,554 0.20CHINA PETROLEUM & CHEMICAL

CORP H SHARES 974,560 5,779,141 0.25CHINA POWER INTERNATIONAL

DEVELOPMENT LTD 255,000 683,400 0.03CHINA RAILWAY CONSTRUCTION

CORP H SHARES 133,221 1,374,841 0.06CHINA RAILWAY GROUP LTD H

SHARES 183,079 1,138,751 0.05CHINA RAILWAY SIGNAL &

COMMUNICATION CORP LTD 76,000 464,360 0.02CHINA RESOURCES BEER HOLDINGS

CO LTD 42,667 842,247 0.04CHINA RESOURCES GAS GROUP LTD 32,000 947,200 0.04CHINA RESOURCES LAND LTD 93,677 2,351,293 0.10

36



HoldingsMarket

value

% ofnet

assetvalue

HKD


CHINA RESOURCES POWER HOLDINGS CO LTD 100,557 1,498,299 0.07

CHINA SHENHUA ENERGY CO LTD H SHARES 127,968 2,490,257 0.11

CHINA SOUTH CITY HOLDINGS LTD 264,000 448,800 0.02CHINA SOUTHERN AIRLINES CO LTD

H SHARES 125,349 747,080 0.03CHINA STATE CONSTRUCTION

INTERNATIONAL HOLDINGS LTD 119,301 1,505,579 0.07CHINA TAIPING INSURANCE

HOLDINGS CO LTD 89,659 2,106,987 0.09CHINA TELECOM CORP LTD H

SHARES 648,934 2,414,034 0.10CHINA TRAVEL INTERNATIONAL

INVESTMENT HONG KONG LTD 440,000 1,020,800 0.04CHINA UNICOM HONG KONG LTD 209,227 2,372,634 0.10CHINA VANKE CO LTD H SHARES 62,451 1,439,496 0.06CHINA ZHONGWANG HOLDINGS LTD 270,712 1,053,070 0.05CHONGQING RURAL COMMERCIAL

BANK CO LTD H SHARES 264,709 1,524,724 0.07CHOW TAI FOOK JEWELLERY GROUP

LTD 52,600 426,586 0.02CITIC LTD 219,509 2,607,767 0.11CK HUTCHISON HOLDINGS LTD 104,003 10,701,909 0.47CK INFRASTRUCTURE HOLDINGS

LTD 24,966 1,818,773 0.08CLP HOLDINGS LTD 58,931 4,906,006 0.21CNOOC LTD 617,776 5,399,362 0.23COSCO SHIPPING ENERGY

TRANSPORTATION CO LTD 118,000 519,200 0.02COSCO PACIFIC LTD 169,639 1,621,749 0.07COUNTRY GARDEN HOLDINGS CO

LTD 353,394 3,859,062 0.17CRRC CORP LTD H SHARES 169,900 1,185,902 0.05CSPC PHARMACEUTICAL GROUP

LTD 163,494 1,991,357 0.09DAH SING BANKING GROUP LTD 40,400 676,296 0.03DAH SING FINANCIAL HOLDINGS LTD 17,200 951,160 0.04DONGFENG MOTOR GROUP CO LTD

H SHARES 191,483 1,832,492 0.08

HoldingsMarket

value

% ofnet

assetvalue

HKD

ENN ENERGY HOLDINGS LTD 12,371 656,282 0.03FIRST PACIFIC CO LTD 187,233 1,095,313 0.05FOSUN INTERNATIONAL LTD 46,558 551,247 0.02FULLSHARE HOLDINGS LTD 235,743 735,518 0.03GALAXY ENTERTAINMENT GROUP

LTD 83,431 4,033,889 0.18GCL POLY ENERGY HOLDINGS LTD 1,222,871 1,014,983 0.04GEELY AUTOMOBILE HOLDINGS LTD 200,570 3,622,294 0.16GF SECURITIES CO LTD 41,800 658,768 0.03GREAT EAGLE HOLDINGS LTD 13,173 564,463 0.02GREAT WALL MOTOR CO LTD H

SHARES 206,161 2,065,733 0.09GUANGDONG INVESTMENT LTD 96,554 1,062,094 0.05GUANGZHOU AUTOMOBILE GROUP

CO LTD 48,000 805,440 0.04GUANGZHOU R & F PROPERTIES CO

LTD H SHARES 46,160 644,394 0.03HAIER ELECTRONICS GROUP CO LTD 95,785 1,930,068 0.08HAITONG SECURITIES CO LTD H

SHARES 107,982 1,345,456 0.06HANERGY THIN FILM POWER GROUP

LTD 536,642 – 0.00HANG LUNG PROPERTIES LTD 102,773 1,999,963 0.09HANG SENG BANK LTD 29,716 5,051,720 0.22HENDERSON LAND DEVELOPMENT

CO LTD 53,210 2,405,092 0.10HENGAN INTERNATIONAL GROUP

CO LTD 29,700 1,770,120 0.08HONG KONG AND CHINA GAS CO

LTD 305,416 4,514,048 0.20HONG KONG EXCHANGES AND

CLEARING LTD 49,769 11,088,533 0.48HOPEWELL HIGHWAY

INFRASTRUCTURE LTD 88,000 422,400 0.02HOPEWELL HOLDINGS LTD 48,356 1,448,262 0.06HSBC HOLDINGS PLC 693,104 54,374,009 2.36HUANENG RENEWABLES CORP LTD

H SHARES 184,000 437,920 0.02HUATAI SECURITIES CO LTD 60,000 942,000 0.04HYSAN DEVELOPMENT CO LTD 39,034 1,475,485 0.06INDUSTRIAL AND COMM BANK OF

CHINA H SHARES 3,173,191 17,357,355 0.75

37



HoldingsMarket

value

% ofnet

assetvalue

HKD


JIANGSU EXPRESSWAY CO LTD H SHARES 108,147 1,226,387 0.05

JIANGXI COPPER CO LTD H SHARES 56,000 798,560 0.03JOHNSON ELECTRIC HOLDINGS LTD 17,446 484,999 0.02KERRY LOGISTICS NETWORK LTD 28,000 314,720 0.01KERRY PROPERTIES LTD 26,605 728,977 0.03KINGBOARD CHEMICAL HOLDINGS

LTD 55,000 1,936,000 0.08KINGBOARD LAMINATES HOLDINGS

LTD 65,500 713,950 0.03KINGSOFT CORP LTD 76,000 1,565,600 0.07KUNLUN ENERGY CO LTD 124,378 968,905 0.04KWG PROPERTY HOLDING LTD 244,795 1,419,811 0.06LEE & MAN PAPER MANUFACTURING

LTD 190,000 1,582,700 0.07LEGEND HOLDINGS CORP 43,000 879,350 0.04LENOVO GROUP LTD 415,843 2,012,680 0.09LI & FUNG LTD 154,298 441,292 0.02LONGFOR PROPERTIES 66,421 1,303,180 0.06LUYE PHARMA GROUP LTD 117,000 518,310 0.02MELCO INTERNATIONAL

DEVELOPMENT LTD 31,000 573,500 0.03MGM CHINA HOLDINGS LTD 36,400 559,832 0.02MINTH GROUP LTD 24,000 864,000 0.04MTR CORP LTD 50,764 2,291,995 0.10NEW WORLD DEVELOPMENT CO

LTD 210,066 2,218,297 0.10NINE DRAGONS PAPER HOLDINGS

LTD 69,000 803,160 0.03NWS HOLDINGS LTD 72,562 1,085,528 0.05PEOPLE’S INSURANCE CO GROUPP

OF CHINA LTD H SHARES 404,000 1,470,560 0.06PETROCHINA CO LTD H SHARES 635,983 3,198,994 0.14PICC PROPERTY & CASUALTY CO

LTD H SHARES 228,987 3,334,051 0.14PING AN INSURANCE (GROUP) CO

OF CHINA LTD H SHARES 184,822 10,710,435 0.47POSTAL SAVINGS BANK OF CHINA

CO LTD 354,000 1,614,240 0.07

HoldingsMarket

value

% ofnet

assetvalue

HKD

POWER ASSETS HOLDINGS LTD 51,147 3,958,778 0.17RED STAR MACALLINE GROUP CORP

LTD 83,000 673,130 0.03SA SA INTERNATIONAL HOLDINGS

LTD 235,728 676,539 0.03SAMSONITE INTERNATIONAL SA 27,117 888,082 0.04SANDS CHINA LTD 91,815 3,328,294 0.14SHANDONG WEIGAO GROUP

MEDICAL POLYMER CO LTD 240,000 1,512,000 0.07SHANGHAI ELECTRIC GROUP CO

LTD 304,000 1,103,520 0.05SHANGHAI PHARMACEUTICAL

HOLDING CO LTD H SHARES 60,466 1,251,646 0.05SHENZHEN EXPRESSWAY CO LTD 138,000 963,240 0.04SHENZHEN INTERNATIONAL

HOLDINGS LTD 110,436 1,477,634 0.06SHENZHEN INVESTMENT LTD 373,716 1,341,640 0.06SHENZHOU INTERNATIONAL GROUP

HOLDINGS LTD 27,283 1,425,537 0.06SHIMAO PROPERTY HOLDINGS LTD 96,101 1,497,254 0.07SHUI ON LAND LTD 303,613 592,045 0.03SINO BIOPHARMACEUTICAL LTD 86,721 598,375 0.03SINO LAND CO LTD 153,127 1,975,338 0.09SINO-OCEAN LAND HOLDINGS LTD 305,400 1,334,598 0.06SINOPEC ENGINEERING GROUP CO

LTD 141,000 988,410 0.04SINOPEC SHANGHAI

PETROCHEMICAL CO LTD H SHARES 302,000 1,340,880 0.06

SINOPHARM GROUP CO LTD H SHARES 45,569 1,492,385 0.06

SINOTRUK HONG KONG LTD 85,500 701,100 0.03SJM HOLDINGS LTD 146,332 1,144,316 0.05SUN HUNG KAI PROPERTIES LTD 54,330 6,573,930 0.29SUNAC CHINA HOLDINGS LTD 121,000 2,516,800 0.11SUNNY OPTICAL TECHNOLOGY

GROUP CO LTD 15,000 1,395,000 0.06SWIRE PACIFIC LTD CLASS A 21,174 1,649,455 0.07SWIRE PROPERTIES LTD 49,990 1,349,730 0.06TECHTRONIC INDUSTRIES CO LTD 51,665 1,795,359 0.08TELEVISION BROADCASTS LTD 28,460 813,956 0.04

38



HoldingsMarket

value

% ofnet

assetvalue

HKD


TENCENT HOLDINGS LTD 175,041 54,857,849 2.39WANT WANT CHINA HOLDINGS LTD 312,786 1,651,510 0.07WEICHAI POWER CO LTD 92,000 692,760 0.03WH GROUP LTD 238,000 1,744,540 0.08THE WHARF (HOLDINGS) LTD 53,393 3,547,965 0.15WHEELOCK AND CO LTD 43,496 2,561,914 0.11WYNN MACAU LTD 62,800 1,063,832 0.05XINJIANG GOLDWIND SCIENCE &

TECHNOLOGY CO LTD 61,100 543,179 0.02XINYI GLASS HOLDINGS LTD 182,000 1,470,560 0.06XINYI SOLAR HOLDINGS LTD 129,800 319,308 0.01YANZHOU COAL MINING CO LTD 86,000 661,340 0.03YUEXIU PROPERTY CO LTD 318,000 467,460 0.02ZHUZHOU CSR TIMES ELECTRIC CO

LTD H SHARES 9,717 361,472 0.02ZIJIN MINING GROUP CO LTD H

SHARES 262,000 741,460 0.03ZTE CORP 8,600 172,860 0.01

520,787,223 22.65

IndiaBAJAJ AUTO LTD 2,888 990,463 0.04BAJAJ HOLDINGS AND INVESTMENT

LTD 2,371 692,797 0.03BHARAT PETROLEUM CORP LTD 9,000 516,081 0.02CASTROL INDIA LTD 17,221 839,997 0.04CG POWER AND INDUSTRIAL

SOLUTIONS LTD 50,777 523,606 0.02COLGATE-PALMOLIVE (INDIA) LTD 4,060 532,843 0.02CUMMINS INDIA LTD 7,305 878,770 0.04DIVI’S LABORATORIES LTD 5,500 450,977 0.02GAIL (INDIA) LTD 18,921 866,367 0.04GREAT EASTERN SHIPPING CO LTD 9,237 448,027 0.02HERO MOTOCORP LTD 2,923 1,302,637 0.06HOUSING DEVELOPMENT FINANCE

CORP LTD 10,850 2,359,138 0.10ICICI BANK LTD 17,132 628,958 0.03ICICI PRUDENTIAL LIFE INSURANCE

CO LTD 2,194 122,590 0.01

HoldingsMarket

value

% ofnet

assetvalue

HKD

INDIAN OIL CORP LTD 9,059 404,763 0.02INFOSYS LTD 8,416 1,041,519 0.05ITC LTD 22,484 781,509 0.03LARSEN & TOUBRO LTD 2,700 391,219 0.02MARUTI SUZUKI INDIA LTD 790 744,918 0.03MPHASIS LTD 7,109 521,112 0.02MRF LTD 67 564,452 0.03NMDC LTD 46,688 720,172 0.03OIL AND NATURAL GAS CORP LTD 27,900 575,572 0.03OIL INDIA LTD 15,700 553,927 0.02ORACLE FINANCIAL SERVICES

SOFTWARE LTD 1,088 482,139 0.02RELIANCE INDUSTRIES LTD 12,283 2,417,322 0.11RURAL ELECTRIFICATION CORP LTD 40,430 861,629 0.04STATE BANK OF INDIA 14,100 536,271 0.02SUN PHARMACEUTICAL INDUSTRIES

LTD 8,682 561,266 0.02TATA MOTORS LTD 9,200 497,700 0.02TORRENT PHARMACEUTICALS LTD 4,857 779,330 0.03UNION BANK OF INDIA LTD 46,620 899,613 0.04

24,487,684 1.07

IndonesiaASTRA AGRO LESTARI TBK PT 67,981 586,769 0.03BANK CENTRAL ASIA TBK PT 102,091 1,119,061 0.05BANK MANDIRI (PERSERO) TBK PT 81,469 651,853 0.03CHAROEN POKPHAND INDONESIA

TBK PT 366,600 573,758 0.02GUDANG GARAM TBK PT 23,600 1,052,741 0.05PT BANK RAKYAT INDONESIA

(PERSERO) TBK 167,640 1,451,877 0.06TELEKOMUNIKASI INDONESIA TBK

PER 612,743 1,684,519 0.07

7,120,578 0.31

IrelandCRH PLC 3,881 1,061,757 0.05GLANBIA PLC 5,682 915,614 0.04KERRY GROUP PLC-A 699 491,428 0.02

2,468,799 0.11

39



HoldingsMarket

value

% ofnet

assetvalue

HKD


ItalyASSICURAZIONI GENERALI SPA 10,446 1,474,570 0.06BANCA MEDIOLANUM SPA 8,592 584,671 0.03BUZZI UNICEM SPA 5,246 583,054 0.03ENEL SPA 17,719 787,082 0.03ENI SPA 5,119 630,216 0.03FIAT CHRYSLER AUTOMOBILES NV 6,194 581,761 0.03INTESA SANPAOLO SPA 23,672 634,745 0.03ITALGAS SPA 19,166 820,649 0.04PRYSMIAN SPA 4,919 1,225,229 0.05SALVATORE FERRAGAMO SPA 2,139 482,756 0.02STMICROELECTRONICS NV 9,474 1,258,847 0.05

9,063,580 0.40

JapanABC-MART INC 2,000 889,196 0.04AISIN SEIKI CO LTD 1,700 690,929 0.03ALFRESA HOLDINGS CORP 4,733 679,793 0.03AMADA HOLDINGS CO LTD 11,800 1,051,753 0.05ANA HOLDINGS INC 43,000 1,150,406 0.05ASAHI GROUP HOLDINGS LTD 4,642 1,476,175 0.06ASTELLAS PHARMA INC 14,854 1,478,301 0.06AZBIL CORP 3,200 985,042 0.04BRIDGESTONE CORP 4,821 1,586,939 0.07CANON INC 5,301 1,437,694 0.06CENTRAL JAPAN RAILWAY CO 1,460 1,831,757 0.08CHUBU ELECTRIC POWER CO INC 11,100 1,136,863 0.05CHUGAI PHARMACEUTICAL CO LTD 1,906 597,494 0.03CITIZEN HOLDINGS CO LTD 19,800 1,149,013 0.05COCA-COLA WEST CO LTD 4,400 1,035,652 0.04COLOPL INC 5,000 437,176 0.02CONCORDIA FINANCIAL GROUP LTD 10,100 397,500 0.02COOKPAD INC 8,100 541,045 0.02CYBERAGENT INC 4,200 1,013,810 0.04DAI NIPPON PRINTING CO LTD 6,000 516,129 0.02DAICEL CORP 9,522 968,514 0.04DAI-ICHI LIFE INSURANCE CO LTD 10,635 1,436,531 0.06DAIICHI SANKYO CO LTD 5,329 907,024 0.04DAIICHIKOSHO CO LTD 1,500 562,992 0.02DAIKIN INDUSTRIES LTD 1,163 961,795 0.04

HoldingsMarket

value

% ofnet

assetvalue

HKD

DAIKYO INC 49,470 807,738 0.03DAITO TRUST CONSTRUCTION CO

LTD 1,152 1,517,802 0.07DAIWA HOUSE INDUSTRY CO LTD 4,917 1,337,719 0.06DENA CO LTD 5,300 908,457 0.04DENKA CO LTD 29,000 1,260,636 0.05DENSO CORP 3,773 1,415,047 0.06DISCO CORP 1,073 1,484,251 0.06EAST JAPAN RAILWAY CO 2,408 1,761,626 0.08EISAI CO LTD 1,091 456,447 0.02EXEDY CORP 2,300 561,685 0.02FANUC CORP 1,243 1,982,546 0.09FUJI HEAVY INDUSTRIES LTD 6,314 1,782,499 0.08FUJIFILM HOLDINGS CORP 2,153 616,790 0.03FUJITSU GENERAL LTD 3,000 493,228 0.02FUKUYAMA TRANSPORTING CO LTD 10,000 498,317 0.02GLORY LTD 2,000 519,522 0.02GREE INC 8,500 508,884 0.02GS YUASA CORP 14,000 515,564 0.02GUNGHO ONLINE ENTERTAINMENT

INC 19,400 408,634 0.02HAMAMATSU PHOTONICS KK 4,200 1,042,013 0.05HASEKO CORP 10,968 1,071,401 0.05HEIWA CORP 4,589 787,884 0.03HINO MOTORS LTD 8,087 743,672 0.03HIROSE ELECTRIC CO LTD 1,000 1,063,077 0.05HITACHI HIGH-TECHNOLOGIES CORP 1,600 460,290 0.02HITACHI LTD 34,932 1,875,535 0.08HONDA MOTOR CO LTD 11,504 2,527,241 0.11HOYA CORP 4,916 2,163,405 0.09IIDA GROUP HOLDINGS CO LTD 7,000 932,666 0.04INPEX CORP 7,800 591,577 0.03ITOCHU CORP 11,191 1,368,854 0.06JAFCO CO LTD 2,413 900,550 0.04JAPAN AIRLINES CO LTD 3,748 945,238 0.04JAPAN AVIATION ELECTRONICS

INDUSTRY LTD 5,000 615,651 0.03JAPAN EXCHANGE GROUP INC 7,584 1,061,939 0.05JAPAN PETROLEUM EXPLORATION

CO LTD 4,900 792,791 0.03JAPAN TOBACCO INC 6,661 1,805,129 0.08JTEKT CORP 8,500 946,273 0.04JX HOLDINGS INC 23,500 814,250 0.04KAKAKU.COM INC 6,426 707,206 0.03

40



HoldingsMarket

value

% ofnet

assetvalue

HKD


KAKEN PHARMACEUTICAL CO LTD 1,838 763,905 0.03KAMIGUMI CO LTD 6,000 501,286 0.02KANEKA CORP 11,000 688,879 0.03KANSAI ELECTRIC POWER CO INC 6,000 628,092 0.03KAO CORP 3,853 1,828,509 0.08KDDI CORP 13,081 2,699,856 0.12KEIYO BANK LTD 18,795 620,406 0.03KEYENCE CORP 874 3,151,872 0.14KIRIN HOLDINGS CO LTD 3,900 670,003 0.03KISSEI PHARMACEUTICAL CO LTD 4,300 867,743 0.04KOEI TECMO HOLDINGS CO LTD 5,400 870,634 0.04KOMATSU LTD 4,223 884,890 0.04KOMERI CO LTD 4,300 981,720 0.04KONAMI HOLDINGS CORP 3,400 1,381,858 0.06K’S HOLDINGS CORP 6,300 986,795 0.04KUBOTA CORP 10,003 1,357,173 0.06KURARAY CO LTD 9,091 1,381,551 0.06KURITA WATER INDUSTRIES LTD 2,900 643,642 0.03KYOCERA CORP 2,674 1,268,616 0.05KYORIN HOLDINGS INC 4,426 738,000 0.03KYUDENKO CORP 2,300 676,298 0.03KYUSHU FINANCIAL GROUP INC 18,600 911,093 0.04LAWSON INC 1,810 960,805 0.04LEOPALACE21 CORP 12,600 700,910 0.03MAEDA ROAD CONSTRUCTION CO

LTD 6,784 1,090,898 0.05MARUBENI CORP 13,500 697,824 0.03MARUICHI STEEL TUBE LTD 3,200 770,165 0.03MAZDA MOTOR CORP 11,010 1,295,352 0.06MEBUKI FINANCIAL GROUP INC 32,200 967,301 0.04MEIJI HOLDINGS CO LTD 1,148 713,259 0.03MIRACA HOLDINGS INC 800 284,995 0.01MITSUBISHI CORP 6,028 1,021,098 0.04MITSUBISHI ELECTRIC CORP 15,438 1,866,512 0.08MITSUBISHI ESTATE CO LTD 6,095 864,214 0.04MITSUBISHI SHOKUHIN CO LTD 3,455 779,032 0.03MITSUBISHI UFJ FINANCIAL GROUP

INC 88,232 4,365,570 0.19MITSUI ENGINEERING &

SHIPBUILDING CO LTD 42,000 457,180 0.02MITSUI FUDOSAN CO LTD 4,575 819,597 0.04

HoldingsMarket

value

% ofnet

assetvalue

HKD

MIZUHO FINANCIAL GROUP INC 172,895 2,400,163 0.10MOCHIDA PHARMACEUTICAL CO

LTD 1,400 760,976 0.03MS&AD INSURANCE GROUP

HOLDINGS INC 6,055 1,657,167 0.07MURATA MANUFACTURING CO LTD 879 1,067,404 0.05NEXON CO LTD 7,262 1,178,028 0.05NHK SPRING CO LTD 7,473 630,162 0.03NIHON KOHDEN CORP 5,000 932,666 0.04NINTENDO CO LTD 489 1,295,464 0.06NIPPO CORP 5,815 921,925 0.04NIPPON ELECTRIC GLASS CO LTD 1,600 442,195 0.02NIPPON KAYAKU CO LTD 8,229 899,817 0.04NIPPON PAPER INDUSTRIES CO LTD 5,900 917,052 0.04NIPPON SHOKUBAI CO LTD 1,800 919,872 0.04NIPPON TELEGRAPH AND

TELEPHONE CORP 5,166 1,968,158 0.09NIPRO CORP 7,600 804,715 0.03NISHI-NIPPON RAILROAD CO LTD 5,000 171,760 0.01NISSAN MOTOR CO LTD 14,603 1,131,278 0.05NISSHIN STEEL CO LTD 5,200 496,932 0.02NITORI HOLDINGS CO LTD 691 759,984 0.03NITTO DENKO CORP 1,100 766,475 0.03NOMURA HOLDINGS INC 27,289 1,266,886 0.05NORTH PACIFIC BANK LTD 34,724 908,130 0.04NTT DOCOMO INC 8,278 1,499,653 0.07OBIC BUSINESS CONSULTANTS CO

LTD 1,200 474,992 0.02OLYMPUS CORP 4,645 1,316,579 0.06OMRON CORP 1,600 623,144 0.03ORACLE CORP JAPAN 2,220 1,162,754 0.05ORIENTAL LAND CO LTD 2,267 1,280,951 0.06ORIX CORP 15,956 1,975,381 0.09OSAKA GAS CO LTD 34,768 1,084,994 0.05OTSUKA HOLDINGS CO LTD 3,184 1,093,770 0.05PANASONIC CORP 7,655 822,984 0.04RESONA HOLDINGS INC 35,200 1,414,209 0.06ROHM CO LTD 2,800 1,692,158 0.07ROHTO PHARMACEUTICAL CO LTD 6,400 1,009,244 0.04SANKYO CO LTD 2,800 716,446 0.03SAWAI PHARMACEUTICAL CO LTD 1,800 791,370 0.03SCREEN HOLDINGS CO LTD 2,100 1,098,418 0.05SECOM CO LTD 1,700 994,578 0.04

41



HoldingsMarket

value

% ofnet

assetvalue

HKD


SEINO HOLDINGS CO LTD 10,300 1,081,864 0.05SEKISUI HOUSE LTD 5,508 744,192 0.03SEVEN & I HOLDINGS CO LTD 5,048 1,586,017 0.07SHIGA BANK LTD 16,000 661,596 0.03SHIMACHU CO LTD 4,600 898,370 0.04SHIMAMURA CO LTD 960 930,984 0.04SHIMANO INC 516 590,126 0.03SHIN ETSU CHEMICAL CO LTD 2,005 1,432,789 0.06SHIONOGI & CO LTD 1,708 711,807 0.03SKYLARK CO LTD 7,000 824,309 0.04SMC CORP 524 1,300,406 0.06SOFTBANK CORP 6,193 3,921,289 0.17SONY CORP 6,309 2,024,572 0.09SONY FINANCIAL HOLDINGS INC 4,800 648,364 0.03SQUARE ENIX HOLDINGS CO LTD 3,700 945,424 0.04START TODAY CO LTD 5,300 1,166,946 0.05SUGI HOLDINGS CO LTD 2,300 915,278 0.04SUMITOMO CORP 8,900 938,275 0.04SUMITOMO ELECTRIC INDUSTRIES

LTD 6,500 821,251 0.04SUMITOMO FORESTRY CO LTD 8,769 1,047,499 0.05SUMITOMO HEAVY INDUSTRIES LTD 23,000 1,310,327 0.06SUMITOMO MITSUI FINANCIAL

GROUP INC 8,975 2,661,235 0.12SUMITOMO OSAKA CEMENT CO LTD 24,000 877,038 0.04SUMITOMO REALTY &

DEVELOPMENT CO LTD 2,332 551,038 0.02SUMITOMO RUBBER INDUSTRIES

LTD 7,800 1,056,348 0.05SURUGA BANK LTD 3,706 697,317 0.03SUZUKEN CO LTD 3,500 911,638 0.04T&D HOLDINGS INC 12,325 1,421,752 0.06TADANO LTD 10,451 1,012,773 0.04TAIYO YUDEN CO LTD 3,500 459,653 0.02TAKEDA PHARMACEUTICAL CO LTD 3,823 1,575,936 0.07TDK CORP 2,500 1,404,830 0.06TERUMO CORP 2,200 649,226 0.03THE 77 BANK LTD 31,065 1,249,397 0.05THE AWA BANK LTD 17,883 916,421 0.04TOHO GAS CO LTD 6,869 362,686 0.02

HoldingsMarket

value

% ofnet

assetvalue

HKD

TOKIO MARINE HOLDINGS INC 6,090 1,999,492 0.09TOKYO ELECTRIC POWER CO INC 12,530 414,490 0.02TOKYO ELECTRON LTD 1,139 1,253,916 0.05TOKYO GAS CO LTD 31,267 1,293,103 0.06TOKYU CORP 5,000 573,595 0.02TOPPAN FORMS CO LTD 6,500 526,979 0.02TOSOH CORP 4,000 371,794 0.02TOYO SUISAN KAISHA LTD 3,388 960,295 0.04TOYOBO CO LTD 8,000 118,748 0.01TOYOTA BOSHOKU CORP 5,100 831,999 0.04TOYOTA MOTOR CORP 18,834 8,299,007 0.36UBE INDUSTRIES LTD 63,000 1,335,914 0.06WEST JAPAN RAILWAY CO 2,185 1,222,880 0.05YAMAGUCHI FINANCIAL GROUP INC 8,000 734,541 0.03YAMATO KOGYO CO LTD 4,700 1,028,194 0.04ZENKOKU HOSHO CO LTD 2,998 1,004,446 0.04ZEON CORP 11,308 1,105,413 0.05

213,863,703 9.30

MalaysiaALLIANCE FINANCIAL GROUP BHD 67,900 486,772 0.02AMMB HOLDINGS BHD 16,304 147,219 0.01DIGI.COM BHD 39,300 344,110 0.01IOI CORP BHD 26 212 0.00MAXIS BHD 63,840 657,968 0.03MISC BHD 66,600 897,805 0.04PETRONAS CHEMICALS GROUP BHD 28,700 363,856 0.02PUBLIC BANK BHD 23,600 873,059 0.04TENAGA NASIONAL BHD 49,358 1,271,322 0.05WESTPORTS HOLDINGS BHD 111,200 756,619 0.03

5,798,942 0.25

NetherlandsAEGON NV 20,900 912,024 0.04AKZO NOBEL NV 1,204 847,241 0.04ASML HOLDING NV 700 826,019 0.04GEMALTO NV 2,047 811,643 0.04HEINEKEN NV 1,996 1,620,521 0.07ING GROEP NV 14,644 2,132,564 0.09KONINKLIJKE AHOLD DELHAIZE N 5,741 914,284 0.04KONINKLIJKE DSM NV 900 516,965 0.02KONINKLIJKE VOPAK NV 1,427 529,084 0.02

42



HoldingsMarket

value

% ofnet

assetvalue

HKD


ROYAL BOSKALIS WESTMINSTER NV 3,257 906,478 0.04UNILEVER NV 5,317 2,413,719 0.10

12,430,542 0.54

New ZealandAIR NEW ZEALAND LTD 21,887 429,345 0.02FISHER & PAYKEL HEALTHCARE

CORP LTD 8,043 516,655 0.02

946,000 0.04

Norway DNB ASA 9,646 1,474,049 0.06MARINE HARVEST ASA 5,331 771,972 0.03STATOIL ASA 8,820 1,285,054 0.06YARA INTERNATIONAL ASA 3,625 1,122,597 0.05

4,653,672 0.20

PhilippinesGT CAPITAL HOLDINGS INC 4,735 888,982 0.04MEGAWORLD CORP 759,000 563,891 0.03METROPOLITAN BANK AND TRUST

CO 55,930 753,141 0.03

2,206,014 0.10

Poland BANK HANDLOWY W WARSZAWIE

SA 3,211 493,239 0.02BANK MILLENNIUM SA 39,900 665,557 0.03BANK ZACHODNI WBK SA 865 711,238 0.03POLSKI KONCERN NAFTOWY ORLEN

SA 1,488 342,372 0.02

2,212,406 0.10

Portugal EDP ENERGIAS DE PORTUGAL SA 43,079 1,190,036 0.05

HoldingsMarket

value

% ofnet

assetvalue

HKD

RussiaAK ALROSA PAO 41,800 453,925 0.02GAZPROM PAO 87,740 1,322,429 0.06MAGNITOGORSKIY

METALLURGICHESKIY KOMBINAT OAO 126,600 560,371 0.02

SBERBANK ROSSII PAO 51,170 1,092,957 0.05SURGUTNEFTEGAZ OAO 130,500 450,984 0.02TRANSNEFT’ PAO 43 1,007,600 0.04

4,888,266 0.21

SingaporeCAPITALAND LTD 26,700 566,961 0.02COMFORTDELGRO CORP LTD 54,000 717,829 0.03DBS GROUP HOLDINGS LTD 12,805 1,593,129 0.07HONG KONG LAND HOLDINGS LTD 58,640 3,444,064 0.15JARDINE MATHESON HOLDINGS LTD 8,215 4,094,074 0.18JARDINE STRATEGIC HOLDINGS LTD 8,355 2,662,355 0.11KEPPEL CORPORATION LTD 15,000 553,305 0.02OVERSEA-CHINESE BANKING CORP

LTD 31,326 2,047,853 0.09SIA ENGINEERING CO LTD 27,300 571,847 0.02SINGAPORE EXCHANGE LTD 25,100 1,093,415 0.05SINGAPORE TELECOMMUNICATIONS

LTD 47,048 1,074,848 0.05UNITED OVERSEAS BANK LTD 9,749 1,345,878 0.06VENTURE CORPORATION LTD 17,300 1,311,135 0.06WING TAI HOLDINGS LTD 18 211 0.00YANGZIJIANG SHIPBUILDING

HOLDINGS LTD 17,507 142,556 0.01YANLORD LAND GROUP LTD 86,200 897,845 0.04

22,117,305 0.96

South KoreaAMOREPACIFIC CORP 9 11,149 0.00DGB FINANCIAL GROUP INC 13,753 1,147,031 0.05DONGBU INSURANCE CO LTD 1,896 1,059,939 0.05HANA FINANCIAL GROUP INC 2,616 931,146 0.04HANKOOK TIRE CO LTD 2,382 1,039,039 0.04HANSSEM CO LTD 356 437,293 0.02HANWHA CHEMICAL CORP 2,873 675,733 0.03HYOSUNG CORP 1,259 1,471,805 0.06

43



HoldingsMarket

value

% ofnet

assetvalue

HKD


HYUNDAI DEVELOPMENT CO ENGINEERING & CONSTRUCTION 2,978 886,449 0.04

HYUNDAI ENGINEERING & CONSTRUCTION CO LTD 2,534 801,152 0.03

HYUNDAI GLOVIS CO LTD 557 610,330 0.03HYUNDAI HEAVY INDUSTRIES CO

LTD 907 1,104,619 0.05HYUNDAI MARINE & FIRE

INSURANCE CO LTD 1,925 609,953 0.03HYUNDAI MOBIS 813 1,395,840 0.06HYUNDAI MOTOR CO LTD 847 857,159 0.04INDUSTRIAL BANK OF KOREA 8,781 946,852 0.04KANGWON LAND INC 3,518 908,463 0.04KB FINANCIAL GROUP INC 4,579 1,898,309 0.08KIA MOTORS CORP 5,008 1,279,250 0.05KOREAN AIR LINES CO LTD 1,753 435,554 0.02KT&G CORP 1,752 1,393,955 0.06LG DISPLAY CO LTD 4,789 1,057,861 0.05LG ELECTRONICS INC 911 426,629 0.02LG ELECTRONICS INC 3,882 927,953 0.04LG HAUSYS LTD 703 539,707 0.02LOTTE CHEMICAL CORP 426 1,097,099 0.05LS CORP 1,109 651,709 0.03NAVER CORP 233 1,305,814 0.06NHN ENTERTAINMENT CORP 1,857 994,070 0.04NONGSHIM CO LTD 226 503,952 0.02ORION HOLDINGS CORP 2,207 425,130 0.02S1 CORP 1,401 901,527 0.04SAMSUNG ELECTRONICS CO LTD 138 1,859,821 0.08SAMSUNG ELECTRONICS CO LTD 762 12,816,868 0.56SK HOLDINGS CO LTD 330 625,308 0.03SK HYNIX INC 4,265 1,964,594 0.08SK INNOVATION CO LTD 516 635,630 0.03SKC CO LTD 4,062 1,027,680 0.04

47,662,372 2.07

SpainACCIONA SA 1,445 961,344 0.04AMADEUS IT HOLDING SA A SHARES 2,092 1,002,857 0.04

HoldingsMarket

value

% ofnet

assetvalue

HKD

BANCO BILBAO VIZCAYA ARGENTARIA SA 28,720 2,023,373 0.09

BANCO SANTANDER SA 61,445 3,266,905 0.14CORPORACION FINANCIERA ALBA

SA 1,896 924,437 0.04GRIFOLS SA 4,000 656,542 0.03INDUSTRIA DE DISENO TEXTIL SA 2,031 628,193 0.03MEDIASET ESPANA COMUNICACION

SA 4,861 476,704 0.02REPSOL SA 5,195 677,364 0.03TELEFONICA SA 15,007 1,321,067 0.06ZARDOYA OTIS SA 11,641 950,796 0.04

12,889,582 0.56

SwedenAB SKF 7,470 1,158,318 0.05ALFA LAVAL AB 7,582 1,320,633 0.06ATLAS COPCO AB-A SHARES 5,036 1,422,728 0.06ELECTROLUX AB 5,207 1,388,587 0.06ESSITY AB (PUBL) 3,042 687,579 0.03GETINGE AB 4,973 673,176 0.03HENNES & MAURITZ AB B SHARES 6,127 1,245,265 0.05HUSQVARNA AB 10,910 865,355 0.04ICA GRUPPEN AB 3,125 976,383 0.04INDUSTRIVARDEN AB 2,728 551,021 0.02INVESTMENT LATOUR AB 6,400 635,854 0.03INVESTOR AB B SHARES 3,942 1,457,731 0.06NORDEA BANK AB 13,251 1,303,721 0.06SKANDINAVISKA ENSKILDA BAN-A 13,051 1,289,084 0.06SKANSKA AB 5,684 1,007,601 0.04SVENSKA HANDELSBANKEN A

SHARES 1,380 160,157 0.01SWEDBANK AB A SHARES 4,759 968,608 0.04SWEDISH MATCH AB 3,761 1,031,296 0.04ERICSSON LM B SHARES 11,384 576,504 0.03TELIASONERA AB 13,200 483,668 0.02TRELLEBORG AB 3,280 602,346 0.03VOLVO AB 7,126 943,978 0.04

20,749,593 0.90

44



HoldingsMarket

value

% ofnet

assetvalue

HKD


SwitzerlandABB LTD 4,287 787,733 0.03ADECCO SA 568 339,316 0.01ARYZTA AG 2,524 634,994 0.03BALOISE HOLDING AG 1,005 1,264,203 0.05CIE FINANCIERE RICHEMONT 1,876 1,247,498 0.05CREDIT SUISSE GROUP AG 5,352 644,642 0.03EMS CHEMIE HOLDING AG 229 1,247,528 0.05FLUGHAFEN ZUERICH AG 451 900,628 0.04GEBERIT AG 403 1,517,555 0.07GIVAUDAN SA 46 716,784 0.03IDORSIA LTD 976 142,997 0.01KUEHNE UND NAGEL

INTERNATIONAL AG 914 1,245,913 0.05LONZA GROUP AG 982 1,828,264 0.08NESTLE SA 11,078 7,326,271 0.32NOVARTIS LTD 8,890 5,929,643 0.26ROCHE HOLDING AG 2,998 5,943,195 0.26SIKA AG 32 1,726,433 0.08STRAUMANN HOLDING AG 297 1,313,851 0.06SULZER AG 993 872,125 0.04SWISS RE AG 1,804 1,361,711 0.06SWISSCOM AG 252 964,241 0.04UBS GROUP AG 14,164 1,928,464 0.08ZURICH INSURANCE GROUP AG 933 2,226,428 0.10

42,110,417 1.83

TaiwanCATHAY REAL ESTATE

DEVELOPMENT CO LTD 102,000 457,738 0.02CHENG UEI PRECISION INDUSTRY

CO LTD 49,000 519,000 0.02CHINA LIFE INSURANCE CO LTD 64,000 528,893 0.02CHINA MOTOR CORP 100,000 675,084 0.03CTBC FINANCIAL HOLDING CO LTD 279,962 1,404,811 0.06DELTA ELECTRONICS INC 22,861 949,046 0.04E.SUN FINANCIAL HOLDING CO LTD 236,402 1,177,061 0.05ETERNAL MATERIALS CO LTD 82,800 728,159 0.03FAR EASTONE

TELECOMMUNICATIONS CO LTD 49,000 925,201 0.04

HoldingsMarket

value

% ofnet

assetvalue

HKD

FENG HSIN STEEL CO LTD 34,043 455,235 0.02FORMOSA CHEMICALS & FIBRE

CORP 40,017 941,896 0.04HON HAI PRECISION INDUSTRY CO

LTD 100,975 3,068,802 0.13HUA NAN FINANCIAL HOLDINGS CO

LTD 260,616 1,189,770 0.05LARGAN PRECISION CO LTD 1,000 1,425,177 0.06NAN YA PLASTICS CORP 54,312 1,067,644 0.05NOVATEK MICROELECTRONICS

CORP 27,000 803,117 0.04SINOPAC FINANCIAL HOLDINGS CO

LTD 406,000 994,473 0.04TAIWAN BUSINESS BANK 228,000 505,397 0.02TAIWAN SEMICONDUCTOR

MANUFACTURING CO 175,745 9,750,512 0.43TRANSCEND INFORMATION INC 20,000 462,989 0.02UNIMICRON TECHNOLOGY CORP 202,000 1,026,671 0.05UNITED MICROELECTRONICS CORP 166,000 596,815 0.03VANGUARD INTERNATIONAL

SEMICONDUCTOR CORP 32,000 468,472 0.02

30,121,963 1.31

ThailandBANGKOK BANK PCL (FOREIG REG) 24,384 1,055,901 0.05BANGKOK LIFE ASSURANCE PCL 81,300 796,652 0.03CP ALL PCL 47,800 681,547 0.03DELTA ELECTRONICS THAILAND PCL 67,600 1,408,111 0.06INDORAMA VENTURES PCL 113,300 990,553 0.04KASIKORNBANK PCL (FOREIGN REG) 24,131 1,121,404 0.05PTT PCL (FOREIGN REG) 15,100 1,375,088 0.06

7,429,256 0.32

TurkeyARCELIK AS 10,117 583,031 0.02FORD OTOMOTIV SANAYI AS 10,737 1,070,932 0.05TURKIYE SINAI KALKINMA BANKASI

AS 161,097 546,318 0.02TURKIYE VAKIFLAR BANKASI TAO 69,294 1,081,272 0.05

3,281,553 0.14

45



HoldingsMarket

value

% ofnet

assetvalue

HKD


United Kingdom3I GROUP PLC 14,449 1,392,527 0.06ADMIRAL GROUP PLC 4,946 1,053,161 0.05AGGREKO PLC 5,747 502,092 0.02ANGLO AMERICAN PLC 11,591 1,494,819 0.07ASHMORE GROUP PLC 12,100 448,516 0.02ASHTEAD GROUP PLC 7,299 1,224,262 0.05ASSOCIATED BRITISH FOODS PLC 1,818 554,833 0.02ASTRAZENECA PLC 4,888 2,299,548 0.10AVIVA PLC 20,184 1,120,176 0.05BAE SYSTEMS PLC 12,885 798,013 0.04BARCLAYS PLC 34,899 729,456 0.03BARRATT DEVELOPMENTS PLC 5,969 378,286 0.02BELLWAY PLC 3,399 1,116,431 0.05BERKELEY GROUP HOLDINGS PLC 2,133 767,807 0.03BHP BILLITON PLC 9,794 1,389,631 0.06BOOKER GROUP PLC 50,420 999,364 0.04BP PLC 81,424 3,737,512 0.16BRITISH AMERICAN TOBACCO PLC 7,401 3,591,898 0.16BT GROUP PLC 41,129 1,327,626 0.06CENTRICA PLC 48,841 998,240 0.04COMPASS GROUP PLC 7,357 1,224,901 0.05DIAGEO PLC 9,571 2,412,945 0.10DIRECT LINE INSURANCE GROUP

PLC 26,382 1,017,573 0.04FERGUSON PLC 1,309 610,155 0.03GLAXOSMITHKLINE PLC 20,924 3,262,902 0.14GLENCORE PLC 48,242 1,659,804 0.07HALMA PLC 9,473 1,071,952 0.05HIKMA PHARMACEUTICALS PLC 3,586 521,357 0.02HOWDEN JOINERY GROUP PLC 19,564 855,923 0.04HSBC HOLDINGS PLC 75,117 5,854,964 0.25IMI PLC 5,590 692,417 0.03IMPERIAL TOBACCO GROUP PLC 3,822 1,227,822 0.05INCHCAPE PLC 11,217 927,433 0.04INTERCONTINENTAL HOTELS GROUP

PLC 3,043 1,344,468 0.06INTERNATIONAL CONSOLIDATED

AIRLINES GROUP SA 12,909 768,264 0.03JOHNSON MATTHEY PLC 3,137 907,634 0.04KINGFISHER PLC 25,359 768,706 0.03

HoldingsMarket

value

% ofnet

assetvalue

HKD

LEGAL & GENERAL GROUP PLC 24,188 668,456 0.03LLOYDS BANKING GROUP PLC 249,134 1,682,265 0.07LONDON STOCK EXCHANGE GROUP

PLC 1,463 564,591 0.02MEGGITT PLC 20,341 1,053,490 0.05NATIONAL GRID PLC 15,812 1,525,189 0.07OLD MUTUAL PLC 61,033 1,234,859 0.05PERSIMMON PLC 4,496 1,159,180 0.05POLYMETAL INTERNATIONAL PLC 10,102 960,062 0.04PRUDENTIAL PLC 7,917 1,506,443 0.07RECKITT BENCKISER GROUP PLC 2,324 1,763,335 0.08RELX PLC 4,804 817,152 0.04RIGHTMOVE PLC 1,870 810,228 0.04RIO TINTO PLC 8,187 2,967,273 0.13ROLLS-ROYCE HOLDINGS PLC 6,797 621,470 0.03ROYAL DUTCH SHELL PLC A SHARES 16,018 3,517,947 0.15ROYAL DUTCH SHELL PLC B SHARES 14,569 3,228,212 0.14ROYAL MAIL PLC 14,531 603,113 0.03SAGE GROUP PLC 14,888 1,033,205 0.05SHIRE PLC 3,480 1,526,795 0.07SKY PLC 5,490 545,494 0.02SMITH & NEPHEW PLC 9,548 1,297,706 0.06SSE PLC 4,666 662,520 0.03STANDARD CHARTERED PLC 6,677 582,105 0.03TAYLOR WIMPEY PLC 52,278 1,024,887 0.04TRAVIS PERKINS PLC 6,314 986,885 0.04UNILEVER PLC 4,337 1,929,808 0.08VODAFONE GROUP PLC 94,225 2,153,819 0.09WILLIAM HILL PLC 22,575 582,272 0.03WPP PLC 7,815 1,244,023 0.05

89,306,202 3.88

United States of America3M CO 608 955,270 0.04ABBOTT LABORATORIES 4,386 1,684,677 0.07ABBVIE INC 3,396 1,854,242 0.08ACCENTURE PLC CLASS A 1,154 1,161,043 0.05ACTIVISION BLIZZARD INC 1,297 625,817 0.03AETNA INC 1,340 1,614,947 0.07AFFILIATED MANAGERS GROUP INC 479 695,202 0.03AFLAC INC 2,047 1,274,993 0.06AIR PRODUCTS AND CHEMICALS

INC 410 455,187 0.02

46



HoldingsMarket

value

% ofnet

assetvalue

HKD


AKAMAI TECHNOLOGIES INC 1,292 475,676 0.02ALASKA AIR GROUP INC 750 499,244 0.02ALLEGHANY CORP 210 1,005,958 0.04ALLERGAN PLC 238 469,035 0.02ALLSTATE CORP 1,236 878,454 0.04ALLY FINANCIAL INC 6,227 1,101,069 0.05ALPHABET INC 525 3,815,356 0.17ALPHABET INC 517 3,817,785 0.17ALTRIA GROUP INC 4,727 2,398,600 0.10AMAZON.COM INC 560 4,320,238 0.19AMDOCS LTD 1,896 994,656 0.04AMEREN CORP 2,257 988,903 0.04AMERICAN AIRLINES GROUP INC 3,306 1,302,379 0.06AMERICAN ELECTRIC POWER CO

INC 958 527,789 0.02AMERICAN EXPRESS CO 2,567 1,708,747 0.07AMERICAN INTERNATIONAL GROUP

INC 1,260 644,080 0.03AMGEN INC 1,551 2,113,934 0.09ANTHEM INC 989 1,438,330 0.06APPLE INC 8,470 9,838,783 0.43APPLIED MATERIALS INC 2,042 706,670 0.03ARROW ELECTRONICS INC 1,302 826,623 0.04ASHLAND GLOBAL HOLDINGS INC 288 146,139 0.01ASSURANT INC 720 591,966 0.03AT&T INC 8,208 2,500,123 0.11AUTOLIV INC 1,066 902,414 0.04AVANGRID INC 2,229 790,709 0.03AVNET INC 2,089 626,185 0.03AXIS CAPITAL HOLDINGS LTD 982 495,301 0.02BANK OF AMERICA CORP 10,720 2,019,442 0.09BAXTER INTERNATIONAL INC 2,832 1,337,717 0.06BB&T CORP 1,700 628,280 0.03BECTON DICKINSON & CO 430 676,375 0.03BED BATH & BEYOND INC 2,369 553,217 0.02BERKSHIRE HATHAWAY INC CLASS A 1 2,052,398 0.09BERKSHIRE HATHAWAY INC CLASS B 1,906 2,604,629 0.11BIOGEN IDEC INC 718 1,623,930 0.07BIOVERATIV INC 224 108,415 0.00BLACKROCK INC 203 676,246 0.03BOEING CO 952 1,802,754 0.08

HoldingsMarket

value

% ofnet

assetvalue

HKD

BRISTOL MYERS SQUIBB CO 1,412 627,489 0.03BROADCOM LTD 500 963,226 0.04C.R. BARD INC 205 513,307 0.02CA INC 3,443 834,676 0.04CAMPBELL SOUP CO 964 397,756 0.02CAPITAL ONE FINANCIAL CORP 1,000 673,079 0.03CARS.COM INC 633 120,135 0.01CELGENE CORP 1,365 1,443,586 0.06CENTERPOINT ENERGY INC 4,403 969,400 0.04CENTURYLINK INC 4,296 780,764 0.03CHECK POINT SOFTWARE

TECHNOLOGIES LTD 1,264 1,044,263 0.05CHEVRON CORP 2,898 2,471,386 0.11CHUBB LTD 859 982,588 0.04CINCINNATI FINANCIAL CORP 840 499,650 0.02CISCO SYSTEMS INC 6,457 1,586,028 0.07CITIGROUP INC 3,554 1,899,985 0.08CNA FINANCIAL CORP 2,388 968,901 0.04COCA COLA CO 4,816 1,724,211 0.07COLGATE PALMOLIVE CO 1,585 893,770 0.04COMCAST CORP CLASS A 6,481 2,047,481 0.09CORE LABORATORIES NV 863 677,588 0.03CORNING INC 2,138 486,583 0.02COSTCO WHOLESALE CORP 374 463,007 0.02CUMMINS INC 823 1,079,220 0.05CVS HEALTH CORP 843 526,256 0.02D.R. HORTON INC 2,200 613,237 0.03DARDEN RESTAURANTS INC 1,631 1,068,493 0.05DELTA AIR LINES INC 2,047 789,137 0.03DENTSPLY SIRONA INC 1,986 962,145 0.04DISCOVER FINANCIAL SERVICES 760 361,722 0.02DISCOVERY COMMUNICATIONS INC

CLASS C

356

64,311

0.00DOVER CORP 1,626 1,066,742 0.05DOW CHEMICAL CO 2,759 1,384,257 0.06DR PEPPER SNAPPLE GROUP INC 1,367 973,267 0.04DXC TECHNOLOGY CO 674 412,596 0.02E.I. DU PONT DE NEMOURS AND CO 1,125 722,332 0.03EASTMAN CHEMICAL CO 1,426 926,176 0.04EBAY INC 4,659 1,300,125 0.06EMERSON ELECTRIC CO 1,202 559,607 0.02EOG RESOURCES INC 812 603,363 0.03EVEREST RE GROUP LTD 289 592,249 0.03EXELON CORP 4,542 1,360,062 0.06

47



HoldingsMarket

value

% ofnet

assetvalue

HKD


EXPEDITORS INTERNATIONAL OF WASHINGTON INC 1,530 703,588 0.03

EXPRESS SCRIPTS HOLDINGS CO 1,300 635,996 0.03EXXON MOBIL CORP 7,385 4,616,544 0.20F5 NETWORKS INC 893 842,167 0.04FACEBOOK INC CLASS A 3,416 4,515,501 0.20FASTENAL CO 2,526 847,534 0.04FIDELITY NATIONAL FINANCIAL INC 3,289 1,255,095 0.05FIRSTENERGY CORP 2,703 673,647 0.03FLEX LTD 8,470 1,057,770 0.05FLUOR CORP 1,726 585,450 0.03FOOT LOCKER INC 1,790 659,724 0.03FORD MOTOR CO 13,872 1,215,602 0.05FORTIVE CORP 2,102 1,062,832 0.05FRANKLIN RESOURCES INC 2,000 699,477 0.03FRONTIER COMMUNICATIONS CORP 1,013 121,128 0.01GAP INC 5,458 1,015,820 0.04GARMIN LTD 1,289 505,277 0.02GENERAL ELECTRIC CO 11,369 2,274,004 0.10GENERAL MILLS INC 925 402,109 0.02GENERAL MOTORS CO 4,924 1,383,689 0.06GENTEX CORP 5,508 732,172 0.03GENUINE PARTS CO 1,247 827,155 0.04GILEAD SCIENCES INC 2,892 1,718,641 0.07GOODYEAR TIRE & RUBBER CO 3,338 821,475 0.04H&R BLOCK INC 3,103 739,164 0.03HARTFORD FINANCIAL SERVICES

GROUP INC 3,250 1,396,064 0.06HCA HOLDINGS INC 549 344,480 0.01HELMERICH & PAYNE INC 1,586 627,025 0.03HERBALIFE LTD 510 264,921 0.01HEWLETT PACKARD ENTERPRISE CO 7,075 967,547 0.04HOLOGIC INC 3,069 1,059,685 0.05HONEYWELL INTERNATIONAL INC 1,422 1,511,753 0.07ILLINOIS TOOL WORKS INC 934 1,026,434 0.04INGERSOLL-RAND PLC 1,629 1,118,074 0.05INGREDION INC 856 824,454 0.04INTEL CORP 11,091 3,072,496 0.13INTERNATIONAL BUSINESS

MACHINES CORP 1,266 1,430,446 0.06

HoldingsMarket

value

% ofnet

assetvalue

HKD

INTERNATIONAL FLAVORS & FRAGRANCES INC 350 364,055 0.02

INTERNATIONAL GAME TECHNOLOGY PLC 2,899 431,097 0.02

INTERPUBLIC GROUP OF COS INC 4,505 760,342 0.03INTUITIVE SURGICAL INC 176 1,289,719 0.06J B HUNT TRANSPORT SERVICES INC 1,264 895,492 0.04JABIL CIRCUIT INC 3,879 924,015 0.04JACOBS ENGINEERING GROUP INC 1,936 797,150 0.03JOHNSON & JOHNSON 4,583 4,750,569 0.21JPMORGAN CHASE & CO 5,231 3,750,479 0.16JUNIPER NETWORKS INC 3,561 777,344 0.03KEYSIGHT TECHNOLOGIES INC 2,744 891,317 0.04KIMBERLY CLARK CORP 470 452,092 0.02KINDER MORGAN INC 3,520 561,656 0.02KLA-TENCOR CORP 759 549,102 0.02KRAFT HEINZ CO 1,893 1,293,062 0.06L BRANDS INC 1,221 442,384 0.02LAM RESEARCH CORP 1,171 1,458,371 0.06LEGGETT & PLATT INC 2,147 807,901 0.04LEVEL 3 COMMUNICATIONS INC 2,251 1,031,632 0.04LIBERTY GLOBAL PLC SERIES C 848 217,036 0.01LKQ CORP 1,900 512,846 0.02LOWE’S COMPANIES INC 923 557,959 0.02LYONDELLBASELL INDUSTRIES NV 1,460 1,027,280 0.04MALLINCKRODT PLC 1,000 357,705 0.02MARATHON PETROLEUM CORP 2,694 1,178,060 0.05MARRIOTT INTERNATIONAL INC

CLASS A 1,609 1,309,307 0.06MARVELL TECHNOLOGY GROUP LTD 9,591 1,165,555 0.05MASTERCARD INC CLASS A 837 835,441 0.04MAXIM INTEGRATED PRODUCTS INC 2,979 1,057,227 0.05MCDONALD’S CORP 1,725 2,090,125 0.09MCKESSON CORP 480 606,830 0.03MDU RESOURCES GROUP INC 3,951 813,106 0.04MEDTRONIC PLC 2,260 1,482,149 0.06MERCK & CO INC 3,305 1,648,905 0.07METLIFE INC 1,375 590,643 0.03MICHAEL KORS HOLDINGS LTD 2,425 690,160 0.03MICRON TECHNOLOGY INC 1,986 436,168 0.02MICROSOFT CORP 11,502 6,530,812 0.28MONSANTO CO 790 720,782 0.03MOODY’S CORP 1,008 1,036,274 0.05

48



HoldingsMarket

value

% ofnet

assetvalue

HKD


MOSAIC CO 2,600 490,196 0.02NEWS CORP 4,900 562,565 0.02NORTHROP GRUMMAN CORP 327 672,013 0.03NVR INC 66 1,345,603 0.06NXP SEMICONDUCTORS NV 669 576,473 0.03OCCIDENTAL PETROLEUM CORP 1,397 675,705 0.03OLD REPUBLIC INTERNATIONAL

CORP 3,400 521,000 0.02ORACLE CORP 4,905 1,912,758 0.08PAYCHEX INC 2,224 1,004,841 0.04PEPSICO INC 2,395 2,181,226 0.09PFIZER INC 6,440 1,667,861 0.07PG&E CORP 958 506,465 0.02PHILIP MORRIS INTERNATIONAL INC 2,406 2,193,123 0.10PHILLIPS 66 1,925 1,259,143 0.05PINNACLE WEST CAPITAL CORP 1,216 823,687 0.04PNC FINANCIAL SERVICES GROUP

INC 866 871,150 0.04PPL CORP 2,133 638,541 0.03PRAXAIR INC 550 559,113 0.02PRICELINE GROUP INC 68 1,077,316 0.05PRINCIPAL FINANCIAL GROUP INC 995 518,721 0.02PROCTER & GAMBLE CO 4,150 2,943,669 0.13PRUDENTIAL FINANCIAL INC 834 737,542 0.03PUBLIC SERVICE ENTERPRISE

GROUP 2,616 918,798 0.04PULTEGROUP INC 5,415 1,032,770 0.04QIAGEN NV 4,838 1,252,944 0.05QORVO INC 1,977 1,058,612 0.05QUALCOMM INC 1,523 632,688 0.03RAYTHEON CO 479 642,602 0.03RENAISSANCERE HOLDINGS LTD 300 344,217 0.01ROBERT HALF INTERNATIONAL INC 1,362 481,343 0.02ROCKWELL COLLINS INC 1,186 986,770 0.04ROSS STORES INC 2,212 955,711 0.04SAFEWAY PDC LLC CVR (CASA LEY) 740 - 0.00SAFEWAY PDC LLC CVR (PDC) 740 - 0.00SANTANDER CONSUMER USA

HOLDINGS INC 9,835 983,972 0.04SCANA CORP 1,845 927,554 0.04SCHLUMBERGER LTD 1,806 967,612 0.04

HoldingsMarket

value

% ofnet

assetvalue

HKD

SKYWORKS SOLUTIONS INC 1,815 1,486,577 0.06SNAP-ON INC 678 816,532 0.04SOUTHERN CO 3,050 1,141,738 0.05SOUTHWEST AIRLINES CO 1,490 645,977 0.03STANLEY BLACK & DECKER INC 1,011 1,110,897 0.05STAPLES INC 7,900 626,257 0.03STARBUCKS CORP 3,481 1,467,561 0.06STRYKER CORP 1,358 1,560,170 0.07SUNTRUST BANKS INC 2,685 1,201,386 0.05SYMANTEC CORP 6,182 1,496,270 0.07SYNCHRONY FINANCIAL 4,721 1,117,951 0.05T. ROWE PRICE GROUP INC 1,753 1,132,535 0.05TE CONNECTIVITY LTD 2,052 1,288,365 0.06TECHNIPFMC PLC 1,423 317,189 0.01TEGNA INC 7,101 822,470 0.04TESORO CORP 1,174 912,602 0.04TEXAS INSTRUMENTS INC 2,697 1,714,186 0.07THE HOME DEPOT INC 1,684 1,967,583 0.09THE PROGRESSIVE CORP 3,800 1,398,751 0.06THE TRAVELERS COS INC 1,284 1,284,516 0.06THE WALT DISNEY CO 2,543 2,183,343 0.09THERMO FISHER SCIENTIFIC INC 742 1,017,219 0.04TIFFANY & CO 1,834 1,368,068 0.06TIME WARNER INC 1,508 1,206,273 0.05TJX COS INC 2,321 1,274,535 0.06TORCHMARK CORP 837 516,234 0.02TRANSOCEAN LTD 6,196 418,588 0.02TWENTY-FIRST CENTURY FOX INC

CLASS B 955 213,990 0.01TYSON FOODS INC CLASS A 969 479,511 0.02U.S. BANCORP 2,904 1,197,086 0.05UNION PACIFIC CORP 1,605 1,290,634 0.06UNITED CONTINENTAL HOLDINGS

INC 1,130 597,308 0.03UNITED PARCEL SERVICE INC CLASS

B 1,339 1,153,390 0.05UNITED RENTALS INC 1,541 1,431,736 0.06UNITEDHEALTH GROUP INC 1,341 2,008,905 0.09UNIVERSAL HEALTH SERVICES INC

CLASS B 918 794,620 0.03UNUM GROUP 1,276 499,583 0.02VALERO ENERGY CORP 2,431 1,309,497 0.06VARIAN MEDICAL SYSTEMS INC 1,003 760,797 0.03

49



HoldingsMarket

value

% ofnet

assetvalue

HKD


VERISIGN INC 1,361 1,075,398 0.05VERIZON COMMUNICATIONS INC 5,951 2,249,545 0.10VISA INC CLASS A 2,569 1,997,599 0.09VOYA FINANCIAL INC 3,249 995,722 0.04W W GRAINGER INC 260 338,589 0.01W. R. BERKLEY CORP 1,646 886,644 0.04WALGREENS BOOTS ALLIANCE INC 1,264 796,377 0.03WAL-MART STORES INC 2,517 1,572,455 0.07WATERS CORP 669 906,222 0.04WELLS FARGO & CO 7,832 3,299,461 0.14WESTERN UNION CO 5,255 810,586 0.04WYNDHAM WORLDWIDE CORP 1,645 1,340,914 0.06XEROX CORP 1,475 353,318 0.02XILINX INC 2,369 1,170,452 0.05YANDEX NV 2,518 569,919 0.02YUM BRANDS INC 958 564,751 0.02YUM CHINA HOLDINGS INC 2,756 770,372 0.03ZIMMER BIOMET HOLDINGS INC 789 747,599 0.03

298,012,229 12.96

Equities (Total) 1,595,713,856 69.39

Debt securities

BondsListed investments

AUSTRALIA, COMMONWEALTH OF (GOVERNMENT) 3.25% 21 APRIL 2025 705,000 4,624,555 0.20

AUSTRALIA (GOVERNMENT OF) 5.25% 15 MARCH 2019 546,000 3,599,001 0.16

AUSTRIA (REPUBLIC OF) 3.9% 15 JULY 2020 727,000 7,551,547 0.33

AUSTRIA (REPUBLIC OF) 4.65% 15 JANUARY 2018 55,000 518,705 0.02

BELGIUM (KINGDOM OF) 2.6% 22 JUN 2024 718,623 7,665,889 0.33

BELGIUM (KINGDOM OF) 4% 28 MARCH 2019 76,000 753,189 0.03

HoldingsMarket

value

% ofnet

assetvalue

HKD

CANADA (GOVERNMENT) 0.75% 1 MAY 2019 455,000 2,815,217 0.12

CANADA (GOVERNMENT) 1.5% 1 JUNE 2026 150,000 899,409 0.04

CANADA (GOVERNMENT OF) 5.75% 1 JUNE 2029 485,000 4,151,676 0.18

DENMARK (KINGDOM OF) 1.5% 15 NOVEMBER 2023 1,957,197 2,642,798 0.12

FRANCE, REPUBLIC OF (GOVERNMENT) 0.5% 25 MAY 2025 397,619 3,672,253 0.16

FRANCE, REPUBLIC OF (GOVERNMENT) 3.25% 25 MAY 2045 195,156 2,387,281 0.10

FRANCE (GOVERNMENT OF) OAT 4.25% 25 OCTOBER 2023 1,742,320 20,160,034 0.88

FRANCE (GOVERNMENT OF) 5.75% 25 OCTOBER 2032 367,511 5,536,798 0.24

GERMANY, FEDERAL REPUBLIC OF (GOVERNMENT) 0.25% 15 FEBRUARY 2027 300,000 2,704,439 0.12

GERMANY, FEDERAL REPUBLIC OF (GOVERNMENT) 0.5% 15 FEBRUARY 2026 150,000 1,402,385 0.06

GERMANY (REPUBLIC OF) 3.25% 4 JULY 2042 596,000 7,894,036 0.34

GERMANY, FEDERAL REPUBLIC OF (GOVERNMENT) 4% 04 JANUARY 2018 1,480,000 13,902,966 0.61

ITALY REPUBLIC OF (GOVERNMENT) 0.7% 1 MAY 2020 1,541,000 14,413,558 0.63

ITALY REPUBLIC OF (GOVERNMENT) 2% 1 DECEMBER 2025 460,000 4,301,453 0.19

ITALY (REPUBLIC OF) 4% 1 FEBRUARY 2037 767,000 8,306,399 0.36

ITALY (REPUBLIC OF) 4.5% 1 FEBRUARY 2018 1,141,000 10,762,037 0.47

ITALY (REPUBLIC OF) 4.5% 1 MARCH 2024 126,000 1,387,402 0.06

ITALY (REPUBLIC OF) 5.5% 1 NOVEMBER 2022 179,000 2,028,912 0.09

JAPAN (GOVERNMENT OF) 0.1% 20 MARCH 2018 20,000,000 1,415,673 0.06

50



HoldingsMarket

value

% ofnet

assetvalue

HKD


JAPAN (GOVERNMENT OF) 0.3% 20 DECEMBER 2025 152,000,000 10,990,109 0.48

JAPAN GOVERNMENT 10 YEAR BOND #328 0.6% 20 MARCH 2023 132,600,000 9,716,016 0.42

JAPAN GOVERNMENT 10YR BOND #318 1% 20 SEPTEMBER 2021 89,050,000 6,572,998 0.29

JAPAN GOVERNMENT 20 YEAR BOND #150 1.4% 20 SEPTEMBER 2034 193,600,000 15,850,507 0.69

JAPAN GOVERNMENT 10YR BOND #300 1.5% 20 MARCH 2019 64,000,000 4,643,564 0.20



JAPAN GOVERNMENT 20YR BOND #39 2.6% 20 MARCH 2018 126,750,000 9,112,576 0.40

MEXICO (UNITED STATES OF) 8% 11 JUNE 2020 57,250 2,612,607 0.11

NETHERLANDS (GOVERNMENT OF) 3.75% 15 JANUARY 2042 183,000 2,576,779 0.11

NETHERLANDS (GOVERNMENT OF) 4% 15 JULY 2018 234,000 2,250,380 0.10

NORWAY (GOVERNMENT OF) 4.5% 22 MAY 2019 770,000 814,119 0.04

POLAND REPUBLIC OF (GOVERNMENT) 5.25% 25 OCTOBER 2020 818,000 1,937,856 0.08

SOUTH AFRICA (REPUBLIC OF) 10.5% 21 DECEMBER 2026 1,191,000 789,012 0.03

SPAIN KINGDOM OF (GOVERNMENT) 1.15% 30 JULY 2020 581,000 5,560,679 0.24

SPAIN (GOVERNMENT OF) 4.1% 30 JULY 2018 1,310,000 12,602,746 0.55

SPAIN (GOVERNMENT OF) 4.4% 31 OCTOBER 2023 415,000 4,699,201 0.20

BONOS Y OBLIG DEL ESTADO 5.15% 31 OCTOBER 2044 143,000 1,921,375 0.08

HoldingsMarket

value

% ofnet

assetvalue

HKD

SPAIN (GOVERNMENT OF) 5.75% 30 JULY 2032 203,000 2,770,446 0.12

SWEDEN (GOVERNMENTOF) 4.25% 12 MARCH 2019 1,725,000 1,799,216 0.08

SWITZERLAND (GOVERNMENT OF) 3% 8 JANUARY 2018 77,000 634,005 0.03

UK OF GREAT BRITAIN AND NORTHERN IRELAND (GOVERNMENT) 3.25% 22 JANUARY 2044 308,000 4,056,982 0.18

UK TREASURY 4% 7 MARCH 2022 548,000 6,548,277 0.29UK TREASURY 4.25% 7 MARCH 2036 1,072,000 15,397,814 0.67US TREASURY NOTES 1.5% 31

AUGUST 2018 4,910,400 38,448,336 1.67UNITED STATES TREASURY 1.75% 15

MAY 2022 1,592,000 12,396,846 0.54US TREASURY NOTES 2% 31

OCTOBER 2021 1,615,000 12,741,004 0.55US TREASURY NOTES 2.125% 31

AUGUST 2020 1,796,000 14,274,146 0.62US TREASURY NOTES 2.5% 15 MAY

2024 2,583,000 20,703,175 0.90US TREASURY NOTES 3% 15

NOVEMBER 2044 1,339,000 10,681,653 0.46UNITED STATES TREASURY 4.25% 15

NOVEMBER 2017 1,811,000 14,270,706 0.62US TREASURY NOTES 4.375% 15

FEBRUARY 2038 1,960,000 19,362,094 0.84

437,942,029 19.05

Certificates of depositUnlisted but quoted investments BANK OF CHINA LTD (TOKYO

BRANCH) 0% CD 29 SEPTEMBER 2017 9,000,000 69,974,828 3.04

CHINA CONSTRUCTION BANK CORP (HONG KONG BRANCH) 1.76% CD 29 SEPTEMBER 2017 6,200,000 48,422,930 2.11

118,397,758 5.15

Debt securities (Total) 556,339,787 24.20

51



HoldingsMarket

value

% ofnet

assetvalue

HKD

Unit trustsListed investments

AGNC INVESTMENT CORP 5,412 895,248 0.04AMERICAN TOWER CORP 1,074 1,143,550 0.05DUKE REALTY CORP 5,070 1,132,092 0.05GGP INC 780 137,738 0.01HOSPITALITY PROPERTIES TRUST 3,134 711,302 0.03IRON MOUNTAIN INC 2,617 744,599 0.03KIMCO REALTY CORP 3,438 541,859 0.02LINK REIT 64,882 4,120,007 0.18PUBLIC STORAGE 671 1,077,312 0.05SIMON PROPERTY GROUP INC 744 921,004 0.04WEYERHAEUSER CO 3,067 790,952 0.03

12,215,663 0.53

Unlisted but quoted investments

HSBC INDEX TRACKER INVESTMENT FUND – JAPAN INDEX FUND CLASS INSTITUTIONAL ACCUMULATION 4,032,794 50,119,114 2.18

Unit trusts (Total) 62,334,777 2.71

Derivative Assets

Foreign currency forward contracts 1,565,058 0.07

Total financial assets 2,215,953,478 96.37

Financial liabilitiesDerivative liabilities

Foreign currency forward contracts (2,981,115) (0.13)

Total financial liabilities (2,981,115) (0.13)

Total investments (Total cost of investments: $1,915,918,129) 2,212,972,363 96.24

Other net assets 86,532,592 3.76

Total net assets 2,299,504,955 100.00

52

Statement of Movements in Portfolio Holdings (Unaudited)


% ofnet asset

value

% ofnet asset

value2017 2016

Financial assets

Equities

Listed investmentsAustralia 2.47 2.90Austria 0.23 0.15Belgium 0.28 0.38Canada 1.04 0.93Czech Republic 0.02 –Denmark 0.33 0.44Finland 0.40 0.42France 2.05 2.25Germany 2.27 1.72Greece 0.04 0.07Hong Kong 22.65 22.63India 1.07 –Indonesia 0.31 0.27Ireland 0.11 0.13Italy 0.40 0.60Japan 9.30 9.98Malaysia 0.25 0.39Netherlands 0.54 0.46New Zealand 0.04 0.02Norway 0.20 0.27Philippines 0.10 0.04Poland 0.10 0.08Portugal 0.05 –Russia 0.21 –Singapore 0.96 0.99South Korea 2.07 2.23Spain 0.56 0.46Sweden 0.90 0.70Switzerland 1.83 1.97Taiwan 1.31 1.49Thailand 0.32 0.30Turkey 0.14 –United Kingdom 3.88 4.13United States of America 12.96 13.30

69.39 69.70

53



% ofnet asset

value

% ofnet asset

value2017 2016

BondsListed investments 19.05 12.57

Certificates of depositUnlisted but quoted investments 5.15 –

Unit trustsListed investments 0.53 0.57Unlisted investments 2.18 9.06

2.71 9.63

Derivative Assets

Foreign currency forward contracts 0.07 –


Derivative liabilities

Foreign currency forward contracts (0.13) (0.03)

Total investments 96.24 91.87Other net assets 3.76 8.13

Total net assets 100.00 100.00

54

Performance Record (Unaudited)


(a) Price record (dealing net asset value per unit)

“A” class income units

Bid OfferYear Lowest Highest Lowest Highest

HKD HKD HKD HKD

2007 20.99 26.99 22.15 28.482008 24.00 29.60 25.33 31.232009 14.62 24.28 15.42 25.622010 20.87 23.89 22.01 25.202011 21.89 25.86 23.09 27.282012 20.45 24.99 21.57 26.362013 22.02 25.87 23.23 27.292014 24.36 27.15 25.69 28.642015 25.24 28.12 26.63 29.672016 22.66 26.38 23.91 27.832017 25.22 29.28 26.61 30.89

“L” class income units


HKD HKD HKD HKD

2008 25.66 31.24 25.66 31.242009 16.60 26.21 16.60 26.212010 23.04 26.37 23.04 26.372011 24.36 28.83 24.36 28.832012 23.03 28.13 23.03 28.132013 25.06 29.49 25.06 29.492014 28.04 31.20 28.04 31.202015 30.61 30.99 30.61 30.992016 – – – –2017 – – – –

55


Provident class units


HKD HKD HKD HKD

2007 22.34 28.46 22.34 28.462008 25.73 31.35 25.73 31.352009 16.90 26.44 16.90 26.442010 23.47 26.85 23.47 26.852011 24.85 29.52 24.85 29.522012 23.64 28.84 23.64 28.842013 25.85 30.54 25.85 30.542014 29.10 32.66 29.10 32.662015 30.60 34.23 30.60 34.232016 27.76 32.19 27.76 32.192017 31.24 36.52 31.24 36.52

Accumulation units


HKD HKD HKD HKD

2007 10.63 13.35 10.64 13.362008 12.08 14.64 12.09 14.652009 7.90 12.31 7.90 12.322010 10.82 12.38 10.82 12.382011 11.43 13.51 11.43 13.512012 10.78 13.17 10.78 13.172013 11.72 13.77 11.72 13.772014 13.08 14.58 13.08 14.582015 13.64 15.21 13.64 15.212016 12.27 14.28 12.27 14.282017 13.70 15.94 13.70 15.94

(b) Total net asset value (calculated in accordance with HKFRS)

2017 2016 2015 2014HKD HKD HKD HKD

Total net asset value 2,299,504,955 2,307,123,710 2,359,456,259 2,246,677,977

(c) Net asset value per unit (calculated in accordance with HKFRS)

2017 2016 2015 2014HKD HKD HKD HKD

Net asset value per unit– “A” class income units 29.07 25.58 26.37 26.84– Provident class units 36.52 31.61 32.17 32.50– Accumulation units 15.94 13.88 14.27 14.51

56


(d) Totalexpenseratio

2017Averagenetassetvalue

Totalexpenses

Totalexpenseratio

HKD HKD %

– “A” class 373,774,545 6,487,149 1.74%– Provident class 1,848,421,952 18,144,682 0.98%– Accumulation class 93,147,296 1,556,768 1.67%

57

HSBC Managed Growth Fund

Market review





58

HSBC Managed Growth Fund (“the Fund”)

We hereby confirm that, to the best of our knowledge, the Manager of the Fund has, in all material respects, managed the Fund in accordance with the provisions of the Trust Deed dated 14 March 1997, as amended, for the year ended 31 July 2017.


Trustee’s Report

59


Opinion

We have audited the financial statements of HSBC Managed Growth Fund (the “Fund”) set on page 61 to 83, which comprise the statement of financial position as at 31 July 2017, the statement of comprehensive income, the statement of changes in net assets attributable to unitholders, the cash flow statement and the distribution statement for the year then ended and notes to the financial statements, including a summary of significant accounting policies.


Basis for Opinion





In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.








60

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with HKSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. In addition, we are required to assess whether the financial statements of the Fund have been properly prepared, in all material respects, in accordance with the relevant provisions of the Trust Deed and the relevant disclosure provisions of Appendix E of the SFC Code.





• Conclude on the appropriateness of the Manager’s and the Trustee’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Fund’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Fund to cease to continue as a going concern.






27 November 2017



61

HSBC Managed Growth Fundas at 31 July 2017


ASSETSFinancial assets at fair value through profit or loss 5, 7(f), 12(g), 13 2,969,435,572 2,989,284,824Interest and dividends receivable 7,486,191 6,075,104Subscriptions receivable 9,869,820 24,241,019Amounts due from brokers 6, 7(b) 27,023,656 77,886,904Cash and cash equivalents 7(b) 67,732,699 24,695,347

3,081,547,938 3,122,183,198

LIABILITIESFinancial liabilities at fair value through profit or loss 5, 7(g), 12(g), 13 2,504,559 617,093Redemptions payable 7,743,008 11,086,472Amounts due to brokers 6 9,108,277 34,614,616Distributions payable 11 2,267,405 1,589,251Other payables 7(a), 7(c), 7(d) 3,818,812 3,514,413

25,442,061 51,421,845














62

HSBC Managed Growth Fundfor the year ended 31 July 2017


Interest income 7(b) 416,157 79,722Dividend income 7(f) 83,662,687 85,781,890Net gains/(losses) from financial instruments

at fair value through profit or loss 3 515,991,995 (175,806,365)Net foreign exchange gain/(loss) 124,209 (741,684)Other income 7(c), 7(d) 5,870,269 –

TOTAL REVENUE/(LOSSES) 606,065,317 (90,686,437)

Management fees 7(a) 24,406,288 24,079,522Transaction fees 7(c), 7(d), 7(e) 2,845,241 2,323,091Trustee’s fees 7(c) 3,106,562 3,126,836Administrative fees 7(a) 129,786 322,641Auditors’ remuneration 161,688 122,795Registrar’s fees 7(a) 70,000 37,996Legal and professional fees 126,439 31,533Safe custody fees, bank charges and miscellaneous expenses 7(d) 1,263,579 1,352,488


NET PROFIT/(LOSS) FROM OPERATIONS BEFORE TAxATION 573,955,734 (122,083,339)

Taxation 4 (11,047,033) (10,473,898)

NET PROFIT/(LOSS) FROM OPERATIONS BEFORE DISTRIBUTIONS 562,908,701 (132,557,237)

Distributions to holders of “A” class income units 11 (2,267,405) (1,589,251)

INCREASE/(DECREASE) IN NET ASSETS ATTRIBUTABLE TO UNITHOLDERS AND TOTAL COMPREHENSIVE INCOME FOR THE YEAR 560,641,296 (134,146,488)



63




Increase/(decrease) in net assets attributable to unitholders and total comprehensive income for the year 560,641,296 (134,146,488)

Subscriptions of units (excluding equalisation)“A” class income units 20,217,208 21,551,325Provident class units 214,044,317 378,817,553

Redemptions of units (excluding equalisation)“A” class income units (44,015,345) (41,246,700)Provident class units (754,035,665) (490,921,328)

Income equalisation on subscriptions and redemptions 10 (11,507,287) (1,090,002)

(575,296,772) (132,889,152)




64


2017 2016HKD HKD

OPERATING ACTIVITIESInterest received 416,157 79,722Dividends received 82,304,247 83,341,825Management fees paid (24,242,332) (24,450,675)Trustee’s fees paid (3,145,107) (3,173,406)Payments on purchase of investments (1,176,868,650) (1,415,115,156)Proceeds from sale of investments 1,741,048,823 1,522,000,457Taxes paid (11,007,588) (10,470,241)Other operating income received/(expenses paid) 1,537,288 (5,325,364)Margin deposits placed with brokers (1,147,198) –


FINANCING ACTIVITIESProceeds from issue of units including equalisation 253,068,799 406,410,687Payments on redemption of units including equalisation (817,337,836) (552,396,402)Distributions paid (1,589,251) (398,643)


Net increase in cash and cash equivalents 43,037,352 502,804


Cash and cash equivalents at the end of the year 67,732,699 24,695,347


Cash Flow Statement

65




Profit for the year available for distribution * 50,672,461 46,313,903

Income equalisation on subscriptions and redemptions 10 (11,507,287) (1,090,002)Distributions to unitholders 11 (2,267,405) (1,589,251)







66


1 The Fund

HSBC Managed Growth Fund (“the Fund”) is an open ended unit trust established under a trust deed dated 14 March 1997, as amended (“the Trust Deed”), and governed by the laws of the Cayman Islands. The Fund registered under the Mutual Funds Law of the Cayman Islands on 13 March 1997. The objective of the Fund is to invest in a diversified portfolio of investments which maximises capital growth whilst keeping risk at a medium level.






The functional and presentation currency of the Fund is Hong Kong dollars reflecting the fact that the participating redeemable units of the Fund are issued and redeemed in Hong Kong dollars.

The financial statements are prepared on a fair value basis for financial assets at fair value through profit or loss and derivative financial instruments. Other financial assets and financial liabilities are stated at amortised cost or redemption amount (redeemable units).

The preparation of financial statements in conformity with HKFRSs requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of financial position that are not readily apparent from other sources. Actual results may differ from these estimates.






Foreign currency transactions during the year are translated into Hong Kong dollars at the exchange rates ruling at the transaction dates. Monetary financial position denominated in currencies that are stated at fair value are translated into Hong Kong dollars at the exchange rates ruling at the date of the statement of financial position. Foreign currency exchange differences arising on translation and realised gains and losses on disposals or settlements of monetary financial position are recognised in profit or loss.


67



(i) Classification

All of the Fund’s investments are classified as financial assets or financial liabilities at fair value through profit or loss. This category comprises financial instruments held for trading, which are instruments that the Fund has acquired principally for the purpose of short-term profit-taking. These include investments in equities, debt securities, unit trusts, rights and forward contracts.



Financial l iabilities at amortised cost include redemptions payable, amounts due to brokers, distributions payable and other payables. Financial liabilities arising from the redeemable units issued by the Fund are carried at the redemption amount.

(ii) Recognition




(iii) Measurement

Financial instruments are measured initially at fair value (transaction price). Transaction costs on financial position at fair value through profit or loss are expensed immediately, while on other financial instruments they are amortised.






When available, the Fund measures the fair value of an instrument using the quoted price in an active market for that instrument provided such price is within the bid-ask spread. A market is regarded as active if transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. In circumstances where the quoted price is not within the bid ask spread, the manager of the Fund will determine the points within the bid-ask spread that are most representative of the fair value.

68



The best evidence of the fair value of a financial instrument at initial recognition is normally the transaction price – i.e. the fair value of the consideration given or received. If the Fund determines that the fair value at initial recognition differs from the transaction price and the fair value is evidenced neither by a quoted price in an active market for an identical asset or liability nor based on a valuation technique that uses only data from observable markets, the financial instrument is initially measured at fair value, adjusted to defer the difference between the fair value at initial recognition and the transaction price. Subsequently, that difference is recognised in profit or loss on an appropriate basis over the life of the instrument but no later than when the valuation is supported wholly by observable market data or the transaction is closed out.

Portfolios of financial assets and financial liabilities that are exposed to market risk and credit risk that are managed by the Fund on the basis of the net exposure to either market or credit risk, are measured on the basis of a price that would be received to sell a net long position (or paid to transfer a net short position) or a particular risk exposure. Those portfolio-level adjustments are allocated to the individual financial position on the basis of the relative risk adjustment of each of the individual instruments in the portfolio.




(vi) Impairment


If in a subsequent period the amount of an impairment loss recognised on a financial asset carried at amortised cost decreases and the decrease can be linked objectively to an event occurring after the write-down, the write-down is reversed through profit or loss.

(vii) Derecognition




(viii) Offsetting

Financial position are offset and the net amount is reported in the statement of financial position when the Fund has a legally enforceable right to offset the recognised amounts and the transactions are intended to be settled on a net basis or simultaneously, e.g. through a market clearing mechanism.




69




(i) Dividends

Dividend income from listed investments is recognised when the share price of the investment goes ex-dividend. Dividends from other investments are recognised in profit or loss as dividend income when declared. In some cases, the Fund may choose to receive dividends in the form of additional shares rather than cash. In such cases, the Fund recognises the dividend income for the amount of the equivalent cash dividend with the corresponding debit treated as an additional investment.



(g) Expenses




(i) Related parties










(v) The entity is a post employment benefit plan for the benefit of employees of an entity related to the Fund.







70


(k) Units in issue


The Fund has multiple classes of redeemable units in issue – “A” class and Provident class. All the classes belong to the most subordinate class of financial instruments in the Fund and rank pari passu in all material respects and have the same terms and conditions other than different management fee rates and different distribution rights. The redeemable units provide unitholders with the right to require redemption for cash at a value proportionate to the unitholders’ share in the Fund’s net assets at each daily redemption date, and also in the event of the Fund’s liquidation. The redeemable units are classified as financial liabilities and are measured at the present value of the redeemable amounts.


Distributions to holders of redeemable units of “A” class and Provident class classified as financial liabilities are recognised in profit or loss as finance cost when they are authorised and no longer at the discretion of the Fund.

For Provident class of the Fund, all dividend income and interest arising is accumulated within the Fund and will not be distributed to the unitholders.



3 Net gains/(losses) from financial instruments at fair value through profit or loss

2017 2016HKD HKD

Net realised gains 152,294,395 1,734,604Net unrealised gains/(losses) 363,697,600 (177,540,969)

515,991,995 (175,806,365)

4 Taxation






On 18 March 2010, the Hiring Incentives to Restore Employment Act of 2010 added chapter 4 to Subtitle A (“Chapter 4”) of the US Internal Revenue Code (the “Code”). The provisions in Chapter 4 are commonly referred to as the Foreign Account Tax Compliance Act (“FATCA”). US Treasury regulations providing guidance on the due diligence, reporting, and withholding obligations under FATCA were passed and came into effect in January 2013 (the “Regulations”).

71





2017 2016HKD HKD

Capital gain tax 800,553 –Overseas withholding tax 10,246,480 10,473,898

11,047,033 10,473,898


2017 2016HKD HKD


Equities

Listed shares 2,725,025,124 2,687,911,433

Debt securities

Unlisted but quoted certificates of deposit 94,221,462 –

2017 2016HKD HKD

Other investments



150,188,986 301,373,391

2,969,435,572 2,989,284,824



2,966,931,013 2,988,667,731

Investments, at cost 2,453,639,973 2,839,021,644Net unrealised appreciation in

value of investments 513,291,040 149,646,087

Investments, at fair value 2,966,931,013 2,988,667,731


2017 2016HKD HKD



Margin deposits 1,147,198 –

27,023,656 77,886,904


Amounts payable on purchase of investments 9,108,277 34,614,616

72





For “A” class income units 1.5%For Provident class units 0.75%


2017 2016HKD HKD


(ii) Registrar’s fees and administrative fees for the year 199,786 360,637


(iv) Registrar’s fees and administrative fees payable at year end 40,833 40,833

(b) Bank accounts are maintained with members of the HSBC Group. The balances of these accounts amounted to $23,214,844 (2016: $24,695,347) at year end. Interest income arising from these accounts amounted to $39,793 (2016: $17). Margin accounts are maintained with HSBC Bank Plc Futures Wholesale Trading Operations and Global Markets Operations, which is fellow subsidiary of the Manager within the HSBC Group. The balances of margin deposits amounted to $1,147,198 (2016: $nil) at year end.

(c) The trustee of the Fund is HSBC Trustee (Cayman) Limited (“the Trustee”), a fellow subsidiary of the Manager within the HSBC Group, which receives a monthly fee equivalent to 0.1% (2016: 0.1%) per annum of the net asset value of the Fund, subject to a minimum monthly fee of $10,000 (2016: $10,000). Effective from 1 July 2017, the Trustee receives a monthly fee equivalent to 0.07% per annum of the net asset value of the Fund and charges the Fund financial reporting service fee of US$3,000 per set of financial statements. During the year, the Trustee rebated trustee’s fee to the sub-funds (2016: $nil).

In addition, the Trustee provides valuation services to the Fund in return for a daily fee of $580 (2016: $580). Effective from 1 July 2017, the daily valuation service fee is US$100 for each valuation per share class. Also, the Trustee provides services in connection with purchase and sale transactions, for which the Trustee receives a transaction fee of $400 (2016: $400) for each trade handled. This transaction fee was waived with effect from 19 November 2015. No rebate was made with regards to valuation fees paid to the Trustee.

2017 2016HKD HKD





73


(d) The custodian of the Fund is HSBC Trustee (Cayman) Limited, a fellow subsidiary of the Manager within the HSBC Group, which receives a monthly fee equivalent to 2.5 – 30 (2016: 2.5 – 30) basis points based on sub-custodian value of the securities. The custodian also receives a transaction fee of US$ 10 – 175 (2016: US$ 10 – 175) for each trade handled. During the year, the Trustee rebated safe custody fees and safe custody transaction fees to the Fund (2016: $nil).

2017 2016HKD HKD



(iii) Rebate of safe custody fees 2,355,473 –

(iv) Safe custody transaction fees for the year 839,984 427,338

(v) Safe custody transaction fees payable at year end 137,586 21,379


(e) In its purchases and sales of investments, the Fund utilises the brokerage services of HSBC Investment Funds (Hong Kong) Limited, HSBC Bank plc and HSBC Global Asset Management (UK) Ltd, which are members of the HSBC Group. Details of transactions effected through these companies are as follows:

HSBC Investment Funds (Hong Kong) Limited HSBC Bank plc

HSBC Global Asset Management (UK) Ltd

2017 2016 2017 2016 2017 2016HKD HKD HKD HKD HKD HKD

Commission paid for the year – – 21,005 3,376 – –Average rate of commission – – 0.03% 0.03% – –Total aggregate value of such

transactions for the year 274,359,530 236,100,000 70,015,313 11,253,181 132,017,663 53,575,080Percentage of such transactions

in value to total transactions for the year 9.67% 7.78% 2.47% 0.37% 2.47% 1.77%




(i) Market value at year end 103,127,040 90,206,882 8,704,340 8,587,277

(ii) Dividend income earned for the year 5,931,234 6,305,782 355,802 574,337

As at 31 July 2017, the Fund also held investments in HSBC Index Tracker Investment Fund – Japan Index Fund and HSBC Pooled Investment Fund – HSBC Pooled World Bond Fund, which are managed by the fellow subsidiaries of the Manager within the HSBC Group. As at 31 July 2016, the Fund also held investments in HSBC Global Investment Funds – Indian Equity Fund, HSBC Index Tracker Investment Fund – Japan Index Fund, HSBC Index Tracker Investment Fund – Pacific Index Fund and HSBC Pooled Investment Fund – HSBC Pooled Asian Bond Fund, which are managed by the fellow subsidiaries of the Manager within the HSBC Group. The market value of these investments at year end was $127,038,049 (2016: $276,983,717).

(g) During the year, the Fund entered into foreign currency forward contracts with The Hongkong and Shanghai Banking Corporation Limited. The details of the outstanding forward foreign exchange contracts as at year end are as follows:

2017 2016HKD HKD




74



2017 2016



Units issued during the year 990,876 1,210,733Units redeemed during the year (2,215,343) (2,273,676)






(c) The capital of the Fund is represented by the net assets attributable to unitholders which are subject to subscriptions and redemptions of units. The Fund does not have any externally imposed capital requirements.

Units may be acquired and redeemed on any valuation date at the unit value determined on that day. The valuation date is every business day, which is also a day on which banks in China are normally open for business, or such other day(s) as the Manager may determine. The minimum initial investment amount for the Fund is $10,000 for “A” Class Units, with subsequent minimum investments of no less than $10,000. No minimum initial and subsequent investment amounts apply to Provident Class Units.

Units may be redeemed on any valuation date, at the redemption price applicable as at the close of business in Hong Kong on such day. The minimum amount which can be redeemed at any one time is $10,000 for “A” Class Units. No minimum redemption amounts apply to Provident Class Units. A unitholder may not make a partial redemption if this would result in his holding being less than the minimum holding of $10,000 for “A” Class Units. No minimum holding applies to Provident Class Units.



11 Distributions

Distributions attributable to the year

2017 2016HKD HKD


Distributions declared during the year – $0.205714 per unit on 11,022,124 units (2016: $0.130000 per unit on 12,225,006 units) 2,267,405 1,589,251


The Fund maintains an investment portfolio in a variety of listed and unlisted financial instruments as dictated by its investment management strategy. The investment objective of the Fund is to maximise capital growth, whilst keeping risk at medium level. The Fund has a bias towards investment in global equities. Exposure to bonds and to cash deposit will be kept to a minimum. The Fund’s investment portfolio comprises equities, debt securities, unit trusts, rights and forward contracts.



75


(a) Price risk


The impact of a 15% (2016: 15%) increase in value of the investments at 31 July 2017, with all other variables held constant, is shown below. An equal change in the opposite direction would have reduced the net assets attributable to unitholders by an equal but opposite amount.

Marketexposures

Change in net assets

if investmentvalue

increasedby 15%

HKD HKD

As at 31 July 2017Equities 2,725,025,124 408,753,769Unit trusts 148,179,612 22,226,942Rights – –

As at 31 July 2016Equities 2,687,911,433 403,186,715Unit trusts 301,373,340 45,206,001Rights 51 8





2017

1 year or less

Over 1 year to 5 years

Over 5 years

Non-interest bearing Total

HKD HKD HKD HKD HKD

Financial assets at fair value through profit or loss 94,221 – – 2,875,215 2,969,436

Total interest bearing assets 94,221 – –

As at 31 July 2016, there were no debt instruments held by the Fund.


At the date of the statement of financial position, assuming all other factors unchanged, it is estimated that an increase in interest rate of 100 basis points would result in a decrease in the net assets attributable to unitholders and the profit for the year by $155,447; an equal change in the opposite direction would result in an increase in the net assets attributable to unitholders by an approximately equal amount. The analysis was not performed in 2016 as the Fund did not hold debt instruments as at 31 July 2016.

(c) Currency risk




At 31 July 2017, had the Hong Kong dollar (“HKD”) weakened by 5% (2016: 5%) in relation to respective currencies, with all other variables held constant, net assets attributable to unitholders would have increased while the profit for the year would have decreased by the amounts shown below.

Net exposure


HKD weakenedby 5%

HKD HKD

As at 31 July 2017

CurrenciesArgentine peso 18,402 920Australian dollar 96,492,060 4,824,603Canadian dollar 40,989,191 2,049,460Chinese yuan 100,042 5,002

76


Net exposure


HKD weakenedby 5%

HKD HKD

Czech koruna 879,099 43,955Danish krone 12,667,833 633,392Euro 272,053,118 13,602,656Indian rupee 43,622,071 2,181,104Indonesian rupiah 12,140,092 607,005Japanese yen 330,659,995 16,533,000Malaysian ringgit 10,291,535 514,577New Taiwan dollar 52,070,662 2,603,533New Zealand dollar 1,648,344 82,417Norwegian krone 8,348,586 417,429Philippine peso 3,770,136 188,507Polish zloty 4,085,338 204,267Pound sterling 218,348,919 10,917,446Russian ruble 7,575,181 378,759Singapore dollar 20,917,648 1,045,882South Korean won 81,749,054 4,087,453Swedish krona 35,630,863 1,781,543Swiss franc 71,646,026 3,582,301Thai baht 13,657,349 682,867Turkish lira 5,678,366 283,918

Total 1,345,039,910 67,251,996

Net exposure


HKD weakenedby 5%

HKD HKD

As at 31 July 2016

CurrenciesArgentine peso 21,474 1,074Australian dollar 114,873,545 5,743,677Canadian dollar 36,643,638 1,832,182Danish krone 16,350,518 817,526Euro 255,870,853 12,793,543Indonesian rupiah 9,582,757 479,138Japanese yen 358,257,855 17,912,893Malaysian ringgit 14,065,610 703,281New Taiwan dollar 56,754,516 2,837,726New Zealand dollar 801,460 40,073Norwegian krone 9,873,942 493,697Philippine Peso 1,434,201 71,710Polish zloty 3,045,136 152,257

Net exposure


HKD weakenedby 5%

HKD HKD

Pound sterling 221,545,273 11,077,264Singapore dollar 20,260,137 1,013,007South Korean won 86,367,182 4,318,359Swedish krona 26,823,890 1,341,195Swiss franc 75,634,805 3,781,740Thai baht 11,570,229 578,511

Total 1,319,777,021 65,988,853

As the HKD is pegged to the United States dollar (“USD”), the Fund does not expect any significant movements in USD/HKD exchange rate. A 5% (2016: 5%) appreciation of the HKD against the above currencies would have resulted in an equal but opposite effect on the financial statement amounts, on the basis that all other variables remain constant.

(d) Credit risk




At 31 July 2017, the Fund invested in debt securities with the following credit quality expressed as a percentage of debt securities:

% of debt securities

2017HKD

Rating (Moody’s/S&P/Fitch)A1/A+/A+ 100.00

Total 100.00

77


As at 31 July 2016, the Fund did not hold any debt securities and hence no relevant credit quality information is shown.










The enforceable master netting arrangements do not meet the criteria for offsetting in the statement of financial position. This is because they create a right of set-off of recognised amounts that is enforceable only following on event of default, insolvency or bankruptcy of the Fund or its counterparties. In addition, the Fund and its counterparties do not intend to settle on a net basis or to realise the assets and settle the liabilities simultaneously.


31 July 2017



financial assets






assets presented in


position






contracts– Counterparty A 2,009,374 – 2,009,374 – – 2,009,374– Counterparty B – – – – – –– Counterparty C – – – – – –

78







in the statement





position






contracts– Counterparty A – – – – – –– Counterparty B (1,603,900) – (1,603,900) – – (1,603,900)– Counterparty C – – – – – –




31 July 2017

Financial assets

Net amounts





HKD HKD HKD



– Counterparty A 2,009,374 2,009,374 –– Counterparty B – – –– Counterparty C – – –


Net amounts




not in scope of


HKD HKD HKD



– Counterparty A – – –– Counterparty B (1,603,900) (1,603,900) –– Counterparty C – (900,659) (900,659)

(e) Liquidity risk



79


The Fund’s listed investments are considered to have insignificant exposure to liquidity risk as they are all readily realisable under normal market conditions. The Fund, however, also invests in unlisted investments such as certificate of deposits, unlisted unit trusts and rights, which are not publicly traded on exchanges and may become illiquid.

As at 31 July 2017 and 2016, the Fund’s financial liabilities are due within three months, except for redemptions payable and net assets attributable to unitholders which are repayable on demand.



The Fund’s objective in managing the capital is to ensure a stable and strong base to maximise capital growth, and to manage liquidity risk arising from the redemptions. The Manager manages the capital of the Fund in accordance with the Fund’s investment objectives and policies stated in the Fund’s Explanatory Memorandum.


The amount and the movement of net assets attributable to unitholders are stated in the statement of changes in net assets attributable to unitholders. As the redeemable units are redeemed on demand at the unitholders’ option, the actual level of redemption may differ significantly from historical experience.


Rights



As at 31 July 2016


Fair value assets

HKD

Rights July 2016 Iberdrola SA 20Rights July 2016 Zardoya OTIS SA 31

51

Forward contracts

Forward contracts are commitments either to purchase or sell a designated financial instrument, currency, commodity or index at a specified future date for a specified price and may be settled in cash or the underlying financial asset.

Forward contracts result in exposure to market risk based on changes in market prices relative to contracted prices. Market risks arise due to the possible movement in foreign currency exchange rates, indicates, and securities’ value underlying these instruments. In addition, because of the low margin deposits normally required in relation to notional contract sizes, a high degree of leverage may be typical of a forward contract and may result in substantial losses to the Fund. Forward contracts are generally subject to liquidity risk.

At 31 July 2017 and 2016, the Fund’s holdings in foreign currency forward contracts were as specified in the following table.

As at 31 July 2017

Buy SellSettlement

dateFair value

assets

Fair value (liabilities)

HKDHKD HKD

GBP 6,060,000 HKD60,391,415 11 August 2017 2,009,374 –HKD 60,796,889 GBP6,060,000 11 August 2017 – (1,603,900)HKD 33,776,690 JPY490,000,000 6 October 2017 – (900,659)

2,009,374 (2,504,559)

As at 31 July 2016

Buy SellSettlement

dateFair value

assetsFair value (liabilities)

HKD HKD

HKD 14,999,629 JPY202,000,000 30 September 2016 – (132,405)HKD 18,886,039 JPY257,700,000 28 October 2016 – (484,688)

– (617,093)

80



The Fund’s financial instruments are measured at fair value on the date of the statement of financial position. Fair value estimates are made at a specified point in time, based on market conditions and information about the financial instruments. Usually, fair values can be reliably determined within a reasonable range of estimates. For certain other financial instruments, including interest and dividends receivable, subscriptions receivable, amounts due from brokers, redemptions payable, amounts due to brokers, distributions payable and other payables, the carrying amounts approximate fair values due to the immediate or short-term nature of these financial instruments.









The following analyses financial instruments at fair value through profit or loss at the date of the statement of financial position, by the level in the fair value hierarchy into which the fair value measurement is categorised.



31 July 2017

Financial assets

Equities 2,722,846,300 – 2,178,824 2,725,025,124Unit trusts 148,179,612 – – 148,179,612Forward contracts – 2,009,374 – 2,009,374Debt securities – 94,221,462 – 94,221,462Rights – – – –

2,871,025,912 96,230,836 2,178,824 2,969,435,572



81



31 July 2016

Financial assets

Equities 2,687,911,433 – – 2,687,911,433Unit trusts 301,373,340 – – 301,373,340Rights – 51 – 51

2,989,284,773 51 – 2,989,284,824



As of 31 July 2017, Level 3 financial instruments includes Hanergy Thin Film Power Group Limited ,China Hongqiao Group Limited, Safeway PDC LCC CVR (Casa Ley) and Safeway PDC LCC CVR (PDC). As of 31 July 2016, Level 3 financial instruments includes Hanergy Thin Film Power Group Limited, Safeway PDC LCC CVR (Casa Ley) and Safeway PDC LCC CVR (PDC).

For Hanergy Thin Film Power Group Limited, it has been suspended for trading and in these financial statements it is revalued and priced based on relevant news and information and its value was written down to zero. For Safeway PDC LCC CVR (Casa Ley) and Safeway PDC LCC CVR (PDC), no observable input is available for these financial instruments since Safeway Inc. was acquired by AB Acquisition LLC in 2015. These financial instruments are valued at zero as at year end. For China Hongqiao Group Limited, it has been suspended for trading in March 2017 and in these financial statements, it is revalued and priced using last traded price before suspension with the adjustment based on relevant news and information.


As at31 July 2016

Net losses includedin the statement of

comprehensiveincome Purchase


As at31 July 2017

*Unrealisedlosses


Equities – – – 2,178,824 2,178,824 –


There was no transfer of financial instruments between the fair value hierarchy levels during the year ended 31 July 2016.



DescriptionFair value at31 July 2017


Valuationtechniques

Unobservableinput

HKD HKD

Equities 2,178,824 Nil Provision on the total cost

Discount provision

The significant unobservable inputs used in the fair value measurement categorised within Level 3 of the fair value hierarchy together with a quantitative sensitivity analysis is as shown below:

Input

Change in

return of the

relevant

input

Effect on the

net assets

attributable to

unitholders

HKD

As at 31 July 2017

Equities Discount provision 5%/(5)% (73,842)/426,779

As at 31 July 2016

Equities Discount provision 5%/(5)% –/352,937




82


31 July 2017


Financial assets





– 112,112,366 – 112,112,366




Distributions payable – 2,267,405 – 2,267,405Other payables – 3,818,812 – 3,818,812Net assets


– 3,079,043,379 – 3,079,043,379

31 July 2016


Financial assets





– 132,898,374 – 132,898,374





Distributions payable – 1,589,251 – 1,589,251Other payables – 3,514,413 – 3,514,413Net assets


– 3,121,566,105 – 3,121,566,105









83





Nature and purpose




These vehicles are financed through the issue of units

to investors



31 July 2017


Total netassets

(based onunaudited

information)

Carryingamount included

in “Financialassets of fair

value throughprofit or loss”

HKD HKD



31 July 2016


Total netassets

(based onunaudited

information)

Carryingamount included

in “Financialassets of fair

value throughprofit or loss”

HKD HKD






Up to the date of issue of these financial statements, the HKICPA has issued a few amendments and a new standard which are not yet effective for the year ended 31 July 2017 and which have not been adopted in these financial statements. These include the following which may be relevant to the Fund:





84


HSBC Managed Growth Fund as at 31 July 2017

HoldingsMarket

value

% of net

asset value

HKD


AustraliaADELAIDE BRIGHTON LTD 46,206 1,619,151 0.05ANSELL LTD 11,755 1,610,295 0.05ANZ BANKING GROUP LTD 34,769 6,423,571 0.21APA GROUP 15,424 829,005 0.03ARISTOCRAT LEISURE LTD 9,800 1,237,382 0.04ASX LTD 6,822 2,224,673 0.07AURIZON HOLDINGS LTD 66,385 2,077,908 0.07AUSNET SERVICES LTD 160,238 1,633,563 0.05BHP BILLITON LTD 35,158 5,666,794 0.19CALTEX AUSTRALIA LTD 4,300 834,910 0.03COCHLEAR LTD 860 766,005 0.03COMMONWEALTH BANK OF

AUSTRALIA 21,792 11,377,081 0.37CSL LTD 5,372 4,220,455 0.14CSR LTD 21,746 531,518 0.02DULUXGROUP LTD 39,485 1,622,446 0.05FLIGHT CENTRE TRAVEL GROUP

LTD 4,573 1,240,347 0.04FORTESCUE METALS GROUP LTD 62,104 2,222,717 0.07IOOF HOLDINGS LTD 32,077 2,010,076 0.07MACQUARIE ATLAS ROADS GROUP 27,995 970,528 0.03MACQUARIE GROUP LTD 4,071 2,178,677 0.07MAGELLAN FINANCIAL GROUP LTD 6,042 994,951 0.03MEDIBANK PRIVATE LTD 48,554 823,468 0.03METCASH LTD 58,022 947,865 0.03NATIONAL AUSTRALIA BANK LTD 30,600 5,714,404 0.19NEWCREST MINING LTD 12,177 1,533,714 0.05ORIGIN ENERGY LTD 26,400 1,139,102 0.04OZ MINERALS LTD 44,297 2,303,526 0.08PERPETUAL LTD 5,676 1,786,547 0.06PLATINUM INVESTMENT

MANAGEMENT LTD 47,543 1,621,536 0.05QANTAS AIRWAYS LTD 53,176 1,763,924 0.06QBE INSURANCE GROUP LTD 18,604 1,374,603 0.04RAMSAY HEALTH CARE LTD 2,484 1,093,166 0.04RIO TINTO LTD 5,595 2,295,158 0.07SONIC HEALTHCARE LTD 15,217 2,114,910 0.07SOUTH32 LTD 73,656 1,336,453 0.04SUNCORP GROUP LTD 10,600 944,476 0.03TABCORP HOLDINGS LTD 53,038 1,382,344 0.05

HoldingsMarket

value

% of net

asset value

HKD

TELSTRA CORP LTD 85,138 2,176,507 0.07WESFARMERS LTD 10,851 2,755,731 0.09WESTPAC BANKING CORP 43,495 8,629,630 0.28WOODSIDE PETROLEUM LTD 13,477 2,451,220 0.08

96,480,337 3.16

AustriaANDRITZ AG 1,900 905,743 0.03ERSTE GROUP BANK AG 6,492 2,099,154 0.07TELEKOM AUSTRIA AG 26,158 1,838,540 0.06VIENNA INSURANCE GROUP AG

WIENER VERSICHERUNG GRUPPE 7,924 1,859,161 0.06VOESTALPINE AG 6,015 2,373,892 0.08

9,076,490 0.30

BelgiumANHEUSER BUSCH INBEV NV 4,035 3,782,374 0.12BPOST SA 6,000 1,278,738 0.04ETABLISSEMENTEN FRANZ

COLRUYT NV 2,700 1,177,964 0.04KBC GROEP NV 4,000 2,578,287 0.09PROXIMUS SA 5,400 1,476,557 0.05SOFINA SA 530 613,946 0.02

10,907,866 0.36

CanadaARC RESOURCES LTD 13,147 1,411,435 0.05BANK OF MONTREAL 2,535 1,497,076 0.05BANK OF NOVA SCOTIA 3,604 1,748,221 0.06BCE INC 4,410 1,611,763 0.05BROOKFIELD ASSET MANAGEMENT

INC 3,100 938,798 0.03CANADIAN IMPERIAL BANK OF

COMMERCE 2,642 1,785,660 0.06CANADIAN NATIONAL RAILWAY CO 2,373 1,460,093 0.05CANADIAN NATURAL RESOURCES

LTD 4,568 1,087,805 0.04CANADIAN UTILITIES LTD CLASS A 5,198 1,284,579 0.04CENOVUS ENERGY INC 14,714 962,134 0.03CI FINANCIAL CORP 4,766 808,429 0.03

85



HoldingsMarket

value

% of net

asset value

HKD


CRESCENT POINT ENERGY CORP 15,000 918,070 0.03ENBRIDGE INC 3,264 1,053,491 0.03GREAT-WEST LIFECO INC 3,900 866,620 0.03IMPERIAL OIL LTD 4,426 989,031 0.03INTER PIPELINE LTD 7,901 1,214,866 0.04METRO INC 5,630 1,484,868 0.05POTASH CORPORATION OF

SASKATCHEWAN INC 10,950 1,525,026 0.05POWER CORPORATION OF

CANADA 6,900 1,306,582 0.04ROGERS COMMUNICATIONS INC

CLASS B 4,333 1,754,377 0.06ROYAL BANK OF CANADA 4,405 2,558,785 0.08SHAW COMMUNICATIONS INC

CLASS B 6,311 1,094,148 0.04SUNCOR ENERGY INC 6,132 1,557,524 0.05TECK RESOURCES LTD 10,475 1,770,273 0.06TORONTO-DOMINION BANK 5,790 2,324,048 0.08TOURMALINE OIL CORP 7,700 1,329,671 0.04TRANSCANADA CORP 5,768 2,294,685 0.07TRISURA GROUP LTD 18 2,888 0.00TURQUOISE HILL RESOURCES LTD 53,300 1,364,801 0.04WASTE CONNECTIONS INC 1,800 910,913 0.03

40,916,660 1.34


879,099 0.03

DenmarkCOLOPLAST A/S 2,579 1,724,396 0.05DANSKE BANK A/S 6,536 2,059,641 0.07ISS A/S 5,403 1,724,016 0.06NOVO NORDISK A/S 10,720 3,558,635 0.11PANDORA A/S 970 868,364 0.03TRYG A/S 7,100 1,245,719 0.04VESTAS WIND SYSTEMS A/S 1,956 1,487,062 0.05

12,667,833 0.41

HoldingsMarket

value

% of net

asset value

HKD

FinlandFORTUM OYJ 12,212 1,554,061 0.05KONE OYJ-B 4,849 1,965,064 0.06METSO OYJ 5,477 1,355,643 0.05NESTE OYJ 5,229 1,763,716 0.06NOKIA OYJ 46,358 2,296,573 0.08NOKIAN RENKAAT OYJ 5,415 1,719,250 0.06ORION OYJ CLASS B 4,857 1,911,059 0.06UPM-KYMMENE OYJ 9,153 1,939,337 0.06WARTSILA ABP OYJ 2,500 1,292,596 0.04

15,797,299 0.52

FranceAIR LIQUIDE SA 1,532 1,462,887 0.05AIRBUS GROUP SE 2,200 1,430,212 0.05ALSTOM SA 3,600 1,003,930 0.03ARKEMA SA 2,304 2,040,518 0.07ATOS SE 689 814,942 0.03AXA SA 7,940 1,824,897 0.06BIOMERIEUX SA 1,337 2,292,983 0.07BNP PARIBAS SA 5,804 3,504,336 0.11BOUYGUES SA 5,471 1,825,946 0.06CARREFOUR SA 9,101 1,701,631 0.06CNP ASSURANCES SA 11,743 2,205,883 0.07COMPAGNIE DE SAINT-GOBAIN SA 5,644 2,436,915 0.08CREDIT AGRICOLE SA 9,900 1,353,739 0.04DANONE SA 3,371 1,958,360 0.06ELECTRICITE DE FRANCE SA 22,829 1,801,948 0.06ENGIE SA 2,860 358,292 0.01ESSILOR INTERNATIONAL SA 1,629 1,606,511 0.05EURAZEO SA 338 214,597 0.01FAURECIA SA 564 243,726 0.01INGENICO GROUP SA 1,117 911,503 0.03LEGRAND SA 2,347 1,262,116 0.04L’OREAL SA 1,629 2,626,518 0.09LVMH MOET HENNESSY LOUIS

VUITTON SE 986 1,931,157 0.06MICHELIN (CIE GENERALE DES

ETABLISSEMENTS) 2,502 2,634,491 0.09ORANGE SA 15,033 1,968,423 0.06PEUGEOT SA 10,950 1,833,583 0.06PUBLICIS GROUPE SA 1,634 961,599 0.03

86



HoldingsMarket

value

% of net

asset value

HKD


RENAULT SA 1,200 841,553 0.03SAFRAN SA 3,683 2,710,720 0.09SANOFI SA 7,181 5,337,517 0.17SARTORIUS STEDIM BIOTECH SA 1,700 942,677 0.03SCHNEIDER ELECTRIC SE 3,930 2,401,080 0.08SCOR SE 3,000 983,847 0.03SEB SA 1,781 2,465,702 0.08SOCIETE BIC SA 1,500 1,368,380 0.04SOCIETE GENERALE DE PARIS SA 7,163 3,271,522 0.11TECHNIPFMC PLC 6,814 1,514,337 0.05THALES SA 2,629 2,265,652 0.07TOTAL SA 16,133 6,381,938 0.21VALEO SA 4,255 2,293,641 0.08VINCI SA 4,614 3,217,926 0.11

80,208,135 2.62

GermanyADIDAS AG 1,476 2,623,112 0.09ALLIANZ SE 2,433 4,038,382 0.13BASF SE 6,571 4,876,248 0.16BAYER AG 6,043 5,959,129 0.19BAYERISCHE MOTOREN WERKE AG 2,708 1,937,755 0.06BEIERSDORF AG 2,370 2,034,657 0.07BRENNTAG AG 1,176 522,252 0.02CECONOMY AG 6,578 575,488 0.02CONTINENTAL AG 906 1,589,265 0.05COVESTRO AG 3,089 1,866,497 0.06DAIMLER AG 6,929 3,789,857 0.12DEUTSCHE BOERSE AG 1,700 1,397,109 0.05DEUTSCHE LUFTHANSA AG 11,838 1,981,189 0.06DEUTSCHE POST AG 7,490 2,262,189 0.07DEUTSCHE TELEKOM AG 20,449 2,908,260 0.10DEUTSCHE WOHNEN AG 2,900 894,173 0.03EVONIK INDUSTRIES AG 6,874 1,822,952 0.06FIELMANN AG 2,578 1,611,380 0.05FRAPORT FRANKFURT AIRPORT

SERVICES WORLDWIDE AG 2,960 2,306,417 0.08FRESENIUS MEDICAL CARE AG &

CO KGAA 2,983 2,191,669 0.07

HoldingsMarket

value

% of net

asset value

HKD

FUCHS PETROLUB SE 2,445 1,001,984 0.03FUCHS PETROLUB SE PREFERENCE

SHARES 3,642 1,683,514 0.06GEA GROUP AG 5,824 1,828,727 0.06HANNOVER RUECK SE 2,064 2,027,904 0.07HEIDELBERGCEMENT AG 1,200 926,194 0.03HELLA KGAA HUECK & CO 338 139,123 0.00HENKEL AG & CO KGAA

PREFERENCE SHARES 2,109 2,325,548 0.08HUGO BOSS AG 1,700 995,978 0.03INFINEON TECHNOLOGIES AG 16,524 2,797,383 0.09KION GROUP AG 497 335,592 0.01LINDE AG 1,512 2,250,724 0.07MERCK KGAA 985 842,154 0.03METRO WHOLESALE & FOOD

SPECIALIST AG 6,578 1,033,650 0.03MUENCHENER

RUECKVERSICHERUNGS-GESELLSCHAFT AG 1,376 2,293,983 0.07

OSRAM LICHT AG 3,556 2,308,796 0.08PORSCHE AUTOMOBIL HOLDING

SE 1,784 794,838 0.03PROSIEBENSAT.1 MEDIA SE 4,596 1,432,557 0.05SAP SE 5,816 4,802,785 0.16SIEMENS AG 4,272 4,511,240 0.15SUEDZUCKER AG 2,800 466,670 0.02TALANX AG 5,156 1,655,296 0.05TELEFONICA DEUTSCHLAND

HOLDING AG 34,700 1,391,205 0.05UNITED INTERNET AG 4,106 1,946,772 0.06VOLKSWAGEN AG PREFERENCE

SHARES 853 1,021,879 0.03VONOVIA SE 4,234 1,335,513 0.04

89,337,989 2.92


REFINERIES SA 8,879 1,557,515 0.05

1,557,515 0.05

87



HoldingsMarket

value

% of net

asset value

HKD


Hong KongAAC TECHNOLOGIES HOLDINGS

INC 45,126 4,742,743 0.16AGILE PROPERTY HOLDINGS LTD 322,306 2,997,446 0.10AGRICULTURAL BANK OF CHINA

LTD H SHARES 1,642,736 5,995,986 0.20AIA GROUP LTD 824,125 50,724,894 1.66AIR CHINA LTD H SHARES 248,000 1,750,880 0.06ALUMINUM CORP OF CHINA LTD 320,000 1,568,000 0.05ANHUI EXPRESSWAY CO LTD 128,000 755,200 0.02ANTA SPORTS PRODUCTS LTD 71,241 1,909,259 0.06ASM PACIFIC TECHNOLOGY LTD 14,200 1,437,040 0.05AVICHINA INDUSTRY &

TECHNOLOGY CO LTD 197,000 943,630 0.03BAIC MOTOR CORP LTD 102,500 720,575 0.02BANK OF CHINA LTD H SHARES 5,265,666 20,272,814 0.66BANK OF COMMUNICATIONS CO

LTD H SHARES 491,441 2,845,443 0.09BANK OF EAST ASIA LTD 112,434 3,760,917 0.12BEIJING CAPITAL INTERNATIONAL

AIRPORT CO LTD H SHARES 133,010 1,636,023 0.05BEIJING JINGNENG CLEAN ENERGY

CO LTD 746,000 1,685,960 0.06BOC AVIATION LTD 40,200 1,632,120 0.05BOC HONG KONG HOLDINGS LTD 243,581 9,365,689 0.31BRILLIANCE CHINA AUTOMOTIVE

HOLDINGS LTD 96,636 1,911,460 0.06BYD CO LTD 48,000 2,337,600 0.08CLP HOLDINGS LTD 100,477 8,364,710 0.27CAFE DE CORAL HOLDINGS LTD 30,000 754,500 0.02CGN POWER CO LTD H SHARES 503,909 1,078,365 0.04CHEUNG KONG PROPERTY

HOLDINGS LTD 212,465 13,438,411 0.44CHINA BLUECHEMICAL LTD 458,000 1,007,600 0.03CHINA CINDA ASSET

MANAGEMENT CO LTD H SHARES 1,041,382 3,384,492 0.11

CHINA CITIC BANK CORP LTD H SHARES 550,139 2,789,205 0.09

HoldingsMarket

value

% of net

asset value

HKD

CHINA COMMUNICATIONS SERVICES CORP LTD H SHARES 192,000 816,000 0.03

CHINA COMMUNICATIONS CONSTRUCTION CO LTD H SHARES 259,964 2,708,825 0.09

CHINA CONCH VENTURE HOLDINGS LTD 171,395 2,488,655 0.08



CHINA EVERBRIGHT BANK CO LTD H SHARES 287,537 1,089,765 0.04

CHINA EVERBRIGHT INTERNATIONAL LTD 812 8,282 0.00

CHINA EVERGRANDE GROUP 99,580 2,165,865 0.07CHINA GALAXY SECURITIES CO H

SHARES 435,053 2,997,515 0.10CHINA GAS HOLDINGS LTD 132,834 2,510,563 0.08CHINA HONGQIAO GROUP LTD 309,053 2,178,824 0.07CHINA LIFE INSURANCE CO LTD H


CORP 174,000 918,720 0.03CHINA MENGNIU DAIRY CO LTD 159,724 2,430,999 0.08CHINA MERCHANTS BANK CO LTD

H SHARES 244,509 6,283,881 0.21CHINA MERCHANTS HOLDINGS


LTD 420,552 3,305,539 0.11CHINA MINSHENG FINANCIAL

HOLDING CORP LTD 3,346,800 1,539,528 0.05CHINA MOBILE LTD 363,817 30,469,674 1.00CHINA NATIONAL BUILDING

MATERIAL CO LTD 230,000 1,097,100 0.04CHINA NATIONAL MATERIALS CO

LTD 696,000 2,206,320 0.07CHINA OVERSEAS LAND &


CO LTD H SHARES 221,684 7,648,098 0.25

88



HoldingsMarket

value

% of net

asset value

HKD


CHINA PETROLEUM & CHEMICAL CORP H SHARES 1,670,838 9,908,069 0.32

CHINA POWER INTERNATIONAL DEVELOPMENT LTD 421,000 1,128,280 0.04

CHINA RAILWAY CONSTRUCTION CORP H SHARES 225,487 2,327,026 0.08

CHINA RAILWAY GROUP LTD H SHARES 325,504 2,024,635 0.07

CHINA RAILWAY SIGNAL & COMMUNICATION CORP LTD 126,000 769,860 0.03

CHINA RESOURCES BEER HOLDINGS CO LTD 68,666 1,355,467 0.04

CHINA RESOURCES GAS GROUP LTD 54,000 1,598,400 0.05

CHINA RESOURCES LAND LTD 159,942 4,014,544 0.13CHINA RESOURCES POWER

HOLDINGS CO LTD 172,294 2,567,181 0.08CHINA SHENHUA ENERGY CO LTD

H SHARES 218,097 4,244,168 0.14CHINA SOUTH CITY HOLDINGS LTD 442,000 751,400 0.02CHINA SOUTHERN AIRLINES CO

LTD H SHARES 240,614 1,434,059 0.05CHINA STATE CONSTRUCTION

INTERNATIONAL HOLDINGS LTD 200,680 2,532,582 0.08CHINA TAIPING INSURANCE

HOLDINGS CO LTD 151,452 3,559,122 0.12CHINA TELECOM CORP LTD H

SHARES 1,092,301 4,063,360 0.13CHINA TRAVEL INTERNATIONAL

INVESTMENT HONG KONG LTD 828,000 1,920,960 0.06CHINA UNICOM HONG KONG LTD 338,876 3,842,854 0.13CHINA VANKE CO LTD H SHARES 106,380 2,452,059 0.08CHINA ZHONGWANG HOLDINGS

LTD 451,061 1,754,627 0.06CHONGQING RURAL COMMERCIAL

BANK CO LTD H SHARES 449,548 2,589,396 0.08CHOW TAI FOOK JEWELLERY

GROUP LTD 87,600 710,436 0.02CITIC PACIFIC LTD 378,272 4,493,871 0.15CK HUTCHISON HOLDINGS LTD 177,377 18,252,093 0.60

HoldingsMarket

value

% of net

asset value

HKD

CK INFRASTRUCTURE HOLDINGS LTD 43,659 3,180,558 0.10

CNOOC LTD 1,053,073 9,203,858 0.30ANHUI CONCH CEMENT CO LTD H

SHARES 103,334 2,986,353 0.10COSCO PACIFIC LTD 288,678 2,759,762 0.09COSCO SHIPPING ENERGY

TRANSPORTATION CO LTD 194,000 853,600 0.03COUNTRY GARDEN HOLDINGS CO

LTD 592,183 6,466,638 0.21CRRC CORP LTD H SHARES 306,108 2,136,634 0.07CSPC PHARMACEUTICAL GROUP

LTD 274,504 3,343,459 0.11DAH SING BANKING GROUP LTD 74,400 1,245,456 0.04DAH SING FINANCIAL HOLDINGS

LTD 30,800 1,703,240 0.06DONGFENG MOTOR GROUP CO

LTD H SHARES 326,306 3,122,748 0.10ENN ENERGY HOLDINGS LTD 22,065 1,170,548 0.04FIRST PACIFIC CO LTD 340,350 1,991,048 0.06FOSUN INTERNATIONAL LTD 79,589 942,334 0.03FULLSHARE HOLDINGS LTD 442,499 1,380,597 0.05GALAXY ENTERTAINMENT GROUP

LTD 137,570 6,651,509 0.22GCL POLY ENERGY HOLDINGS LTD 2,244,682 1,863,086 0.06GEELY AUTOMOBILE HOLDINGS

LTD 336,316 6,073,867 0.20GF SECURITIES CO LTD 78,800 1,241,888 0.04GREAT EAGLE HOLDINGS LTD 22,293 955,255 0.03GREAT WALL MOTOR CO LTD H

SHARES 341,431 3,421,139 0.11GUANGDONG INVESTMENT LTD 183,603 2,019,633 0.07GUANGZHOU AUTOMOBILE GROUP

CO LTD 86,000 1,443,080 0.05GUANGZHOU R&F PROPERTIES CO

LTD H SHARES 84,109 1,174,162 0.04HAIER ELECTRONICS GROUP CO

LTD 157,505 3,173,726 0.10HAITONG SECURITIES CO LTD H

SHARES 178,671 2,226,241 0.07HANERGY THIN FILM POWER

GROUP LTD 978,017 – 0.00HANG LUNG PROPERTIES LTD 171,625 3,339,823 0.11

89



HoldingsMarket

value

% of net

asset value

HKD


HANG SENG BANK LTD 51,202 8,704,340 0.28HENDERSON LAND DEVELOPMENT

CO LTD 87,807 3,968,876 0.13HENGAN INTERNATIONAL GROUP

CO LTD 47,774 2,847,330 0.09HONG KONG AND CHINA GAS CO



INFRASTRUCTURE LTD 148,000 710,400 0.02HOPEWELL HOLDINGS LTD 82,433 2,468,868 0.08HSBC HOLDINGS PLC 1,188,645 93,249,200 3.05HUANENG RENEWABLES CORP

LTD H SHARES 306,000 728,280 0.02HUATAI SECURITIES CO LTD 110,600 1,736,420 0.06HYSAN DEVELOPMENT CO LTD 64,768 2,448,230 0.08INDUSTRIAL AND COMMERCIAL

BANK OF CHINA LTD H SHARES 5,406,594 29,574,069 0.97JIANGSU EXPRESSWAY CO LTD H

SHARES 197,625 2,241,068 0.07JIANGXI COPPER CO LTD H

SHARES 104,000 1,483,040 0.05JOHNSON ELECTRIC HOLDINGS

LTD 31,296 870,029 0.03KERRY LOGISTICS NETWORK LTD 49,000 550,760 0.02KERRY PROPERTIES LTD 42,856 1,174,254 0.04KINGBOARD CHEMICAL HOLDINGS

LTD 95,000 3,344,000 0.11KINGBOARD LAMINATES

HOLDINGS LTD 122,000 1,329,800 0.04KINGSOFT CORP LTD 128,000 2,636,800 0.09KUNLUN ENERGY CO LTD 206,504 1,608,666 0.05KWG PROPERTY HOLDING LTD 428,929 2,487,788 0.08LEE & MAN PAPER

MANUFACTURING LTD 310,000 2,582,300 0.08LEGEND HOLDINGS CORP 79,300 1,621,685 0.05LENOVO GROUP LTD 677,271 3,277,992 0.11LI & FUNG LTD 253,866 726,057 0.02LONGFOR PROPERTIES CO LTD 118,340 2,321,831 0.08

HoldingsMarket

value

% of net

asset value

HKD

LUYE PHARMA GROUP LTD 190,500 843,915 0.03MELCO INTERNATIONAL

DEVELOPMENT LTD 52,000 962,000 0.03MGM CHINA HOLDINGS LTD 60,400 928,952 0.03MINTH GROUP LTD 42,000 1,512,000 0.05MTR CORP LTD 82,930 3,744,289 0.12NEW WORLD DEVELOPMENT CO

LTD 363,038 3,833,681 0.13NINE DRAGONS PAPER HOLDINGS

LTD 129,000 1,501,560 0.05NWS HOLDINGS LTD 127,561 1,908,313 0.06PEOPLE’S INSURANCE GROUP OF

CHINA CO LTD H SHARES 687,524 2,502,587 0.08PETROCHINA CO LTD H SHARES 1,091,223 5,488,852 0.18PICC PROPERTY AND CASUALTY

CO LTD 383,625 5,585,580 0.18PING AN INSURANCE (GROUP) CO


CO LTD 582,000 2,653,920 0.09POWER ASSETS HOLDINGS LTD 85,667 6,630,626 0.22RED STAR MACALLINE GROUP

CORP LTD 141,800 1,149,998 0.04SA SA INTERNATIONAL HOLDINGS

LTD 394,031 1,130,869 0.04SAMSONITE INTERNATIONAL SA 49,094 1,607,829 0.05SANDS CHINA LTD 153,629 5,569,051 0.18SHANDONG WEIGAO GROUP

MEDICAL POLYMER CO LTD 384,000 2,419,200 0.08SHANGHAI ELECTRIC GROUP CO

LTD 496,000 1,800,480 0.06SHANGHAI PHARMACEUTICALS

HOLDING CO LTD H SHARES 102,899 2,130,009 0.07SHENZHEN EXPRESSWAY CO LTD 260,000 1,814,800 0.06SHENZHEN INTERNATIONAL

HOLDINGS LTD 181,208 2,424,563 0.08SHENZHEN INVESTMENT LTD 644,393 2,313,371 0.08SHENZHOU INTERNATIONAL

GROUP HOLDINGS LTD 43,900 2,293,775 0.07SHIMAO PROPERTY HOLDINGS LTD 165,609 2,580,188 0.08SHUI ON LAND LTD 501,089 977,124 0.03SINO BIOPHARMACEUTICAL LTD 144,073 994,104 0.03SINO LAND CO LTD 259,697 3,350,091 0.11

90



HoldingsMarket

value

% of net

asset value

HKD


SINO-OCEAN LAND HOLDINGS LTD 523,436 2,287,415 0.07SINOPEC ENGINEERING GROUP CO

LTD 242,500 1,699,925 0.06SINOPEC SHANGHAI

PETROCHEMICAL CO LTD 516,000 2,291,040 0.07SINOPHARM GROUP CO LTD H

SHARES 77,551 2,539,795 0.08SINOTRUK HONG KONG LTD 158,000 1,295,600 0.04SJM HOLDINGS LTD 262,108 2,049,685 0.07SUN HUNG KAI PROPERTIES LTD 91,910 11,121,110 0.36SUNAC CHINA HOLDINGS LTD 199,000 4,139,200 0.14SUNNY OPTICAL TECHNOLOGY

GROUP CO LTD 26,000 2,418,000 0.08SWIRE PACIFIC LTD CLASS A 36,813 2,867,733 0.09SWIRE PROPERTIES LTD 86,509 2,335,743 0.08TECHTRONIC INDUSTRIES CO LTD 87,658 3,046,116 0.10TELEVISION BROADCASTS LTD 53,600 1,532,960 0.05TENCENT HOLDINGS LTD 294,267 92,223,278 3.02THE WHARF (HOLDINGS) LTD. 91,963 6,110,941 0.20WANT WANT CHINA HOLDINGS LTD 514,074 2,714,311 0.09WEICHAI POWER CO LTD 156,000 1,174,680 0.04WH GROUP LTD 421,500 3,089,595 0.10WHEELOCK AND CO LTD 74,021 4,359,837 0.14WYNN MACAU LTD 106,800 1,809,192 0.06XINJIANG GOLDWIND SCIENCE &

TECHNOLOGY CO LTD 101,400 901,446 0.03XINYI GLASS HOLDINGS LTD 310,000 2,504,800 0.08XINYI SOLAR HOLDINGS LTD 228,800 562,848 0.02YANZHOU COAL MINING CO LTD 156,000 1,199,640 0.04YUEXIU PROPERTY CO LTD 534,000 784,980 0.03ZHUZHOU CSR TIMES ELECTRIC CO


SHARES 496,000 1,403,680 0.05ZTE CORP 14,000 281,400 0.01

887,346,209 29.03

HoldingsMarket

value

% of net

asset value

HKD

IndiaBAJAJ AUTO LTD 5,156 1,768,292 0.06BAJAJ HOLDINGS AND

INVESTMENT LTD 3,942 1,151,837 0.04BHARAT PETROLEUM CORP LTD 15,000 860,135 0.03CASTROL INDIA LTD 30,454 1,485,470 0.05CG POWER AND INDUSTRIAL

SOLUTIONS LTD 84,069 866,909 0.03COLGATE-PALMOLIVE (INDIA) LTD 6,698 879,059 0.03CUMMINS INDIA LTD 12,889 1,550,509 0.05DIVI’S LABORATORIES LTD 9,100 746,162 0.02GAIL (INDIA) LTD 32,877 1,505,393 0.05GREAT EASTERN SHIPPING CO LTD 15,294 741,813 0.02HERO MOTOCORP LTD 5,060 2,254,993 0.07HOUSING DEVELOPMENT FINANCE

CORP LTD 18,979 4,126,643 0.13ICICI BANK LTD 32,890 1,207,473 0.04ICICI PRUDENTIAL LIFE INSURANCE

CO LTD 3,576 199,810 0.01INDIAN OIL CORP LTD 15,000 670,211 0.02INFOSYS LTD 14,803 1,831,941 0.06ITC LTD 43,600 1,515,468 0.05LARSEN & TOUBRO LTD 5,100 738,969 0.02MARUTI SUZUKI INDIA LTD 1,500 1,414,401 0.05MPHASIS LTD 11,816 866,151 0.03MRF LTD 110 926,713 0.03NMDC LTD 89,000 1,372,843 0.04OIL AND NATURAL GAS CORP LTD 46,500 959,287 0.03OIL INDIA LTD 26,200 924,387 0.03ORACLE FINANCIAL SERVICES

SOFTWARE LTD 1,802 798,543 0.03RELIANCE INDUSTRIES LTD 19,659 3,868,935 0.13RURAL ELECTRIFICATION CORP

LTD 70,306 1,498,334 0.05STATE BANK OF INDIA 23,400 889,982 0.03SUN PHARMACEUTICAL

INDUSTRIES LTD 16,700 1,079,606 0.03TATA MOTORS LTD 15,300 827,696 0.03TORRENT PHARMACEUTICALS LTD 9,092 1,458,857 0.05UNION BANK OF INDIA LTD 82,388 1,589,818 0.05

42,576,640 1.39

91



HoldingsMarket

value

% of net

asset value

HKD


Indonesia ASTRA AGRO LESTARI TBK PT 97,660 842,940 0.03BANK CENTRAL ASIA TBK PT 162,716 1,783,597 0.06BANK MANDIRI (PERSERO) TBK PT 154,996 1,240,160 0.04BANK RAKYAT INDONESIA

(PERSERO) TBK PT 273,452 2,368,282 0.08CHAROEN POKPHAND INDONESIA

TBK PT 702,800 1,099,937 0.03GUDANG GARAM TBK PT 41,500 1,851,218 0.06TELEKOMUNIKASI INDONESIA

PERSERO TBK 1,012,730 2,784,141 0.09

11,970,275 0.39

IrelandCRH PLC 6,026 1,648,583 0.06GLANBIA PLC 10,120 1,630,767 0.05KERRY GROUP PLC-A 1,271 893,568 0.03

4,172,918 0.14

ItalyASSICURAZIONI GENERALI SPA 17,797 2,512,246 0.08BANCA MEDIOLANUM SPA 14,225 967,988 0.03BUZZI UNICEM SPA 9,501 1,055,966 0.04ENEL SPA 33,161 1,473,018 0.05ENI SPA 9,754 1,200,846 0.04FIAT CHRYSLER AUTOMOBILES NV 8,140 764,536 0.03INTESA SANPAOLO SPA 45,253 1,213,422 0.04ITALGAS SPA 36,102 1,545,815 0.05PRYSMIAN SPA 7,733 1,926,143 0.06SALVATORE FERRAGAMO SPA 4,017 906,605 0.03STMICROELECTRONICS NV 16,462 2,187,369 0.07

15,753,954 0.52

JapanABC-MART INC 3,300 1,467,173 0.05AISIN SEIKI CO LTD 2,900 1,178,644 0.04

HoldingsMarket

value

% of net

asset value

HKD

ALFRESA HOLDINGS CORP 7,726 1,109,673 0.04AMADA HOLDINGS CO LTD 21,700 1,934,156 0.06ANA HOLDINGS INC 73,000 1,953,015 0.06ASAHI GROUP HOLDINGS LTD 8,102 2,576,469 0.08ASTELLAS PHARMA INC 24,213 2,409,728 0.08AUTOBACS SEVEN CO LTD 900 116,924 0.00AZBIL CORP 5,700 1,754,607 0.06BRIDGESTONE CORP 8,320 2,738,712 0.09CANON INC 8,750 2,373,103 0.08CENTRAL JAPAN RAILWAY CO 2,421 3,037,455 0.10CHUBU ELECTRIC POWER CO INC 18,300 1,874,288 0.06CHUGAI PHARMACEUTICAL CO LTD 3,032 950,473 0.03CITIZEN HOLDINGS CO LTD 34,800 2,019,478 0.07COCA-COLA WEST CO LTD 8,300 1,953,615 0.06COLOPL INC 7,600 664,508 0.02CONCORDIA FINANCIAL GROUP

LTD 16,900 665,124 0.02COOKPAD INC 13,100 875,024 0.03CYBERAGENT INC 7,100 1,713,822 0.06DAI NIPPON PRINTING CO LTD 10,000 860,216 0.03DAICEL CORP 15,241 1,550,212 0.05DAI-ICHI LIFE INSURANCE CO LTD 18,800 2,539,424 0.08DAIICHI SANKYO CO LTD 10,134 1,724,861 0.06DAIICHIKOSHO CO LTD 2,500 938,321 0.03DAIKIN INDUSTRIES LTD 2,088 1,726,764 0.06DAIKYO INC 78,208 1,276,968 0.04DAITO TRUST CONSTRUCTION CO

LTD 1,745 2,299,101 0.07DAIWA HOUSE INDUSTRY CO LTD 8,458 2,301,083 0.08DAIWA SECURITIES GROUP INC 736 33,092 0.00DENA CO LTD 9,549 1,636,765 0.05DENKA CO LTD 48,000 2,086,571 0.07DENSO CORP 6,494 2,435,546 0.08DISCO CORP 1,691 2,339,113 0.08EAST JAPAN RAILWAY CO 4,165 3,046,998 0.10EISAI CO LTD 2,001 837,167 0.03EXEDY CORP 3,800 928,001 0.03FANUC CORP 2,027 3,233,001 0.11FUJI HEAVY INDUSTRIES LTD 10,383 2,931,215 0.10FUJIFILM HOLDINGS CORP 3,732 1,069,141 0.03FUJITSU GENERAL LTD 5,000 822,047 0.03FUKUYAMA TRANSPORTING CO LTD 17,000 847,139 0.03GLORY LTD 3,300 857,212 0.03

92



HoldingsMarket

value

% of net

asset value

HKD


GREE INC 14,000 838,162 0.03GS YUASA CORP 24,000 883,824 0.03GUNGHO ONLINE ENTERTAINMENT

INC 32,300 680,355 0.02HAMAMATSU PHOTONICS KK 7,000 1,736,688 0.06HASEKO CORP 19,236 1,879,055 0.06HEIWA CORP 7,432 1,275,998 0.04HINO MOTORS LTD 13,730 1,262,596 0.04HIROSE ELECTRIC CO LTD 1,700 1,807,230 0.06HITACHI HIGH-TECHNOLOGIES

CORP 2,700 776,739 0.03HITACHI LTD 59,153 3,175,985 0.10HONDA MOTOR CO LTD 19,843 4,359,183 0.14HOYA CORP 8,439 3,713,786 0.12IIDA GROUP HOLDINGS CO LTD 12,600 1,678,799 0.05INPEX CORP 13,100 993,546 0.03ITOCHU CORP 19,115 2,338,098 0.08JAFCO CO LTD 4,010 1,496,563 0.05JAPAN AIRLINES CO LTD 6,063 1,529,076 0.05JAPAN AVIATION ELECTRONICS

INDUSTRY LTD 8,000 985,042 0.03JAPAN EXCHANGE GROUP INC 13,092 1,833,189 0.06JAPAN PETROLEUM EXPLORATION

CO LTD 9,100 1,472,326 0.05JAPAN TOBACCO INC 10,880 2,948,477 0.10JTEKT CORP 15,400 1,714,423 0.06JX HOLDINGS INC 43,350 1,502,032 0.05KAKAKU.COM INC 11,347 1,248,781 0.04KAKEN PHARMACEUTICAL CO LTD 2,834 1,177,861 0.04KAMIGUMI CO LTD 10,000 835,476 0.03KANEKA CORP 21,000 1,315,133 0.04KANSAI ELECTRIC POWER CO INC 9,800 1,025,883 0.03KAO CORP 6,408 3,041,029 0.10KDDI CORP 22,154 4,572,479 0.15KEIYO BANK LTD 30,670 1,012,389 0.03KEYENCE CORP 1,428 5,149,741 0.17KIRIN HOLDINGS CO LTD 6,500 1,116,672 0.04KISSEI PHARMACEUTICAL CO LTD 7,900 1,594,226 0.05KOEI TECMO HOLDINGS CO LTD 10,000 1,612,286 0.05KOMATSU LTD 6,607 1,384,435 0.05

HoldingsMarket

value

% of net

asset value

HKD

KOMERI CO LTD 7,700 1,757,964 0.06KONAMI HOLDINGS CORP 5,900 2,397,931 0.08K’S HOLDINGS CORP 11,300 1,769,966 0.06KUBOTA CORP 16,216 2,200,131 0.07KURARAY CO LTD 15,884 2,413,877 0.08KURITA WATER INDUSTRIES LTD 4,900 1,087,533 0.04KYOCERA CORP 4,407 2,090,796 0.07KYORIN HOLDINGS INC 7,374 1,229,555 0.04KYUDENKO CORP 3,700 1,087,957 0.04KYUSHU FINANCIAL GROUP INC 32,700 1,601,761 0.05LAWSON INC 2,674 1,419,443 0.05LEOPALACE21 CORP 24,000 1,335,066 0.04LINTEC CORP 700 132,552 0.00MAEDA ROAD CONSTRUCTION CO

LTD 9,780 1,572,668 0.05MARUBENI CORP 22,600 1,168,210 0.04MARUICHI STEEL TUBE LTD 5,900 1,419,992 0.05MATSUI SECURITIES CO LTD 26 1,659 0.00MAZDA MOTOR CORP 18,851 2,217,864 0.07MEBUKI FINANCIAL GROUP INC 55,700 1,673,250 0.05MEIJI HOLDINGS CO LTD 1,952 1,212,790 0.04MIRACA HOLDINGS INC 1,400 498,741 0.02MITSUBISHI CORP 10,839 1,836,045 0.06MITSUBISHI ELECTRIC CORP 26,232 3,171,548 0.10MITSUBISHI ESTATE CO LTD 10,670 1,512,907 0.05MITSUBISHI SHOKUHIN CO LTD 5,063 1,141,604 0.04MITSUBISHI UFJ FINANCIAL GROUP


SHIPBUILDING CO LTD 70,000 761,966 0.02MITSUI FUDOSAN CO LTD 7,298 1,307,413 0.04MIZUHO FINANCIAL GROUP INC 283,460 3,935,048 0.13MOCHIDA PHARMACEUTICAL CO

LTD 2,278 1,238,217 0.04MS&AD INSURANCE GROUP

HOLDINGS INC 10,454 2,861,110 0.09MURATA MANUFACTURING CO LTD 1,434 1,741,362 0.06NAGOYA RAILROAD CO LTD 2,000 71,531 0.00NEXON CO LTD 12,706 2,061,144 0.07NHK SPRING CO LTD 12,491 1,053,306 0.03NIHON KOHDEN CORP 8,165 1,523,044 0.05NINTENDO CO LTD 771 2,042,541 0.07NIPPO CORP 8,802 1,395,492 0.05

93



HoldingsMarket

value

% of net

asset value

HKD


NIPPON ELECTRIC GLASS CO LTD 2,400 663,292 0.02NIPPON KAYAKU CO LTD 12,692 1,387,833 0.05NIPPON PAPER INDUSTRIES CO

LTD 10,500 1,632,042 0.05NIPPON SHOKUBAI CO LTD 3,200 1,635,329 0.05NIPPON TELEGRAPH AND

TELEPHONE CORP 8,426 3,210,162 0.10NIPRO CORP 13,900 1,471,782 0.05NISHI-NIPPON RAILROAD CO LTD 7,824 268,771 0.01NISSAN MOTOR CO LTD 25,417 1,969,027 0.06NISSHIN STEEL CO LTD 8,700 831,405 0.03NITORI HOLDINGS CO LTD 1,100 1,209,815 0.04NITTO DENKO CORP 2,100 1,463,271 0.05NOMURA HOLDINGS INC 46,246 2,146,961 0.07NORTH PACIFIC BANK LTD 62,698 1,639,729 0.05NTT DOCOMO INC 14,943 2,707,093 0.09OBIC BUSINESS CONSULTANTS CO

LTD 2,100 831,235 0.03OLYMPUS CORP 7,488 2,122,399 0.07OMRON CORP 2,700 1,051,555 0.03ORACLE CORP JAPAN 3,518 1,842,599 0.06ORIENTAL LAND CO LTD 4,003 2,261,864 0.07ORIX CORP 27,294 3,379,046 0.11OSAKA GAS CO LTD 63,571 1,983,839 0.06OTSUKA HOLDINGS CO LTD 5,664 1,945,702 0.06PANASONIC CORP 14,419 1,550,176 0.05RESONA HOLDINGS INC 58,500 2,350,318 0.08ROHM CO LTD 4,600 2,779,974 0.09ROHTO PHARMACEUTICAL CO LTD 10,600 1,671,561 0.05SANKYO CO LTD 4,200 1,074,669 0.04SAWAI PHARMACEUTICAL CO LTD 3,089 1,358,079 0.04SCREEN HOLDINGS CO LTD 3,500 1,830,697 0.06SECOM CO LTD 2,521 1,474,900 0.05SEINO HOLDINGS CO LTD 18,700 1,964,161 0.06SEKISUI HOUSE LTD 9,780 1,321,387 0.04SEVEN & I HOLDINGS CO LTD 8,382 2,633,517 0.09SHIGA BANK LTD 30,000 1,240,492 0.04SHIMACHU CO LTD 8,400 1,640,503 0.05SHIMAMURA CO LTD 1,578 1,530,305 0.05SHIMANO INC 880 1,006,417 0.03

HoldingsMarket

value

% of net

asset value

HKD

SHIN ETSU CHEMICAL CO LTD 3,357 2,398,939 0.08SHIONOGI & CO LTD 2,785 1,160,645 0.04SKYLARK CO LTD 10,900 1,283,566 0.04SMC CORP 878 2,178,924 0.07SOFTBANK CORP 10,312 6,529,361 0.21SONY CORP 10,993 3,527,677 0.12SONY FINANCIAL HOLDINGS INC 8,000 1,080,606 0.04SQUARE ENIX HOLDINGS CO LTD 6,600 1,686,433 0.06START TODAY CO LTD 9,000 1,981,606 0.06SUGI HOLDINGS CO LTD 3,682 1,465,241 0.05SUMITOMO CORP 15,600 1,644,616 0.05SUMITOMO ELECTRIC INDUSTRIES

LTD 12,000 1,516,157 0.05SUMITOMO FORESTRY CO LTD 13,874 1,657,315 0.05SUMITOMO HEAVY INDUSTRIES

LTD 37,000 2,107,917 0.07SUMITOMO MITSUI FINANCIAL

GROUP INC 15,293 4,534,625 0.15SUMITOMO OSAKA CEMENT CO

LTD 43,000 1,571,360 0.05SUMITOMO REALTY &

DEVELOPMENT CO LTD 3,934 929,582 0.03SUMITOMO RUBBER INDUSTRIES

LTD 13,692 1,854,296 0.06SUZUKEN CO LTD 6,600 1,719,088 0.06T&D HOLDINGS INC 20,952 2,416,921 0.08TADANO LTD 18,936 1,835,027 0.06TAIYO YUDEN CO LTD 5,900 774,844 0.03TAKEDA PHARMACEUTICAL CO LTD 6,438 2,653,904 0.09TDK CORP 4,400 2,472,501 0.08TERUMO CORP 3,800 1,121,390 0.04THE 77 BANK LTD 51,846 2,085,183 0.07THE AWA BANK LTD 25,846 1,324,488 0.04THE SURUGA BANK LTD 6,112 1,150,027 0.04TODA CORP 3,000 160,946 0.01TOHO GAS CO LTD 6,648 351,017 0.01TOKIO MARINE HOLDINGS INC 10,367 3,403,734 0.11TOKYO ELECTRIC POWER CO INC 24,450 808,801 0.03TOKYO ELECTRON LTD 2,047 2,253,526 0.07TOKYO GAS CO LTD 54,659 2,260,521 0.07TOKYU CORP 8,500 975,111 0.03TOPPAN FORMS CO LTD 10,900 883,704 0.03TOSOH CORP 7,000 650,640 0.02

94



HoldingsMarket

value

% of net

asset value

HKD


TOYO SUISAN KAISHA LTD 5,281 1,496,847 0.05TOYOBO CO LTD 13,000 192,965 0.01TOYOTA BOSHOKU CORP 9,200 1,500,861 0.05TOYOTA MOTOR CORP 31,730 13,981,495 0.46UBE INDUSTRIES LTD 110,000 2,332,549 0.08WEST JAPAN RAILWAY CO 4,105 2,297,446 0.08YAMAGUCHI FINANCIAL GROUP

INC 13,000 1,193,629 0.04YAMATO KOGYO CO LTD 8,500 1,859,501 0.06ZENKOKU HOSHO CO LTD 4,694 1,572,672 0.05ZEON CORP 16,802 1,642,479 0.05

362,625,521 11.87

MalaysiaALLIANCE FINANCIAL GROUP BHD 112,900 809,375 0.03AMMB HOLDINGS BHD 26,784 241,849 0.01DIGI.COM BHD 68,800 602,411 0.02IOI CORP BHD 66 538 0.00MAXIS BHD 113,156 1,166,244 0.04MISC BHD 117,200 1,579,921 0.05PETRONAS CHEMICALS GROUP

BHD 50,700 642,771 0.02PUBLIC BANK BHD 41,100 1,520,454 0.05TENAGA NASIONAL BHD 83,496 2,150,621 0.07WESTPORTS HOLDINGS BHD 207,900 1,414,577 0.04

10,128,761 0.33

NetherlandsAEGON NV 36,328 1,585,263 0.05AKZO NOBEL NV 1,915 1,347,563 0.04ASML HOLDING NV 1,297 1,530,495 0.05GEMALTO NV 3,900 1,546,364 0.05HEINEKEN NV 3,185 2,585,851 0.08ING GROEP NV 24,071 3,505,391 0.12KONINKLIJKE AHOLD DELHAIZE N

ORD 11,067 1,762,478 0.06KONINKLIJKE BOSKALIS

WESTMINSTER NV 5,737 1,596,704 0.05

HoldingsMarket

value

% of net

asset value

HKD

KONINKLIJKE DSM NV 1,500 861,608 0.03KONINKLIJKE VOPAK NV 2,362 875,751 0.03UNILEVER NV 8,749 3,971,719 0.13

21,169,187 0.69


CORP LTD 13,111 842,206 0.03

1,648,344 0.05

NorwayDNB ASA 16,993 2,596,778 0.08MARINE HARVEST ASA 9,938 1,439,103 0.05STATOIL ASA 15,589 2,271,282 0.07YARA INTERNATIONAL ASA 6,592 2,041,423 0.07

8,348,586 0.27

PhilippinesGT CAPITAL HOLDINGS INC 8,155 1,531,076 0.05MEGAWORLD CORP 1,253,000 930,903 0.03METROPOLITAN BANK AND TRUST

CO 91,700 1,234,812 0.04

3,696,791 0.12

PolandBANK HANDLOWY W WARSZAWIE

SA 5,337 819,811 0.02BANK MILLENNIUM SA 72,600 1,211,014 0.04BANK ZACHODNI WBK SA 1,800 1,480,032 0.05POLSKI KONCERN NAFTOWY

ORLEN SA 2,441 561,647 0.02

4,072,504 0.13

PortugalEDP ENERGIAS DE PORTUGAL SA 75,133 2,075,512 0.07

2,075,512 0.07

95



HoldingsMarket

value

% of net

asset value

HKD


RussiaAK ALROSA PAO 69,200 751,475 0.02GAZPROM PAO 139,650 2,104,823 0.07MAGNITOGORSKIY


SBERBANK ROSSII PAO 90,600 1,935,155 0.06SURGUTNEFTEGAZ OAO 218,300 754,405 0.03TRANSNEFT’ PAO 76 1,780,875 0.06

8,264,225 0.27

SingaporeCAPITALAND LTD 46,800 993,774 0.03COMFORTDELGRO CORP LTD 98,600 1,310,703 0.04DBS GROUP HOLDINGS LTD 21,004 2,613,204 0.09HONG KONG LAND HOLDINGS LTD 98,236 5,769,629 0.19JARDINE MATHESON HOLDINGS

LTD 13,578 6,766,809 0.22JARDINE STRATEGIC HOLDINGS

LTD 14,435 4,599,772 0.15KEPPEL CORP LTD 26,300 970,129 0.03OVERSEA-CHINESE BANKING CORP

LTD 53,140 3,473,885 0.11SIA ENGINEERING CO LTD 51,300 1,074,569 0.03SINGAPORE EXCHANGE LTD 43,400 1,890,606 0.06SINGAPORE

TELECOMMUNICATIONS LTD 82,465 1,883,977 0.06UNITED OVERSEAS BANK LTD 17,296 2,387,764 0.08VENTURE CORP LTD 30,400 2,303,960 0.08WING TAI HOLDINGS LTD 8 94 0.00YANGZIJIANG SHIPBUILDING

HOLDINGS LTD 28,683 233,559 0.01YANLORD LAND GROUP LTD 165,900 1,727,987 0.06

38,000,421 1.24

South KoreaAMOREPACIFIC CORP 15 18,582 0.00DGB FINANCIAL GROUP 24,249 2,022,421 0.07

HoldingsMarket

value

% of net

asset value

HKD

DONGBU INSURANCE CO LTD 3,437 1,921,418 0.06HANA FINANCIAL GROUP INC 4,678 1,665,100 0.05HANKOOK TIRE CO LTD 4,120 1,797,162 0.06HANSSEM CO LTD 670 822,995 0.03HANWHA CHEMICAL CORP 4,739 1,114,619 0.04HYOSUNG CORP 2,055 2,402,351 0.08HYUNDAI DEVELOPMENT CO

ENGINEERING & CONSTRUCTION 5,442 1,619,897 0.05HYUNDAI ENGINEERING &

CONSTRUCTION CO LTD 4,205 1,329,456 0.04HYUNDAI GLOVIS CO LTD 978 1,071,639 0.04HYUNDAI HEAVY INDUSTRIES CO

LTD 1,568 1,909,639 0.06HYUNDAI MARINE & FIRE

INSURANCE CO LTD 3,176 1,006,343 0.03HYUNDAI MOBIS 1,398 2,400,226 0.08HYUNDAI MOTOR CO LTD 1,484 1,501,799 0.05INDUSTRIAL BANK OF KOREA 15,388 1,659,283 0.05KANGWON LAND INC 6,206 1,602,594 0.05KB FINANCIAL GROUP INC 7,623 3,160,256 0.10KIA MOTORS CORP 8,698 2,221,828 0.07KOREAN AIR LINES CO LTD 3,292 817,937 0.03KT&G CORP 2,946 2,343,945 0.08LG DISPLAY CO LTD 7,999 1,766,930 0.06LG ELECTRONICS INC 1,495 700,122 0.02LG ELECTRONICS INC 6,800 1,625,472 0.05LG HAUSYS LTD 1,159 889,787 0.03LOTTE CHEMICAL CORP 737 1,898,033 0.06LS CORP 1,836 1,078,933 0.04NAVER CORP 402 2,252,950 0.07NHN ENTERTAINMENT CORP 3,151 1,686,761 0.06NONGSHIM CO LTD 373 831,744 0.03ORION HOLDINGS CORP 4,124 794,397 0.03POSCO DAEWOO CORP 631 103,492 0.00S-1 CORP 2,249 1,447,206 0.05SAMSUNG ELECTRONICS CO LTD 225 3,032,318 0.10SAMSUNG ELECTRONICS CO LTD 1,295 21,781,947 0.71SK HOLDINGS CO LTD 550 1,042,179 0.03SK HYNIX INC 7,134 3,286,147 0.11SK INNOVATION CO LTD 1,000 1,231,841 0.04SKC CO LTD 7,160 1,811,469 0.06

81,671,218 2.67

96



HoldingsMarket

value

% of net

asset value

HKD


SpainACCIONA SA 2,578 1,715,118 0.06AMADEUS IT HOLDING SA A

SHARES 3,548 1,700,830 0.06BANCO BILBAO VIZCAYA

ARGENTARIA SA 46,732 3,292,348 0.11BANCO SANTANDER SA 104,654 5,564,239 0.18CORPORACION FINANCIERA ALBA

SA 3,437 1,675,786 0.05GRIFOLS SA 6,600 1,083,295 0.03INDUSTRIA DE DISENO TEXTIL SA 3,891 1,203,495 0.04MEDIASET ESPANA

COMUNICACION SA 8,048 789,243 0.03REPSOL SA 9,967 1,299,574 0.04TELEFONICA SA 24,324 2,141,244 0.07ZARDOYA OTIS SA 20,535 1,677,226 0.05

22,142,398 0.72

SwedenAB SKF 13,133 2,036,439 0.07ALFA LAVAL AB 13,461 2,344,638 0.08ATLAS COPCO AB A SHARES 8,804 2,487,232 0.08ELECTROLUX AB 9,070 2,418,760 0.08ESSITY AB (PUBL) 5,085 1,149,355 0.04GETINGE AB 9,600 1,299,514 0.04HENNES & MAURITZ AB B SHARES 10,128 2,058,437 0.07HUSQVARNA AB 19,285 1,529,639 0.05ICA GRUPPEN AB 5,426 1,695,314 0.06INDUSTRIVARDEN AB 4,517 912,376 0.03INVESTMENT LATOUR AB 10,800 1,073,003 0.03INVESTOR AB B SHARES 6,388 2,362,248 0.08NORDEA BANK AB 23,078 2,270,566 0.07SKANDINAVISKA ENSKILDA

BANKEN-A 22,640 2,236,217 0.07SKANSKA AB 10,120 1,793,970 0.06SVENSKA HANDELSBANKEN A

SHARES 2,265 262,866 0.01SWEDBANK AB – A SHS ORD NPV 8,371 1,703,766 0.06SWEDBANK AB A SHARES 5,976 1,638,667 0.05

HoldingsMarket

value

% of net

asset value

HKD

TELEFONAKTIEBOLAGET LM ERICSSON 18,894 956,822 0.03

TELIA CO AB 22,200 813,442 0.03TRELLEBORG AB 5,000 918,211 0.03VOLVO AB 12,602 1,669,381 0.05

35,630,863 1.17

SwitzerlandABB LTD 8,046 1,478,446 0.05ADECCO SA 1,029 614,712 0.02ARYZTA AG 4,900 1,232,755 0.04BALOISE HOLDING AG 1,719 2,162,352 0.07COMPAGNIE FINANCIERE

RICHEMONT SA 3,054 2,030,842 0.07CREDIT SUISSE GROUP AG 8,899 1,071,874 0.04EMS CHEMIE HOLDING AG 392 2,135,506 0.07FLUGHAFEN ZUERICH AG 831 1,659,471 0.05GEBERIT AG 651 2,451,434 0.08GIVAUDAN SA 76 1,184,251 0.04IDORSIA LTD 1,552 227,389 0.01KUEHNE UND NAGEL

INTERNATIONAL AG 1,623 2,212,382 0.07LONZA GROUP AG 1,679 3,125,922 0.10NESTLE SA 18,896 12,496,590 0.41NOVARTIS LTD 14,960 9,978,342 0.33ROCHE HOLDING AG 5,058 10,026,912 0.33SIKA AG 52 2,805,454 0.09STRAUMANN HOLDING AG 518 2,291,498 0.07SULZER AG 1,814 1,593,186 0.05SWISS RE AG 3,075 2,321,098 0.08SWISSCOM AG 436 1,668,291 0.05UBS GROUP AG 23,398 3,185,696 0.10ZURICH INSURANCE GROUP AG 1,547 3,691,623 0.12

71,646,026 2.34



CO LTD 81,000 857,938 0.03CHINA LIFE INSURANCE CO LTD 106,000 875,979 0.03

97



HoldingsMarket

value

% of net

asset value

HKD


CHINA MOTOR CORP 168,000 1,134,141 0.04CTBC FINANCIAL HOLDING CO LTD 484,660 2,431,958 0.08DELTA ELECTRONICS INC 35,114 1,457,714 0.05E.SUN FINANCIAL HOLDING CO LTD 386,561 1,924,713 0.06ETERNAL MATERIALS CO LTD 137,160 1,206,212 0.04FAR EASTONE

TELECOMMUNICATIONS CO LTD 80,000 1,510,532 0.05FENG HSIN STEEL CO LTD 55,864 747,033 0.02FORMOSA CHEMICALS & FIBRE

CORP 73,351 1,726,492 0.06HON HAI PRECISION INDUSTRY CO

LTD 168,480 5,120,394 0.17HUA NAN FINANCIAL HOLDINGS

CO LTD 416,420 1,901,049 0.06LARGAN PRECISION CO LTD 2,000 2,850,354 0.09NAN YA PLASTICS CORP 90,867 1,786,228 0.06NOVATEK MICROELECTRONICS

CORP 46,000 1,368,273 0.04SINOPAC FINANCIAL HOLDINGS CO

LTD 722,000 1,768,497 0.06TAIWAN BUSINESS BANK 377,000 835,679 0.03TAIWAN SEMICONDUCTOR

MANUFACTURING CO 296,995 16,477,586 0.54TRANSCEND INFORMATION INC 36,000 833,379 0.03UNIMICRON TECHNOLOGY CORP 362,000 1,839,875 0.06UNITED MICROELECTRONICS

CORP 277,000 995,891 0.03VANGUARD INTERNATIONAL


51,188,720 1.68

ThailandBANGKOK BANK PCL (FOREIG REG) 42,793 1,853,066 0.06BANGKOK LIFE ASSURANCE PCL 153,400 1,503,154 0.05CP ALL PCL 80,700 1,150,645 0.04DELTA ELECTRONICS THAILAND

PCL 120,554 2,511,145 0.08INDORAMA VENTURES PCL

(FOREIGN REG) 201,400 1,760,790 0.06

HoldingsMarket

value

% of net

asset value

HKD

KASIKORNBANK PCL (FOREIGN REG) 41,543 1,930,566 0.06

PTT PCL (FOREIGN REG) 26,999 2,458,675 0.08

13,168,041 0.43

TurkeyARCELIK AS 16,750 965,283 0.03FORD OTOMOTIV SANAYI AS 18,998 1,894,903 0.06TURKIYE SINAI KALKINMA BANKASI

AS 262,596 890,525 0.03TURKIYE VAKIFLAR BANKASI TAO 123,535 1,927,655 0.07

5,678,366 0.19

United Kingdom3I GROUP PLC 24,811 2,391,169 0.08ADMIRAL GROUP PLC 7,954 1,693,660 0.06AGGREKO PLC 9,482 828,403 0.03ANGLO AMERICAN PLC 19,543 2,520,340 0.08ASHMORE GROUP PLC 20,200 748,762 0.02ASHTEAD GROUP PLC 12,324 2,067,107 0.07ASSOCIATED BRITISH FOODS PLC 3,131 955,545 0.03ASTRAZENECA PLC 8,175 3,845,909 0.13AVIVA PLC 37,269 2,068,362 0.07BAE SYSTEMS PLC 24,103 1,492,784 0.05BARCLAYS PLC 66,323 1,386,278 0.05BARRATT DEVELOPMENTS PLC 9,991 633,180 0.02BELLWAY PLC 6,122 2,010,824 0.07BERKELEY GROUP HOLDINGS PLC 3,800 1,367,871 0.04BHP BILLITON PLC 16,469 2,336,719 0.08BOOKER GROUP PLC 89,167 1,767,360 0.06BP PLC 138,617 6,362,776 0.21BRITISH AMERICAN TOBACCO PLC 12,597 6,113,652 0.20BT GROUP PLC 66,192 2,136,649 0.07CENTRICA PLC 82,509 1,686,366 0.05COMPASS GROUP PLC 12,894 2,146,781 0.07DIAGEO PLC 16,370 4,127,042 0.13DIRECT LINE INSURANCE GROUP

PLC 42,840 1,652,370 0.05GLAXOSMITHKLINE PLC 35,591 5,550,084 0.18GLENCORE PLC 81,533 2,805,207 0.09HALMA PLC 16,707 1,890,542 0.06HIKMA PHARMACEUTICALS PLC 5,379 782,035 0.03

98



HoldingsMarket

value

% of net

asset value

HKD


HOWDEN JOINERY GROUP PLC 35,323 1,545,377 0.05HSBC HOLDINGS PLC 126,729 9,877,840 0.32IMI PLC 9,388 1,162,864 0.04IMPERIAL TOBACCO GROUP PLC 6,450 2,072,070 0.07INCHCAPE PLC 19,486 1,611,122 0.05INTERCONTINENTAL HOTELS

GROUP PLC 5,149 2,274,948 0.07INTERNATIONAL CONSOLIDATED

AIRLINES GROUP SA 23,899 1,422,321 0.05JOHNSON MATTHEY PLC 5,563 1,609,554 0.05KINGFISHER PLC 48,190 1,460,780 0.05LEGAL & GENERAL GROUP PLC 45,278 1,251,295 0.04LLOYDS BANKING GROUP PLC 416,680 2,813,612 0.09LONDON STOCK EXCHANGE

GROUP PLC 2,385 920,403 0.03MEGGITT PLC 35,776 1,852,891 0.06MONDI PLC 73 14,995 0.00NATIONAL GRID PLC 26,093 2,516,871 0.08OLD MUTUAL PLC 106,094 2,146,562 0.07PERSIMMON PLC 7,750 1,998,141 0.07POLYMETAL INTERNATIONAL PLC 16,500 1,568,107 0.05PRUDENTIAL PLC 13,488 2,566,490 0.08RECKITT BENCKISER GROUP PLC 3,854 2,924,222 0.10RELX PLC 8,982 1,527,824 0.05RIGHTMOVE PLC 3,500 1,516,470 0.05RIO TINTO PLC 13,671 4,954,879 0.16ROLLS-ROYCE HOLDINGS PLC 11,462 1,048,005 0.03ROYAL DUTCH SHELL PLC A

SHARES 27,180 5,969,396 0.20ROYAL DUTCH SHELL PLC B

SHARES 24,782 5,491,218 0.18ROYAL MAIL PLC 26,545 1,101,757 0.04SAGE GROUP PLC 24,345 1,689,506 0.06SHIRE PLC 5,928 2,600,817 0.08SKY PLC 9,126 906,772 0.03SMITH & NEPHEW PLC 15,706 2,134,664 0.07SSE PLC 9,681 1,374,594 0.04STANDARD CHARTERED PLC 11,100 967,704 0.03TAYLOR WIMPEY PLC 93,217 1,827,478 0.06

HoldingsMarket

value

% of net

asset value

HKD

TRAVIS PERKINS PLC 11,170 1,745,883 0.06UNILEVER PLC 7,291 3,244,231 0.11VODAFONE GROUP PLC 155,159 3,546,664 0.12WILLIAM HILL PLC 33,758 870,712 0.03WOLSELEY PLC 2,216 1,032,929 0.03WPP PLC 13,432 2,138,160 0.07

152,667,905 5.00

United States of America3M CO 1,086 1,706,288 0.06ABBOTT LABORATORIES 7,055 2,709,848 0.09ABBVIE INC 5,493 2,999,220 0.10ACCENTURE PLC CLASS A 2,014 2,026,293 0.07ACTIVISION BLIZZARD INC 2,147 1,035,951 0.03AETNA INC 2,261 2,724,922 0.09AFFILIATED MANAGERS GROUP

INC 859 1,246,718 0.04AFLAC INC 3,628 2,259,734 0.07AIR PRODUCTS AND CHEMICALS

INC 690 766,047 0.02AKAMAI TECHNOLOGIES INC 2,132 784,939 0.03ALASKA AIR GROUP INC 1,237 823,420 0.03ALLEGHANY CORP 373 1,786,773 0.06ALLERGAN PLC 397 782,382 0.03ALLSTATE CORP 2,130 1,513,841 0.05ALLY FINANCIAL INC 11,170 1,975,099 0.06ALPHABET INC 894 6,497,006 0.21ALPHABET INC 881 6,505,742 0.21ALTRIA GROUP INC 8,003 4,060,926 0.13AMAZON.COM INC 951 7,336,689 0.24AMDOCS LTD 3,342 1,753,239 0.06AMEREN CORP 4,106 1,799,042 0.06AMERICAN AIRLINES GROUP INC 5,563 2,191,510 0.07AMERICAN ELECTRIC POWER CO

INC 1,760 969,633 0.03AMERICAN EXPRESS CO 4,164 2,771,804 0.09AMERICAN INTERNATIONAL

GROUP INC 2,403 1,228,352 0.04AMGEN INC 2,641 3,599,549 0.12ANALOG DEVICES INC 1 617 0.00ANTHEM INC 1,658 2,411,276 0.08APPLE INC 14,495 16,837,444 0.55

99



HoldingsMarket

value

% of net

asset value

HKD


APPLIED MATERIALS INC 3,800 1,315,057 0.04ARROW ELECTRONICS INC 2,308 1,465,319 0.05ASHLAND GLOBAL HOLDINGS INC 472 239,505 0.01ASSURANT INC 1,200 986,609 0.03AT&T INC 13,988 4,260,687 0.14AUTOLIV INC 1,874 1,586,420 0.05AVANGRID INC 4,111 1,458,324 0.05AVNET INC 3,235 969,703 0.03AXIS CAPITAL HOLDINGS LTD 1,600 807,007 0.03BANK OF AMERICA CORP 18,070 3,404,041 0.11BAXTER INTERNATIONAL INC 4,584 2,165,289 0.07BB&T CORP 2,800 1,034,814 0.03BECTON DICKINSON & CO 730 1,148,264 0.04BED BATH & BEYOND INC 3,938 919,616 0.03BERKSHIRE HATHAWAY INC CLASS

A 2 4,104,796 0.13BERKSHIRE HATHAWAY INC CLASS

B 2,855 3,901,477 0.13BIOGEN INC 1,166 2,637,190 0.09BIOVERATIV INC 377 182,466 0.01BLACKROCK INC 390 1,299,193 0.04BOEING CO 1,546 2,927,581 0.10BRISTOL MYERS SQUIBB CO 2,359 1,048,334 0.03BROADCOM LTD 921 1,774,262 0.06C. R. BARD INC 334 836,314 0.03CA INC 6,056 1,468,138 0.05CAMPBELL SOUP CO 1,499 618,503 0.02CAPITAL ONE FINANCIAL CORP 1,700 1,144,234 0.04CARS.COM INC 1,067 202,502 0.01CELGENE CORP 2,296 2,428,186 0.08CENTERPOINT ENERGY INC 7,466 1,643,775 0.05CENTURYLINK INC 8,128 1,477,201 0.05CHECK POINT SOFTWARE

TECHNOLOGIES LTD 2,292 1,893,553 0.06CHEVRON CORP 5,056 4,311,708 0.14CHUBB LTD 1,528 1,747,840 0.06CINCINNATI FINANCIAL CORP 1,400 832,749 0.03CISCO SYSTEMS INC 11,000 2,701,921 0.09CITIGROUP INC 6,054 3,236,497 0.11CNA FINANCIAL CORP 4,201 1,704,502 0.06

HoldingsMarket

value

% of net

asset value

HKD

COCA COLA CO 7,789 2,788,597 0.09COLGATE PALMOLIVE CO 2,832 1,596,945 0.05COMCAST CORP CLASS A 10,376 3,277,992 0.11CORE LABORATORIES NV 1,430 1,122,771 0.04CORNING INC 3,485 793,143 0.03COSTCO WHOLESALE CORP 622 770,028 0.02CUMMINS INC 1,429 1,873,882 0.06CVS CAREMARK CORP 1,347 840,885 0.03D.R. HORTON INC 3,600 1,003,479 0.03DARDEN RESTAURANTS INC 2,865 1,876,906 0.06DELTA AIR LINES INC 3,400 1,310,731 0.04DENTSPLY SIRONA INC 3,533 1,711,610 0.06DISCOVER FINANCIAL SERVICES 1,283 610,645 0.02DISCOVERY COMMUNICATIONS

INC CLASS C 502 90,686 0.00DOVER CORP 2,960 1,941,916 0.06DOW CHEMICAL CO 4,711 2,363,622 0.08DR PEPPER SNAPPLE GROUP INC 2,384 1,697,344 0.06DU PONT(EI)DE NEMOURS & CO 2,018 1,295,702 0.04DXC TECHNOLOGY CO 1,133 693,577 0.02EASTMAN CHEMICAL CO 2,497 1,621,782 0.05EBAY INC 8,115 2,264,545 0.07EMERSON ELECTRIC CO 1,990 926,470 0.03EOG RESOURCES INC 1,355 1,006,843 0.03EVEREST RE GROUP LTD 481 985,716 0.03EXELON CORP 7,638 2,287,132 0.07EXPEDITORS INTERNATIONAL OF

WASHINGTON INC 3,129 1,438,907 0.05EXPRESS SCRIPTS HOLDINGS CO 2,200 1,076,301 0.03EXXON MOBIL CORP 12,536 7,836,560 0.26F5 NETWORKS INC 1,536 1,448,564 0.05FACEBOOK INC CLASS A 5,818 7,690,627 0.25FASTENAL CO 4,247 1,424,971 0.05FIDELITY NATIONAL FINANCIAL INC 5,729 2,186,209 0.07FIRSTENERGY CORP 5,200 1,295,954 0.04FLEX LTD 15,084 1,883,755 0.06FLUOR CORP 2,946 999,268 0.03FOOT LOCKER INC 3,007 1,108,263 0.04FORD MOTOR CO 23,738 2,080,158 0.07FORTIVE CORP 3,695 1,868,300 0.06FRANKLIN RESOURCES INC 3,669 1,283,191 0.04FRONTIER COMMUNICATIONS

CORP 1,486 177,686 0.01

100



HoldingsMarket

value

% of net

asset value

HKD


GAP INC 9,601 1,786,899 0.06GARMIN LTD 2,101 823,574 0.03GENERAL ELECTRIC CO 19,315 3,863,347 0.13GENERAL MILLS INC 1,784 775,528 0.03GENERAL MOTORS CO 8,404 2,361,601 0.08GENTEX CORP 9,480 1,260,165 0.04GENUINE PARTS CO 2,400 1,591,959 0.05GILEAD SCIENCES INC 5,139 3,053,976 0.10GOODYEAR TIRE & RUBBER CO 6,015 1,480,278 0.05H&R BLOCK INC 5,223 1,244,169 0.04HARTFORD FINANCIAL SERVICES

GROUP INC 5,538 2,378,894 0.08HCA HOLDINGS INC 900 564,721 0.02HELMERICH & PAYNE INC 3,100 1,225,584 0.04HERBALIFE LTD 747 388,031 0.01HEWLETT PACKARD ENTERPRISE

CO 12,594 1,722,302 0.06HOLOGIC INC 5,442 1,879,050 0.06HONEYWELL INTERNATIONAL INC 2,344 2,491,948 0.08ILLINOIS TOOL WORKS INC 1,623 1,783,622 0.06INGERSOLL-RAND PLC 2,836 1,946,506 0.06INGREDION INC 1,600 1,541,036 0.05INTEL CORP CO 18,895 5,234,407 0.17INTERNATIONAL BUSINESS

MACHINES CORP 2,157 2,437,182 0.08INTERNATIONAL FLAVORS &

FRAGRANCES INC 590 613,692 0.02INTERNATIONAL GAME

TECHNOLOGY PLC 4,784 711,406 0.02INTERPUBLIC GROUP OF COS INC 8,393 1,416,548 0.05INTUITIVE SURGICAL INC 301 2,205,713 0.07J B HUNT TRANSPORT SERVICES

INC 2,196 1,555,775 0.05JABIL CIRCUIT INC 6,300 1,500,720 0.05JACOBS ENGINEERING GROUP INC 3,591 1,478,598 0.05JOHNSON & JOHNSON 7,897 8,185,739 0.27JPMORGAN CHASE & CO 8,904 6,383,917 0.21JUNIPER NETWORKS INC 6,000 1,309,762 0.04KEYSIGHT TECHNOLOGIES INC 4,401 1,429,551 0.05KIMBERLY CLARK CORP 800 769,518 0.02

HoldingsMarket

value

% of net

asset value

HKD

KINDER MORGAN INC 5,851 933,594 0.03KLA-TENCOR CORP 1,248 902,871 0.03KRAFT HEINZ CO 3,366 2,299,233 0.07L BRANDS INC 2,347 850,348 0.03LAM RESEARCH CORP 1,995 2,484,586 0.08LEGGETT & PLATT INC 3,775 1,420,506 0.05LEVEL 3 COMMUNICATIONS INC 3,570 1,636,130 0.05LIBERTY GLOBAL PLC SERIES C 1,508 385,955 0.01LKQ CORP 3,200 863,740 0.03LOWE’S COS INC 1,535 927,916 0.03LYONDELLBASELL INDUSTRIES NV

CLASS A 2,473 1,740,043 0.06MALLINCKRODT PLC 2,000 715,410 0.02MARATHON PETROLEUM CORP 4,673 2,043,458 0.07MARRIOTT INTERNATIONAL INC

CLASS A 2,549 2,074,222 0.07MARVELL TECHNOLOGY GROUP

LTD 16,803 2,042,000 0.07MASTERCARD INC CLASS A 1,540 1,537,131 0.05MAXIM INTEGRATED PRODUCTS

INC 5,251 1,863,544 0.06MCDONALD’S CORP 2,777 3,364,798 0.11MCKESSON CORP 810 1,024,025 0.03MDU RESOURCES GROUP INC 7,330 1,508,495 0.05MEDTRONIC PLC 3,864 2,534,082 0.08MERCK & CO INC 5,630 2,808,877 0.09METLIFE INC 2,618 1,124,584 0.04MICHAEL KORS HOLDINGS LTD 4,671 1,329,375 0.04MICRON TECHNOLOGY INC 3,259 715,746 0.02MICROSOFT CORP 19,405 11,018,118 0.36MONSANTO CO 1,500 1,368,573 0.04MOODY’S CORP 1,772 1,821,705 0.06MOSAIC CO 4,400 829,563 0.03NEWS CORP 8,200 941,436 0.03NORTHROP GRUMMAN CORP 544 1,117,966 0.04NVR INC 113 2,303,836 0.08NXP SEMICONDUCTORS NV 1,097 945,278 0.03OCCIDENTAL PETROLEUM CORP 2,600 1,257,575 0.04OLD REPUBLIC INTERNATIONAL

CORP 5,600 858,117 0.03ORACLE CORP 8,356 3,258,512 0.11PAYCHEX INC 3,860 1,744,014 0.06PEPSICO INC 3,929 3,578,304 0.12

101



HoldingsMarket

value

% of net

asset value

HKD


PFIZER INC 10,972 2,841,579 0.09PG&E CORP 1,573 831,596 0.03PHILIP MORRIS INTERNATIONAL

INC 3,954 3,604,160 0.12PHILLIPS 66 3,331 2,178,807 0.07PINNACLE WEST CAPITAL CORP 2,182 1,478,031 0.05PNC FINANCIAL SERVICES GROUP

INC 1,534 1,543,123 0.05PPL CORP 3,895 1,166,019 0.04PRAXAIR INC 910 925,078 0.03PRICELINE.COM INC 120 1,901,147 0.06PRINCIPAL FINANCIAL GROUP INC 1,622 845,593 0.03PROCTER & GAMBLE CO 7,435 5,273,778 0.17PRUDENTIAL FINANCIAL INC 1,600 1,414,949 0.05PUBLIC SERVICE ENTERPRISE

GROUP 4,553 1,599,116 0.05PULTEGROUP INC 9,643 1,839,150 0.06QIAGEN NV 8,402 2,175,947 0.07QORVO INC 3,533 1,891,794 0.06QUALCOMM INC 2,626 1,090,898 0.04RAYTHEON CO 910 1,220,810 0.04RENAISSANCERE HOLDINGS LTD 500 573,695 0.02ROBERT HALF INTERNATIONAL INC 2,248 794,464 0.03ROCKWELL COLLINS INC 2,060 1,713,952 0.06ROSS STORES INC 3,892 1,681,568 0.05SAFEWAY PDC LLC CVR (CASA LEY) 1,428 – 0.00SAFEWAY PDC LLC CVR (PDC) 1,428 – 0.00SANTANDER CONSUMER USA

HOLDINGS INC 17,471 1,747,939 0.06SCANA CORP 3,018 1,517,267 0.05SCHLUMBERGER LTD 3,060 1,639,475 0.05SKYWORKS SOLUTIONS INC 2,898 2,373,608 0.08SNAP-ON INC 1,300 1,565,623 0.05SOUTHERN CO 5,314 1,989,245 0.06SOUTHWEST AIRLINES CO 2,717 1,177,932 0.04STANLEY BLACK & DECKER INC 1,767 1,941,597 0.06STAPLES INC 13,300 1,054,331 0.03STARBUCKS CORP 5,678 2,393,799 0.08STRYKER CORP 2,161 2,482,715 0.08SUNTRUST BANKS INC 4,487 2,007,679 0.07

HoldingsMarket

value

% of net

asset value

HKD

SYMANTEC CORP 10,353 2,505,804 0.08SYNCHRONY FINANCIAL 8,520 2,017,568 0.07T. ROWE PRICE GROUP INC 3,042 1,965,301 0.06TE CONNECTIVITY LTD 3,528 2,215,083 0.07TECHNIPFMC PLC 3,321 740,257 0.02TEGNA INC 12,922 1,496,685 0.05TESORO CORP 2,005 1,558,575 0.05TEXAS INSTRUMENTS INC 4,470 2,841,087 0.09THE HOME DEPOT INC 2,709 3,165,191 0.10THE PROGRESSIVE CORP 6,474 2,383,030 0.08THE TRAVELERS COS INC 2,252 2,252,906 0.07THE WALT DISNEY CO 4,148 3,561,348 0.12THERMO FISHER SCIENTIFIC INC 1,337 1,832,914 0.06TIFFANY & CO 3,055 2,278,869 0.07TIME WARNER INC 2,628 2,102,178 0.07TJX COS INC 3,839 2,108,116 0.07TORCHMARK CORP 1,365 841,888 0.03TRANSOCEAN LTD 10,300 695,845 0.02TWENTY-FIRST CENTURY FOX INC

CLASS B 1,282 287,262 0.01TYSON FOODS INC CLASS A 1,834 907,557 0.03U.S. BANCORP 5,158 2,126,229 0.07UNION PACIFIC CORP 2,670 2,147,035 0.07UNITED CONTINENTAL HOLDINGS

INC 1,890 999,037 0.03UNITED PARCEL SERVICE INC

CLASS B 2,254 1,941,554 0.06UNITED RENTALS INC 2,578 2,395,208 0.08UNITEDHEALTH GROUP INC 2,218 3,322,708 0.11UNIVERSAL HEALTH SERVICES INC

CLASS B 1,591 1,377,168 0.04UNUM GROUP 2,121 830,420 0.03VALERO ENERGY CORP 4,090 2,203,144 0.07VARIAN MEDICAL SYSTEMS INC 1,835 1,391,887 0.05VERISIGN INC 2,346 1,853,699 0.06VERIZON COMMUNICATIONS INC 10,139 3,832,656 0.12VISA INC CLASS A 4,376 3,402,684 0.11VOYA FINANCIAL INC 5,824 1,784,883 0.06W W GRAINGER INC 430 559,974 0.02W.R. BERKLEY CORP 2,895 1,559,438 0.05WALGREENS BOOTS ALLIANCE INC 2,363 1,488,796 0.05WAL-MART STORES INC 4,258 2,660,117 0.09WATERS CORP 1,162 1,574,036 0.05

102



HoldingsMarket

value

% of net

asset value

HKD


WELLS FARGO & CO 13,309 5,606,809 0.18WESTERN UNION CO 8,802 1,357,713 0.04WYNDHAM WORLDWIDE CORP 2,865 2,335,391 0.08XEROX CORP 2,475 592,855 0.02XILINX INC 4,106 2,028,652 0.07YANDEX NV 4,790 1,084,160 0.04YUM BRANDS INC 1,602 944,395 0.03YUM CHINA HOLDINGS INC 5,151 1,439,835 0.05ZIMMER BIOMET HOLDINGS INC 1,445 1,369,177 0.04

511,552,516 16.74

Equities (total) 2,725,025,124 89.16

Debt SecuritiesCertificates of deposit


BANK OF CHINA LTD (TOKYO BRANCH) 0% 29 SEPTEMBER 2017 8,000,000 62,199,847 2.03

CHINA CONSTRUCTION BANK CORP (HONG KONG BRANCH) 1.76% 29 SEPTEMBER 2017 4,100,000 32,021,615 1.05

94,221,462 3.08

Debt Securities (total) 94,221,462 3.08


AGNC INVESTMENT CORP 9,738 1,610,850 0.05AMERICAN TOWER CORP 1,871 1,992,162 0.07DUKE REALTY CORP 8,306 1,854,665 0.06GGP INC 1,271 224,443 0.01HOSPITALITY PROPERTIES TRUST 6,100 1,384,474 0.05IRON MOUNTAIN INC 4,649 1,322,751 0.04KIMCO REALTY CORP 6,650 1,048,099 0.03LINK REIT 107,547 6,829,234 0.22

HoldingsMarket

value

% of net

asset value

HKD

PUBLIC STORAGE 1,176 1,888,106 0.06SIMON PROPERTY GROUP INC 1,243 1,538,720 0.05WEYERHAEUSER CO 5,615 1,448,059 0.05

21,141,563 0.69



HSBC POOLED INVESTMENT FUND – HSBC POOLED WORLD BOND FUND (UNHEDGED) CLASS W 4,720,015 63,999,159 2.10

127,038,049 4.16

Unit trusts (total) 148,179,612 4.85

Derivative assetsForeign currency forward contracts 2,009,374 0.07







Total net assets 3,056,105,877 100.00

103



% of net asset value


2017 2016

Financial assets

Equities


89.16 87.53

Certificate of depositsUnlisted investments 3.08 –

104


HSBC Managed Growth Fund for the year ended 31 July 2017



2017 2016


4.85 9.82

Rights – 0.00

Derivative assetsForeign currency forward contracts 0.07 –

Financial Liabilities



Total investments 97.08 97.33Other net assets 2.92 2.67


105



(a) Price record (Dealing net asset value per unit)



HKD HKD HKD HKD

2007 14.81 19.98 15.63 21.082008 16.91 22.31 17.85 23.542009 9.32 17.11 9.83 18.062010 14.28 16.81 15.06 17.732011 15.06 18.44 15.88 19.452012 13.65 17.66 14.40 18.632013 15.12 18.60 15.95 19.622014 17.44 19.85 18.39 20.942015 18.17 21.03 19.17 22.192016 15.94 19.50 16.82 20.572017 18.26 22.10 19.26 23.32



HKD HKD HKD HKD

2007 17.64 20.34 17.64 20.342008 17.50 22.74 17.50 22.742009 10.23 17.82 10.23 17.822010 15.24 17.93 15.24 17.932011 16.16 19.83 16.16 19.832012 14.79 19.11 14.79 19.112013 16.55 20.40 16.55 20.402014 19.31 22.02 19.31 22.022015 21.49 21.84 21.49 21.842016 – – – –2017 – – – –

106




HKD HKD HKD HKD

2007 15.22 20.38 15.22 20.382008 17.64 22.81 17.64 22.812009 10.41 17.96 10.41 17.962010 15.50 18.23 15.50 18.232011 16.46 20.26 16.46 20.262012 15.14 19.56 15.14 19.562013 17.01 21.06 17.01 21.062014 19.96 22.88 19.96 22.882015 21.11 24.53 21.11 24.532016 18.73 22.82 18.73 22.822017 21.68 26.46 21.68 26.46


2017 2016 2015 2014HKD HKD HKD HKD



2017 2016 2015 2014HKD HKD HKD HKD

Net asset value per unit– “A” class income units 21.91 18.46 19.48 19.63– “L” class income units – – – 21.90– Provident class units 26.46 21.92 22.79 22.76

(d) Total expense ratio

2017Average net asset value

Total expenses

Total expense ratio

HKD HKD %

– “A” class 227,301,967 3,872,710 1.70%– Provident class 2,783,147,690 26,434,384 0.95%

107

HSBC Managed Stable Fund

Market review





108

HSBC Managed Stable Fund (“the Fund”)

We hereby confirm that, to the best of our knowledge, the Manager of the Fund has, in all material respects, managed the Fund in accordance with the provisions of the Trust Deed dated 14 March 1997, as amended, for the year ended 31 July 2017.


Trustee’s Report

109

Report on the Audit of Financial Statements

Opinion

We have audited the financial statements of HSBC Managed Stable Fund (the “Fund”) set on pages 111 to 135, which comprise the statement of financial position as at 31 July 2017, the statement of comprehensive income, the statement of changes in net assets attributable to unitholders, the cash flow statement and the distribution statement for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.


Basis for Opinion





In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially

misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.







Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with HKSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. In addition, we are required to assess whether


110



the financial statements of the Fund have been properly prepared, in all material respects, in accordance with the relevant provisions of the Trust Deed and the relevant disclosure provisions of Appendix E of the SFC Code.











27 November 2017

111

HSBC Managed Stable Fundas at 31 July 2017


ASSETSFinancial assets at fair value through profit or loss 5, 7(f), 12(g), 13 1,494,489,334 1,484,054,173Interest and dividends receivable 9,777,515 9,681,070Subscriptions receivable 1,246,593 28,780,665Amounts due from brokers 6, 7(b) 1,237,234 5,793,835Cash and cash equivalents 7(b) 99,865,858 215,979,553

1,606,616,534 1,744,289,296

LIABILITIESFinancial liabilities at fair value through profit or loss 5, 7(g), 12(g), 13 3,888,080 698,410Redemptions payable 5,132,177 5,387,098Amounts due to brokers 6 32,864 6,356,689Distributions payable 11 224,065 56,041Other payables 7(a), 7(c), 7(d) 1,820,774 1,758,606

11,097,960 14,256,844














112

HSBC Managed Stable Fundfor the year ended 31 July 2017


Interest income 7(b) 441,344 15,212Dividend income 7(f) 15,222,376 15,608,048Net gains from financial instruments

at fair value through profit or loss 3 78,862,403 57,952,263Net foreign exchange gain/(loss) 556,443 (2,250,964)Other income 7(c), 7(d) 3,244,062 –

TOTAL REVENUE 98,326,628 71,324,559

Management fees 7(a) 12,490,904 11,904,648Transaction costs 7(c), 7(d), 7(e) 1,785,242 1,811,784Trustee’s fees 7(c) 1,757,425 1,698,318Administrative fees 7(a) 68,405 96,037Auditors’ remuneration 138,282 153,450Registrar’s fees 7(a) 70,000 64,246Legal and professional fees 113,574 31,533Safe custody fees, bank charges and miscellaneous expenses 7(d) 772,751 711,733


NET PROFIT FROM OPERATIONS BEFORE TAxATION 81,130,045 54,852,810

Taxation 4 (2,258,361) (2,179,917)

NET PROFIT FROM OPERATIONS BEFORE DISTRIBUTIONS 78,871,684 52,672,893

Distributions to holders of “A” class income units 11 (224,065) (56,041)

INCREASE IN NET ASSETS ATTRIBUTABLE TO UNITHOLDERS AND TOTAL COMPREHENSIVE INCOME FOR THE YEAR 78,647,619 52,616,852



113




Increase in net assets attributable to unitholders and total comprehensive income for the year 78,647,619 52,616,852

Subscriptions of units (excluding equalisation)“A” class income units 6,129,655 14,141,436Provident class units 176,234,908 382,450,159

Redemptions of units (excluding equalisation)“A” class income units (6,251,292) (18,700,983)Provident class units (385,132,858) (224,574,015)

Income equalisation on subscriptions and redemptions 10 (4,141,910) 833,587

(213,161,497) 154,150,184




114


2017 2016HKD HKD

OPERATING ACTIVITIESInterest received 441,344 15,212Dividends received 15,074,763 15,035,801Management fees paid (12,489,902) (11,858,562)Trustee’s fees paid (1,778,017) (1,692,826)Payments on purchase of investments (1,242,507,076) (918,565,224)Proceeds from sale of investments 1,312,610,897 870,674,305Taxes paid (2,248,572) (2,177,953)Other operating income received/(expenses) paid 924,220 (5,442,792)Margin deposits placed with brokers (202,965) –

Cash generated from/(used in) operating activities 69,824,692 (54,012,039)

FINANCING ACTIVITIESProceeds from issue of units including equalisation 213,049,498 398,356,996Payments on redemption of units including equalisation (398,931,844) (248,413,529)Distributions paid (56,041) (22,071)

Cash (used in)/generated from financing activities (185,938,387) 149,921,396





Cash Flow Statement

115




Profit for the year available for distribution* 24,221,484 18,662,564Income equalisation on subscriptions and redemptions 10 (4,141,910) 833,587Distributions to unitholders 11 (224,065) (56,041)







116



1 The Fund

HSBC Managed Stable Fund (“the Fund”) is an open ended unit trust established under a trust deed dated 14 March 1997, as amended (“the Trust Deed”), and governed by the laws of the Cayman Islands. The Fund registered under the Mutual Funds Law of the Cayman Islands on 13 March 1997. The objective of the Fund is to invest in a diversified portfolio of investments which achieves long term stable growth whilst minimising the risk to unitholders.






The functional and presentation currency of the Fund is Hong Kong dollar reflecting the fact that the participating redeemable units of the Fund are issued and redeemed in Hong Kong dollars.

The financial statements are prepared on a fair value basis for financial assets at fair value through profit or loss and derivative financial instruments. Other financial assets and financial liabilities are stated at amortised cost or redemption amount (redeemable units).

The preparation of financial statements in conformity with HKFRSs requires management to make judgements,

estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses.

The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.








117



(i) Classification

All of the Fund’s investments are classified as financial assets or financial liabilities at fair value through profit or loss. This category comprises financial instruments held for trading, which are instruments that the Fund has acquired principally for the purpose of short term profit taking. These include investments in equities and debt securities, unit trusts, rights and forward contracts.



Financial l iabilities at amortised cost include redemptions payable, amounts due to brokers, distributions payable and other payables. Financial liabilities arising from the redeemable units issued by the Fund are carried at the redemption amount.

(ii) Recognition




(iii) Measurement

Financial instruments are measured initially at fair value (transaction price). Transaction costs on financial assets and liabilities at fair value through profit or loss are expensed immediately, while on other financial instruments they are amortised.








The best evidence of the fair value of a financial instrument at initial recognition is normally the transaction price – i.e. the fair value of the consideration given or received. If the Fund determines that the fair value at initial recognition differs from the transaction price and the fair value is evidenced neither by a quoted

118


price in an active market for an identical asset or liability nor based on a valuation technique that uses only data from observable markets, the financial instrument is initially measured at fair value, adjusted to defer the difference between the fair value at initial recognition and the transaction price. Subsequently, that difference is recognised in profit or loss on an appropriate basis over the life of the instrument but no later than when the valuation is supported wholly by observable market data or the transaction is closed out.





(vi) Impairment

Financial assets that are stated at cost or amortised cost are reviewed at each date of the statement of financial position to determine whether there is objective evidence of impairment. If any such indication exists, an impairment loss is recognised in profit or loss as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the financial asset’s effective interest rate.

If in a subsequent period the amount of an impairment loss recognised on a financial asset carried at amortised cost decreases and the decrease can be linked objectively to an event occurring after the write down, the write down is reversed through profit or loss.

(vii) Derecognition




(viii) Offsetting







(i) Dividends

Dividend income from listed investments is recognised when the share price of the investment goes ex dividend. Dividends from other investments are recognised in profit or loss as dividend income when declared. In some cases, the Fund may choose to receive dividends in the form of additional shares rather than cash. In such cases, the Fund recognises the dividend income for the amount

119


of the equivalent cash dividend with the corresponding debit treated as an additional investment.



(g) Expenses




(i) Related parties

















(k) Units in issue


The Fund has multiple classes of redeemable units in issue “A” class and Provident class. All the classes belong to the most subordinate class of financial instruments in the Fund and rank pari passu in all material respects and have the same terms and conditions other than different management fee rates and distribution rights. The redeemable units provide unitholders with the right to require redemption for cash at a value proportionate to the unitholders’ share in the Fund’s net assets at each daily redemption date, and also in the event of the Fund’s liquidation. The redeemable units are classified as financial liabilities and are measured at the present value of the redeemable amounts.

120



Distributions to holders of redeemable units of “A” class and Provident class classified as financial liabilities are recognised in profit or loss as finance cost when they are authorised and no longer at the discretion of the Fund.

For Provident class of the Fund, all dividend income and interest arising is accumulated within the Fund and will not be distributed to the unitholders.



3 Net gains from financial instruments at fair value through profit or loss

2017 2016HKD HKD

Net realised gains 44,723,645 5,127,777Net unrealised gains 34,138,758 52,824,486

78,862,403 57,952,263

4 Taxation



Dividend income received by the Fund may be subject to non-recoverable withholding tax imposed in the country of origin. Dividend income is recorded gross of such taxes and the withholding tax is recognised in profit or loss as incurred.






121



2017 2016HKD HKD

Overseas withholding tax 2,047,076 2,157,265Capital gains tax 211,285 22,652

2,258,361 2,179,917


2017 2016HKD HKD


Equities

Listed shares 489,454,750 523,797,795

Debt securities

Listed bonds 788,317,274 767,090,216Unlisted but quoted bonds 28,351,800 33,863,298Unlisted but quoted


959,049,698 800,953,514

Other investments



45,984,886 159,302,864

1,494,489,334 1,484,054,173

2017 2016HKD HKD



1,490,601,254 1,483,355,763

Investments, at cost 1,402,476,871 1,429,631,403Net unrealised appreciation

in value of investments 88,124,383 53,724,360

Investments, at fair value 1,490,601,254 1,483,355,763


2017 2016HKD HKD




1,237,234 5,793,835


Amounts payable on purchase of investments 32,864 6,356,689



122



For “A” class income units 1.5%For Provident class units 0.75%


2017 2016HKD HKD


(ii) Registrar’s fees and administrative fees for the year 138,405 160,283



(b) Bank accounts are maintained with members of the HSBC Group. The balances of these accounts amounted to $4,582,028 (2016: $215,979,553) at year end. Interest income arising from these accounts amounted to $33,098 (2016: $10). Margin accounts are maintained with HSBC Bank Plc Futures Wholesale Trading Operations, which is fellow subsidiary of the Manager within the HSBC Group. The balances of margin deposits amounted to $202,965 (2016: $nil) at year end.

(c) The trustee of the Fund is HSBC Trustee (Cayman) Limited (“the Trustee”), a fellow subsidiary of the Manager within the HSBC Group, which receives a monthly fee equivalent to 0.1% (2016: 0.1%) per annum of the net asset value of the Fund, subject to a minimum monthly fee of $10,000 (2016: $10,000). Effective from 1 July 2017, the Trustee receives a monthly fee equivalent to 0.07% per annum of the net asset value of the Fund and charges the Fund financial reporting service fee of US$3,000 per set of financial statements. During the year, the Trustee rebated trustee’s fee to the sub-funds (2016: $nil).


2017 2016HKD HKD





(d) The custodian of the Fund is HSBC Trustee (Cayman) Ltd, a fellow subsidiary of the Manager within the HSBC Group, which receives a monthly fee equivalent 2.5 – 30 (2016: 2.5 – 30) basis points based on sub-custodian value of the securities. The custodian also receives a transaction fee of US$10 – 175 (2016: US$ 10 – 175) for each trade handled. During the year, the Trustee rebated safe custody fees and safe custody transaction fees to the Fund (2016: $nil).

2017 2016HKD HKD



(iii) Safe custody transaction fees for the year 1,164,740 784,558


(v) Rebate of safe custody fees 1,295,706 –

(vi) Rebate of safe custody transaction fees 769,713 –

123


(e) In its purchases and sales of investments, the Fund utilises the brokerage services of The Hongkong and Shanghai Banking Corporation Limited, HSBC Investment Funds (Hong Kong) Limited, HSBC Bank plc, HSBC Markets Limited and HSBC Global Asset Management (UK) Ltd which are members of the HSBC Group. Details of transactions effected through these companies are as follows:


Corporation Limited

HSBCInvestment Funds

(Hong Kong) Limited2017 2016 2017 2016HKD HKD HKD HKD

Commission paid for the year – – – –

Average rate of commission – – – –



HSBC Bank plc HSBC Markets Limited2017 2016 2017 2016HKD HKD HKD HKD

Commission paid for the year 1.402 1 – –

Average rate of commission 0.00% 0.00% – –



HSBC Global Asset Management (UK) Ltd

2017 2016HKD HKD








(i) Market value at year end 18,620,440 17,758,767 1,580,830 1,731,112

(ii) Dividend income earned for the year 1,089,922 1,154,863 64,544 110,561

As at 31 July 2017, the Fund also held investments in ABF Hong Kong Bond Index Fund, and HSBC Index Tracker Investment Fund – Japan Index Fund, which are managed by the fellow subsidiaries of the Manager within the HSBC Group. As at 31 July 2016, the Fund also held investments in ABF Hong Kong Bond Index Fund, HSBC Global Investment Fund – Indian Equity Fund, HSBC Index Tracker Investment Fund – Japan Index Fund, HSBC Index Tracker Investment Fund – Pacific Index Fund and HSBC Pooled Investment Fund – HSBC Pooled Asian Bond Fund, which are managed by the fellow subsidiaries of the Manager within the HSBC Group. The market value of these investments at year end was $41,294,157 (2016: $155,088,957).

124


(g) During the year, the Fund has entered into foreign currency forward contracts with The Hongkong and Shanghai Banking Corporation Limited. The details of the outstanding forward foreign exchange contracts as at year end are as follows:

2017 2016HKD HKD





2017 2016



Units issued during the year 443,662 1,058,433Units redeemed during the year (448,204) (1,397,497)






(c) The capital of the Fund is represented by the net assets attributable to unitholders which are subject to subscriptions and redemptions of units. The Fund does not have any externally imposed capital requirements.

Units may be acquired and redeemed on any valuation date at the unit value determined on that day. The valuation date is every business day, which is also a day on which banks in China are normally open for business, or such other day(s) as the Manager may determine. The minimum initial investment amount for

the Fund is $10,000 for “A” Class Units, with subsequent minimum investments of no less than $10,000. No minimum initial and subsequent investment amounts apply to Provident Class Units.

Units may be redeemed on any valuation date, at the redemption price applicable as at the close of business in Hong Kong on such day. The minimum amount which can be redeemed at any one time is $ 10,000 for “A” Class Units. No minimum redemption amounts apply to Provident Class Units. A unitholder may not make a partial redemption if this would result in his holding being less than the minimum holding of $10,000 for “A” Class Units. No minimum holding applies to Provident Class Units.



11 Distributions

Distributions attributable to the year

2017 2016HKD HKD


Distributions declared during the year – $0.11765 per unit on 1,904,500.96 units (2016: $0.03000 per unit on 1,868,043.32 units) 224,065 56,041


The Fund maintains an investment portfolio in a variety of listed and unlisted financial instruments as dictated by its investment management strategy. The investment objective of this Fund is to achieve long term stable growth, whilst minimising the risk to unitholders. The aim is to provide stable returns without taking too much risk. The assets of the Fund will be invested in a diversified portfolio, with a bias towards global bonds. There will be a limited exposure to international and Hong Kong equities. The investment policy is conservative. The Fund’s investment portfolio comprises equities, debt securities, unit trusts, rights and forward contracts.

125




(a) Price risk



Marketexposures

Change in net assets ifinvestment

valueincreased

by 10%HKD HKD

As at 31 July 2017Equities 489,454,750 48,945,475Unit trusts 44,943,725 4,494,373Rights – –

As at 31 July 2016Equities 523,797,795 52,379,780Unit trusts 159,302,796 15,930,280Rights 68 7





2017

1 yearor less


Over5 years

Non-interestbearing Total

HKD HKD HKD HKD HKD

Assets

Financial assets at fair value through profit or loss 221,162 282,575 455,313 535,439 1,494,489


2016

1 yearor less


Over5 years


HKD HKD HKD HKD HKD

Assets

Financial assets at fair value through profit or loss 124,942 239,030 436,982 683,101 1,484,055



At the date of the statement of financial position, assuming all other factors unchanged, it is estimated that an increase in interest rate of 100 basis points (2016: 50 basis points) would result in a decrease in the net assets attributable to the unithholders and the profit for the year by $57,471,084 (2016: $29,070,816); an equal change in the opposite direction would result in an increase in the net assets attributable to unitholders by an approximately equal amount.

126


(c) Currency risk




At 31 July 2017 and 2016, had the Hong Kong dollar (“HKD”) weakened by 5% (2016: 5%) in relation to respective currencies, with all other variables held constant, net assets attributable to unitholders and the profit for the year would have increased by the amounts shown below. The analysis is performed on the same basis for 2016.

Net exposure

Change in netassets if HKD

weakenedby 5%

HKD HKD

As at 31 July 2017

CurrenciesArgentine peso 105,303 5,265Australian dollar 31,982,314 1,599,116Canadian dollar 21,497,929 1,074,896Chinese yuan 7,272 364Czech koruna 151,869 7,593Danish krone 6,525,221 326,261Euro 279,818,599 13,990,930Pound sterling 101,316,359 5,065,818Indian rupee 7,678,730 383,936Indonesian rupiah 2,163,750 108,188Japanese yen 182,148,295 9,107,415Malaysian ringgit 1,809,747 90,487Mexican peso 5,113,409 255,670New Taiwan dollar 9,349,742 467,487New Zealand dollar 284,773 14,239Norwegian krone 2,789,692 139,485Philippine peso 654,140 32,707Polish zloty 4,564,692 228,235Russian ruble 1,349,049 67,452Singapore dollar 3,741,144 187,057South African rand 2,710,971 135,549South Korean won 14,718,240 735,912Swedish krona 9,338,608 466,930Swiss franc 14,045,644 702,282Thai baht 2,385,717 119,286Turkish lira 1,020,118 51,006

Total 707,271,327 35,363,566

127


Net exposure

Change in net assets if

HKD weakened by 5%

HKD HKD

As at 31 July 2016

CurrenciesArgentine peso 122,876 6,144Australian dollar 33,765,765 1,688,288Canadian dollar 18,979,015 948,951Danish krone 6,771,097 338,555Euro 292,834,396 14,641,720Indonesian rupiah 1,375,262 68,763Japanese yen 223,789,043 11,189,452Malaysian ringgit 2,742,080 137,104Mexican peso 5,404,498 270,225New Taiwan dollar 11,334,675 566,734New Zealand dollar 158,313 7,916Norwegian krone 2,634,192 131,710Polish zloty 3,773,849 188,692Pound sterling 112,538,605 5,626,930Philippines Peso 300,291 15,015Singapore dollar 3,938,354 196,918South African rand 2,893,854 144,693South Korean won 16,440,368 822,018Swedish krona 8,386,579 419,329Swiss franc 16,262,288 813,114Thai baht 2,166,287 108,314

Total 766,611,687 38,330,585


(d) Credit risk





Rating (Moody’s/S&P/Fitch)

% of debt securities2017 2016

Aaa/AAA/AAA 34.80 40.04Aa1/AA+/AA+ 6.29 7.47Aa2/AA/AA 9.96 14.16Aa3/AA-/AA- 3.55 4.18A1/A+/A+ 33.59 20.14A2/A/A 0.72 0.40A3/A-/A- 0.96 1.20Baa2/BBB/BBB 9.79 11.91Baa3/BBB-/BBB- 0.28 –NR 0.06 0.50

Total 100.00 100.00






128


As of 31 July 2017, the Fund had debt securities issued by the Japan Government amounting to 10.14% (2016: 9.02%) of net assets value and US Government amounting to 15.04% (2016: 15.87%) of net assets value.





The enforceable master netting arrangements do not meet the criteria for offsetting in the statement of assets and liabilities. This is because they create a right of set-off of recognised amounts that is enforceable only following on event of default, insolvency or bankruptcy of the Fund and its counterparties. In addition, the Fund and its counterparties do not intend to settle on a net basis or to realise the assets and settle the liabilities simultaneously.


31 July 2017



financial assets






assets presented in


position






contracts– Counterparty A 1,041,161 – 1,041,161 (1,041,161) – –– Counterparty B – – – – – –

129







in the statement





position






contracts– Counterparty A (2,589,737) – (2,589,737) 1,041,161 – (1,548,576)– Counterparty B (1,298,343) – (1,298,343) – – (1,298,343)




31 July 2017

Financial assets

Net amounts





HKD HKD HKD



– Counterparty A 1,041,161 1,041,161 –– Counterparty B – – –


Net amounts




not in scope of


HKD HKD HKD



– Counterparty A (2,589,737) (2,589,737) -– Counterparty B (1,298,343) (1,298,343) -

(e) Liquidity risk



130


The Fund’s listed investments are considered to have insignificant exposure to liquidity risk as they are all readily realisable under normal market conditions. The Fund also invests in unlisted investments such as unlisted bonds, certificates of deposits, unit trusts and rights, which are not publicly traded on exchanges.

As at 31 July 2017 and 2016, the Fund’s financial liabilities are due within three months, except for redemptions payable and net assets attributable to unitholders which are repayable on demand.



The Fund’s objective in managing the capital is to ensure a stable and strong base to achieve long-term capital growth, and to manage liquidity risk arising from the redemptions. The Manager manages the capital of the Fund in accordance with the Fund’s investment objectives and policies stated in the Fund’s Explanatory Memorandum.


he amount and the movement of net assets attributable to unitholders are stated in the statement of changes in net assets attributable to unitholders. As the redeemable units are redeemed on demand at the unitholders’ option, the actual level of redemption may differ significantly from historical experience.


Rights



As at 31 July 2016

Type ofcontract Expiration Underlying

Fair valueassets

HKD

Rights July 2016 Iberdrola SA 2Rights July 2016 Zardoya Otis SA 66

Forward contracts


Forward contracts result in exposure to market risk based on changes market prices relatives to contracted prices. Market risks arise due to the possible movement in foreign currency exchange rates, indices, and securities’ values underlying these instruments. In addition, because of the low margin deposits normally required in relation to notional contract sizes, a high degree of leverage may be typical of a forward contract and may result in substantial losses to the Fund. Forward contracts are generally subject to liquidity risk.

At 31 July 2017 and 2016, the Fund’s holdings in foreign exchange forward contracts were as specified in the following tables.

As at 31 July 2017

Buy SellSettlement

dateFair value

assetsFair value

(liabilities)HKD HKD

GBP3,140,000 HKD31,291,92111 August

2017 1,041,161 –

HKD31,502,019 GBP3,140,00011 August

2017 – (831,064)

HKD15,722,515 JPY229,000,00014 August

2017 – (467,279)


2017 – (293,362)

HKD35,080,748 EUR4,000,0001 September

2017 – (1,782,572)

HKD6,476,820 GBP640,0001 September

2017 – (114,187)

HKD15,735,967 JPY228,000,0006 October

2017 – (399,616)

1,041,161 (3,888,080)

131


As at 31 July 2016

Buy SellSettlement

dateFair value

assetsFair value

(liabilities)HKD HKD


2016 – (226,137)

HKD1,450,762 JPY19,800,00021 October

2016 – (33,853)

HKD17,083,181 JPY233,100,00028 October

2016 – (438,420)

– (698,410)


The Fund’s financial instruments are measured at fair value on the date of the statement of financial position. Fair value estimates are made at a specified point in time, based on market conditions and information about the financial instruments. Usually, fair values can be reliably determined within a reasonable range of estimates. For certain other financial instruments, including interest and dividends receivable, subscriptions receivable, amounts due from brokers, redemptions payable, amounts due to brokers, distributions payable and other payables, the carrying amounts approximate fair values due to the immediate or short-term nature of these financial instruments.









The following analyses financial assets/liability at fair value at the date of the statement of financial position, by the level in the fair value hierarchy into which the fair value measurement is categorised.

132




31 July 2017

Financial assets

Equities 489,063,475 – 391,275 489,454,750Debt securities – 959,049,698 – 959,049,698Unit trusts 44,943,725 – – 44,943,725Rights – – – –Forward contracts – 1,041,161 – 1,041,161

534,007,200 960,090,859 391,275 1,494,489,334




31 July 2016

Financial assets

Equities 523,797,795 – – 523,797,795Debt securities – 800,953,514 – 800,953,514Unit trusts 159,302,796 – – 159,302,796Rights – 68 – 68

683,100,591 800,953,582 – 1,484,054,173



As of 31 July 2017, Level 3 financial instruments includes Hanergy Thin Film Power Group Limited, Safeway PDC LCC CVR (Casa Ley), Safeway PDC LCC CVR (PDC) and China Hongqiao Group Ltd. As of 31 July 2016, Level 3 financial instruments includes Hanergy Thin Film Power Group Limited, Safeway PDC LCC CVR (Casa Ley) and Safeway PDC LCC CVR (PDC).

For Hanergy Thin Film Power Group Limited, it has been suspended for trading and in these financial statements it is revalued and priced based on relevant news and information and its value was written down to zero. For Safeway PDC LCC CVR (Casa Ley) and Safeway PDC LCC CVR (PDC), no observable input is available for these financial instruments since Safeway Inc. was acquired by AB Acquisition LLC in 2015. These financial instruments are valued at zero as at year end. For China Hongqiao Group Ltd., it has been suspended for trading in March 2017 and in these financial statements, it is revalued and priced using last traded price before suspension with the adjustment based on relevant news and information.


As at1 August

2016

Net lossesincluded in the

statement ofcomprehensive

income PurchaseTransfer in of

Level 3As at

31 July 2017*Unrealised

gainsHKD HKD HKD HKD HKD HKD

Equities – – – 391,275 391,275 –



133






Valuationtechniques

Unobservableinput

HKD HKD

Equities 391,275 Nil Provision onthe total cost

Discountprovision

The significant unobservable inputs used in the fair value measurement categorised within Level 3 of the fair value hierarchy together with a quantitative sensitivity analysis as at 31 July 2017 and 2016 is as shown below:

Input

Change in return of

the relevant input

Effect on the net assets

attributable to unitholders

HKD


As at 31 July 2016Equities Discount provision 5%/(5)% –/50,981



The following tables sets out the fair values of financial instruments not measured at fair value and analyses it by the level in the fair value hierarchy into which each fair value measurement is categorised.

31 July 2017


Financial assets





– 112,127,200 – 112,127,200



Amounts due to brokers – 32,864 – 32,864

Distributions payable – 224,065 – 224,065Other payables – 1,820,774 – 1,820,774Net assets


– 1,602,728,454 – 1,602,728,454

134


31 July 2016


Financial assets





– 260,235,123 – 260,235,123




Distributions payable – 56,041 – 56,041Other payables – 1,758,606 – 1,758,606Net assets


– 1,743,590,886 – 1,743,590,886












Nature andpurpose

Interest heldby the Fund







135


31 July 2017


Total netassets

(based onunaudited

information)




HKD HKD



31 July 2016


Total netassets

(based onunaudited

information)

Carrying amount included in

“Financial assets of fair value

through profit or loss”

HKD HKD











136


HSBC Managed Stable Fund as at 31 July 2017

HoldingsMarket

value

% of net

asset value

HKD

TABCORP HOLDINGS LTD 9,106 237,332 0.01TELSTRA CORP LTD 15,005 383,595 0.02WESFARMERS LTD 1,948 494,716 0.03WESTPAC BANKING CORP 7,871 1,561,647 0.10WOODSIDE PETROLEUM LTD 2,529 459,979 0.03

17,436,120 1.09

AustriaANDRITZ AG 350 166,847 0.01ERSTE GROUP BANK AG 1,195 386,397 0.02TELEKOM AUSTRIA AG 4,758 334,421 0.02VIENNA INSURANCE GROUP AG

WIENER VERSICHERUNG GRUPPE 1,469 344,663 0.02VOESTALPINE AG 1,088 429,392 0.03

1,661,720 0.10

BelgiumANHEUSER BUSCH INBEV NV 719 673,984 0.04BPOST SA 1,078 229,747 0.01ETABLISSEMENTEN FRANZ

COLRUYT NV 469 204,617 0.01KBC GROEP NV 724 466,670 0.03PROXIMUS SA 941 257,304 0.02SOFINA SA 93 107,730 0.01

1,940,052 0.12

CanadaARC RESOURCES LTD 2,240 240,482 0.02BANK OF MONTREAL 444 262,210 0.02BANK OF NOVA SCOTIA 656 318,211 0.02BCE INC 753 275,206 0.02BROOKFIELD ASSET MANAGEMENT

INC 580 175,646 0.01CANADIAN IMPERIAL BANK OF

COMMERCE 485 327,799 0.02CANADIAN NATIONAL RAILWAY CO 417 256,578 0.02CANADIAN NATURAL RESOURCES

LTD 794 189,080 0.01CANADIAN UTILITIES LTD CLASS A 904 223,405 0.01CENOVUS ENERGY INC 2,513 164,323 0.01CI FINANCIAL CORP 853 144,690 0.01

HoldingsMarket

value

% of net

asset value

HKD


AustraliaADELAIDE BRIGHTON LTD 8,495 297,682 0.02ANSELL LTD 2,138 292,880 0.02ANZ BANKING GROUP LTD 6,275 1,159,306 0.07APA GROUP 2,678 143,936 0.01ARISTOCRAT LEISURE LTD 1,763 222,602 0.01ASX LTD 1,280 417,411 0.03AURIZON HOLDINGS LTD 12,014 376,049 0.02AUSNET SERVICES LTD 30,195 307,826 0.02BHP BILLITON LTD 6,363 1,025,593 0.06CALTEX AUSTRALIA LTD 800 155,332 0.01COCHLEAR LTD 160 142,512 0.01COMMONWEALTH BANK OF

AUSTRALIA 3,916 2,044,450 0.13CSL LTD 974 765,213 0.05CSR LTD 4,123 100,775 0.01DULUXGROUP LTD 7,182 295,110 0.02FLIGHT CENTRE TRAVEL GROUP

LTD 810 219,698 0.01FORTESCUE METALS GROUP LTD 11,544 413,162 0.03IOOF HOLDINGS LTD 5,817 364,517 0.02MACQUARIE ATLAS ROADS GROUP 4,999 173,305 0.01MACQUARIE GROUP LTD 718 384,252 0.02MAGELLAN FINANCIAL GROUP LTD 1,059 174,388 0.01MEDIBANK PRIVATE LTD 8,389 142,276 0.01METCASH LTD 10,025 163,772 0.01NATIONAL AUSTRALIA BANK LTD 5,539 1,034,382 0.06NEWCREST MINING LTD 2,226 280,369 0.02ORIGIN ENERGY LTD 4,584 197,790 0.01OZ MINERALS LTD 8,016 416,847 0.03PERPETUAL LTD 1,033 325,141 0.02PLATINUM INVESTMENT

MANAGEMENT LTD 9,107 310,610 0.02QANTAS AIRWAYS LTD 9,672 320,834 0.02QBE INSURANCE GROUP LTD 3,214 237,474 0.02RAMSAY HEALTH CARE LTD 431 189,676 0.01RIO TINTO LTD 999 409,806 0.03SONIC HEALTHCARE LTD 2,862 397,770 0.03SOUTH32 LTD 12,790 232,069 0.01SUNCORP GROUP LTD 1,841 164,036 0.01

137



HoldingsMarket

value

% of net

asset value

HKD


CRESCENT POINT ENERGY CORP 2,742 167,823 0.01ENBRIDGE INC 601 193,979 0.01GREAT-WEST LIFECO INC 740 164,436 0.01IMPERIAL OIL LTD 776 173,404 0.01INTER PIPELINE LTD 1,404 215,881 0.01METRO INC 1,024 270,072 0.02POTASH CORP OF SASKATCHEWAN

INC 1,939 270,048 0.02POWER CORP OF CANADA 1,198 226,853 0.01ROGERS COMMUNICATIONS INC

CLASS B 796 322,290 0.02ROYAL BANK OF CANADA 817 474,581 0.03SHAW COMMUNICATIONS INC 1,078 186,894 0.01SUNCOR ENERGY INC 1,074 272,795 0.02TECK RESOURCES LTD 1,923 324,987 0.02TORONTO-DOMINION BANK 1,031 413,833 0.03TOURMALINE OIL CORP 1,371 236,750 0.01TRANSCANADA CORP 1,011 402,206 0.03TRISURA GROUP LTD 3 481 0.00TURQUOISE HILL RESOURCES LTD 9,228 236,292 0.01WASTE CONNECTIONS INC 312 158,341 0.01

7,289,576 0.46


DenmarkCOLOPLAST A/S 469 313,587 0.02DANSKE BANK A/S 1,204 379,408 0.02ISS A/S 992 316,532 0.02NOVO NORDISK A/S 1,968 653,302 0.04PANDORA A/S 180 161,140 0.01TRYG A/S 1,233 216,334 0.01VESTAS WIND SYSTEMS A/S 340 258,487 0.02

2,298,790 0.14

FinlandFORTUM OYJ 2,143 272,711 0.02

HoldingsMarket

value

% of net

asset value

HKD

KONE OYJ 890 360,674 0.02METSO OYJ 951 235,387 0.02NESTE OYJ 951 320,768 0.02NOKIA OYJ 8,389 415,590 0.03NOKIAN RENKAAT OYJ 994 315,593 0.02ORION OYJ CLASS B 879 345,856 0.02UPM-KYMMENE OYJ 1,619 343,033 0.02WARTSILA ABP OYJ 434 224,395 0.01

2,834,007 0.18

FranceAIR LIQUIDE SA 275 262,594 0.02AIRBUS GROUP SE 386 250,937 0.02ALSTOM SA 650 181,265 0.01ARKEMA SA 424 375,512 0.02ATOS SE 120 141,935 0.01AXA SA 1,437 330,274 0.02BIOMERIEUX SA 243 416,750 0.03BNP PARIBAS SA 1,050 633,968 0.04BOUYGUES SA 990 330,412 0.02CARREFOUR SA 1,641 306,821 0.02CNP ASSURANCES SA 2,067 388,279 0.02COMPAGNIE DE SAINT-GOBAIN 1,023 441,702 0.03CREDIT AGRICOLE SA 1,719 235,058 0.01DANONE SA 614 356,699 0.02ELECTRICITE DE FRANCE SA 4,162 328,517 0.02ENGIE SA 497 62,263 0.00ESSILOR INTERNATIONAL SA 297 292,900 0.02EURAZEO SA 59 37,459 0.00FAURECIA SA 98 42,350 0.00INGENICO GROUP SA 196 159,941 0.01LEGRAND SA 408 219,405 0.01L’OREAL SA 297 478,868 0.03LVMH MOET HENNESSY LOUIS

VUITTON SE 177 346,668 0.02MICHELIN (CIE GENERALE DES

ETABLISSEMENTS) 463 487,518 0.03ORANGE SA 2,720 356,157 0.02PEUGEOT SA 1,973 330,380 0.02PUBLICIS GROUPE SA 283 166,544 0.01RENAULT SA 220 154,285 0.01SAFRAN SA 666 490,182 0.03

138



HoldingsMarket

value

% of net

asset value

HKD


SANOFI SA 1,293 961,065 0.06SARTORIUS STEDIM BIOTECH SA 310 171,900 0.01SCHNEIDER ELECTRIC SE 711 434,394 0.03SCOR SE 521 170,861 0.01SEB SA 322 445,792 0.03SOCIETE BIC SA 259 236,274 0.02SOCIETE GENERALE DE PARIS SA 1,293 590,546 0.04TECHNIPFMC PLC 1,328 295,134 0.02THALES SA 490 422,278 0.03TOTAL SA 2,920 1,155,102 0.07VALEO SA 770 415,065 0.03VINCI SA 828 577,469 0.04

14,481,523 0.91

GermanyADIDAS AG 267 474,506 0.03ALLIANZ SE 440 730,328 0.05BASF SE 1,189 882,340 0.06BAYER AG 1,093 1,077,830 0.07BAYERISCHE MOTOREN WERKE AG 491 351,343 0.02BEIERSDORF AG 423 363,148 0.02BRENNTAG AG 204 90,595 0.01CECONOMY AG 1,142 99,910 0.01CONTINENTAL AG 165 289,436 0.02COVESTRO AG 559 337,770 0.02DAIMLER AG 1,229 672,209 0.04DEUTSCHE BOERSE AG 301 247,371 0.02DEUTSCHE LUFTHANSA AG 2,153 360,323 0.02DEUTSCHE POST AG 1,355 409,248 0.03DEUTSCHE TELEKOM AG 3,772 536,454 0.03DEUTSCHE WOHNEN AG 504 155,401 0.01EVONIK INDUSTRIES AG 1,293 342,897 0.02FIELMANN AG 475 296,899 0.02FRAPORT FRANKFURT AIRPORT

SERVICES WORLDWIDE AG 553 430,895 0.03FRESENIUS MEDICAL CARE AG &

CO KGAA 540 396,749 0.02FUCHS PETROLUB SE 437 179,087 0.01FUCHS PETROLUB SE PREFERENCE

SHARES 650 300,463 0.02

HoldingsMarket

value

% of net

asset value

HKD

GEA GROUP AG 1,048 329,070 0.02HANNOVER RUECK SE 379 372,372 0.02HEIDELBERGER ZEMENT AG 200 154,366 0.01HELLA KGAA HUECK & CO 59 24,285 0.00HENKEL AG & CO KGAA

PREFERENCE SHARES 372 410,196 0.03HUGO BOSS AG 314 183,963 0.01INFINEON TECHNOLOGIES AG 2,976 503,813 0.03KION GROUP AG 86 58,070 0.00LINDE AG 271 403,404 0.03MERCK KGAA 170 145,346 0.01METRO WHOLESALE & FOOD

SPECIALIST AG 1,142 179,451 0.01MUENCHENER

RUECKVERSICHERUNGS-GESELLSCHAFT AG 249 415,118 0.03

OSRAM LICHT AG 664 431,114 0.03PORSCHE AUTOMOBIL HOLDING

SE 313 139,453 0.01PROSIEBENSAT.1 MEDIA SE 766 238,759 0.01SAP SE 1,057 872,858 0.05SIEMENS AG 773 816,289 0.05SUEDZUCKER AG 492 82,001 0.00TALANX AG 980 314,622 0.02TELEFONICA DEUTSCHLAND

HOLDING AG 6,170 247,370 0.02UNITED INTERNET AG 735 348,484 0.02VOLKSWAGEN AG PREFERENCE

SHARES 148 177,301 0.01VONOVIA SE 736 232,153 0.01

16,105,060 1.01


REFINERIES SA 1,665 292,067 0.02

Hong KongAAC TECHNOLOGIES HOLDINGS

INC 8,556 899,236 0.06AGILE PROPERTY HOLDINGS LTD 56,000 520,800 0.03AGRICULTURAL BANK OF CHINA

LTD H SHARES 296,937 1,083,820 0.07

139



HoldingsMarket

value

% of net

asset value

HKD


AIA GROUP LTD 149,196 9,183,014 0.58AIR CHINA LTD H SHARES 44,000 310,640 0.02ALUMINUM CORP OF CHINA LTD 58,000 284,200 0.02ANHUI CONCH CEMENT CO LTD H

SHARES 18,734 541,413 0.03ANHUI EXPRESSWAY CO LTD 22,000 129,800 0.01ANTA SPORTS PRODUCTS LTD 12,000 321,600 0.02ASM PACIFIC TECHNOLOGY LTD 2,500 253,000 0.02AVICHINA INDUSTRY &

TECHNOLOGY CO LTD 34,000 162,860 0.01BAIC MOTOR CORP LTD 17,500 123,025 0.01BANK OF CHINA LTD H SHARES 952,712 3,667,941 0.23BANK OF COMMUNICATIONS CO

LTD H SHARES 88,958 515,067 0.03BANK OF EAST ASIA LTD 20,669 691,378 0.04BEIJING CAPITAL INTERNATIONAL


CO LTD 130,000 293,800 0.02BOC AVIATION LTD 7,100 288,260 0.02BOC HONG KONG HOLDINGS LTD 43,931 1,689,147 0.11BRILLIANCE CHINA AUTOMOTIVE

HOLDINGS LTD 16,979 335,845 0.02BYD CO LTD 8,500 413,950 0.03CAFE DE CORAL HOLDINGS LTD 6,000 150,900 0.01CGN POWER CO LTD H SHARES 88,000 188,320 0.01CHEUNG KONG PROPERTY

HOLDINGS LTD 38,404 2,429,053 0.15CHINA BLUECHEMICAL LTD 84,000 184,800 0.01CHINA CINDA ASSET

MANAGEMENT CO LTD H SHARES 190,276 618,397 0.04

CHINA CITIC BANK CORP LTD H SHARES 102,993 522,174 0.03

CHINA COMMUNICATIONS CONSTRUCTION CO LTD H SHARES 47,164 491,449 0.03


HoldingsMarket

value

% of net

asset value

HKD

CHINA CONCH VENTURE HOLDINGS LTD 31,000 450,120 0.03



CHINA EVERBRIGHT BANK CO LTD H SHARES 50,000 189,500 0.01

CHINA EVERGRANDE GROUP 17,736 385,758 0.02CHINA GALAXY SECURITIES CO H

SHARES 79,176 545,523 0.03CHINA GAS HOLDINGS LTD 24,000 453,600 0.03CHINA HONGQIAO GROUP LTD 55,500 391,275 0.02CHINA LIFE INSURANCE CO LTD H


CORP 32,000 168,960 0.01CHINA MENGNIU DAIRY CO LTD 26,600 404,852 0.02CHINA MERCHANTS BANK CO LTD

H SHARES 44,958 1,155,421 0.07CHINA MERCHANTS HOLDINGS


LTD H SHARES 77,975 612,883 0.04CHINA MINSHENG FINANCIAL

HOLDING CORP LTD 576,700 265,282 0.02CHINA MOBILE LTD 65,801 5,510,834 0.34CHINA NATIONAL BUILDING


LTD 127,000 402,590 0.02CHINA OVERSEAS LAND &


CO LTD H SHARES 40,234 1,388,073 0.09CHINA PETROLEUM & CHEMICAL

CORP H SHARES 302,965 1,796,582 0.11CHINA POWER INTERNATIONAL


CORP H SHARES 39,515 407,795 0.03CHINA RAILWAY GROUP LTD H

SHARES 54,996 342,075 0.02

140



HoldingsMarket

value

% of net

asset value

HKD


CHINA RAILWAY SIGNAL & COMMUNICATION CORP LTD 24,000 146,640 0.01

CHINA RESOURCES BEER HOLDINGS CO LTD 12,666 250,027 0.02

CHINA RESOURCES GAS GROUP LTD 10,000 296,000 0.02

CHINA RESOURCES LAND LTD 28,814 723,231 0.04CHINA RESOURCES POWER

HOLDINGS CO LTD 30,648 456,655 0.03CHINA SHENHUA ENERGY CO LTD

H SHARES 39,477 768,222 0.05CHINA SOUTH CITY HOLDINGS LTD 84,000 142,800 0.01CHINA SOUTHERN AIRLINES CO

LTD 42,000 250,320 0.02CHINA STATE CONSTRUCTION

INTERNATIONAL HOLDINGS LTD 36,034 454,749 0.03CHINA TAIPING INSURANCE

HOLDINGS CO LTD 27,400 643,900 0.04CHINA TELECOM CORP LTD H

SHARES 200,664 746,470 0.05CHINA TRAVEL INTERNATIONAL

INVESTMENT HONG KONG LTD 138,000 320,160 0.02CHINA UNICOM HONG KONG LTD 61,013 691,887 0.04CHINA VANKE CO LTD H SHARES 19,317 445,257 0.03CHINA ZHONGWANG HOLDINGS

LTD 78,000 303,420 0.02CHONGQING RURAL COMMERCIAL

BANK CO LTD H SHARES 85,000 489,600 0.03CHOW TAI FOOK JEWELLERY

GROUP LTD 16,400 133,004 0.01CITIC LTD 69,825 829,521 0.05CK HUTCHISON HOLDINGS LTD 31,904 3,282,922 0.21CK INFRASTRUCTURE HOLDINGS

LTD 8,056 586,880 0.04CLP HOLDINGS LTD 18,470 1,537,627 0.10CNOOC LTD 190,928 1,668,711 0.10COSCO PACIFIC LTD 52,097 498,047 0.03COSCO SHIPPING ENERGY

TRANSPORTATION CO LTD 34,000 149,600 0.01

HoldingsMarket

value

% of net

asset value

HKD

COUNTRY GARDEN HOLDINGS CO LTD 107,933 1,178,628 0.07

CRRC CORP LTD H SHARES 53,641 374,414 0.02CSPC PHARMACEUTICAL GROUP

LTD 50,000 609,000 0.04DAH SING BANKING GROUP LTD 13,600 227,664 0.01DAH SING FINANCIAL HOLDINGS

LTD 5,200 287,560 0.02DONGFENG MOTOR GROUP CO

LTD H SHARES 60,524 579,215 0.04ENN ENERGY HOLDINGS LTD 3,678 195,118 0.01FIRST PACIFIC CO LTD 56,335 329,560 0.02FOSUN INTERNATIONAL LTD 14,796 175,185 0.01FULLSHARE HOLDINGS LTD 74,888 233,651 0.01GALAXY ENTERTAINMENT GROUP

LTD 24,828 1,200,434 0.07GCL POLY ENERGY HOLDINGS LTD 387,600 321,708 0.02GEELY AUTOMOBILE HOLDINGS

LTD 60,000 1,083,600 0.07GF SECURITIES CO LTD 13,800 217,488 0.01GREAT EAGLE HOLDINGS LTD 4,053 173,671 0.01GREAT WALL MOTOR CO LTD H

SHARES 61,893 620,168 0.04GUANGDONG INVESTMENT LTD 32,000 352,000 0.02GUANGZHOU AUTOMOBILE GROUP

CO LTD 16,000 268,480 0.02GUANGZHOU R&F PROPERTIES CO

LTD H SHARES 13,200 184,272 0.01HAIER ELECTRONICS GROUP CO

LTD 29,000 584,350 0.04HAITONG SECURITIES CO LTD 32,074 399,642 0.02HANERGY THIN FILM POWER

GROUP LTD 141,272 – 0.00HANG LUNG PROPERTIES LTD 31,262 608,359 0.04HANG SENG BANK LTD 9,299 1,580,830 0.10HENDERSON LAND DEVELOPMENT

CO LTD 16,001 723,245 0.04HENGAN INTERNATIONAL GROUP

CO LTD 8,414 501,474 0.03HONG KONG AND CHINA GAS CO


CLEARING LTD 15,279 3,404,161 0.21

141



HoldingsMarket

value

% of net

asset value

HKD


HOPEWELL HIGHWAY INFRASTRUCTURE LTD 27,500 132,000 0.01

HOPEWELL HOLDINGS LTD 14,500 434,275 0.03HUANENG RENEWABLES CORP

LTD H SHARES 52,000 123,760 0.01HUATAI SECURITIES CO LTD 19,400 304,580 0.02HYSAN DEVELOPMENT CO LTD 12,000 453,600 0.03INDUSTRIAL AND COMMERCIAL

BANK OF CHINA LTD H SHARES 978,271 5,351,142 0.33JIANGSU EXPRESSWAY CO LTD H

SHARES 34,000 385,560 0.02JIANGXI COPPER CO LTD 19,000 270,940 0.02JOHNSON ELECTRIC HOLDINGS

LTD H SHARES 5,500 152,900 0.01HSBC HOLDINGS PLC 214,721 16,844,862 1.06KERRY LOGISTICS NETWORK LTD 8,000 89,920 0.01KERRY PROPERTIES LTD 7,895 216,323 0.01KINGBOARD CHEMICAL HOLDINGS

LTD 17,000 598,400 0.04KINGBOARD LAMINATES

HOLDINGS LTD 21,000 228,900 0.01KINGSOFT CORP LTD 23,000 473,800 0.03KUNLUN ENERGY CO LTD 36,000 280,440 0.02KWG PROPERTY HOLDING LTD 73,857 428,371 0.03LEE & MAN PAPER

MANUFACTURING LTD 55,000 458,150 0.03LEGEND HOLDINGS CORP 13,800 282,210 0.02LENOVO GROUP LTD 123,804 599,211 0.04LI & FUNG LTD 46,000 131,560 0.01LONGFOR PROPERTIES 20,500 402,210 0.02LUYE PHARMA GROUP LTD 33,000 146,190 0.01MELCO INTERNATIONAL

DEVELOPMENT LTD 9,000 166,500 0.01MGM CHINA HOLDINGS LTD 10,800 166,104 0.01MINTH GROUP LTD 8,000 288,000 0.02MTR CORP LTD 15,348 692,962 0.04NEW WORLD DEVELOPMENT CO

LTD 65,719 693,993 0.04NINE DRAGONS PAPER HOLDINGS

LTD 24,000 279,360 0.02

HoldingsMarket

value

% of net

asset value

HKD

NWS HOLDINGS LTD 20,650 308,924 0.02PEOPLE’S INSURANCE GROUP OF

CHINA CO LTD H SHARES 124,804 454,287 0.03PETROCHINA CO LTD H SHARES 196,510 988,445 0.06PICC PROPERTY AND CASUALTY

CO LTD 69,657 1,014,206 0.06PING AN INSURANCE (GROUP) CO


CO LTD 108,000 492,480 0.03POWER ASSETS HOLDINGS LTD 15,673 1,213,090 0.08RED STAR MACALLINE GROUP

CORP LTD 26,000 210,860 0.01SA SA INTERNATIONAL HOLDINGS

LTD 70,221 201,534 0.01SAMSONITE INTERNATIONAL SA 8,829 289,150 0.02SANDS CHINA LTD 27,439 994,664 0.06SHANDONG WEIGAO GROUP

MEDICAL POLYMER CO LTD 72,000 453,600 0.03SHANGHAI ELECTRIC GROUP CO

LTD 88,000 319,440 0.02SHANGHAI PHARMACEUTICALS

HOLDING CO LTD H SHARES 18,700 387,090 0.02SHENZHEN EXPRESSWAY CO LTD 46,000 321,080 0.02SHENZHEN INTERNATIONAL

HOLDINGS LTD 33,793 452,150 0.03SHENZHEN INVESTMENT LTD 111,558 400,493 0.02SHENZHOU INTERNATIONAL

GROUP HOLDINGS LTD 8,000 418,000 0.03SHIMAO PROPERTY HOLDINGS LTD 30,120 469,270 0.03SHUI ON LAND LTD 87,767 171,146 0.01SINO BIOPHARMACEUTICAL LTD 25,370 175,053 0.01SINO LAND CO LTD 47,942 618,452 0.04SINO-OCEAN LAND HOLDINGS LTD 94,921 414,805 0.03SINOPEC ENGINEERING GROUP CO


PETROCHEMICAL CO LTD H SHARES 94,000 417,360 0.03

SINOPHARM GROUP CO LTD H SHARES 13,923 455,978 0.03

SINOTRUK HONG KONG LTD 27,500 225,500 0.01SJM HOLDINGS LTD 45,000 351,900 0.02

142



HoldingsMarket

value

% of net

asset value

HKD


SUN HUNG KAI PROPERTIES LTD 16,410 1,985,610 0.12SUNAC CHINA HOLDINGS LTD 36,000 748,800 0.05SUNNY OPTICAL TECHNOLOGY

GROUP CO LTD 4,000 372,000 0.02SWIRE PACIFIC LTD CLASS A 6,657 518,580 0.03SWIRE PROPERTIES LTD 16,270 439,290 0.03TECHTRONIC INDUSTRIES CO LTD 16,092 559,197 0.03TELEVISION BROADCASTS LTD 9,400 268,840 0.02TENCENT HOLDINGS LTD 52,976 16,602,678 1.04THE WHARF (HOLDINGS) LTD 16,428 1,091,641 0.07WANT WANT CHINA HOLDINGS LTD 95,314 503,258 0.03WEICHAI POWER CO LTD 28,000 210,840 0.01WH GROUP LTD 78,000 571,740 0.04WHEELOCK AND CO LTD 13,772 811,171 0.05WYNN MACAU LTD 18,800 318,472 0.02XINJIANG GOLDWIND SCIENCE &

TECHNOLOGY CO LTD 17,940 159,487 0.01XINYI GLASS HOLDINGS LTD 54,000 436,320 0.03XINYI SOLAR HOLDINGS LTD 37,400 92,004 0.01YANZHOU COAL MINING CO LTD 26,000 199,940 0.01YUEXIU PROPERTY CO LTD 96,000 141,120 0.01ZHUZHOU CSR TIMES ELECTRIC CO


SHARES 88,000 249,040 0.02ZTE CORP 2,600 52,260 0.00

159,931,061 10.02

India

BAJAJ AUTO LTD 938 321,695 0.02BAJAJ HOLDINGS AND

INVESTMENT LTD 691 201,908 0.01BHARAT PETROLEUM CORP LTD 2,604 149,319 0.01CASTROL INDIA LTD 5,539 270,178 0.02CG POWER AND INDUSTRIAL

SOLUTIONS LTD 14,897 153,616 0.01COLGATE-PALMOLIVE (INDIA)

LTD 1,174 154,078 0.01CUMMINS INDIA LTD 2,449 294,608 0.02

HoldingsMarket

value

% of net

asset value

HKD

DIVI’S LABORATORIES LTD 1,700 139,393 0.01GAIL (INDIA) LTD 5,980 273,816 0.02GREAT EASTERN SHIPPING CO

LTD 2,710 131,445 0.01HERO MOTOCORP LTD 892 397,521 0.02HOUSING DEVELOPMENT

FINANCE CORP LTD 3,389 736,877 0.05ICICI BANK LTD 6,032 221,450 0.01ICICI PRUDENTIAL LIFE

INSURANCE CO LTD 621 34,699 0.00INDIAN OIL CORPN LTD 2,800 125,106 0.01INFOSYS LTD 2,718 336,365 0.02ITC LTD 7,571 263,156 0.02LARSEN & TOUBRO LTD 912 132,145 0.01MARUTI SUZUKI INDIA LTD 260 245,163 0.01MPHASIS LTD 2,114 154,963 0.01MRF LTD 20 168,493 0.01NMDC LTD 15,864 244,705 0.01OIL AND NATURAL GAS CORP

LTD 8,618 177,788 0.01OIL INDIA LTD 4,799 169,318 0.01ORACLE FINANCIAL SERVICES

SOFTWARE LTD 319 141,363 0.01RELIANCE INDUSTRIES LTD 3,615 711,440 0.04RURAL ELECTRIFICATION CORP

LTD 12,147 258,872 0.02STATE BANK OF INDIA 4,400 167,347 0.01SUN PHARMACEUTICAL

INDUSTRIES LTD 2,926 189,157 0.01TATA MOTORS LTD 2,657 143,738 0.01TORRENT PHARMACEUTICALS

LTD 1,594 255,765 0.02UNION BANK OF INDIA LTD 14,985 289,161 0.02

7,654,648 0.48

IndonesiaASTRA AGRO LESTARI TBK PT 17,000 146,733 0.01BANK CENTRAL ASIA TBK PT 29,600 324,458 0.02BANK MANDIRI (PERSERO) TBK PT 28,300 226,435 0.01CHAROEN POKPHAND INDONESIA

TBK PT 122,100 191,096 0.01GUDANG GARAM TBK PT 7,500 334,557 0.02

143



HoldingsMarket

value

% of net

asset value

HKD


PT BANK RAKYAT INDONESIA (PERSERO) TBK 49,200 426,106 0.03

TELEKOMUNIKASI INDONESIA (PERSERO) TBK PT 187,100 514,365 0.03

2,163,750 0.13

IrelandCRH PLC 1,096 299,842 0.02GLANBIA PLC 1,841 296,664 0.02KERRY GROUP PLC-A 200 140,609 0.01

737,115 0.05

ItalyASSICURAZIONI GENERALI SPA 3,322 468,938 0.03BANCA MEDIOLANUM SPA 2,521 171,550 0.01BUZZI UNICEM SPA 1,642 182,496 0.01ENEL SPA 5,810 258,081 0.02ENI SPA 1,694 208,554 0.01FIAT CHRYSLER AUTOMOBILES NV 1,413 132,714 0.01INTESA SANPAOLO SPA 7,930 212,636 0.01ITALGAS SPA 6,533 279,730 0.02PRYSMIAN SPA 1,399 348,464 0.02SALVATORE FERRAGAMO SPA 694 156,630 0.01STMICROELECTRONICS NV 2,940 390,649 0.03

2,810,442 0.18

JapanABC-MART INC 600 266,759 0.02AISIN SEIKI CO LTD 500 203,214 0.01ALFRESA HOLDINGS CORP 1,320 189,590 0.01AMADA HOLDINGS CO LTD 3,800 338,700 0.02ANA HOLDINGS INC 13,000 347,797 0.02ASAHI GROUP HOLDINGS LTD 1,450 461,106 0.03ASTELLAS PHARMA INC 4,398 437,698 0.03AZBIL CORP 1,000 307,826 0.02BRIDGESTONE CORP 1,511 497,379 0.03CANON INC 1,619 439,092 0.03

HoldingsMarket

value

% of net

asset value

HKD

CENTRAL JAPAN RAILWAY CO 407 510,634 0.03CHUBU ELECTRIC POWER CO INC 3,300 337,986 0.02CHUGAI PHARMACEUTICAL CO LTD 500 156,740 0.01CITIZEN HOLDINGS CO LTD 6,300 365,595 0.02COCA-COLA WEST CO LTD 1,400 329,525 0.02COLOPL INC 1,400 122,409 0.01CONCORDIA FINANCIAL GROUP

LTD 3,100 122,005 0.01COOKPAD INC 2,300 153,630 0.01CYBERAGENT INC 1,300 313,798 0.02DAI NIPPON PRINTING CO LTD 2,000 172,043 0.01DAICEL CORP 2,730 277,677 0.02DAI-ICHI LIFE INSURANCE CO LTD 3,269 441,563 0.03DAIICHI SANKYO CO LTD 1,800 306,370 0.02DAIICHIKOSHO CO LTD 400 150,131 0.01DAIKIN INDUSTRIES LTD 325 268,773 0.02DAIKYO INC 14,000 228,590 0.01DAITO TRUST CONSTRUCTION CO

LTD 300 395,261 0.02DAIWA HOUSE INDUSTRY CO LTD 1,500 408,090 0.03DENA CO LTD 1,600 274,251 0.02DENKA CO LTD 9,000 391,232 0.02DENSO CORP 1,160 435,053 0.03DISCO CORP 260 359,651 0.02EAST JAPAN RAILWAY CO 696 509,174 0.03EISAI CO LTD 320 133,880 0.01EXEDY CORP 700 170,948 0.01FANUC CORP 364 580,568 0.04FUJI HEAVY INDUSTRIES LTD 1,873 528,765 0.03FUJIFILM HOLDINGS CORP 600 171,888 0.01FUJITSU GENERAL LTD 900 147,968 0.01FUKUYAMA TRANSPORTING CO LTD 3,000 149,495 0.01GLORY LTD 600 155,857 0.01GREE INC 2,400 143,685 0.01GS YUASA CORP 4,000 147,304 0.01GUNGHO ONLINE ENTERTAINMENT

INC 5,800 122,169 0.01HAMAMATSU PHOTONICS KK 1,300 322,528 0.02HASEKO CORP 3,400 332,127 0.02HEIWA CORP 1,200 206,028 0.01HINO MOTORS LTD 2,473 227,415 0.01HIROSE ELECTRIC CO LTD 300 318,923 0.02

144



HoldingsMarket

value

% of net

asset value

HKD


HITACHI HIGH-TECHNOLOGIES CORP 500 143,840 0.01

HITACHI LTD 10,772 578,360 0.04HONDA MOTOR CO LTD 3,596 789,982 0.05HOYA CORP 1,501 660,551 0.04IIDA GROUP HOLDINGS CO LTD 2,200 293,124 0.02INPEX CORP 2,400 182,024 0.01ITOCHU CORP 3,400 415,879 0.03JAFCO CO LTD 700 261,245 0.02JAPAN AIRLINES CO LTD 1,100 277,418 0.02JAPAN AVIATION ELECTRONICS

INDUSTRY LTD 1,000 123,130 0.01JAPAN EXCHANGE GROUP INC 2,362 330,736 0.02JAPAN PETROLEUM EXPLORATION

CO LTD 1,600 258,870 0.02JAPAN TOBACCO INC 1,917 519,506 0.03JTEKT CORP 2,700 300,581 0.02JX HOLDINGS INC 7,450 258,135 0.02KAKAKU.COM INC 2,000 220,108 0.01KAKEN PHARMACEUTICAL CO LTD 500 207,809 0.01KAMIGUMI CO LTD 2,000 167,095 0.01KANEKA CORP 4,000 250,502 0.02KANSAI ELECTRIC POWER CO INC 1,700 177,959 0.01KAO CORP 1,132 537,211 0.03KDDI CORP 4,054 836,726 0.05KEIYO BANK LTD 5,300 174,948 0.01KEYENCE CORP 218 786,165 0.05KIRIN HOLDINGS CO LTD 1,100 188,975 0.01KISSEI PHARMACEUTICAL CO LTD 1,400 282,521 0.02KOEI TECMO HOLDINGS CO LTD 1,800 290,211 0.02KOMATSU LTD 1,141 239,086 0.01KOMERI CO LTD 1,300 296,799 0.02KONAMI HOLDINGS CORP 1,100 447,072 0.03K’S HOLDINGS CORP 2,100 328,932 0.02KUBOTA CORP 2,956 401,060 0.03KURARAY CO LTD 2,800 425,513 0.03KURITA WATER INDUSTRIES LTD 800 177,556 0.01KYOCERA CORP 760 360,564 0.02KYORIN HOLDINGS INC 1,300 216,764 0.01KYUDENKO CORP 700 205,830 0.01

HoldingsMarket

value

% of net

asset value

HKD

KYUSHU FINANCIAL GROUP INC 5,900 289,003 0.02LAWSON INC 490 260,107 0.02LEOPALACE21 CORP 4,400 244,762 0.02MAEDA ROAD CONSTRUCTION CO

LTD 1,700 273,368 0.02MARUBENI CORP 4,200 217,101 0.01MARUICHI STEEL TUBE LTD 1,000 240,677 0.02MAZDA MOTOR CORP 3,300 388,253 0.02MEBUKI FINANCIAL GROUP INC 10,100 303,408 0.02MEIJI HOLDINGS CO LTD 360 223,670 0.01MIRACA HOLDINGS INC 200 71,249 0.00MITSUBISHI CORP 1,800 304,907 0.02MITSUBISHI ELECTRIC CORP 4,873 589,164 0.04MITSUBISHI ESTATE CO LTD 1,900 269,402 0.02MITSUBISHI SHOKUHIN CO LTD 900 202,932 0.01MITSUBISHI UFJ FINANCIAL GROUP


SHIPBUILDING CO LTD 12,000 130,623 0.01MITSUI FUDOSAN CO LTD 1,273 228,054 0.01MIZUHO FINANCIAL GROUP INC 51,366 713,073 0.04MOCHIDA PHARMACEUTICAL CO

LTD 450 244,600 0.02MS&AD INSURANCE GROUP

HOLDINGS INC 1,900 520,003 0.03MURATA MANUFACTURING CO LTD 235 285,370 0.02NEXON CO LTD 2,300 373,102 0.02NHK SPRING CO LTD 2,300 193,948 0.01NIHON KOHDEN CORP 1,400 261,146 0.02NINTENDO CO LTD 150 397,381 0.02NIPPO CORP 1,600 253,668 0.02NIPPON ELECTRIC GLASS CO LTD 400 110,549 0.01NIPPON KAYAKU CO LTD 1,900 207,759 0.01NIPPON PAPER INDUSTRIES CO

LTD 1,800 279,779 0.02NIPPON SHOKUBAI CO LTD 600 306,624 0.02NIPPON TELEGRAPH AND

TELEPHONE CORP 1,538 585,952 0.04NIPRO CORP 2,500 264,709 0.02NISHI-NIPPON RAILROAD CO LTD 1,000 34,352 0.00NISSAN MOTOR CO LTD 4,562 353,413 0.02NISSHIN STEEL CO LTD 1,500 143,346 0.01NITORI HOLDINGS CO LTD 200 219,966 0.01

145



HoldingsMarket

value

% of net

asset value

HKD


NITTO DENKO CORP 400 278,718 0.02NOMURA HOLDINGS INC 8,400 389,968 0.02NORTH PACIFIC BANK LTD 11,750 307,296 0.02NTT DOCOMO INC 2,771 501,998 0.03OBIC BUSINESS CONSULTANTS CO

LTD 400 158,331 0.01OLYMPUS CORP 1,300 368,472 0.02OMRON CORP 500 194,732 0.01ORACLE CORP JAPAN 640 335,208 0.02ORIENTAL LAND CO LTD 680 384,229 0.02ORIX CORP 4,900 606,629 0.04OSAKA GAS CO LTD 11,400 355,756 0.02OTSUKA HOLDINGS CO LTD 973 334,246 0.02PANASONIC CORP 2,635 283,287 0.02RESONA HOLDINGS INC 10,600 425,870 0.03ROHM CO LTD 900 543,908 0.03ROHTO PHARMACEUTICAL CO LTD 2,000 315,389 0.02SANKYO CO LTD 800 204,699 0.01SAWAI PHARMACEUTICAL CO LTD 580 254,997 0.02SCREEN HOLDINGS CO LTD 600 313,834 0.02SECOM CO LTD 460 269,121 0.02SEINO HOLDINGS CO LTD 3,300 346,617 0.02SEKISUI HOUSE LTD 1,550 209,422 0.01SEVEN & I HOLDINGS CO LTD 1,481 465,311 0.03SHIGA BANK LTD 5,000 206,749 0.01SHIMACHU CO LTD 1,500 292,947 0.02SHIMAMURA CO LTD 260 252,141 0.02SHIMANO INC 140 160,112 0.01SHIN ETSU CHEMICAL CO LTD 624 445,915 0.03SHIONOGI & CO LTD 500 208,374 0.01SKYLARK CO LTD 1,900 223,741 0.01SMC CORP 160 397,070 0.02SOFTBANK CORP 1,875 1,187,214 0.07SONY CORP 2,026 650,148 0.04SONY FINANCIAL HOLDINGS INC 1,400 189,106 0.01SQUARE ENIX HOLDINGS CO LTD 1,100 281,072 0.02START TODAY CO LTD 1,700 374,303 0.02SUGI HOLDINGS CO LTD 700 278,563 0.02SUMITOMO CORP 2,800 295,188 0.02SUMITOMO ELECTRIC INDUSTRIES

LTD 2,100 265,327 0.02

HoldingsMarket

value

% of net

asset value

HKD

SUMITOMO FORESTRY CO LTD 2,600 310,582 0.02SUMITOMO HEAVY INDUSTRIES

LTD 6,000 341,824 0.02SUMITOMO MITSUI FINANCIAL

GROUP INC 2,736 811,269 0.05SUMITOMO OSAKA CEMENT CO

LTD 8,000 292,346 0.02SUMITOMO REALTY &

DEVELOPMENT CO LTD 612 144,612 0.01SUMITOMO RUBBER INDUSTRIES

LTD 2,400 325,030 0.02SURUGA BANK LTD 1,016 191,169 0.01SUZUKEN CO LTD 1,100 286,515 0.02T&D HOLDINGS INC 3,850 444,117 0.03TADANO LTD 3,500 339,174 0.02TAIYO YUDEN CO LTD 1,100 144,463 0.01TAKEDA PHARMACEUTICAL CO LTD 1,166 480,654 0.03TDK CORP 800 449,546 0.03TERUMO CORP 700 206,572 0.01THE 77 BANK LTD 9,100 365,991 0.02THE AWA BANK LTD 5,100 261,351 0.02TODA CORP 1,000 53,649 0.00TOHO GAS CO LTD 1,500 79,201 0.00TOKIO MARINE HOLDINGS INC 1,893 621,517 0.04TOKYO ELECTRIC POWER CO INC 4,150 137,281 0.01TOKYO ELECTRON LTD 370 407,330 0.03TOKYO GAS CO LTD 9,418 389,498 0.02TOKYU CORP 1,500 172,078 0.01TOPPAN FORMS CO LTD 1,900 154,040 0.01TOSOH CORP 1,000 92,949 0.01TOYO SUISAN KAISHA LTD 900 255,096 0.02TOYOBO CO LTD 3,000 44,530 0.00TOYOTA BOSHOKU CORP 1,600 261,019 0.02TOYOTA MOTOR CORP 5,703 2,512,968 0.16UBE INDUSTRIES LTD 20,000 424,100 0.03WEST JAPAN RAILWAY CO 750 419,753 0.03YAMAGUCHI FINANCIAL GROUP

INC 2,000 183,635 0.01YAMATO KOGYO CO LTD 1,500 328,147 0.02ZENKOKU HOSHO CO LTD 800 268,031 0.02ZEON CORP 3,400 332,367 0.02

64,421,066 4.04

146



HoldingsMarket

value

% of net

asset value

HKD


MalaysiaALLIANCE FINANCIAL GROUP BHD 20,200 144,813 0.01AMMB HOLDINGS BHD 4,700 42,439 0.00DIGI.COM BHD 12,100 105,947 0.01MAXIS BHD 20,800 214,375 0.01MISC BHD 21,800 293,876 0.02PETRONAS CHEMICALS GROUP

BHD 8,200 103,959 0.01PUBLIC BANK BHD 7,400 273,756 0.02TENAGA NASIONAL BHD 14,942 384,864 0.02WESTPORTS HOLDINGS BHD 36,400 247,670 0.01

1,811,699 0.11

NetherlandsAEGON NV 6,228 271,774 0.02AKZO NOBEL NV 332 233,624 0.01ASML HOLDING NV 226 266,686 0.02GEMALTO NV 684 271,209 0.02HEINEKEN NV 577 468,457 0.03ING GROEP NV 4,427 644,692 0.04KONINKLIJKE AHOLD DELHAIZE NV 2,031 323,447 0.02KONINKLIJKE DSM NV 280 160,834 0.01KONINKLIJKE VOPAK NV 419 155,351 0.01ROYAL BOSKALIS WESTMINSTER

NV 1,038 288,893 0.02UNILEVER NV 1,584 719,077 0.04

3,804,044 0.24


CORP LTD 2,265 145,496 0.01

284,773 0.02

NorwayDNB ASA 2,951 450,956 0.03MARINE HARVEST ASA 1,742 252,256 0.02STATOIL ASA 2,830 412,325 0.02

HoldingsMarket

value

% of net

asset value

HKD

YARA INTERNATIONAL ASA 1,193 369,450 0.02

1,484,987 0.09

PhilippinesGT CAPITAL HOLDINGS INC 1,475 276,927 0.02MEGAWORLD CORP 219,000 162,703 0.01METROPOLITAN BANK AND TRUST

CO 15,930 214,510 0.01

654,140 0.04


SA 955 146,696 0.01BANK MILLENNIUM SA 12,829 213,996 0.01BANK ZACHODNI WBK SA 324 266,406 0.02POLSKI KONCERN NAFTOWY

ORLEN SA 424 97,558 0.01

724,656 0.05

PortugalEDP ENERGIAS DE PORTUGAL SA 13,629 376,494 0.02

RussiaGAZPROM PAO 26,190 394,739 0.02SBERBANK ROSSII PAO 16,225 346,555 0.02AK ALROSA PAO 11,900 129,228 0.01SURGUTNEFTEGAZ OAO 37,700 130,284 0.01TRANSNEFT’ PAO 13 304,623 0.02MAGNITOGORSKIY


1,479,826 0.09

SingaporeCAPITALAND LTD 8,000 169,876 0.01COMFORTDELGRO CORP LTD 16,700 221,995 0.01DBS GROUP HOLDINGS LTD 3,722 463,071 0.03HONG KONG LAND HOLDINGS LTD 17,743 1,042,088 0.07JARDINE MATHESON HOLDINGS

LTD 2,407 1,199,566 0.08

147



HoldingsMarket

value

% of net

asset value

HKD


JARDINE STRATEGIC HOLDINGS LTD 2,637 840,291 0.05

KEPPEL CORP LTD 4,500 165,992 0.01OVERSEA-CHINESE BANKING CORP

LTD 9,786 639,734 0.04SIA ENGINEERING CO LTD 8,900 186,426 0.01SINGAPORE EXCHANGE LTD 7,800 339,786 0.02SINGAPORE

TELECOMMUNICATIONS LTD 14,847 339,191 0.02UNITED OVERSEAS BANK LTD 3,104 428,516 0.03VENTURE CORP LTD 5,500 416,835 0.03YANGZIJIANG SHIPBUILDING


6,813,847 0.43

South KoreaAMOREPACIFIC CORP 3 3,717 0.00DGB FINANCIAL GROUP INC 4,480 373,642 0.02DONGBU INSURANCE CO LTD 619 346,045 0.02HANA FINANCIAL GROUP INC 892 317,501 0.02HANKOOK TIRE CO LTD 749 326,717 0.02HANSSEM CO LTD 116 142,489 0.01HANWHA CHEMICAL CORP 830 195,217 0.01HYOSUNG CORP 372 434,878 0.03HYUNDAI DEVELOPMENT CO

ENGINEERING & CONSTRUCTION 985 293,201 0.02HYUNDAI ENGINEERING &

CONSTRUCTION CO LTD 730 230,797 0.01HYUNDAI GLOVIS CO LTD 170 186,277 0.01HYUNDAI HEAVY INDUSTRIES CO

LTD 285 347,096 0.02HYUNDAI MARINE & FIRE

INSURANCE CO LTD 557 176,490 0.01HYUNDAI MOBIS 263 451,545 0.03HYUNDAI MOTOR CO LTD 270 273,238 0.02INDUSTRIAL BANK OF KOREA 2,797 301,600 0.02KANGWON LAND INC 1,129 291,545 0.02KB FINANCIAL GROUP INC 1,405 582,469 0.04KIA MOTORS CORP 1,508 385,205 0.02

HoldingsMarket

value

% of net

asset value

HKD

KOREAN AIR LINES CO LTD 569 141,375 0.01KT&G CORP 533 424,074 0.03LG DISPLAY CO LTD 1,460 322,505 0.02LG ELECTRONICS INC 260 121,760 0.01LG ELECTRONICS INC 1,236 295,453 0.02LG HAUSYS LTD 203 155,847 0.01LOTTE CHEMICAL CORP 134 345,097 0.02LS CORP 325 190,988 0.01NAVER CORP 72 403,513 0.02NHN ENTERTAINMENT CORP 573 306,733 0.02NONGSHIM CO LTD 65 144,942 0.01ORION HOLDINGS CORP 712 137,151 0.01S1 CORP 391 251,604 0.02SAMSUNG ELECTRONICS CO LTD 234 3,935,889 0.25SAMSUNG ELECTRONICS CO LTD 41 552,556 0.03SK HOLDINGS CO LTD 100 189,487 0.01SK HYNIX INC 1,269 584,542 0.04SK INNOVATION CO LTD 174 214,340 0.01SKC CO LTD 1,293 327,127 0.02

14,704,652 0.92

SpainACCIONA SA 444 295,389 0.02AMADEUS IT HOLDING SA 645 309,198 0.02BANCO BILBAO VIZCAYA

ARGENTARIA SA 8,489 598,064 0.04BANCO SANTANDER SA 18,705 994,507 0.06CORPORACION FINANCIERA ALBA

SA 625 304,733 0.02GRIFOLS SA 1,176 193,023 0.01INDUSTRIA DE DISENO TEXTIL SA 682 210,944 0.01MEDIASET ESPANA

COMUNICACION SA 1,426 139,843 0.01REPSOL SA 1,802 234,959 0.02TELEFONICA SA 4,345 382,491 0.02ZARDOYA OTIS SA 3,735 305,062 0.02

3,968,213 0.25

SwedenAB SKF 2,338 362,537 0.02ALFA LAVAL AB 2,338 407,233 0.03ATLAS COPCO AB A SHARES 1,593 450,041 0.03

148



HoldingsMarket

value

% of net

asset value

HKD


ELECTROLUX AB 1,641 437,617 0.03ESSITY AB (PUBL) 883 199,583 0.01GETINGE AB 1,667 225,655 0.01HENNES & MAURITZ AB B SHARES 1,842 374,372 0.02HUSQVARNA AB 3,508 278,246 0.02ICA GRUPPEN AB 987 308,381 0.02INDUSTRIVARDEN AB 800 161,590 0.01INVESTMENT LATOUR AB 1,876 186,385 0.01INVESTOR AB B SHARES 1,176 434,878 0.03NORDEA BANK AB 4,159 409,190 0.03SKANDINAVISKA ENSKILDA

BANKEN-A 3,932 388,375 0.02SKANSKA AB 1,831 324,581 0.02SVENSKA HANDELSBANKEN A

SHARES 393 45,610 0.00SWEDBANK A SHARES 1,522 309,775 0.02SWEDISH MATCH AB 1,108 303,822 0.02TELEFONAKTIEBOLAGET LM

ERICSSON 3,355 169,903 0.01TELIASONERA AB 4,100 150,230 0.01TRELLEBORG AB 910 167,114 0.01VOLVO AB 2,281 302,163 0.02

6,397,281 0.40

SwitzerlandABB LTD 1,397 256,698 0.02ADECCO SA 189 112,906 0.01ARYZTA AG 841 211,581 0.01BALOISE HOLDING AG 307 386,179 0.02COMPAGNIE FINANCIERE

RICHEMONT SA 540 359,088 0.02CREDIT SUISSE GROUP AG 1,592 191,755 0.01EMS CHEMIE HOLDING AG 71 386,788 0.02FLUGHAFEN ZUERICH AG 150 299,544 0.02GEBERIT AG 117 440,580 0.03GIVAUDAN SA 13 202,569 0.01IDORSIA LTD 261 38,240 0.00KUEHNE UND NAGEL

INTERNATIONAL AG 288 392,585 0.03LONZA GROUP AG 310 577,151 0.04

HoldingsMarket

value

% of net

asset value

HKD

NESTLE SA 3,420 2,261,766 0.14NOVARTIS LTD 2,689 1,793,567 0.11ROCHE HOLDING AG 910 1,803,972 0.11SIKA AG 9 485,559 0.03STRAUMANN HOLDING AG 92 406,984 0.03SULZER AG 330 289,830 0.02SWISS RE AG 576 434,781 0.03SWISSCOM AG 78 298,456 0.02UBS GROUP AG 4,243 577,695 0.04ZURICH INSURANCE GROUP AG 280 668,167 0.04

12,876,441 0.81



CO LTD 14,000 148,286 0.01CHINA LIFE INSURANCE CO LTD 18,000 148,751 0.01CHINA MOTOR CORP 30,000 202,525 0.01CTBC FINANCIAL HOLDING CO LTD 84,133 422,168 0.03DELTA ELECTRONICS INC 6,490 269,424 0.02E.SUN FINANCIAL HOLDING CO LTD 70,708 352,060 0.02ETERNAL MATERIALS CO LTD 23,840 209,654 0.01FAR EASTONE

TELECOMMUNICATIONS CO LTD 14,000 264,343 0.02FENG HSIN STEEL CO LTD 9,602 128,401 0.01FORMOSA CHEMICALS & FIBRE


LTD 30,358 922,631 0.06HUA NAN FINANCIAL HOLDINGS

CO LTD 76,084 347,340 0.02LARGAN PRECISION CO LTD 342 487,411 0.03NAN YA PLASTICS CORP 16,000 314,522 0.02NOVATEK MICROELECTRONICS



MANUFACTURING CO 54,392 3,017,724 0.19TRANSCEND INFORMATION INC 7,000 162,046 0.01

149



HoldingsMarket

value

% of net

asset value

HKD


UNIMICRON TECHNOLOGY CORP 66,000 335,447 0.02UNITED MICROELECTRONICS

CORP 50,000 179,764 0.01VANGUARD INTERNATIONAL


9,196,943 0.58

ThailandBANGKOK BANK PCL (FOREIG REG) 8,100 350,754 0.02BANGKOK LIFE ASSURANCE PCL 26,400 258,692 0.02CP ALL PCL 14,787 210,838 0.01DELTA ELECTRONICS THAILAND

PCL 21,773 453,532 0.03INDORAMA VENTURES PCL

(FOREIGN REG) 36,693 320,798 0.02KASIKORNBANK PCL (FOREIGN

REG) 7,343 341,240 0.02PTT PCL (FOREIGN REG) 4,940 449,863 0.03

2,385,717 0.15

TurkeyARCELIK AS 2,968 171,043 0.01FORD OTOMOTIV SANAYI AS 3,455 344,609 0.02TURKIYE SINAI KALKINMA BANKASI

AS 45,369 153,857 0.01TURKIYE VAKIFLAR BANKASI TAO 22,469 350,609 0.02

1,020,118 0.06

United Kingdom3I GROUP PLC 4,485 432,243 0.03ADMIRAL GROUP PLC 1,502 319,824 0.02AGGREKO PLC 1,661 145,115 0.01ANGLO AMERICAN PLC 3,554 458,337 0.03ASHMORE GROUP PLC 3,800 140,856 0.01ASHTEAD GROUP PLC 2,242 376,051 0.02ASSOCIATED BRITISH FOODS PLC 544 166,023 0.01ASTRAZENECA PLC 1,479 695,792 0.04

HoldingsMarket

value

% of net

asset value

HKD

AVIVA PLC 6,523 362,015 0.02BAE SYSTEMS PLC 4,185 259,192 0.02BARCLAYS PLC 11,858 247,855 0.02BARRATT DEVELOPMENTS PLC 1,554 98,485 0.01BELLWAY PLC 1,128 370,501 0.02BERKELEY GROUP HOLDINGS PLC 657 236,498 0.01BHP BILLITON PLC 2,942 417,428 0.03BOOKER GROUP PLC 16,343 323,931 0.02BP PLC 25,022 1,148,556 0.07BRITISH AMERICAN TOBACCO PLC 2,280 1,106,543 0.07BT GROUP PLC 12,039 388,614 0.02CENTRICA PLC 15,144 309,522 0.02COMPASS GROUP PLC 2,333 388,432 0.02DIAGEO PLC 2,962 746,750 0.05DIRECT LINE INSURANCE GROUP

PLC 7,792 300,543 0.02FERGUSON PLC 385 179,457 0.01GLAXOSMITHKLINE PLC 6,443 1,004,726 0.06GLENCORE PLC 14,703 505,868 0.03HALMA PLC 2,974 336,534 0.02HIKMA PHARMACEUTICALS PLC 878 127,650 0.01HOWDEN JOINERY GROUP PLC 6,425 281,093 0.02HSBC HOLDINGS PLC 22,780 1,775,578 0.11IMI PLC 1,630 201,903 0.01IMPERIAL TOBACCO GROUP PLC 1,142 366,869 0.02INCHCAPE PLC 3,544 293,021 0.02INTERCONTINENTAL HOTELS

GROUP PLC 932 411,779 0.03INTERNATIONAL CONSOLIDATED

AIRLINES GROUP SA 4,150 246,982 0.02JOHNSON MATTHEY PLC 1,039 300,616 0.02KINGFISHER PLC 8,287 251,203 0.02LEGAL & GENERAL GROUP PLC 7,823 216,195 0.01LLOYDS BANKING GROUP PLC 76,904 519,291 0.03LONDON STOCK EXCHANGE

GROUP PLC 412 158,996 0.01MEGGITT PLC 6,211 321,677 0.02NATIONAL GRID PLC 4,884 471,100 0.03OLD MUTUAL PLC 19,200 388,467 0.02PERSIMMON PLC 1,336 344,454 0.02POLYMETAL INTERNATIONAL PLC 2,851 270,950 0.02PRUDENTIAL PLC 2,441 464,472 0.03RECKITT BENCKISER GROUP PLC 712 540,230 0.03

150



HoldingsMarket

value

% of net

asset value

HKD


RELX PLC 1,552 263,993 0.02RIGHTMOVE PLC 608 263,433 0.02RIO TINTO PLC 2,433 881,810 0.06ROLLS-ROYCE HOLDINGS PLC 2,051 187,529 0.01ROYAL DUTCH SHELL PLC A

SHARES 4,910 1,078,357 0.07ROYAL DUTCH SHELL PLC B

SHARES 4,476 991,796 0.06ROYAL MAIL PLC 4,563 189,388 0.01SAGE GROUP PLC 4,428 307,297 0.02SHIRE PLC 1,098 481,730 0.03SKY PLC 1,707 169,610 0.01SMITH & NEPHEW PLC 2,721 369,822 0.02SSE PLC 1,673 237,547 0.02STANDARD CHARTERED PLC 1,927 167,997 0.01TAYLOR WIMPEY PLC 16,758 328,533 0.02TRAVIS PERKINS PLC 2,031 317,447 0.02UNILEVER PLC 1,343 597,586 0.04VODAFONE GROUP PLC 28,079 641,837 0.04WILLIAM HILL PLC 5,862 151,197 0.01WPP PLC 2,431 386,976 0.02

27,432,102 1.72

United States of America3M CO 199 312,662 0.02ABBOTT LABORATORIES 1,304 500,871 0.03ABBVIE INC 1,011 552,014 0.03ACCENTURE PLC CLASS A 362 364,210 0.02ACTIVISION BLIZZARD INC 380 183,354 0.01AETNA INC 401 483,279 0.03AFFILIATED MANAGERS GROUP

INC 152 220,607 0.01AFLAC INC 657 409,219 0.03AIR PRODUCTS AND CHEMICALS

INC 130 144,328 0.01AKAMAI TECHNOLOGIES INC 374 137,696 0.01ALASKA AIR GROUP INC 217 144,448 0.01ALLEGHANY CORP 64 306,578 0.02ALLERGAN PLC 75 147,805 0.01

HoldingsMarket

value

% of net

asset value

HKD

ALLSTATE CORP 391 277,893 0.02ALLY FINANCIAL INC 2,031 359,125 0.02ALPHABET INC 162 1,177,310 0.07ALPHABET INC 159 1,174,135 0.07ALTRIA GROUP INC 1,448 734,752 0.05AMAZON.COM INC 172 1,326,930 0.08AMDOCS LTD 601 315,289 0.02AMEREN CORP 739 323,792 0.02AMERICAN AIRLINES GROUP INC 1,007 396,702 0.02AMERICAN ELECTRIC POWER CO

INC 290 159,769 0.01AMERICAN EXPRESS CO 733 487,928 0.03AMERICAN INTERNATIONAL

GROUP INC 422 215,716 0.01AMGEN INC 478 651,490 0.04ANTHEM INC 301 437,753 0.03APPLE INC 2,623 3,046,886 0.19APPLIED MATERIALS INC 660 228,405 0.01ARROW ELECTRONICS INC 405 257,129 0.02ASHLAND GLOBAL HOLDINGS INC 82 41,609 0.00ASSURANT INC 208 171,012 0.01AT&T INC 2,534 771,846 0.05AUTOLIV INC 344 291,211 0.02AVANGRID INC 714 253,282 0.02AVNET INC 559 167,562 0.01AXIS CAPITAL HOLDINGS LTD 286 144,253 0.01BANK OF AMERICA CORP 3,216 605,833 0.04BAXTER INTERNATIONAL INC 829 391,585 0.02BB&T CORP 519 191,810 0.01BECTON DICKINSON & CO 127 199,766 0.01BED BATH & BEYOND INC 722 168,604 0.01BERKSHIRE HATHAWAY INC

CLASS B 1,033 1,411,638 0.09BIOGEN IDEC INC 211 477,227 0.03BIOVERATIV INC 67 32,428 0.00BLACKROCK INC 68 226,526 0.01BOEING CO 280 530,222 0.03BRISTOL MYERS SQUIBB CO 437 194,202 0.01BROADCOM LTD 169 325,570 0.02C.R. BARD INC 58 145,228 0.01CA INC 1,112 269,579 0.02CAMPBELL SOUP CO 260 107,279 0.01CAPITAL ONE FINANCIAL CORP 314 211,347 0.01

151



HoldingsMarket

value

% of net

asset value

HKD


CARS.COM INC 134 25,431 0.00CELGENE CORP 426 450,526 0.03CENTERPOINT ENERGY INC 1,351 297,447 0.02CENTURYLINK INC 1,414 256,984 0.02CHECK POINT SOFTWARE

TECHNOLOGIES LTD 405 334,594 0.02CHEVRON CORP 915 780,303 0.05CHUBB LTD 278 317,997 0.02CINCINNATI FINANCIAL CORP 250 148,705 0.01CISCO SYSTEMS INC 1,967 483,153 0.03CITIGROUP INC 1,114 595,550 0.04CNA FINANCIAL CORP 771 312,823 0.02COCA COLA CO 1,393 498,718 0.03COLGATE PALMOLIVE CO 521 293,788 0.02COMCAST CORP CLASS A 1,883 594,878 0.04CORE LABORATORIES NV 261 204,925 0.01CORNING INC 602 137,008 0.01COSTCO WHOLESALE CORP 111 137,417 0.01CUMMINS INC 263 344,878 0.02CVS HEALTH CORP 234 146,078 0.01D.R. HORTON INC 666 185,644 0.01DARDEN RESTAURANTS INC 504 330,178 0.02DELTA AIR LINES INC 590 227,450 0.01DENTSPLY SIRONA INC 638 309,088 0.02DISCOVER FINANCIAL SERVICES 240 114,228 0.01DISCOVERY COMMUNICATIONS

INC CLASS C 94 16,981 0.00DOVER CORP 536 351,644 0.02DOW CHEMICAL CO 852 427,469 0.03DR PEPPER SNAPPLE GROUP INC 438 311,844 0.02DXC TECHNOLOGY CO 200 122,432 0.01E.I. DU PONT DE NEMOURS AND

CO 350 224,725 0.01EASTMAN CHEMICAL CO 454 294,869 0.02EBAY INC 1,469 409,934 0.03EMERSON ELECTRIC CO 353 164,344 0.01EOG RESOURCES INC 237 176,105 0.01EVEREST RE GROUP LTD 86 176,240 0.01EXELON CORP 1,389 415,924 0.03EXPEDITORS INTERNATIONAL OF

WASHINGTON INC 543 249,705 0.02

HoldingsMarket

value

% of net

asset value

HKD

EXPRESS SCRIPTS HOLDINGS CO 380 185,907 0.01EXXON MOBIL CORP 2,269 1,418,407 0.09F5 NETWORKS INC 270 254,630 0.02FACEBOOK INC CLASS A 1,053 1,391,927 0.09FASTENAL CO 739 247,952 0.02FIDELITY NATIONAL FINANCIAL INC 1,016 387,710 0.02FIRSTENERGY CORP 931 232,026 0.01FLEX LTD 2,743 342,558 0.02FLUOR CORP 512 173,668 0.01FOOT LOCKER INC 516 190,177 0.01FORD MOTOR CO 4,134 362,262 0.02FORTIVE CORP 679 343,322 0.02FRANKLIN RESOURCES INC 645 225,581 0.01FRONTIER COMMUNICATIONS

CORP 291 34,796 0.00GAP INC 1,743 324,400 0.02GARMIN LTD 363 142,293 0.01GENERAL ELECTRIC CO 3,481 696,262 0.04GENERAL MILLS INC 269 116,938 0.01GENERAL MOTORS CO 1,521 427,415 0.03GENTEX CORP 1,683 223,719 0.01GENUINE PARTS CO 425 281,909 0.02GILEAD SCIENCES INC 949 563,966 0.04GOODYEAR TIRE & RUBBER CO 1,108 272,676 0.02H&R BLOCK INC 907 216,056 0.01HARTFORD FINANCIAL SERVICES

GROUP INC 1,002 430,417 0.03HCA HOLDINGS INC 156 97,885 0.01HELMERICH AND PAYNE INC 538 212,698 0.01HERBALIFE LTD 124 64,412 0.00HEWLETT PACKARD ENTERPRISE

CO 2,173 297,170 0.02HOLOGIC INC 1,016 350,811 0.02HONEYWELL INTERNATIONAL INC 424 450,762 0.03ILLINOIS TOOL WORKS INC 298 327,492 0.02INGERSOLL-RAND PLC 506 347,296 0.02INGREDION INC 278 267,755 0.02INTEL CORP 3,419 947,152 0.06INTERNATIONAL BUSINESS

MACHINES CORP 396 447,438 0.03INTERNATIONAL FLAVORS &


TECHNOLOGY PLC 838 124,615 0.01

152



HoldingsMarket

value

% of net

asset value

HKD


INTERPUBLIC GROUP OF COS INC 1,457 245,909 0.02INTUITIVE SURGICAL INC 55 403,037 0.03J B HUNT TRANSPORT SERVICES

INC 397 281,258 0.02JABIL CIRCUIT INC 1,094 260,601 0.02JACOBS ENGINEERING GROUP INC 629 258,991 0.02JOHNSON & JOHNSON 1,429 1,481,249 0.09JPMORGAN CHASE & CO 1,608 1,152,891 0.07JUNIPER NETWORKS INC 1,042 227,462 0.01KEYSIGHT TECHNOLOGIES INC 764 248,166 0.02KIMBERLY CLARK CORP 150 144,285 0.01KINDER MORGAN INC 1,047 167,061 0.01KLA-TENCOR CORP 185 133,839 0.01KLA-TENCOR CORP 32 23,151 0.00KRAFT HEINZ CO 609 415,993 0.03L BRANDS INC 405 146,737 0.01LAM RESEARCH CORP 361 449,592 0.03LEGGETT & PLATT INC 694 261,147 0.02LEVEL 3 COMMUNICATIONS INC 649 297,436 0.02LIBERTY GLOBAL PLC SERIES C 198 50,676 0.00LKQ CORP 556 150,075 0.01LOWE’S COMPANIES INC 275 166,239 0.01LYONDELLBASELL INDUSTRIES NV 454 319,442 0.02MALLINCKRODT PLC 380 135,928 0.01MARATHON PETROLEUM CORP 858 375,195 0.02MARRIOTT INTERNATIONAL INC

CLASS A 441 358,859 0.02MARVELL TECHNOLOGY GROUP

LTD 3,048 370,411 0.02MASTERCARD INC CLASS A 280 279,478 0.02MAXIM INTEGRATED PRODUCTS

INC 954 338,568 0.02MCDONALD’S CORP 498 603,410 0.04MCKESSON CORP 150 189,634 0.01MDU RESOURCES GROUP INC 1,284 264,244 0.02MEDTRONIC PLC 708 464,319 0.03MERCK & CO INC 1,040 518,869 0.03METLIFE INC 455 195,449 0.01MICHAEL KORS HOLDINGS LTD 803 228,535 0.01MICRON TECHNOLOGY INC 566 124,306 0.01MICROSOFT CORP 3,487 1,979,911 0.12

HoldingsMarket

value

% of net

asset value

HKD

MONSANTO CO 260 237,219 0.01MOODY’S CORP 326 335,144 0.02MOSAIC CO 803 151,395 0.01NEWS CORP 1,500 172,214 0.01NORTHROP GRUMMAN CORP 95 195,233 0.01NVR INC 20 407,759 0.03NXP SEMICONDUCTORS NV 191 164,584 0.01OCCIDENTAL PETROLEUM CORP 451 218,141 0.01OLD REPUBLIC INTERNATIONAL

CORP 1,038 159,058 0.01ORACLE CORP 1,515 590,791 0.04PAYCHEX INC 702 317,176 0.02PEPSICO INC 695 632,965 0.04PFIZER INC 2,037 527,552 0.03PG&E CORP 273 144,327 0.01PHILIP MORRIS INTERNATIONAL

INC 712 649,004 0.04PHILLIPS 66 586 383,303 0.02PINNACLE WEST CAPITAL CORP 379 256,725 0.02PNC FINANCIAL SERVICES GROUP

INC 266 267,582 0.02PPL CORP 673 201,471 0.01PRAXAIR INC 158 160,618 0.01PRICELINE GROUP INC 22 348,544 0.02PRINCIPAL FINANCIAL GROUP INC 280 145,972 0.01PROCTER & GAMBLE CO 1,272 902,252 0.06PRUDENTIAL FINANCIAL INC 278 245,847 0.02PUBLIC SERVICE ENTERPRISE

GROUP 836 293,622 0.02PULTEGROUP INC 1,755 334,720 0.02QIAGEN NV 1,482 383,808 0.02QORVO INC 658 352,335 0.02QUALCOMM INC 473 196,495 0.01RAYTHEON CO 160 214,648 0.01RENAISSANCERE HOLDINGS LTD 89 102,118 0.01ROBERT HALF INTERNATIONAL INC 394 139,243 0.01ROCKWELL COLLINS INC 356 296,197 0.02ROSS STORES INC 705 304,601 0.02SAFEWAY PDC LLC CVR (Casa Ley) 220 – 0.00SAFEWAY PDC LLC CVR (PDC) 220 – 0.00SANTANDER CONSUMER USA

HOLDINGS INC 3,140 314,151 0.02SCANA CORP 526 264,441 0.02

153



HoldingsMarket

value

% of net

asset value

HKD


SCHLUMBERGER LTD 562 301,106 0.02SKYWORKS SOLUTIONS INC 524 429,182 0.03SNAP-ON INC 222 267,360 0.02SOUTHERN CO 966 361,613 0.02SOUTHWEST AIRLINES CO 469 203,331 0.01STANLEY BLACK & DECKER INC 324 356,014 0.02STAPLES INC 2,449 194,140 0.01STARBUCKS CORP 1,007 424,543 0.03STRYKER CORP 391 449,209 0.03SUNTRUST BANKS INC 825 369,141 0.02SYMANTEC CORP 1,878 454,545 0.03SYNCHRONY FINANCIAL 1,542 365,151 0.02T. ROWE PRICE GROUP INC 553 357,269 0.02TE CONNECTIVITY LTD 638 400,573 0.02TECHNIPFMC PLC 507 113,011 0.01TEGNA INC 2,244 259,910 0.02TESORO CORP 363 282,176 0.02TEXAS INSTRUMENTS INC 826 524,997 0.03THE HOME DEPOT INC 494 577,189 0.04THE PROGRESSIVE CORP 1,172 431,404 0.03THE TRAVELERS COS INC 409 409,164 0.03THE WALT DISNEY CO 736 631,907 0.04THERMO FISHER SCIENTIFIC INC 240 329,020 0.02TIFFANY & CO 553 412,509 0.03TIME WARNER INC 469 375,160 0.02TJX COS INC 695 381,647 0.02TORCHMARK CORP 236 145,557 0.01TRANSOCEAN LTD 1,843 124,509 0.01TWENTY-FIRST CENTURY FOX INC

CLASS B 193 43,246 0.00TYSON FOODS INC CLASS A 317 156,868 0.01U.S. BANCORP 909 374,708 0.02UNION PACIFIC CORP 497 399,654 0.02UNITED CONTINENTAL HOLDINGS

INC 331 174,964 0.01UNITED PARCEL SERVICE INC

CLASS B 414 356,612 0.02UNITED RENTALS INC 466 432,959 0.03UNITEDHEALTH GROUP INC 404 605,218 0.04

HoldingsMarket

value

% of net

asset value

HKD

UNIVERSAL HEALTH SERVICES INC CLASS B 273 236,308 0.01

UNUM GROUP 380 148,779 0.01VALERO ENERGY CORP 745 401,306 0.03VARIAN MEDICAL SYSTEMS INC 322 244,244 0.02VERISIGN INC 427 337,395 0.02VERIZON COMMUNICATIONS INC 1,835 693,651 0.04VISA INC CLASS A 806 626,728 0.04VOYA FINANCIAL INC 1,016 311,374 0.02W W GRAINGER INC 82 106,786 0.01W. R. BERKLEY CORP 526 283,338 0.02WALGREENS BOOTS ALLIANCE INC 415 261,469 0.02WAL-MART STORES INC 768 479,796 0.03WATERS CORP 211 285,819 0.02WELLS FARGO & CO 2,413 1,016,547 0.06WESTERN UNION CO 1,570 242,173 0.02WYNDHAM WORLDWIDE CORP 518 422,245 0.03XEROX CORP 475 113,780 0.01XILINX INC 722 356,719 0.02YANDEX NV 832 188,313 0.01YUM BRANDS INC 287 169,189 0.01YUM CHINA HOLDINGS INC 903 252,411 0.02ZIMMER HOLDINGS INC 251 237,829 0.01

91,829,951 5.77

Equities (Total) 489,454,750 30.69

Debt Securities


ASB FINANCE LTD (LONDON BRANCH) 2.63% 14 DECEMBER 2021 1,000,000 1,004,900 0.06

AUSTRALIA (GOVERNMENT OF) 5.25% 15 MARCH 2019 1,277,000 8,417,443 0.53

AUSTRALIA, COMMONWEALTH OF (GOVERNMENT) 3.25% 21 APRIL 2025 934,000 6,126,715 0.38

AUSTRIA (REPUBLIC OF) 3.9% 15 JULY 2020 945,000 9,815,973 0.62

154



HoldingsMarket

value

% of net

asset value

HKD


AUSTRIA (REPUBLIC OF) 4.65% 15 JANUARY 2018 332,000 3,131,094 0.20

BELGIUM (KINGDOM OF) 4% 28 MARCH 2019 2,234,000 22,139,793 1.39

BELGIUM, KINGDOM OF (GOVERNMENT) 2.6% 22 JUNE 2024 552,000 5,888,447 0.37

BMW FINANCE NV 1.73% 30 JUNE 2020 1,000,000 995,300 0.06

BONOS Y OBLIG DEL ESTADO 5.15% 31 OCTOBER 2044 700,000 9,405,332 0.59


DAIMLER AG 2.29% 09 MAY 2022 1,000,000 1,001,700 0.06DENMARK (KINGDOM OF) 1.5% 15

NOVEMBER 2023 3,130,000 4,226,431 0.26EUROPEAN INVESTMENT BANK

2.15% 18 JANUARY 2027 139,600,000 11,997,164 0.75FRANCE (GOVERNMENT OF) 5.75%

25 OCTOBER 2032 971,500 14,636,295 0.92FRANCE (GOVERNMENT OF) OAT

4% 25 APRIL 2018 1,755,000 16,701,704 1.05FRANCE (GOVERNMENT OF) OAT

4.25% 25 OCTOBER 2023 5,104,000 59,057,356 3.70GERMANY (REPUBLIC OF) 5.5% 4

JANUARY 2031 23,000 340,044 0.02GERMANY, FEDERAL REPUBLIC OF

(GOVERNMENT) 3.25% 4 JULY 2042 120,000 1,589,403 0.10

GERMANY, FEDERAL REPUBLIC OF (GOVERNMENT) 4% 4 JANUARY 2018 1,320,000 12,399,942 0.78

GERMANY, FEDERAL REPUBLIC OF (GOVERNMENT) 4% 4 JANUARY 2037 240,000 3,364,200 0.21

GERMANY, FEDERAL REPUBLIC OF (GOVERNMENT) 4.25% 4 JULY 2018 1,050,000 10,111,783 0.63

HoldingsMarket

value

% of net

asset value

HKD

GERMANY, FEDERAL REPUBLIC OF (GOVERNMENT) 4.75% 4 JULY 2040 170,000 2,711,519 0.17

HONG KONG SPECIAL ADMINISTRATIVE REGION OF THE PEOPLE’S REPUBLIC OF CHINA 2.16% 9 DECEMBER 2019 1,350,000 1,391,911 0.09

ITALY (REPUBLIC OF) 4% 1 FEBRUARY 2037 1,819,000 19,699,270 1.23


ITALY (REPUBLIC OF) 5.5% 1 NOVEMBER 2022 1,222,000 13,851,005 0.87

ITALY, REPUBLIC OF (GOVERNMENT) 0.7% 01 MAY 2020 1,779,000 16,639,663 1.04

ITALY, REPUBLIC OF (GOVERNMENT) 4.75% 1 SEPTEMBER 2028 190,000 2,174,780 0.14

JAPAN (GOVERNMENT OF) 0.1% 20 MARCH 2018 125,000,000 8,847,957 0.55





JAPAN GOVERNMENT 20 YEAR BOND #61 1% 20 MARCH 2023 188,500,000 14,112,835 0.88



JPMORGAN CHASE & CO 4.22% 19 SEPTEMBER 2018 4,000,000 4,105,600 0.26

KOREA EXPRESSWAY CORP 1.65% 18 OCTOBER 2019 3,000,000 2,970,900 0.19

155



HoldingsMarket

value

% of net

asset value

HKD


KOREA FINANCE CORP 4.42% 12 APRIL 2021 2,000,000 2,153,000 0.13



NETHERLANDS, KINGDOM OF (GOVERNMENT) 0.25% 15 JULY 2025 67,000 612,598 0.04

NORWAY (GOVERNMENT OF) 4.5% 22 MAY 2019 1,234,000 1,304,705 0.08

POLAND, REPUBLIC OF (GOVERNMENT) 5.25% 25 OCTOBER 2020 1,620,000 3,837,808 0.24

ROYAL BANK OF CANADA 1.7% 20 AUGUST 2018 2,000,000 2,005,200 0.13

SOUTH AFRICA (REPUBLIC OF) 10.5% 21 DECEMBER 2026 4,092,165 2,710,971 0.17


SPAIN (GOVERNMENT OF) 4.4% 31 OCTOBER 2023 1,344,000 15,218,616 0.95


SPAIN, KINGDOM OF (GOVERNMENT) 4.8% 31 JANUARY 2024 105,000 1,217,158 0.08

SWEDEN (GOVERNMENTOF) 4.25% 12 MARCH 2019 2,820,000 2,941,327 0.18

SWITZERLAND (GOVERNMENT OF) 3% 8 JANUARY 2018 142,000 1,169,203 0.07

UK TREASURY NOTES 4.25% 7 MARCH 2036 2,183,000 31,355,811 1.97

UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND (GOVERNMENT) 4.25% 7 DECEMBER 2027 1,200,000 15,973,719 1.00

UNITED STATES TREASURY 1.75% 15 MAY 2022 345,000 2,686,502 0.17

HoldingsMarket

value

% of net

asset value

HKD

US TREASURY NOTES 1.5% 31 AUGUST 2018 11,129,000 87,139,852 5.46

US TREASURY NOTES 2% 31 OCTOBER 2021 3,270,000 25,797,575 1.62


US TREASURY NOTES 2.5% 15 MAY 2024 5,406,000 43,329,990 2.72

US TREASURY NOTES 3% 15 NOVEMBER 2044 2,680,000 21,379,261 1.34

US TREASURY NOTES 4.375% 15 FEBRUARY 2038 3,333,000 32,925,439 2.06

788,317,274 49.41

BondsUnlisted but quoted investments

BANK OF NOVA SCOTIA 2.295% 27 APRIL 2022 3,000,000 3,029,610 0.19

CANADA (GOVERNMENT) 0.75% 01 MAY 2019 1,000,000 6,187,290 0.39

CATERPILLAR FINANCIAL SERVICES CORP 2.14% 13 DECEMBER 2019 2,000,000 2,016,000 0.13

HKCG FINANCE LTD 3.3% 16 MAY 2022 2,000,000 2,082,600 0.13

KIWIBANK LTD 1.4% 30 NOVEMBER 2017 4,000,000 4,002,800 0.25

NORDEA BANK AB 3.045% 27 AUG 2025 2,000,000 2,015,400 0.13

OP YRITYSPANKKI OYJ 2.16% 18 SEP 2020 2,000,000 1,995,400 0.12

ROYAL BANK OF CANADA 1.83% 14 APRIL 2020 1,000,000 996,100 0.06

SINGTEL GROUP TREASURY PTE LTD 3.32% 4 APRIL 2018 1,000,000 1,013,100 0.06

SUMITOMO MITSUI BANKING CORP 2.09% 20 APRIL 2020 3,000,000 3,008,100 0.19

TOTAL CAPITAL INTERNATIONAL SA 3.088% 14 SEP 2026 2,000,000 2,005,400 0.13

28,351,800 1.78

156



HoldingsMarket

value

% of net

asset value

HKD

Certificates of depositUnlisted but quoted investments

BANK OF CHINA LTD (TOKYO BRANCH) 0% CD 29 SEPTEMBER 2017 15,500,000 120,512,204 7.55

CHINA CONSTRUCTION BANK CORP (HONG KONG BRANCH) 1.76% CD 29 SEPTEMBER 2017 2,800,000 21,868,420 1.37

142,380,624 8.92

Debt Securities (Total) 959,049,698 60.11

Unit TrustsListed investments

ABF HONG KONG BOND INDEX FUND 85,900 8,620,065 0.54

AGNC INVESTMENT CORP 1,771 292,957 0.02AMERICAN TOWER CORP 344 366,277 0.02DUKE REALTY CORP 1,478 330,026 0.02GGP INC 227 40,085 0.00HOSPITALITY PROPERTIES TRUST 1,053 238,992 0.01IRON MOUNTAIN INC 823 234,163 0.01KIMCO REALTY CORP 1,149 181,093 0.01LINK REIT 17,069 1,083,881 0.07PUBLIC STORAGE 210 337,162 0.02SIMON PROPERTY GROUP INC 235 290,909 0.02WEYERHAEUSER CO 985 254,023 0.02

12,269,633 0.76



32,674,092 2.04

Unit Trusts(Total) 44,943,725 2.80

HoldingsMarket

value

% of net

asset value

HKD

Derivative assets

Foreign currency forward contracts 1,041,161 0.06








Total net assets 1,595,518,574 100.00

157


HSBC Managed Stable Fund for the year ended 31 July 2017



2017 2016

Financial assets

Equities


30.69 30.27

158


HSBC Managed Stable Fund for the year ended 31 July 2017



2017 2016

BondsListed investments 49.41 44.34Unlisted but quoted investments 1.78 1.96

51.19 46.30



2.80 9.21

Rights – 0.00

Derivative assets

Foreign currency forward contracts 0.06 –




Total investments 93.42 85.74

Other net assets 6.58 14.26


159



(a) Price record (Dealing net assets value per unit)



HKD HKD HKD HKD

2007 12.11 13.88 12.78 14.652008 13.10 14.75 13.83 15.572009 10.51 13.70 11.08 14.462010 12.53 13.80 13.21 14.552011 13.12 14.38 13.84 15.172012 13.08 14.22 13.79 15.002013 13.36 14.34 14.09 15.122014 13.52 14.40 14.26 15.192015 13.48 14.31 14.22 15.102016 12.86 13.94 13.57 14.712017 13.27 14.50 14.00 15.30



HKD HKD HKD HKD

2008 14.35 16.01 14.35 16.012009 11.98 15.16 11.98 15.162010 14.11 15.53 14.11 15.532011 14.89 16.35 14.89 16.352012 14.99 16.29 14.99 16.292013 15.42 16.58 15.42 16.582014 0.00 16.71 0.00 16.712015 N/A N/A N/A N/A2016 N/A N/A N/A N/A2017 N/A N/A N/A N/A



HKD HKD HKD HKD

2007 13.14 15.01 13.14 15.012008 14.40 16.12 14.40 16.122009 12.16 15.29 12.16 15.292010 14.40 15.79 14.40 15.792011 15.21 16.81 15.21 16.812012 15.44 16.76 15.44 16.762013 15.97 17.25 15.97 17.252014 16.48 17.68 16.48 17.682015 16.78 17.69 16.78 17.692016 16.08 17.53 16.08 17.532017 16.73 18.42 16.73 18.42

160



2017 2016 2015 2014HKD HKD HKD HKD


(c) Net assets value per unit (calculated in accordance with HKFRS)

2017 2016 2015 2014HKD HKD HKD HKD

Net assets value per unit– “A” class income units 14.42 13.91 13.62 14.25– Provident class units 18.42 17.49 16.97 17.61



Total expenses

Total expense ratio

HKD HKD %

– “A” class 26,044,199 461,797 1.77%– Provident class 1,604,699,920 16,344,986 1.02%

161

HSBC Managed Stable Growth Fund

Market review

In the 1 year period ended July 2017, the Fund delivered a positive return mainly driven by the favorable performance of equities amid a constructive economic and policy background with growth positive almost everywhere in the world. In particular, the year has seen a strong return from Hong Kong and Chinese equities as the Chinese activity data continues to show growth stabilization on the back of a benign macro environment. The fourth quarter of 2016 has seen the surprise election of Donald Trump as US President, an increase in interest rates from the US Fed and ongoing uncertainties over the political situation in Europe. However, despite these apparently negative events, it seems that the global economy is gaining momentum with economic data generally beating expectations and inflation moving steadily. Although central bankers are beginning to talk about tightening policy the low level of inflation means there is no pressure to move sharply so that the liquidity background remains favorable. Corporate profits have been and are expected to continue growing, and this seems to be feeding through to more investment spending by companies which has the potential to drive the next leg of the ongoing economic expansion.

With the macro and liquidity background still favourable we maintain a diverse portfolio including equities and bonds exposure where there is selective value. We increased equity weightings again in early July and will continue to adjust portfolio weightings as the macro and market background unfold over the coming months.



162

HSBC Managed Stable Growth Fund (“the Fund”)

We hereby confirm that, to the best of our knowledge, the Manager of the Fund has, in all material respects, managed the Fund in accordance with the provisions of the Trust Deed dated 16 May 2003, as amended, for the year ended 31 July 2017.


Trustee’s Report

163


Opinion

We have audited the financial statements of HSBC Managed Stable Growth Fund (the “Fund”) set on page 165 to 186, which comprise the statement of financial position as at 31 July 2017, the statement of comprehensive income, the statement of changes in equity and the cash flow statement for the year then ended and notes to the financial statements, including a summary of significant accounting policies.


Basis for Opinion





In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we


conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.







Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with HKSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. In addition, we are required to assess whether the financial statements of the Fund have been properly

164

prepared, in all material respects, in accordance with the relevant provisions of the Trust Deed and the relevant disclosure provisions of Appendix E of the SFC Code.











27 November 2017



165

HSBC Managed Stable Growth Fundas at 31 July 2017


AssetsFinancial assets at fair value through profit or loss 5, 7(f), 12(g), 13 335,507,718 315,251,689Interest and dividends receivable 1,732,416 1,541,730Subscriptions receivable 1,067,351 1,804,811Amounts due from brokers 6, 7(b) 512,940 1,794,930Cash and cash equivalents 7(b) 9,339,422 25,879,945

348,159,847 346,273,105

LiabilitiesFinancial liabilities at fair value through profit or loss 5, 7(g), 12(g), 13 786,210 135,027Redemptions payable – 36,777Amounts due to brokers 6 14,805 1,978,818Other payables 7(a), 7(c), 7(d) 651,981 597,681

1,452,996 2,748,303

NET ASSETS ATTRIBUTABLE TO UNITHOLDERS 346,706,851 343,524,802

Representing:Total equity 346,706,851 343,524,802


Provident class units 9(a) 16,850,143 18,369,650








166

HSBC Managed Stable Growth Fundfor the year ended 31 July 2017


Interest income 7(b) 81,268 2,302Dividend income 7(f) 5,137,591 5,341,366Net gains from financial instruments at fair value through

profit or loss 3 30,539,786 1,261,283Net foreign exchange gain/(loss) 153,711 (570,057)Other income 7(c), 7(d) 1,813,748 –

TOTAL REVENUE 37,726,104 6,034,894

Management fees 7(a) 2,483,180 2,470,743Transaction fees 7(c), 7(d), 7(e) 1,061,907 1,663,415Trustee’s fees 7(c) 465,470 468,052Administrative fees 7(a) 14,115 56,314Auditors’ remuneration 128,571 115,350Legal and professional fees 73,141 31,533Registrar’s fees 7(a) 35,000 35,000Safe custody fees, bank charges and miscellaneous expenses 7(d) 422,672 417,986


NET PROFIT FROM OPERATIONS BEFORE TAxATION 33,042,048 776,501

Taxation 4 (725,956) (717,401)

INCREASE IN NET ASSETS ATTRIBUTABLE TO UNITHOLDERS AND TOTAL COMPREHENSIVE INCOME FOR THE YEAR 32,316,092 59,100



167



Balance at the beginning of the year 343,524,802 362,266,836

Increase in net assets attributable to unitholders and total comprehensive income for the year 32,316,092 59,100

Subscriptions of units (excluding equalisation) 30,015,529 35,746,070Redemptions of units (excluding equalisation) (58,504,776) (54,584,316)Income equalisation on subscriptions and redemptions 10 (644,796) 37,112

(29,134,043) (18,801,134)

Balance at the end of the year 346,706,851 343,524,802


Statement of Changes in Equity

168


2017 2016HKD HKD

OPERATING ACTIVITIESInterest received 81,268 2,302Dividends received 5,049,153 5,203,061Management fees paid (2,467,279) (2,525,932)Trustee’s fees paid (467,590) (476,571)Payments on purchase of investments (218,052,430) (188,621,957)Proceeds from sale of investments 228,341,064 266,127,462Taxes paid (721,512) (716,460)Other operating income received/(expenses paid) 268,128 (3,163,321)Margin deposits placed with brokers (137,965) –


FINANCING ACTIVITIESProceeds from issue of units including equalisation 31,463,308 34,980,678Payments on redemption of units including equalisation (59,896,668) (98,478,863)






Cash Flow Statement

169



1 The Fund

HSBC Managed Stable Growth Fund (“the Fund”) is an open ended unit trust established under a trust deed dated 16 May 2003, as amended (“the Trust Deed”), and governed by the laws of the Cayman Islands. The Fund registered under the Mutual Funds Law of the Cayman Islands on 10 June 2003. The objective of the Fund is to invest in a diversified portfolio of investments which achieves medium capital growth with medium low volatility.






The functional and presentation currency of the Fund is Hong Kong dollars reflecting the fact that the participating redeemable units of the Fund are issued and redeemed in Hong Kong dollars.

The financial statements are prepared on a fair value basis for financial assets at fair value through profit or loss and derivative financial instruments. Other financial assets and financial liabilities are stated at amortised cost.

The preparation of financial statements in conformity with HKFRSs requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income

and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.









(i) Classification

All of the Fund’s investments are classified as financial assets or financial liabilities at fair value through profit or loss. This category comprises financial instruments

170


held for trading, which are instruments that the Fund has acquired principally for the purpose of short-term profit-taking. These include investments in equities, debt securities, unit trusts, rights and forward contracts.



Financial l iabilities at amortised cost include redemptions payable, amounts due to brokers and other payables.

(ii) Recognition


A regular way purchase or sale of financial assets is recognised is by using trade date accounting. From this date any gains and losses arising from changes in fair value of the financial assets or financial liabilities are recorded.


(iii) Measurement




Financial liabilities other than those at fair value through profit or loss are measured at amortised cost using the effective interest rate method.



When applicable, the Fund measures the fair value of an instrument using the quoted price in an active market for that instrument provided such price is within the bid-ask spread. A market is regarded as active if transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. In circumstances where the quoted price is not within the bid-ask spread, the manager of the Fund will determine the points within the bid-ask spread that are most representative of the fair value.


The best evidence of the fair value of a financial instrument at initial recognition is normally the transaction price – i.e. the fair value of the consideration given or received. If the Fund determines that the fair value at initial recognition differs from the transaction price and the fair value is evidenced neither by a quoted price in an active market for an identical asset or liability nor based on a valuation technique that uses only data from observable markets, the financial instrument is initially measured at fair value, adjusted to defer the difference between the fair value at initial recognition and the transaction price. Subsequently, that difference is recognised in profit or loss on an appropriate basis over the life of the instrument but no later than when the valuation is supported wholly by observable market data or the transaction is closed out.

Portfolios of financial assets and financial liabilities that are exposed to market risk and credit risk that are

171


managed by the Fund on the basis of the net exposure to either market or credit risk, are measured on the basis of a price that would be received to sell a net long position (or paid to transfer a net short position) or a particular risk exposure. Those portfolio level adjustments are allocated to the individual assets and liabilities on the basis of the relative risk adjustment of each of the individual instruments in the portfolio.




(vi) Impairment


If in a subsequent period the amount of an impairment loss recognised on a financial asset carried at amortised cost decreases and the decrease can be linked objectively to an event occurring after the write-down, the write-down is reversed through profit or loss.

(vii) Derecognition




(viii) Offsetting







(i) Dividends

Dividend income from listed investments is recognised when the share price of the investment goes ex-dividend. Dividends from other investments are recognised in profit or loss as dividend income when declared. In some cases, the Fund may choose to receive dividends in the form of additional shares rather than cash. In such cases, the Fund recognises the dividend income for the amount of the equivalent cash dividend with the corresponding debit treated as an additional investment.



172


(g) Expenses




(i) Related parties

















(k) Units in issue


The Fund has one class of redeemable units in issue. This is the most subordinate class of financial instruments in the Fund. The redeemable units provide unitholders with the right to require redemption for cash at a value proportionate to the unitholders’ share in the Fund’s net assets at each redemption date and also in the event of the Fund’s liquidation.

A puttable financial instrument that includes a contractual obligation for the issuer to repurchase or redeem that instrument for cash or another financial asset is classified as equity instrument if it meets the following conditions:

– it entitles the holder to a pro rata share of the entity’s net assets in the event of the Fund’s liquidation;

– it is in the class of instruments that is subordinate to all other classes of instruments;

– all financial instruments in the class of instruments that is subordinate to all other classes of instruments have identical features;

173


– apart from the contractual obligation for the Fund to repurchase or redeem the instrument for cash or another financial asset, the instrument does not include any other features that would require classification as a liability; and

– the total expected cash flows attributable to the instrument over its life are based substantially on profit or loss, the change in the recognised net assets or the change in the fair value of the recognised and unrecognised net assets of the Fund over the life of the instrument.

The Fund’s redeemable units meet all of these conditions and are classified as equity.

(l) Segment reporting


3 Net gains from financial instruments at fair value through profit or loss

2017 2016HKD HKD

Net realised gains/(losses) 10,389,024 (1,187,871)Net unrealised gains 20,150,762 2,449,154

30,539,786 1,261,283

4 Taxation









174



2017 2016HKD HKD

Overseas withholding tax 680,410 701,525Capital gains tax 45,546 15,876

725,956 717,401


2017 2016HKD HKD


Equities

Listed shares 177,517,492 172,778,167

Debt securities

Listed bonds 134,463,450 107,248,397Unlisted but quoted bonds – 2,055,622Unlisted but quoted


149,267,566 109,304,019

Other investments


contracts 222,490 –Rights – 78

8,722,660 33,169,503

335,507,718 315,251,689


Foreign currency forward contracts (786,210) (135,027)

334,721,508 315,116,662

Investments, at cost 302,999,005 303,442,673Net unrealised appreciation

in value of investments 31,722,503 11,673,989

Investments, at fair value 334,721,508 315,116,662


2017 2016HKD HKD


Amounts receivable on sale of investments 374,975 1,794,930


512,940 1,794,930

Balances due to brokersAmounts payable on purchase

of investments 14,805 1,978,818




For Provident class units 0.75%


175


2017 2016HKD HKD


(ii) Registrar’s fees and other administrative fees for the year 49,115 91,314

(iii) Management fees payable at year end 218,014 202,113


(b) Bank accounts are maintained with members of the HSBC Group. The balances of these accounts amounted to $2,309,625 (2016: $25,879,945) at the year end. Interest income arising from these accounts amounted to $7,524 (2016: $25). Margin accounts are maintained with HSBC Bank Plc Futures Wholesale Trading Operations and Global Markets Operations, which is fellow subsidiary of the Manager within the HSBC Group. The balances of margin deposits amounted to $137,965 (2016: $nil) at year end.

(c) The trustee of the Fund is HSBC Trustee (Cayman) Limited (“the Trustee”), a fellow subsidiary of the Manager within the HSBC Group, which receives a monthly fee equivalent to 0.1% (2016: 0.1%) per annum of the net asset value of the Fund, subject to a minimum monthly fee of $10,000 (2016: $10,000). Effective from 1 July 2017, the Trustee receives a monthly fee equivalent to 0.07% per annum of the net asset value of the Fund and charges the Fund financial reporting service fee of US$3,000 per set of financial statements. During the year, the Trustee rebated trustee’s fee to the Fund (2016: $nil).


2017 2016HKD HKD

(i) Trustee’s fees for the year 465,470 468,052



(iv) Rebate of trustee’s fees 242,580 –

(d) The custodian of the Fund is HSBC Trustee (Cayman) Ltd, a fellow subsidiary of the Manager within the HSBC Group, which receives a monthly fee equivalent to 2.5-30 (2016: 2.5-30) basis points based on sub-custodian value of the securities. The custodian also receives a transaction fee of US$10-175 (2016: US$ 10-175) for each trade handled. During the year, the Trustee rebated safe custody fees and safe custody transaction fees to the Fund (2016: $nil).

2017 2016HKD HKD



(iii) Safe custody transaction fees for the year 730,235 843,277


(v) Rebate of safe custody fees 218,405 –


(e) In its purchases and sales of investments, the Fund utilises the brokerage services of HSBC Investment Funds (Hong Kong) Limited, The Hongkong and Shanghai Banking Corporation Limited, HSBC Bank plc, HSBC Markets Limited and HSBC Global Asset Management (UK) Ltd which are members of the HSBC Group. Details of transactions effected through these companies are as follows:

176


HSBC Investment Funds (Hong Kong) Limited


Corporation Limited2017 2016 2017 2016HKD HKD HKD HKD

Commission paid for the year – – – –

Average rate of commission – – – –



HSBC Bank plc HSBC Markets Limited2017 2016 2017 2016HKD HKD HKD HKD

Commission paid for the year 523 – – –

Average rate of commission 0.00% – – –

Total aggregate value of such transactions for the year 11,700,946 8,780,704 923,459 2,876,050


HSBC Global AssetManagement (UK) Ltd

2017 2016HKD HKD






(f) The Fund has invested in equities issued by entities within the HSBC Group during the year ended 31 July 2017 and 2016. The details of the market value of these investments and dividend income earned for the year are as follows:


(i) Market value at year end 6,744,513 5,844,650 583,270 558,293

(ii) Dividend income earned for the year 360,827 391,526 21,492 35,400

As at 31 July 2017, the Fund also held investments in HSBC Index Tracker Investment Fund – Japan Index Fund, which is managed by the fellow subsidiary of the Manager within the HSBC Group. As at 31 July 2016, the Fund also held investments in HSBC Global Investment Fund-Indian Equity Fund, HSBC Index Tracker Investment Fund – Japan Index Fund, HSBC Index Tracker Investment Fund – Pacific Index Fund and HSBC Pooled Investment Fund HSBC Pooled Asian Bond Fund, which are managed by the fellow subsidiaries of the Manager within the HSBC Group. The market value of this investment at year end was $7,144,407 (2016: $31,571,854).

(g) During the year, the Fund has acquired forward foreign exchange contracts from The Hongkong and Shanghai Banking Corporation Limited. The details of the outstanding forward foreign exchange contracts as at year end are as follows:

2017 2016HKD HKD




177



(a) Provident class units

2017 2016


Units issued during the year 1,617,585 2,010,566Units redeemed during

the year (3,137,092) (3,099,871)


(b) The capital of the Fund is represented by the net assets attributable to unitholders which are subject to subscriptions and redemptions of units. The Fund does not have any externally imposed capital requirements.

Units may be acquired and redeemed on any valuation date at the unit value determined on that day. The valuation date is every business day, which is also a day on which banks in China are normally open for business, or such other day(s) as the Manager may determine. No minimum initial and subsequent investment amounts apply to Provident Class Units.

Units may be redeemed on any valuation date, at the redemption price applicable as at the close of business in Hong Kong on such day. No minimum redemption amounts apply to Provident Class Units. No minimum holding applies to Provident Class Units.



11 Distributions

Pursuant to the Trust Deed dated 16 May 2003, as amended, no distributions shall be made to the holders of the Provident class units.


The Fund maintains an investment portfolio in a variety of listed and unlisted financial instruments as dictated by its investment management strategy. The investment objective

of the Fund is to achieve steady long term capital growth that will at least exceed Hong Kong inflation. The Fund’s investment portfolio comprises equities, debt securities, unit trusts, rights and forward contracts.



(a) Price risk



Market exposures

Change in net assets ifinvestment

value increased

by 10%HKD HKD

As at 31 July 2017

Equities 177,517,492 17,751,749Unit trusts 8,500,170 850,017Rights – –

178


Marketexposures

Change innet assets ifinvestment

valueincreased

by 10%HKD HKD

As at 31 July 2016

Equities 172,778,167 17,277,817Unit trusts 33,169,425 3,316,943Rights 78 8




2017

1 yearor less


Over5 years


’000 ’000 ’000 ’000 ’000HKD HKD HKD HKD HKD

Financial assets at fair value through profit or loss 36,669 43,429 69,170 186,240 335,508


2016

1 yearor less


Over5 years


’000 ’000 ’000 ’000 ’000HKD HKD HKD HKD HKD

Financial assets at fair value through profit or loss 16,630 29,140 63,534 205,948 315,252



At the date of the statement of financial position, assuming all other factors unchanged, it is estimated that an increase in interest rate of 100 basis points (2016: 50 basis points) would result in a decrease in the net assets attributable to the unitholders and the profit for the year by $9,379,510 (2016: $4,196,637); an equal change in the opposite direction would result in an increase in the net assets attributable to unitholders by an approximately equal amount.

(c) Currency risk




At 31 July 2017, had the Hong Kong dollar (“HKD”) weakened by 5% (2016: 5%) in relation to respective currencies, with all other variables held constant, net assets attributable to unitholders and the profit for the year would have increased by the amounts shown below. The analysis is performed on the same basis for 2016.

Net exposure

Change in net assets if

HKD weakenedby 5%

HKD HKD

As at 31 July 2017

CurrenciesArgentine peso 41,917 2,096Australian dollar 8,773,391 438,670Canadian dollar 4,864,806 243,240Chinese yuan 4,370 219Czech koruna 55,026 2,751Danish krone 1,599,330 79,967

179


Euro 55,440,387 2,772,018Indian rupee 2,704,598 135,230Indonesian rupiah 784,915 39,246Japanese yen 41,065,786 2,053,288Malaysian ringgit 635,482 31,774Mexican peso 1,264,091 63,205New Taiwan dollar 3,344,334 167,217New Zealand dollar 103,192 5,160Norwegian krone 833,921 41,696Philippine peso 234,137 11,707Polish zloty 935,468 46,773Pound sterling 23,991,055 1,199,553Russian ruble 497,266 24,863Singapore dollar 1,349,002 67,450South African rand 291,490 14,575South Korean won 5,321,822 266,091Swedish krona 2,796,565 139,828Swiss franc 4,882,157 244,108Thai baht 834,875 41,744Turkish lira 361,226 18,061

Total 163,010,609 8,150,530

Net exposure


HKD weakenedby 5%

HKD HKD

As at 31 July 2016

CurrenciesArgentine peso 48,912 2,446Australian dollar 8,973,237 448,661Canadian dollar 4,396,404 219,820Danish krone 1,786,300 89,315Euro 51,577,500 2,578,875Indonesian rupiah 604,173 30,209Japanese yen 44,189,403 2,209,469Malaysian ringgit 902,263 45,113Mexican peso 1,075,906 53,794New Taiwan dollar 3,686,835 184,342New Zealand dollar 56,894 2,845Norwegian krone 917,193 45,860Philippines Peso 106,353 5,318Polish zloty 745,975 37,299Pound sterling 24,202,732 1,210,137Singapore dollar 1,237,777 61,889South African rand 277,276 13,864South Korean won 5,489,617 274,481Swedish krona 2,222,508 111,125

Swiss franc 5,261,141 263,057Thai baht 803,852 40,193

Total 158,562,251 7,928,112


(d) Credit risk





Rating(Moody’s/S&P/Fitch)

% of debt securities

2017 2016

Aaa/AAA/AAA 39.39 40.88Aa1/AA+/AA+ 6.65 7.56Aa2/AA/AA 6.87 9.96Aa3/AA-/AA- 3.43 3.75A1/A+/A+ 19.15 19.16A2/A/A 0.45 0.48A3/A-/A- 0.85 0.99Baa2/BBB/BBB 13.09 14.16Baa3/BBB-/BBB- 0.20 –NR 9.92 3.06

Total 100.00 100.00

180











The enforceable master netting arrangements do not meet the criteria for offsetting in the statement of assets and liabilities. This is because they create a right of set-off of recognised amounts that is enforceable only following on event of default, insolvency or bankruptcy of the Fund or its counterparties. In addition, the Fund and its counterparties do not intend to settle on a net basis or to realise the assets and settle the liabilities simultaneously.


31 July 2017



financial assets






assets presented in


position






contracts– Counterparty A 222,490 – 222,490 (222,490) – –– Counterparty B – – – – – –

181







in the statement





position






contracts– Counterparty A (508,631) – (508,631) 222,490 – (286,141)– Counterparty B (277,579) – (277,579) – – (277,579)




31 July 2017

Financial assets

Net amounts





HKD HKD HKD



– Counterparty A 222,490 222,490 –– Counterparty B – – –


Net amounts




not in scope of


HKD HKD HKD



– Counterparty A (508,631) (508,631) –– Counterparty B (277,579) (277,579) –

(e) Liquidity risk



182


The Fund’s listed investments are considered to have insignificant exposure to liquidity risk as they are all readily realisable under normal market conditions. The Fund also invests in unlisted investments such as unlisted bonds, unit trusts and rights, which are not publicly traded on exchanges.

As at 31 July 2017 and 2016, the Fund’s financial liabilities are due within three months, except for redemptions payable which is repayable on demand.


The Fund’s capital as at the year end date is represented by its redeemable units.

The Fund’s objective in managing the capital is to ensure a stable and strong base to achieve long term capital growth, and to manage liquidity risk arising from the redemptions. The Manager manages the capital of the Fund in accordance with the Fund’s investment objectives and policies stated in the Fund’s Explanatory Memorandum.


The amount and the movement of net assets attributable to unitholders are stated in the statement of changes in equity. As the redeemable units are redeemed on demand at the unitholders’ option, the actual level of redemption may differ significantly from historical experience.


Rights



As at 31 July 2016


Fair valueassets

HKD

Rights July 2016 Iberdrola SA 15Rights July 2016 Zardoya OTIS SA 63

78

Forward contracts


Forward contract result in exposure to market risk based on changes in market prices relative to contracted prices. Market risks arise due to the possible movement in foreign currency exchange rate, indices, and securities’ values underlying these instruments. In addition, because of the low margin deposits normally required in relation to notional contract sizes, a high degree of leverage may be typical of a forward contract and may result in substantial losses of the Fund. Forward contracts are generally subject to liquidity risk.

At 31 July 2017 and 2016, the Fund’s holdings in foreign currency forward contracts were as specified in the following tables.

As at 31 July 2017

Buy SellSettlement

dateFair value

assetsFair value(liabilities)

HKD HKD

GBP671,000 HKD6,686,904 11 August 2017 222,490 –HKD6,731,801 GBP671,000 11 August 2017 – (177,594)HKD3,364,206 JPY49,000,000 14 August 2017 – (99,985)HKD1,234,644 GBP122,000 1 September 2017 – (21,767)HKD6,753,044 EUR770,000 1 September 2017 – (343,145)HKD4,540,692 JPY65,000,000 1 September 2017 – (56,084)HKD3,450,870 JPY50,000,000 6 October 2017 – (87,635)

222,490 (786,210)

As at 31 July 2016

Buy SellSettlement

dateFair value

assetsFair value(liabilities)

HKD HKD

HKD3,787,035 JPY51,000,000 30 September 2016 – (33,429)HKD549,531 JPY7,500,000 21 October 2016 – (12,823)HKD3,459,143 JPY47,200,000 28 October 2016 – (88,775)

– (135,027)

183



The Fund’s financial instruments are measured at fair value on the date of the statement of financial position. Fair value estimates are made at a specified point in time, based on market conditions and information about the financial instruments. Usually, fair values can be reliably determined within a reasonable range of estimates. For certain other financial instruments, including interest and dividends receivable, subscriptions receivable, amounts due from brokers, redemptions payable, amounts due to brokers and other payables, the carrying amounts approximate fair values due to the immediate or short term nature of these financial instruments.









The following analyses financial assets/(liabilities) at fair value at the date of the statement of financial position, by the level in the fair value hierarchy into which the fair value measurement is categorised.



31 July 2017

Financial assets

Equities 177,383,542 – 133,950 177,517,492Debt securities – 149,267,566 – 149,267,566Unit trusts 8,500,170 – – 8,500,170Forward contracts – 222,490 – 222,490Rights – – – –

185,883,712 149,490,056 133,950 335,507,718



184



31 July 2016

Financial assets

Equities 172,778,167 – – 172,778,167Debt securities – 109,304,019 – 109,304,019Unit trusts 33,169,425 – – 33,169,425Rights – 78 – 78

205,947,592 109,304,097 – 315,251,689



As of 31 July 2017, Level 3 financial instruments includes Hanergy Thin Film Power Group Limited, Safeway PDC LCC CVR (Casa Ley), Safeway PDC LCC CVR (PDC) and China Hongqiao Group Ltd. As of 31 July 2016, Level 3 financial instruments includes Hanergy Thin Film Power Group Limited, Safeway PDC LCC CVR (Casa Ley) and Safeway PDC LCC CVR (PDC).

For Hanergy Thin Film Power Group Limited, it has been suspended for trading and in these financial statements it is revalued and priced based on relevant news and information and its value was written down to zero. For Safeway PDC LCC CVR (Casa Ley) and Safeway PDC LCC CVR (PDC), no observable input is available for these financial instruments since Safeway Inc. was acquired by AB Acquisition LLC in 2015. These financial instruments are valued at zero as at year end. For China Hongqiao Group Ltd., it has been suspended for trading in March 2017 and in these financial statements, it is revalued and priced using last traded price before suspension with the adjustment based on relevant news and information.


As at1 August 2016

Net lossesincluded

in thestatement of

comprehensiveincome Purchase


As at31 July 2017

*Unrealised losses


Equities – – – 133,950 133,950 –







Valuationtechniques

Unobservableinput

HKD HKD

Equities 133,950 Nil Provision onthe total cost

Discountprovision

The significant unobservable inputs used in the fair value measurement categorised within Level 3 of the fair value hierarchy together with a quantitative sensitivity analysis as at 31 July 2017 and 2016 is as shown below:

Input

Change in return of

the relevant input

Effect on the net assets

attributable to unitholders

HKD


As at 31 July 2016Equities Discount provision 5%/(5)% –/23,853

185





31 July 2017


Financial assets



Amounts due from brokers – 512,940 – 512,940


– 12,652,129 – 12,652,129


Redemptions payable – – – –

Amounts due to brokers – 14,805 – 14,805

Other payables – 651,981 – 651,981

– 666,786 – 666,786

31 July 2016


Financial assets





– 31,021,416 – 31,021,416


Redemptions payable – 36,777 – 36,777


Other payables – 597,681 – 597,681

– 2,613,276 – 2,613,276





186









Nature and purpose








31 July 2017


Total netassets

(based onunaudited

information)




HKD HKD



31 July 2016


Total netassets

(based onunaudited

information)




HKD HKD








AAmendments to HKAS 7, Statement of cash flows: Disclosure initiative 1 January 2017



187



HoldingsMarket

value

% of net

asset value

HKD


AustraliaADELAIDE BRIGHTON LTD 3,000 105,126 0.03ANSELL LTD 763 104,522 0.03ANZ BANKING GROUP LTD 2,333 431,022 0.12APA GROUP 965 51,867 0.02ARISTOCRAT LEISURE LTD 580 73,233 0.02ASX LTD 473 154,247 0.04AURIZON HOLDINGS LTD 4,245 132,872 0.04AUSNET SERVICES LTD 11,101 113,170 0.03BHP BILLITON LTD 2,362 380,709 0.11CALTEX AUSTRALIA LTD 270 52,425 0.02COCHLEAR LTD 53 47,207 0.01COMMONWEALTH BANK OF

AUSTRALIA 1,409 735,605 0.21CSL LTD 352 276,545 0.08CSR LTD 1,340 32,752 0.01DULUXGROUP LTD 2,588 106,341 0.03FLIGHT CENTRE TRAVEL GROUP LTD 282 76,488 0.02FORTESCUE METALS GROUP LTD 3,984 142,588 0.04IOOF HOLDINGS LTD 2,102 131,720 0.04MACQUARIE ATLAS ROADS GROUP 1,724 59,767 0.02MACQUARIE GROUP LTD 267 142,890 0.04MAGELLAN FINANCIAL GROUP LTD 373 61,423 0.02MEDIBANK PRIVATE LTD 3,039 51,541 0.02METCASH LTD 3,631 59,317 0.02NATIONAL AUSTRALIA BANK LTD 2,054 383,575 0.11NEWCREST MINING LTD 789 99,376 0.03ORIGIN ENERGY LTD 1,600 69,037 0.02OZ MINERALS LTD 2,872 149,349 0.04PERPETUAL LTD 359 112,997 0.03PLATINUM INVESTMENT

MANAGEMENT LTD 3,000 102,320 0.03QANTAS AIRWAYS LTD 3,485 115,602 0.03QBE INSURANCE GROUP LTD 1,164 86,005 0.03RAMSAY HEALTH CARE LTD 155 68,213 0.02RIO TINTO LTD 362 148,498 0.04SONIC HEALTHCARE LTD 1,052 146,210 0.04SOUTH32 LTD 4,608 83,610 0.02SUNCORP GROUP LTD 656 58,451 0.02TABCORP HOLDINGS LTD 3,282 85,540 0.03TELSTRA CORP LTD 5,396 137,946 0.04

HoldingsMarket

value

% of net

asset value

HKD

WESFARMERS LTD 746 189,455 0.06WESTPAC BANKING CORP 2,851 565,653 0.16WOODSIDE PETROLEUM LTD 929 168,968 0.05

6,294,182 1.82

AustriaANDRITZ AG 118 56,252 0.02ERSTE GROUP BANK AG 421 136,128 0.04TELEKOM AUSTRIA AG 1,700 119,486 0.03VIENNA INSURANCE GROUP AG 513 120,362 0.03VOESTALPINE AG 394 155,497 0.05

587,725 0.17

BelgiumANHEUSER BUSCH INBEV NV 269 252,158 0.07BPOST SA 371 79,068 0.02ETABLISSEMENTEN FRANZ

COLRUYT NV 169 73,732 0.02KBC GROEP NV 262 168,878 0.05PROXIMUS NV 330 90,234 0.03SOFINA SA 33 38,227 0.01

702,297 0.20

CanadaARC RESOURCES LTD 765 82,129 0.02BANK OF MONTREAL 163 96,262 0.03BANK OF NOVA SCOTIA 236 114,479 0.03BCE INC 286 104,527 0.03BROOKFIELD ASSET MANAGEMENT

INC 192 58,145 0.02CANADIAN IMPERIAL BANK OF

COMMERCE 171 115,575 0.03CANADIAN NATIONAL RAILWAY CO 143 87,987 0.03CANADIAN NATURAL RESOURCES

LTD 310 73,822 0.02CANADIAN UTILITIES LTD CLASS A 322 79,576 0.02CENOVUS ENERGY INC 916 59,896 0.02CI FINANCIAL CORP 295 50,039 0.01CRESCENT POINT ENERGY CORP 870 53,248 0.02ENBRIDGE INC 204 65,843 0.02GREAT-WEST LIFECO INC 230 51,108 0.02

188


HSBC Managed Stable Growth Fund as at 31 July 2017

HoldingsMarket

value

% of net

asset value

HKD


IMPERIAL OIL LTD 272 60,781 0.02INTER PIPELINE LTD 489 75,189 0.02METRO INC 365 96,266 0.03POTASH CORPORATION OF

SASKATCHEWAN INC 670 93,312 0.03POWER CORPORATION OF CANADA 432 81,803 0.02ROGERS COMMUNICATIONS INC

CLASS B 299 121,061 0.04ROYAL BANK OF CANADA 303 176,007 0.05SHAW COMMUNICATIONS INC 390 67,615 0.02SUNCOR ENERGY INC 379 96,266 0.03TECK RESOURCES LTD 678 114,582 0.03TORONTO-DOMINION BANK 379 152,127 0.04TOURMALINE OIL CORP 476 82,198 0.02TRANSCANADA CORP 372 147,993 0.04TRISURA GROUP LTD 1 160 0.00TURQUOISE HILL RESOURCES LTD 3,298 84,449 0.02WASTE CONNECTIONS INC 111 56,333 0.02

2,598,778 0.75


DenmarkCOLOPLAST A/S 176 117,679 0.03DANSKE BANK A/S 419 132,036 0.04ISS A/S 350 111,680 0.03NOVO NORDISK A/S 703 233,369 0.07PANDORA A/S 57 51,028 0.02TRYG A/S 439 77,024 0.02VESTAS WIND SYSTEMS A/S 121 91,991 0.03

814,807 0.24

FinlandFORTUM OYJ 764 97,224 0.03KONE OYJ-B 314 127,249 0.04METSO OYJ 339 83,908 0.02NESTE OYJ 343 115,692 0.03

HoldingsMarket

value

% of net

asset value

HKD

NOKIA OYJ 3,208 158,924 0.05NOKIAN TYRES PLC 352 111,759 0.03ORION OYJ CLASS B 341 134,172 0.04UPM-KYMMENE OYJ 583 123,526 0.04WARTSILA ABP OYJ 160 82,726 0.02

1,035,180 0.30

FranceAIR LIQUIDE SA 95 90,714 0.03AIRBUS GROUP SE 137 89,063 0.03ALSTOM SA 220 61,351 0.02ARKEMA SA 147 130,189 0.04ATOS SE 43 50,860 0.02AXA SA 520 119,515 0.03BIOMERIEUX SA 87 149,207 0.04BNP PARIBAS SA 380 229,436 0.07BOUYGUES SA 359 119,816 0.03CARREFOUR SA 590 110,313 0.03CNP ASSURANCES SA 760 142,763 0.04COMPAGNIE DE SAINT-GOBAIN 383 165,368 0.05CREDIT AGRICOLE SA 580 79,310 0.02DANONE SA 217 126,065 0.04ELECTRICITE DE FRANCE SA 1,475 116,425 0.03ENGIE SA 179 22,425 0.01ESSILOR INTERNATIONAL SA 106 104,537 0.03EURAZEO SA 21 13,333 0.00FAURECIA SA 35 15,125 0.00INGENICO GROUP SA 69 56,306 0.02LEGRAND SA 147 79,050 0.02L’OREAL SA 112 180,583 0.05LVMH MOET HENNESSY LOUIS

VUITTON SE 64 125,349 0.04MICHELIN (CIE GENERALE DES

ETABLISSEMENTS) 172 181,108 0.05ORANGE SA 961 125,834 0.04PEUGEOT SA 701 117,383 0.03PUBLICIS GROUPE SA 101 59,438 0.02RENAULT SA 74 51,896 0.02SAFRAN SA 252 185,474 0.05SANOFI SA 471 350,086 0.10SARTORIUS STEDIM BIOTECH SA 100 55,452 0.02SCHNEIDER ELECTRIC SE 270 164,960 0.05SCOR SE 186 60,999 0.02

189



HoldingsMarket

value

% of net

asset value

HKD


SEB SA 117 161,980 0.05SOCIETE BIC SA 93 84,840 0.02SOCIETE GENERALE DE PARIS SA 486 221,968 0.06TECHNIPFMC PLC 484 107,564 0.03THALES SA 172 148,228 0.04TOTAL SA 1,058 418,527 0.12VALEO SA 279 150,394 0.04VINCI SA 316 220,387 0.06

5,243,621 1.51

GermanyADIDAS AG 97 172,386 0.05ALLIANZ SE 159 263,914 0.08BASF SE 431 319,839 0.09BAYER AG 396 390,504 0.11BAYERISCHE MOTOREN WERKE AG 173 123,793 0.04BEIERSDORF AG 153 131,351 0.04BRENNTAG AG 74 32,863 0.01CECONOMY AG 412 36,045 0.01CONTINENTAL AG 62 108,758 0.03COVESTRO AG 202 122,056 0.03DAIMLER AG 471 257,616 0.07DEUTSCHE BOERSE AG 105 86,292 0.02DEUTSCHE LUFTHANSA AG 770 128,866 0.04DEUTSCHE POST AG 491 148,296 0.04DEUTSCHE TELEKOM AG 1,363 193,846 0.06DEUTSCHE WOHNEN AG 179 55,192 0.02EVONIK INDUSTRIES AG 440 116,686 0.03FIELMANN AG 160 100,008 0.03FRAPORT FRANKFURT AIRPORT

SERVICES WORLDWIDE AG 190 148,047 0.04FRESENIUS MEDICAL CARE AG & CO

KGAA 196 144,005 0.04FUCHS PETROLUB SE 152 62,291 0.02FUCHS PETROLUB SE PREFERENCE

SHARES 236 109,091 0.03GEA GROUP AG 380 119,319 0.03HANNOVER RUECK SE 131 128,709 0.04HEIDELBERGCEMENT AG 74 57,115 0.02HELLA KGAA HUECK & CO 21 8,644 0.00

HoldingsMarket

value

% of net

asset value

HKD

HENKEL AG & CO KGAA PREFERENCE SHARES 139 153,272 0.04

HUGO BOSS AG 100 58,587 0.02INFINEON TECHNOLOGIES AG 1,135 192,147 0.06KION GROUP AG 31 20,932 0.01LINDE AG 98 145,880 0.04MERCK KGAA 62 53,009 0.02METRO WHOLESALE & FOOD

SPECIALIST AG 412 64,741 0.02MUENCHENER

RUECKVERSICHERUNGS-GESELLSCHAFT AG 90 150,042 0.04

OSRAM LICHT AG 233 151,279 0.04PORSCHE AUTOMOBIL HOLDING SE 110 49,009 0.01PROSIEBENSAT.1 MEDIA SE 284 88,522 0.03SAP SE 381 314,625 0.09SIEMENS AG 290 306,241 0.09SUEDZUCKER AG 168 28,000 0.01TALANX AG 340 109,155 0.03TELEFONICA DEUTSCHLAND

HOLDING AG 2,100 84,194 0.02UNITED INTERNET AG 266 126,118 0.04VOLKSWAGEN AG PREFERENCE

SHARES 55 65,889 0.02VONOVIA SE 248 78,226 0.02

5,805,400 1.67


REFINERIES SA 575 100,864 0.03

Hong KongAAC TECHNOLOGIES HOLDINGS INC 3,000 315,300 0.09AGILE GROUP HOLDINGS LTD 22,000 204,600 0.06AGRICULTURAL BANK OF CHINA LTD

H SHARES 110,655 403,891 0.12AIA GROUP LTD 54,325 3,343,704 0.96AIR CHINA LTD H SHARES 16,000 112,960 0.03ALUMINUM CORP OF CHINA LTD 20,000 98,000 0.03ANHUI CONCH CEMENT CO LTD 6,886 199,005 0.06ANHUI EXPRESSWAY CO LTD 8,000 47,200 0.01ANTA SPORTS PRODUCTS LTD 4,000 107,200 0.03

190



HoldingsMarket

value

% of net

asset value

HKD


ASM PACIFIC TECHNOLOGY LTD 900 91,080 0.03AVICHINA INDUSTRY &

TECHNOLOGY CO LTD 12,000 57,480 0.02BAIC MOTOR CORP LTD 6,000 42,180 0.01BANK OF CHINA LTD H SHARES 347,180 1,336,643 0.39BANK OF COMMUNICATIONS CO

LTD H SHARES 31,728 183,705 0.05BANK OF EAST ASIA LTD 7,416 248,065 0.07BEIJING CAPITAL INTERNATIONAL


CO LTD 46,000 103,960 0.03BOC AVIATION LTD 2,400 97,440 0.03BOC HONG KONG HOLDINGS LTD 16,322 627,581 0.18BRILLIANCE CHINA AUTOMOTIVE

HOLDINGS LTD 7,181 142,040 0.04BYD CO LTD 3,000 146,100 0.04CAFE DE CORAL HOLDINGS LTD 2,000 50,300 0.01CGN POWER CO LTD H SHARES 31,000 66,340 0.02CHEUNG KONG PROPERTY

HOLDINGS LTD 14,135 894,039 0.26CHINA BLUECHEMICAL LTD 28,000 61,600 0.02CHINA CINDA ASSET MANAGEMENT

CO LTD H SHARES 69,369 225,449 0.07CHINA CITIC BANK CORP LTD H

SHARES 36,311 184,097 0.05CHINA COMMUNICATIONS

CONSTRUCTION CO LTD H SHARES 17,895 186,466 0.05


CHINA CONCH VENTURE HOLDINGS LTD 12,000 174,240 0.05

CHINA CONSTRUCTION BANK CORP H SHARES 402,780 2,618,070 0.76

CHINA DONGXIANG (GROUP) CO LTD 38,000 55,100 0.02CHINA EVERBRIGHT BANK CO LTD H

SHARES 18,000 68,220 0.02CHINA EVERBRIGHT INTERNATIONAL

LTD 181 1,846 0.00CHINA EVERGRANDE GROUP 6,858 149,162 0.04

HoldingsMarket

value

% of net

asset value

HKD

CHINA GALAXY SECURITIES CO H SHARES 29,152 200,857 0.06

CHINA GAS HOLDINGS LTD 8,000 151,200 0.04CHINA HONGQIAO GROUP LTD 19,000 133,950 0.04CHINA LIFE INSURANCE CO LTD H

SHARES 34,253 847,762 0.24CHINA MACHINERY ENGINEERING

CORP 10,000 52,800 0.02CHINA MENGNIU DAIRY CO LTD 10,064 153,174 0.04CHINA MERCHANTS BANK CO LTD H

SHARES 16,363 420,529 0.12CHINA MERCHANTS HOLDINGS


LTD H SHARES 28,837 226,659 0.07CHINA MINSHENG FINANCIAL

HOLDING CORP LTD 209,400 96,324 0.03CHINA MOBILE LTD 23,927 2,003,886 0.58CHINA NATIONAL BUILDING


LTD H SHARES 44,000 139,480 0.04CHINA OVERSEAS LAND &

INVESTMENT LTD 16,480 436,720 0.13CHINA PACIFIC INSURANCE GROUP

CO LTD H SHARES 14,536 501,492 0.15CHINA PETROLEUM & CHEMICAL

CORP H SHARES 110,739 656,682 0.19CHINA POWER INTERNATIONAL


CORP H SHARES 14,801 152,746 0.04CHINA RAILWAY GROUP LTD H

SHARES 19,655 122,254 0.04CHINA RAILWAY SIGNAL &

COMMUNICATION CORP LTD 8,000 48,880 0.01CHINA RESOURCES BEER HOLDINGS

CO LTD 4,000 78,960 0.02CHINA RESOURCES GAS GROUP LTD 4,000 118,400 0.03CHINA RESOURCES LAND LTD 10,528 264,253 0.08CHINA RESOURCES POWER

HOLDINGS CO LTD 11,136 165,926 0.05CHINA SHENHUA ENERGY CO LTD H

SHARES 15,009 292,075 0.08

191



HoldingsMarket

value

% of net

asset value

HKD


CHINA SOUTH CITY HOLDINGS LTD 28,000 47,600 0.01CHINA SOUTHERN AIRLINES CO LTD

H SHARES 16,000 95,360 0.03CHINA STATE CONSTRUCTION

INTERNATIONAL HOLDINGS LTD 12,947 163,391 0.05CHINA TAIPING INSURANCE

HOLDINGS CO LTD 10,154 238,619 0.07CHINA TELECOM CORP LTD H

SHARES 72,272 268,852 0.08CHINA TRAVEL INTERNATIONAL

INVESTMENT HONG KONG LTD 50,000 116,000 0.03CHINA UNICOM HONG KONG LTD 22,129 250,943 0.07CHINA VANKE CO LTD H SHARES 7,042 162,318 0.05CHINA ZHONGWANG HOLDINGS LTD 29,200 113,588 0.03CHONGQING RURAL COMMERCIAL

BANK CO LTD H SHARES 31,000 178,560 0.05CHOW TAI FOOK JEWELLERY GROUP

LTD 5,400 43,794 0.01CITIC LTD 25,071 297,844 0.09CK HUTCHISON HOLDINGS LTD 11,635 1,197,242 0.35CK INFRASTRUCTURE HOLDINGS

LTD 2,766 201,503 0.06CLP HOLDINGS LTD 6,944 578,088 0.17CNOOC LTD 69,172 604,563 0.17COSCO PACIFIC LTD 18,016 172,233 0.05COSCO SHIPPING ENERGY

TRANSPORTATION CO LTD 12,000 52,800 0.02COUNTRY GARDEN HOLDINGS CO

LTD 39,201 428,075 0.12CRRC CORP LTD H SHARES 19,000 132,620 0.04CSPC PHARMACEUTICAL GROUP

LTD 18,000 219,240 0.06DAH SING BANKING GROUP LTD 4,400 73,656 0.02DAH SING FINANCIAL HOLDINGS LTD 2,000 110,600 0.03DONGFENG MOTOR GROUP CO LTD

H SHARES 20,480 195,994 0.06ENN ENERGY HOLDINGS LTD 1,649 87,480 0.03FIRST PACIFIC CO LTD 20,480 119,808 0.03FOSUN INTERNATIONAL LTD 4,840 57,306 0.02FULLSHARE HOLDINGS LTD 26,870 83,834 0.02

HoldingsMarket

value

% of net

asset value

HKD

GALAXY ENTERTAINMENT GROUP LTD 9,415 455,215 0.13

GCL POLY ENERGY HOLDINGS LTD 136,600 113,378 0.03GEELY AUTOMOBILE HOLDINGS LTD 25,000 451,500 0.13GF SECURITIES CO LTD H SHARES 4,800 75,648 0.02GREAT EAGLE HOLDINGS LTD 1,013 43,407 0.01GREAT WALL MOTOR CO LTD H

SHARES 22,447 224,919 0.07GUANGDONG INVESTMENT LTD 12,000 132,000 0.04GUANGZHOU AUTOMOBILE GROUP

CO LTD 6,000 100,680 0.03GUANGZHOU R&F PROPERTIES CO

LTD H SHARES 5,200 72,592 0.02HAIER ELECTRONICS GROUP CO LTD 11,000 221,650 0.06HAITONG SECURITIES CO LTD H

SHARES 11,485 143,103 0.04HANERGY THIN FILM POWER GROUP

LTD 64,025 – 0.00HANG LUNG PROPERTIES LTD 11,240 218,730 0.06HANG SENG BANK LTD 3,431 583,270 0.17HENDERSON LAND DEVELOPMENT

CO LTD 5,582 252,306 0.07HENGAN INTERNATIONAL GROUP

CO LTD 3,178 189,409 0.05HONG KONG AND CHINA GAS CO

LTD 33,598 496,579 0.14HONG KONG EXCHANGES AND


INFRASTRUCTURE LTD 9,000 43,200 0.01HOPEWELL HOLDINGS LTD 5,500 164,725 0.05HSBC HOLDINGS PLC 77,663 6,092,662 1.76HUANENG RENEWABLES CORP LTD

H SHARES 18,000 42,840 0.01HUATAI SECURITIES CO LTD 6,600 103,620 0.03HYSAN DEVELOPMENT CO LTD 5,000 189,000 0.05INDUSTRIAL AND COMMERCIAL

BANK OF CHINA LTD H SHARES 356,620 1,950,711 0.56JIANGSU EXPRESSWAY CO LTD H

SHARES 12,000 136,080 0.04JIANGXI COPPER CO LTD H SHARES 7,000 99,820 0.03JOHNSON ELECTRIC HOLDINGS LTD 2,000 55,600 0.02KERRY LOGISTICS NETWORK LTD 3,000 33,720 0.01

192



HoldingsMarket

value

% of net

asset value

HKD


KERRY PROPERTIES LTD 3,061 83,871 0.02KINGBOARD CHEMICAL HOLDINGS

LTD 6,000 211,200 0.06KINGBOARD LAMINATES HOLDINGS

LTD 7,500 81,750 0.02KINGSOFT CORP LTD 9,000 185,400 0.05KUNLUN ENERGY CO LTD 14,000 109,060 0.03KWG PROPERTY HOLDING LTD 27,693 160,619 0.05LEE & MAN PAPER MANUFACTURING

LTD 20,000 166,600 0.05LEGEND HOLDINGS CORP 4,900 100,205 0.03LENOVO GROUP LTD 45,194 218,739 0.06LI & FUNG LTD 17,505 50,064 0.01LONGFOR PROPERTIES 7,500 147,150 0.04LUYE PHARMA GROUP LTD 12,000 53,160 0.02MELCO INTERNATIONAL

DEVELOPMENT LTD 3,000 55,500 0.02MGM CHINA HOLDINGS LTD 3,600 55,368 0.02MINTH GROUP LTD 2,000 72,000 0.02MTR CORP LTD 5,408 244,171 0.07NEW WORLD DEVELOPMENT CO

LTD 23,356 246,639 0.07NINE DRAGONS PAPER HOLDINGS

LTD 8,000 93,120 0.03NWS HOLDINGS LTD 7,641 114,309 0.03PEOPLE’S INSURANCE GROUP OF

CHINA CO LTD H SHARES 45,253 164,721 0.05PETROCHINA CO LTD H SHARES 73,103 367,708 0.11PICC PROPERTY AND CASUALTY CO

LTD 26,831 390,659 0.11PING AN INSURANCE (GROUP) CO


CO LTD 39,000 177,840 0.05POWER ASSETS HOLDINGS LTD 5,932 459,137 0.13RED STAR MACALLINE GROUP CORP

LTD 8,600 69,746 0.02SA SA INTERNATIONAL HOLDINGS

LTD 24,666 70,791 0.02SAMSONITE INTERNATIONAL SA 3,144 102,966 0.03SANDS CHINA LTD 10,241 371,236 0.11

HoldingsMarket

value

% of net

asset value

HKD

SHANDONG WEIGAO GROUP MEDICAL POLYMER CO LTD H SHARES 24,000 151,200 0.04

SHANGHAI ELECTRIC GROUP CO LTD 32,000 116,160 0.03

SHANGHAI PHARMACEUTICALS HOLDING CO LTD H SHARES 7,100 146,970 0.04

SHENZHEN EXPRESSWAY CO LTD H SHARES 16,000 111,680 0.03

SHENZHEN INTERNATIONAL HOLDINGS LTD 12,634 169,043 0.05

SHENZHEN INVESTMENT LTD 40,606 145,776 0.04SHENZHOU INTERNATIONAL GROUP

HOLDINGS LTD 3,000 156,750 0.05SHIMAO PROPERTY HOLDINGS LTD 10,710 166,862 0.05SHUI ON LAND LTD 30,616 59,701 0.02SINO BIOPHARMACEUTICAL LTD 8,544 58,954 0.02SINO LAND CO LTD 17,652 227,711 0.07SINO-OCEAN GROUP HOLDINGS LTD 34,117 149,091 0.04SINOPEC ENGINEERING GROUP CO


PETROCHEMICAL CO LTD H SHARES 34,000 150,960 0.04

SINOPHARM GROUP CO LTD H SHARES 5,038 164,995 0.05

SINOTRUK HONG KONG LTD 9,500 77,900 0.02SJM HOLDINGS LTD 16,000 125,120 0.04SUN HUNG KAI PROPERTIES LTD 5,904 714,384 0.21SUNAC CHINA HOLDINGS LTD 14,000 291,200 0.08SUNNY OPTICAL TECHNOLOGY

GROUP CO LTD 2,000 186,000 0.05SWIRE PACIFIC LTD CLASS A 2,524 196,620 0.06SWIRE PROPERTIES LTD 6,000 162,000 0.05TECHTRONIC INDUSTRIES CO LTD 5,857 203,531 0.06TELEVISION BROADCASTS LTD 3,300 94,380 0.03TENCENT HOLDINGS LTD 19,190 6,014,146 1.73THE WHARF (HOLDINGS) LTD 5,944 394,979 0.11WANT WANT CHINA HOLDINGS LTD 36,310 191,717 0.06WEICHAI POWER CO LTD 10,000 75,300 0.02WH GROUP LTD 28,000 205,240 0.06WHEELOCK AND CO LTD 4,649 273,826 0.08WYNN MACAU LTD 6,400 108,416 0.03

193



HoldingsMarket

value

% of net

asset value

HKD


XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO LTD 6,240 55,474 0.02

XINYI GLASS HOLDINGS LTD 20,000 161,600 0.05XINYI SOLAR HOLDINGS LTD 13,200 32,472 0.01YANZHOU COAL MINING CO LTD 10,000 76,900 0.02YUEXIU PROPERTY CO LTD 34,000 49,980 0.01ZHUZHOU CRRC TIMES ELECTRIC CO


SHARES 30,000 84,900 0.02ZTE CORP 1,000 20,100 0.01

58,252,055 16.80

IndiaBAJAJ AUTO LTD 330 113,176 0.03BAJAJ HOLDINGS AND INVESTMENT

LTD 244 71,296 0.02BHARAT PETROLEUM

CORPORATION LTD 915 52,468 0.02CASTROL INDIA LTD 1,973 96,238 0.03CG POWER AND INDUSTRIAL

SOLUTIONS LTD 5,179 53,405 0.02COLGATE-PALMOLIVE (INDIA) LTD 414 54,334 0.02CUMMINS INDIA LTD 820 98,644 0.03DIVI’S LABORATORIES LTD 560 45,918 0.01GAIL (INDIA) LTD 2,155 98,674 0.03GREAT EASTERN SHIPPING

COMPANY LTD 942 45,690 0.01HERO MOTOCORP LTD 332 147,956 0.04HOUSING DEVELOPMENT FINANCE

CORPORATION LTD 1,294 281,357 0.08ICICI BANK LTD 1,980 72,691 0.02ICICI PRUDENTIAL LIFE INSURANCE

COMPANY LTD 224 12,516 0.00INDIAN OIL CORPN LTD 928 41,464 0.01INFOSYS LTD 947 117,196 0.03ITC LTD 2,700 93,848 0.03LARSEN & TOUBRO LTD 315 45,642 0.01MARUTI SUZUKI INDIA LTD 92 86,750 0.02MPHASIS LTD 731 53,585 0.02

HoldingsMarket

value

% of net

asset value

HKD

MRF LTD 7 58,973 0.02NMDC LTD 5,400 83,296 0.02OIL AND NATURAL GAS

CORPORATION LTD 2,800 57,763 0.02OIL INDIA LTD 1,600 56,451 0.02ORACLE FINANCIAL SERVICES

SOFTWARE LTD 111 49,189 0.01RELIANCE INDUSTRIES LTD 1,289 253,678 0.07RURAL ELECTRIFICATION CORP LTD 4,400 93,771 0.03STATE BANK OF INDIA 1,400 53,247 0.02SUN PHARMACEUTICAL INDUSTRIES

LTD 1,000 64,647 0.02TATA MOTORS LTD 940 50,852 0.01TORRENT PHARMACEUTICALS LTD 563 90,336 0.03UNION BANK OF INDIA LTD 5,228 100,883 0.03

2,695,934 0.78

IndonesiaASTRA AGRO LESTARI TBK 6,055 52,263 0.02BANK CENTRAL ASIA TBK 10,500 115,095 0.03BANK MANDIRI (PERSERO) TBK 9,700 77,612 0.02CHAROEN POKPHAND INDONESIA

TBK PT 41,800 65,420 0.02GUDANG GARAM TBK PT 2,700 120,441 0.03PT BANK RAKYAT INDONESIA

(PERSERO) TBK 18,900 163,687 0.05TELEKOMUNIKASI INDONESIA

PERSERO TBK 69,257 190,397 0.06

784,915 0.23

IrelandCRH PLC 395 108,063 0.03GLANBIA PLC 656 105,710 0.03KERRY GROUP PLC-A 88 61,868 0.02

275,641 0.08

ItalyASSICURAZIONI GENERALI SPA 1,167 164,735 0.05BANCA MEDIOLANUM SPA 876 59,610 0.02BUZZI UNICEM SPA 595 66,130 0.02ENEL SPA 2,056 91,328 0.02

194



HoldingsMarket

value

% of net

asset value

HKD


ENI SPA 601 73,991 0.02FIAT CHRYSLER AUTOMOBILES NV 509 47,807 0.01INTESA SANPAOLO SPA 2,800 75,080 0.02ITALGAS SPA 2,367 101,350 0.03PRYSMIAN SPA 534 133,009 0.04SALVATORE FERRAGAMO SPA 251 56,649 0.02STMICROELECTRONICS NV 1,053 139,916 0.04

1,009,605 0.29

JapanABC-MART INC 200 88,920 0.03AISIN SEIKI CO LTD 200 81,286 0.02ALFRESA HOLDINGS CORP 536 76,985 0.02AMADA HOLDINGS CO LTD 1,400 124,784 0.04ANA HOLDINGS INC 5,000 133,768 0.04ASAHI GROUP HOLDINGS LTD 517 164,408 0.05ASTELLAS PHARMA INC 1,640 163,216 0.05AZBIL CORP 400 123,130 0.04BRIDGESTONE CORP 519 170,840 0.05CANON INC 526 142,657 0.04CENTRAL JAPAN RAILWAY CO 142 178,157 0.05CHUBU ELECTRIC POWER CO INC 1,200 122,904 0.04CHUGAI PHARMACEUTICAL CO LTD 188 58,934 0.02CITIZEN HOLDINGS CO LTD 2,200 127,668 0.04COCA-COLA WEST CO LTD 500 117,688 0.03COLOPL INC 500 43,718 0.01CONCORDIA FINANCIAL GROUP LTD 1,000 39,356 0.01COOKPAD INC 800 53,437 0.02CYBERAGENT INC 500 120,692 0.03DAI NIPPON PRINTING CO LTD 1,000 86,022 0.02DAICEL CORP 1,000 101,713 0.03DAI-ICHI LIFE INSURANCE CO LTD 1,240 167,494 0.05DAIICHI SANKYO CO LTD 678 115,399 0.03DAIICHIKOSHO CO LTD 200 75,066 0.02DAIKIN INDUSTRIES LTD 129 106,682 0.03DAIKYO INC 5,000 81,639 0.02DAITO TRUST CONSTRUCTION CO

LTD 92 121,213 0.04DAIWA HOUSE INDUSTRY CO LTD 550 149,633 0.04

HoldingsMarket

value

% of net

asset value

HKD

DENA CO LTD 600 102,844 0.03DENKA CO LTD 3,000 130,411 0.04DENSO CORP 451 169,146 0.05DISCO CORP 130 179,825 0.05EAST JAPAN RAILWAY CO 255 186,551 0.05EISAI CO LTD 139 58,154 0.02EXEDY CORP 200 48,842 0.01FANUC CORP 112 178,636 0.05FUJI HEAVY INDUSTRIES LTD 736 207,779 0.06FUJIFILM HOLDINGS CORP 221 63,312 0.02FUJITSU GENERAL LTD 300 49,323 0.01FUKUYAMA TRANSPORTING CO LTD 1,000 49,832 0.01GLORY LTD 200 51,952 0.01GREE INC 800 47,895 0.01GS YUASA CORP 2,000 73,652 0.02GUNGHO ONLINE ENTERTAINMENT

INC 2,000 42,127 0.01HAMAMATSU PHOTONICS KK 500 124,049 0.04HASEKO CORP 1,200 117,221 0.03HEIWA CORP 488 83,785 0.02HINO MOTORS LTD 917 84,326 0.02HIROSE ELECTRIC CO LTD 100 106,308 0.03HITACHI HIGH-TECHNOLOGIES CORP 200 57,536 0.02HITACHI LTD 3,491 187,435 0.05HONDA MOTOR CO LTD 1,366 300,088 0.09HOYA CORP 545 239,840 0.07IIDA GROUP HOLDINGS CO LTD 800 106,590 0.03INPEX CORP 800 60,675 0.02ITOCHU CORP 1,300 159,013 0.05JAFCO CO LTD 240 89,570 0.03JAPAN AIRLINES CO LTD 440 110,967 0.03JAPAN AVIATION ELECTRONICS

INDUSTRY LTD 500 61,565 0.02JAPAN EXCHANGE GROUP INC 874 122,381 0.04JAPAN PETROLEUM EXPLORATION

CO LTD 600 97,076 0.03JAPAN TOBACCO INC 724 196,204 0.06JTEKT CORP 1,000 111,326 0.03JX HOLDINGS INC 2,550 88,355 0.03KAKAKU.COM INC 688 75,717 0.02KAKEN PHARMACEUTICAL CO LTD 200 83,124 0.02KAMIGUMI CO LTD 1,000 83,548 0.02KANEKA CORP 1,000 62,625 0.02KANSAI ELECTRIC POWER CO INC 600 62,809 0.02

195



HoldingsMarket

value

% of net

asset value

HKD


KAO CORP 462 219,250 0.06KDDI CORP 1,469 303,195 0.09KEIYO BANK LTD 2,000 66,018 0.02KEYENCE CORP 96 346,201 0.10KIRIN HOLDINGS CO LTD 400 68,718 0.02KISSEI PHARMACEUTICAL CO LTD 500 100,900 0.03KOEI TECMO HOLDINGS CO LTD 600 96,737 0.03KOMATSU LTD 434 90,941 0.03KOMERI CO LTD 500 114,154 0.03KONAMI HOLDINGS CORP 400 162,572 0.05K’S HOLDINGS CORP 700 109,644 0.03KUBOTA CORP 1,061 143,953 0.04KURARAY CO LTD 1,011 153,641 0.04KURITA WATER INDUSTRIES LTD 300 66,584 0.02KYOCERA CORP 300 142,328 0.04KYORIN HOLDINGS INC 488 81,370 0.02KYUDENKO CORP 300 88,213 0.03KYUSHU FINANCIAL GROUP INC 2,100 102,865 0.03LAWSON INC 184 97,673 0.03LEOPALACE21 CORP 1,400 77,879 0.02MAEDA ROAD CONSTRUCTION CO

LTD 600 96,483 0.03MARUBENI CORP 1,300 67,198 0.02MARUICHI STEEL TUBE LTD 400 96,271 0.03MAZDA MOTOR CORP 1,168 137,418 0.04MEBUKI FINANCIAL GROUP INC 3,600 108,145 0.03MEIJI HOLDINGS CO LTD 148 91,953 0.03MIRACA HOLDINGS INC 100 35,624 0.01MITSUBISHI CORP 710 120,269 0.03MITSUBISHI ELECTRIC CORP 1,733 209,526 0.06MITSUBISHI ESTATE CO LTD 634 89,895 0.03MITSUBISHI SHOKUHIN CO LTD 300 67,644 0.02MITSUBISHI UFJ FINANCIAL GROUP

INC 9,976 493,596 0.14MITSUI ENGINEERING &

SHIPBUILDING CO LTD 4,000 43,541 0.01MITSUI FUDOSAN CO LTD 450 80,616 0.02MIZUHO FINANCIAL GROUP INC 19,336 268,426 0.08MOCHIDA PHARMACEUTICAL CO

LTD 170 92,404 0.03

HoldingsMarket

value

% of net

asset value

HKD

MS&AD INSURANCE GROUP HOLDINGS INC 751 205,538 0.06

MURATA MANUFACTURING CO LTD 96 116,577 0.03NEXON CO LTD 794 128,801 0.04NHK SPRING CO LTD 723 60,967 0.02NIHON KOHDEN CORP 500 93,267 0.03NINTENDO CO LTD 34 90,073 0.03NIPPO CORP 300 47,563 0.01NIPPON ELECTRIC GLASS CO LTD 200 55,274 0.02NIPPON KAYAKU CO LTD 1,000 109,347 0.03NIPPON PAPER INDUSTRIES CO LTD 700 108,803 0.03NIPPON SHOKUBAI CO LTD 200 102,208 0.03NIPPON TELEGRAPH AND

TELEPHONE CORP 594 226,304 0.07NIPRO CORP 900 95,295 0.03NISSAN MOTOR CO LTD 1,601 124,028 0.04NISSHIN STEEL CO LTD 500 47,782 0.01NITORI HOLDINGS CO LTD 54 59,391 0.02NITTO DENKO CORP 100 69,680 0.02NOMURA HOLDINGS INC 2,950 136,953 0.04NORTH PACIFIC BANK LTD 4,035 105,527 0.03NTT DOCOMO INC 1,024 185,509 0.05OBIC BUSINESS CONSULTANTS CO

LTD 100 39,583 0.01OLYMPUS CORP 529 149,940 0.04OMRON CORP 200 77,893 0.02ORACLE CORP JAPAN 259 135,655 0.04ORIENTAL LAND CO LTD 208 117,529 0.03ORIX CORP 1,759 217,767 0.06OSAKA GAS CO LTD 4,105 128,103 0.04OTSUKA HOLDINGS CO LTD 322 110,614 0.03PANASONIC CORP 903 97,081 0.03RESONA HOLDINGS INC 4,100 164,723 0.05ROHM CO LTD 300 181,303 0.05ROHTO PHARMACEUTICAL CO LTD 700 110,386 0.03SANKYO CO LTD 300 76,762 0.02SAWAI PHARMACEUTICAL CO LTD 239 105,076 0.03SCREEN HOLDINGS CO LTD 200 104,611 0.03SECOM CO LTD 200 117,009 0.03SEINO HOLDINGS CO LTD 1,200 126,042 0.04SEKISUI HOUSE LTD 603 81,472 0.02SEVEN & I HOLDINGS CO LTD 594 186,627 0.05SHIGA BANK LTD 2,000 82,699 0.02

196



HoldingsMarket

value

% of net

asset value

HKD


SHIMACHU CO LTD 500 97,649 0.03SHIMAMURA CO LTD 70 67,884 0.02SHIMANO INC 57 65,188 0.02SHIN ETSU CHEMICAL CO LTD 230 164,360 0.05SHIONOGI & CO LTD 200 83,350 0.02SKYLARK CO LTD 700 82,431 0.02SMC CORP 66 163,792 0.05SOFTBANK CORP 690 436,895 0.13SONY CORP 696 223,348 0.06SONY FINANCIAL HOLDINGS INC 500 67,538 0.02SQUARE ENIX HOLDINGS CO LTD 400 102,208 0.03START TODAY CO LTD 580 127,704 0.04SUGI HOLDINGS CO LTD 200 79,589 0.02SUMITOMO CORP 1,000 105,424 0.03SUMITOMO ELECTRIC INDUSTRIES

LTD 800 101,077 0.03SUMITOMO FORESTRY CO LTD 894 106,793 0.03SUMITOMO HEAVY INDUSTRIES LTD 2,000 113,941 0.03SUMITOMO MITSUI FINANCIAL

GROUP INC 1,047 310,453 0.09SUMITOMO OSAKA CEMENT CO LTD 3,000 109,630 0.03SUMITOMO REALTY &

DEVELOPMENT CO LTD 270 63,799 0.02SUMITOMO RUBBER INDUSTRIES

LTD 935 126,626 0.04SURUGA BANK LTD 382 71,877 0.02SUZUKEN CO LTD 400 104,187 0.03T&D HOLDINGS INC 1,405 162,074 0.05TADANO LTD 1,200 116,288 0.03TAIYO YUDEN CO LTD 400 52,532 0.02TAKEDA PHARMACEUTICAL CO LTD 469 193,334 0.06TDK CORP 300 168,580 0.05TERUMO CORP 200 59,021 0.02THE 77 BANK LTD 3,441 138,393 0.04THE AWA BANK LTD 1,500 76,868 0.02TOHO GAS CO LTD 1,035 54,648 0.02TOKIO MARINE HOLDINGS INC 668 219,320 0.06TOKYO ELECTRIC POWER CO INC 1,700 56,236 0.02TOKYO ELECTRON LTD 160 176,143 0.05TOKYO GAS CO LTD 3,479 143,880 0.04

HoldingsMarket

value

% of net

asset value

HKD

TOKYU CORP 500 57,359 0.02TOPPAN FORMS CO LTD 600 48,644 0.01TOSOH CORP 500 46,474 0.01TOYO SUISAN KAISHA LTD 300 85,032 0.02TOYOBO CO LTD 1,000 14,843 0.00TOYOTA BOSHOKU CORP 600 97,882 0.03TOYOTA MOTOR CORP 2,143 944,291 0.27UBE INDUSTRIES LTD 7,000 148,435 0.04WEST JAPAN RAILWAY CO 282 157,827 0.05YAMAGUCHI FINANCIAL GROUP INC 1,000 91,818 0.03YAMATO KOGYO CO LTD 500 109,382 0.03ZENKOKU HOSHO CO LTD 300 100,512 0.03ZEON CORP 600 58,653 0.02

23,515,642 6.78

MalaysiaALLIANCE FINANCIAL GROUP BHD 6,900 49,466 0.01AMMB HOLDINGS BHD 1,700 15,350 0.00DIGI.COM BHD 4,300 37,651 0.01MAXIS BHD 7,000 72,146 0.02MISC BHD 7,500 101,104 0.03PETRONAS CHEMICALS GROUP BHD 3,100 39,301 0.01PUBLIC BANK BHD 2,600 96,184 0.03TENAGA NASIONAL BHD 5,379 138,548 0.04WESTPORTS HOLDINGS BHD 12,600 85,732 0.03

635,482 0.18

NetherlandsAEGON NV 2,398 104,643 0.03AKZO NOBEL NV 120 84,442 0.02ASML HOLDING NV 80 94,402 0.03BOSKALIS WESTMINSTER NV 371 103,256 0.03GEMALTO NV 244 96,747 0.03HEINEKEN NV 209 169,684 0.05ING GROEP NV 1,578 229,800 0.07KONINKLIJKE AHOLD DELHIZE NV 725 115,460 0.03KONINKLIJKE DSM NV 92 52,845 0.01KONINKLIJKE VOPAK NV 146 54,132 0.02UNILEVER NV 574 260,574 0.07

1,365,985 0.39

197



HoldingsMarket

value

% of net

asset value

HKD



CORPORATION LTD 821 52,738 0.02

103,192 0.03

NorwayDNB ASA 1,087 166,110 0.05MARINE HARVEST ASA 615 89,057 0.02STATOIL ASA 996 145,115 0.04YARA INTERNATIONAL ASA 417 129,137 0.04

529,419 0.15

PhilippinesGT CAPITAL HOLDINGS INC 535 100,445 0.03MEGAWORLD CORP 77,000 57,206 0.02METROPOLITAN BANK AND TRUST

CO 5,680 76,486 0.02

234,137 0.07


SA 330 50,691 0.02BANK MILLENNIUM SA 4,492 74,929 0.02BANK ZACHODNI WBK SA 120 98,669 0.03POLSKI KONCERN NAFTOWY ORLEN

SA 153 35,204 0.01

259,493 0.08

PortugalEDP ENERGIAS DE PORTUGAL SA 4.735 130,802 0.04

RussiaAK ALROSA PAO 4,200 45,610 0.01GAZPROM PAO 9,790 147,556 0.04

HoldingsMarket

value

% of net

asset value

HKD

MAGNITOGORSKIY METALLURGICHESKIY KOMBINAT OAO 12,500 55,329 0.02

SBERBANK ROSSII PAO 5,930 126,661 0.04SURGUTNEFTEGAZ OAO 12,800 44,234 0.01TRANSNEFT’ PAO 5 117,163 0.03

536,553 0.15

SingaporeCAPITALAND LTD 2,800 59,457 0.02COMFORTDELGRO CORP LTD 6,200 82,417 0.02DBS GROUP HOLDINGS LTD 1,396 173,683 0.05HONG KONG LAND HOLDINGS LTD 6,615 388,514 0.11JARDINE MATHESON HOLDINGS LTD 859 428,096 0.12JARDINE STRATEGIC HOLDINGS LTD 928 295,711 0.09KEPPEL CORP LTD 1,600 59,019 0.02OVERSEA-CHINESE BANKING CORP

LTD 3,645 238,282 0.07SIA ENGINEERING COMPANY LTD 3,200 67,030 0.02SINGAPORE EXCHANGE LTD 2,800 121,975 0.04SINGAPORE TELECOMMUNICATIONS

LTD 5,355 122,339 0.04UNITED OVERSEAS BANK LTD 1,089 150,340 0.04VENTURE CORP LTD 1,900 143,997 0.04YANGZIJIANG SHIPBUILDING


2,458,008 0.71

South KoreaAMOREPACIFIC CORP 1 1,239 0.00DGB FINANCIAL GROUP INC 1,559 130,024 0.04DONGBU INSURANCE CO LTD 225 125,784 0.04HANA FINANCIAL GROUP INC 310 110,342 0.03HANKOOK TIRE CO LTD 270 117,775 0.03HANSSEM CO LTD 42 51,591 0.02HANWHA CHEMICAL CORP 293 68,914 0.02HYOSUNG CORP 137 160,157 0.05HYUNDAI DEVELOPMENT CO

ENGINEERING & CONSTRUCTION 357 106,267 0.03

198



HoldingsMarket

value

% of net

asset value

HKD


HYUNDAI ENGINEERING & CONSTRUCTION CO LTD 260 82,202 0.02

HYUNDAI GLOVIS CO LTD 61 66,840 0.02HYUNDAI HEAVY INDUSTRIES CO

LTD 103 125,442 0.04HYUNDAI MARINE & FIRE

INSURANCE CO LTD 196 62,104 0.02HYUNDAI MOBIS 98 168,256 0.05HYUNDAI MOTOR CO LTD 96 97,151 0.03INDUSTRIAL BANK OF KOREA 993 107,075 0.03KANGWON LAND INC 402 103,810 0.03KB FINANCIAL GROUP INC 522 216,405 0.06KIA MOTORS CORP 557 142,281 0.04KOREAN AIR LINES CO LTD 206 51,183 0.01KT&G CORP 193 153,558 0.04LG DISPLAY CO LTD 519 114,644 0.03LG ELECTRONICS INC 94 44,021 0.01LG ELECTRONICS INC 439 104,939 0.03LG HAUSYS LTD 72 55,276 0.02LOTTE CHEMICAL CORP 48 123,617 0.04LS CORP 113 66,405 0.02NAVER CORP 26 145,713 0.04NHN ENTERTAINMENT CORP 204 109,203 0.03NONGSHIM CO LTD 23 51,287 0.02ORION HOLDINGS CORP 258 49,698 0.01S1 CORP 138 88,801 0.03SAMSUNG ELECTRONICS CO LTD 15 202,154 0.06SAMSUNG ELECTRONICS CO LTD 85 1,429,703 0.41SK HOLDINGS CO LTD 34 64,426 0.02SK HYNIX INC 485 223,406 0.06SK INNOVATION CO LTD 62 76,374 0.02SKC CO LTD 470 118,909 0.03

5,316,976 1.53

SpainACCIONA SA 170 113,099 0.03AMADEUS IT HOLDING SA A SHARES 230 110,257 0.03BANCO BILBAO VIZCAYA

ARGENTARIA SA 3,170 223,332 0.07

HoldingsMarket

value

% of net

asset value

HKD

BANCO SANTANDER SA 7,113 378,184 0.11CORPORACION FINANCIERA ALBA

SA 220 107,266 0.03GRIFOLS SA 400 65,654 0.02INDUSTRIA DE DISENO TEXTIL SA 239 73,923 0.02MEDIASET ESPANA COMUNICACION

SA 496 48,641 0.02REPSOL SA 616 80,319 0.02TELEFONICA SA 1,594 140,320 0.04ZARDOYA OTIS SA 1,346 109,936 0.03

1,450,931 0.42

SwedenAB SKF 861 133,509 0.04ALFA LAVAL AB 882 153,627 0.04ATLAS COPCO AB A SHARES 599 169,224 0.05ELECTROLUX AB 594 158,406 0.05ESSITY AB (PUBL) 315 71,199 0.02GETINGE AB B SHARES 600 81,220 0.02HENNES & MAURITZ AB B SHARES 648 131,701 0.04HUSQVARNA AB 1,200 95,181 0.03ICA GRUPPEN AB 356 111,230 0.03INDUSTRIVARDEN AB 278 56,152 0.02INVESTMENT LATOUR AB 680 67,559 0.02INVESTOR AB B SHARES 448 165,668 0.05NORDEA BANK AB 1,512 148,761 0.04SKANDINAVISKA ENSKILDA

BANKEN-A 1,490 147,171 0.04SKANSKA AB B SHARES 663 117,530 0.03SVENSKA HANDELSBANKEN A

SHARES 142 16,480 0.01SWEDBANK AB A SHARES 550 111,943 0.03SWEDISH MATCH AB 387 106,119 0.03TELEFONAKTIEBOLAGET LM

ERICSSON 1,157 58,592 0.02TELIA CO AB 1,374 50,345 0.01TRELLEBORG AB 310 56,929 0.02VOLVO AB B SHARES 817 108,228 0.03

2,316,774 0.67

199



HoldingsMarket

value

% of net

asset value

HKD


SwitzerlandABB LTD 494 90,772 0.03ADECCO SA 63 37,635 0.01ARYZTA AG 289 72,707 0.02BALOISE HOLDING AG 110 138,371 0.04COMPAGNIE FINANCIERE

RICHEMONT SA 198 131,666 0.04CREDIT SUISSE GROUP AG 514 61,911 0.02EMS CHEMIE HOLDING AG 25 136,193 0.04FLUGHAFEN ZUERICH AG 54 107,836 0.03GEBERIT AG 46 173,220 0.05GIVAUDAN SA 5 77,911 0.02IDORSIA LTD 97 14,212 0.00KUEHNE UND NAGEL

INTERNATIONAL AG 106 144,493 0.04LONZA GROUP AG 115 214,104 0.06NESTLE SA 1,239 819,394 0.24NOVARTIS LTD 965 643,657 0.19ROCHE HOLDING AG 328 650,223 0.19SIKA AG 3 161,853 0.05STRAUMANN HOLDING AG 34 150,407 0.04SULZER AG 119 104,515 0.03SWISS RE AG 202 152,475 0.04SWISSCOM AG 29 110,964 0.03UBS GROUP AG 1,587 216,074 0.06ZURICH INSURANCE GROUP AG 101 241,017 0.07

4,651,610 1.34


DEVELOPMENT CO., LTD 10,000 44,876 0.01CHENG UEI PRECISION INDUSTRY

CO LTD 5,000 52,959 0.02CHINA LIFE INSURANCE CO LTD 6,000 49,584 0.01CHINA MOTOR CORP 10,000 67,508 0.02CTBC FINANCIAL HOLDING CO LTD 31,333 157,225 0.05DELTA ELECTRONICS INC 1,901 78,918 0.02E.SUN FINANCIAL HOLDING CO LTD 26,921 134,041 0.04ETERNAL MATERIALS CO LTD 8,800 77,389 0.02

HoldingsMarket

value

% of net

asset value

HKD

FAR EASTONE TELECOMMUNICATIONS CO LTD 5,000 94,408 0.03

FENG HSIN STEEL CO LTD 3,491 46,683 0.01FORMOSA CHEMICALS & FIBRE


LTD 11,859 360,415 0.10HUA NAN FINANCIAL HOLDINGS CO

LTD 26,798 122,339 0.04LARGAN PRECISION CO LTD 120 171,021 0.05NAN YA PLASTICS CORP 6,000 117,946 0.03NOVATEK MICROELECTRONICS



MANUFACTURING CO 19,246 1,067,788 0.31TRANSCEND INFORMATION INC 2,000 46,299 0.01UNIMICRON TECHNOLOGY CORP 24,000 121,981 0.04UNITED MICROELECTRONICS CORP 17,000 61,120 0.02VANGUARD INTERNATIONAL

SEMICONDUCTOR CORP 3,000 43,919 0.01 3,289,448 0.95

ThailandBANGKOK BANK PCL (FOREIG REG) 2,700 116,918 0.03BANGKOK LIFE ASSURANCE PCL 9,600 94,070 0.03CP ALL PCL 4,800 68,440 0.02DELTA ELECTRONICS THAILAND PCL 7,695 160,287 0.05INDORAMA VENTURES PCL 12,923 112,982 0.03KASIKORNBANK PCL (FOREIGN REG) 2,631 122,267 0.03PTT PCL (FOREIGN REG) 1,756 159,911 0.05

834,875 0.24

TurkeyARCELIK AS 1,032 59,473 0.02FORD OTOMOTIV SANAYI AS 1,200 119,691 0.03TURKIYE SINAI KALKINMA BANKASI AS 16,434 55,731 0.02TURKIYE VAKIFLAR BANKASI TAO 8,096 126,331 0.03

361,226 0.10

200



HoldingsMarket

value

% of net

asset value

HKD


United Kingdom3I GROUP PLC 1,638 157,863 0.05ADMIRAL GROUP PLC 505 107,531 0.03AGGREKO PLC 586 51,196 0.01ANGLO AMERICAN PLC 1,250 161,205 0.05ASHMORE GROUP PLC 1,200 44,481 0.01ASHTEAD GROUP PLC 790 132,507 0.04ASSOCIATED BRITISH FOODS PLC 202 61,648 0.02ASTRAZENECA PLC 536 252,160 0.07AVIVA PLC 2,384 132,308 0.04BAE SYSTEMS PLC 1,491 92,343 0.03BARCLAYS PLC 3,986 83,315 0.02BARRATT DEVELOPMENTS PLC 626 39,673 0.01BELLWAY PLC 392 128,756 0.04BERKELEY GROUP HOLDINGS PLC 235 84,592 0.02BHP BILLITON PLC 1,050 148,980 0.04BOOKER GROUP PLC 5,844 115,833 0.03BP PLC 9,302 426,979 0.12BRITISH AMERICAN TOBACCO PLC 816 396,026 0.11BT GROUP PLC 4,255 137,350 0.04CENTRICA PLC 5,388 110,123 0.03COMPASS GROUP PLC 825 137,358 0.04DIAGEO PLC 1,116 281,355 0.08DIRECT LINE INSURANCE GROUP

PLC 2,829 109,116 0.03FERGUSON PLC 131 61,062 0.02GLAXOSMITHKLINE PLC 2,388 372,386 0.11GLENCORE PLC 5,566 191,503 0.05HALMA PLC 1,086 122,890 0.03HIKMA PHARMACEUTICALS PLC 330 47,978 0.01HOWDEN JOINERY GROUP PLC 2,299 100,581 0.03HSBC HOLDINGS PLC 8,363 651,851 0.19IMI PLC 581 71,967 0.02IMPERIAL TOBACCO GROUP PLC 442 141,993 0.04INCHCAPE PLC 1,277 105,584 0.03INTERCONTINENTAL HOTELS GROUP

PLC 327 144,476 0.04INTERNATIONAL CONSOLIDATED

AIRLINES GROUP SA 1,479 88,021 0.03JOHNSON MATTHEY PLC 361 104,449 0.03

HoldingsMarket

value

% of net

asset value

HKD

KINGFISHER PLC 2,982 90,393 0.03LEGAL & GENERAL GROUP PLC 2,834 78,320 0.02LLOYDS BANKING GROUP PLC 28,599 193,113 0.06LONDON STOCK EXCHANGE GROUP

PLC 149 57,501 0.02MEGGITT PLC 2,288 118,499 0.03NATIONAL GRID PLC 1,745 168,319 0.05OLD MUTUAL PLC 6,670 134,952 0.04PERSIMMON PLC 490 126,334 0.04POLYMETAL INTERNATIONAL PLC 1,077 102,355 0.03PRUDENTIAL PLC 884 168,207 0.05RECKITT BENCKISER GROUP PLC 264 200,310 0.06RELX PLC 550 93,554 0.03RIGHTMOVE PLC 217 94,021 0.03RIO TINTO PLC 896 324,744 0.09ROLLS-ROYCE HOLDINGS PLC 717 65,557 0.02ROYAL DUTCH SHELL PLC A SHARES 1,824 400,595 0.12ROYAL DUTCH SHELL PLC B SHARES 1,664 368,711 0.11ROYAL MAIL PLC 1,643 68,193 0.02SAGE GROUP PLC 1,595 110,690 0.03SHIRE PLC 410 179,881 0.05SKY PLC 565 56,139 0.02SMITH & NEPHEW PLC 1,019 138,496 0.04SSE PLC 600 85,193 0.02STANDARD CHARTERED PLC 680 59,283 0.02TAYLOR WIMPEY PLC 6,049 118,588 0.03TRAVIS PERKINS PLC 732 114,412 0.03UNILEVER PLC 499 222,037 0.06VODAFONE GROUP PLC 10,171 232,491 0.07WILLIAM HILL PLC 2,093 53,984 0.02WPP PLC 855 136,102 0.04

9,958,413 2.87

United States of America3M CO 71 111,553 0.03ABBOTT LABORATORIES 476 182,833 0.05ABBVIE INC 372 203,115 0.06ACCENTURE PLC CLASS A 129 129,787 0.04ACTIVISION BLIZZARD INC 132 63,691 0.02AETNA INC 154 185,598 0.05AFFILIATED MANAGERS GROUP INC 53 76,922 0.02AFLAC INC 238 148,241 0.04

201



HoldingsMarket

value

% of net

asset value

HKD


AIR PRODUCTS AND CHEMICALS INC 42 46,629 0.01

AKAMAI TECHNOLOGIES INC 132 48,599 0.01ALASKA AIR GROUP INC 76 50,590 0.01ALLEGHANY CORP 24 114,967 0.03ALLERGAN PLC 25 49,268 0.01ALLSTATE CORP 143 101,633 0.03ALLY FINANCIAL INC 732 129,434 0.04ALPHABET INC CLASS A 58 428,301 0.12ALPHABET INC CLASS C 59 428,773 0.12ALTRIA GROUP INC 525 266,398 0.08AMAZON.COM INC 63 486,027 0.14AMDOCS LTD 217 113,840 0.03AMEREN CORP 270 118,300 0.03AMERICAN AIRLINES GROUP INC 365 143,790 0.04AMERICAN ELECTRIC POWER CO

INC 109 60,051 0.02AMERICAN EXPRESS CO 277 184,388 0.05AMERICAN INTERNATIONAL GROUP

INC 149 76,165 0.02AMGEN INC 180 245,331 0.07ANALOG DEVICES INC 1 617 0.00ANTHEM INC 109 158,522 0.05APPLE INC 955 1,109,331 0.32APPLIED MATERIALS INC 230 79,596 0.02ARROW ELECTRONICS INC 144 91,424 0.03ASHLAND GLOBAL HOLDINGS INC 30 15,223 0.00ASSURANT INC 71 58,374 0.02AT&T INC 944 287,538 0.08AUTOLIV INC 121 102,432 0.03AVANGRID INC 257 91,167 0.03AVNET INC 218 65,346 0.02AXIS CAPITAL HOLDINGS LTD 99 49,934 0.01BANK OF AMERICA CORP 1,234 232,462 0.07BAXTER INTERNATIONAL INC 316 149,265 0.04BB&T CORP 176 65,045 0.02BECTON DICKINSON & CO 45 70,783 0.02BED BATH & BEYOND INC 246 57,447 0.02BERKSHIRE HATHAWAY INC CLASS B 368 502,887 0.15BIOGEN IDEC INC 76 171,892 0.05

HoldingsMarket

value

% of net

asset value

HKD

BIOVERATIV INC 22 10,648 0.00BLACKROCK INC 24 79,950 0.02BOEING CO 106 200,727 0.06BRISTOL MYERS SQUIBB CO 140 62,216 0.02BROADCOM LTD 60 115,587 0.03C.R. BARD INC 21 52,583 0.02CA INC 393 95,274 0.03CAMPBELL SOUP CO 94 38,785 0.01CAPITAL ONE FINANCIAL CORP 105 70,673 0.02CARS.COM INC 67 12,716 0.00CELGENE CORP 153 161,809 0.05CENTERPOINT ENERGY INC 489 107,662 0.03CENTURYLINK INC 503 91,416 0.03CHECK POINT SOFTWARE

TECHNOLOGIES LTD 147 121,445 0.04CHEVRON CORP 331 282,274 0.08CHUBB LTD 99 113,244 0.03CINCINNATI FINANCIAL CORP 85 50,560 0.01CISCO SYSTEMS INC 742 182,257 0.05CITIGROUP INC 410 219,188 0.06CNA FINANCIAL CORP 272 110,361 0.03COCA COLA CO 519 185,811 0.05COLGATE PALMOLIVE CO 184 103,756 0.03COMCAST CORP CLASS A 680 214,826 0.06CORE LABORATORIES NV 88 69,094 0.02CORNING INC 218 49,614 0.01COSTCO WHOLESALE CORP 39 48,281 0.01CUMMINS INC 94 123,264 0.04CVS HEALTH CORP 82 51,190 0.01D.R. HORTON INC 226 62,996 0.02DARDEN RESTAURANTS INC 190 124,472 0.04DELTA AIR LINES INC 213 82,113 0.02DENTSPLY SIRONA INC 232 112,396 0.03DISCOVER FINANCIAL SERVICES 85 40,456 0.01DISCOVERY COMMUNICATIONS INC

CLASS C 37 6,684 0.00DOVER CORP 194 127,274 0.04DOW CHEMICAL CO 303 152,022 0.04DR PEPPER SNAPPLE GROUP INC 154 109,644 0.03DXC TECHNOLOGY CO 66 40,403 0.01E.I. DU PONT DE NEMOURS AND CO 126 80,901 0.02EASTMAN CHEMICAL CO 161 104,568 0.03EBAY INC 534 149,016 0.04

202



HoldingsMarket

value

% of net

asset value

HKD


EMERSON ELECTRIC CO 123 57,264 0.02EOG RESOURCES INC 81 60,188 0.02EVEREST RE GROUP LTD 30 61,479 0.02EXELON CORP 503 150,619 0.04EXPEDITORS INTERNATIONAL OF

WASHINGTON INC 196 90,133 0.03EXPRESS SCRIPTS HOLDINGS CO 138 67,513 0.02EXXON MOBIL CORP 822 513,852 0.15F5 NETWORKS INC 96 90,535 0.03FACEBOOK INC CLASS A 381 503,632 0.15FASTENAL CO 263 88,243 0.03FIDELITY NATIONAL FINANCIAL INC 375 143,101 0.04FIRSTENERGY CORP 322 80,249 0.02FLEX LTD 994 124,135 0.04FLUOR CORP 184 62,412 0.02FOOT LOCKER INC 187 68,921 0.02FORD MOTOR CO 1,564 137,053 0.04FORTIVE CORP 236 119,328 0.03FRANKLIN RESOURCES INC 247 86,385 0.03FRONTIER COMMUNICATIONS CORP 126 15,066 0.00GAP INC 629 117,067 0.03GARMIN LTD 131 51,351 0.01GENERAL ELECTRIC CO 1,266 253,223 0.07GENERAL MILLS INC 119 51,731 0.02GENERAL MOTORS CO 553 155,398 0.04GENTEX CORP 577 76,700 0.02GENUINE PARTS CO 150 99,497 0.03GILEAD SCIENCES INC 353 209,779 0.06GOODYEAR TIRE & RUBBER CO 396 97,455 0.03H&R BLOCK INC 324 77,180 0.02HARTFORD FINANCIAL SERVICES

GROUP INC 364 156,359 0.05HCA HOLDINGS INC 56 35,138 0.01HELMERICH AND PAYNE INC 193 76,303 0.02HERBALIFE LTD 44 22,856 0.01HEWLETT PACKARD ENTERPRISE CO 825 112,823 0.03HOLOGIC INC 357 123,267 0.04HONEYWELL INTERNATIONAL INC 160 170,099 0.05ILLINOIS TOOL WORKS INC 105 115,391 0.03INGERSOLL-RAND PLC 184 126,290 0.04

HoldingsMarket

value

% of net

asset value

HKD

INGREDION INC 100 96,315 0.03INTEL CORP 1,239 343,235 0.10INTERNATIONAL BUSINESS

MACHINES CORP 150 169,484 0.05INTERNATIONAL FLAVORS &


TECHNOLOGY PLC 296 44,017 0.01INTERPUBLIC GROUP OF COS INC 517 87,258 0.03INTUITIVE SURGICAL INC 20 146,559 0.04J B HUNT TRANSPORT SERVICES INC 140 99,184 0.03JABIL CIRCUIT INC 390 92,902 0.03JACOBS ENGINEERING GROUP INC 222 91,409 0.03JOHNSON & JOHNSON 520 539,013 0.16JPMORGAN CHASE & CO 593 425,164 0.12JUNIPER NETWORKS INC 400 87,317 0.03KEYSIGHT TECHNOLOGIES INC 272 88,352 0.03KIMBERLY CLARK CORP 50 48,095 0.01KINDER MORGAN INC 362 57,761 0.02KLA-TENCOR CORP 85 61,494 0.02KRAFT HEINZ CO 219 149,594 0.04L BRANDS INC 159 57,608 0.02LAM RESEARCH CORP 140 174,357 0.05LEGGETT & PLATT INC 245 92,192 0.03LEVEL 3 COMMUNICATIONS INC 231 105,867 0.03LIBERTY GLOBAL PLC SERIES C 103 26,362 0.01LKQ CORP 190 51,285 0.01LOWE’S COMPANIES INC 95 57,428 0.02LYONDELLBASELL INDUSTRIES NV 162 113,986 0.03MALLINCKRODT PLC 124 44,355 0.01MARATHON PETROLEUM CORP 306 133,811 0.04MARRIOTT INTERNATIONAL INC

CLASS A 168 136,708 0.04MARVELL TECHNOLOGY GROUP LTD 1,101 133,800 0.04MASTERCARD INC CLASS A 101 100,812 0.03MAXIM INTEGRATED PRODUCTS INC 344 122,083 0.04MCDONALD’S CORP 182 220,523 0.06MCKESSON CORP 50 63,211 0.02MDU RESOURCES GROUP INC 453 93,226 0.03MEDTRONIC PLC 264 173,136 0.05MERCK & CO INC 376 187,591 0.05METLIFE INC 161 69,159 0.02MICHAEL KORS HOLDINGS LTD 289 82,250 0.02

203



HoldingsMarket

value

% of net

asset value

HKD


MICRON TECHNOLOGY INC 204 44,803 0.01MICROSOFT CORP 1,278 725,646 0.21MONSANTO CO 94 85,764 0.02MOODY’S CORP 116 119,254 0.03MOSAIC CO 269 50,716 0.01NEWS CORP 500 57,405 0.02NORTHROP GRUMMAN CORP 34 69,873 0.02NVR INC 7 142,716 0.04NXP SEMICONDUCTORS NV 69 59,457 0.02OCCIDENTAL PETROLEUM CORP 163 78,840 0.02OLD REPUBLIC INTERNATIONAL

CORP 347 53,173 0.02ORACLE CORP 574 223,837 0.06PAYCHEX INC 253 114,310 0.03PEPSICO INC 258 234,971 0.07PFIZER INC 747 193,461 0.06PG&E CORP 98 51,810 0.02PHILIP MORRIS INTERNATIONAL INC 259 236,084 0.07PHILLIPS 66 225 147,173 0.04PINNACLE WEST CAPITAL CORP 137 92,800 0.03PNC FINANCIAL SERVICES GROUP

INC 96 96,571 0.03PPL CORP 244 73,045 0.02PRAXAIR INC 56 56,928 0.02PRICELINE GROUP INC 8 126,743 0.04PRINCIPAL FINANCIAL GROUP INC 102 53,175 0.02PROCTER & GAMBLE CO 461 326,996 0.09PRUDENTIAL FINANCIAL INC 99 87,550 0.03PUBLIC SERVICE ENTERPRISE

GROUP 298 104,664 0.03PULTEGROUP INC 625 119,202 0.03QIAGEN NV 551 142,698 0.04QORVO INC 232 124,228 0.04QUALCOMM INC 162 67,298 0.02RAYTHEON CO 56 75,127 0.02RENAISSANCERE HOLDINGS LTD 31 35,569 0.01ROBERT HALF INTERNATIONAL INC 139 49,124 0.01ROCKWELL COLLINS INC 135 112,322 0.03ROSS STORES INC 253 109,311 0.03SAFEWAY PDC LLC CVR (CASA LEY) 93 – 0.00

HoldingsMarket

value

% of net

asset value

HKD

SAFEWAY PDC LLC CVR (PDC) 93 – 0.00SANTANDER CONSUMER USA

HOLDINGS INC 1,145 114,555 0.03SCANA CORP 198 99,542 0.03SCHLUMBERGER LTD 198 106,084 0.03SKYWORKS SOLUTIONS INC 190 155,620 0.05SNAP-ON INC 80 96,346 0.03SOUTHERN CO 350 131,019 0.04SOUTHWEST AIRLINES CO 170 73,702 0.02STANLEY BLACK & DECKER INC 116 127,462 0.04STAPLES INC 823 65,242 0.02STARBUCKS CORP 379 159,783 0.05STRYKER CORP 142 163,140 0.05SUNTRUST BANKS INC 295 131,996 0.04SYMANTEC CORP 679 164,343 0.05SYNCHRONY FINANCIAL 558 132,136 0.04T. ROWE PRICE GROUP INC 196 126,627 0.04TE CONNECTIVITY LTD 231 145,035 0.04TECHNIPFMC PLC 229 51,044 0.01TEGNA INC 809 93,702 0.03TESORO CORP 129 100,277 0.03TEXAS INSTRUMENTS INC 309 196,397 0.06THE HOME DEPOT INC 185 216,154 0.06THE PROGRESSIVE CORP 424 156,071 0.05THE TRAVELERS COS INC 146 146,059 0.04THE WALT DISNEY CO 283 242,975 0.07THERMO FISHER SCIENTIFIC INC 88 120,641 0.04TIFFANY & CO 200 149,189 0.04TIME WARNER INC 179 143,185 0.04TJX COS INC 251 137,832 0.04TORCHMARK CORP 85 52,425 0.02TRANSOCEAN LTD 637 43,034 0.01TWENTY-FIRST CENTURY FOX INC

CLASS B 80 17,926 0.01TYSON FOODS INC CLASS A 124 61,362 0.02U.S. BANCORP 340 140,155 0.04UNION PACIFIC CORP 187 150,373 0.04UNITED CONTINENTAL HOLDINGS

INC 117 61,845 0.02UNITED PARCEL SERVICE INC CLASS

B 146 125,762 0.04UNITED RENTALS INC 166 154,230 0.04UNITEDHEALTH GROUP INC 152 227,706 0.07

204



HoldingsMarket

value

% of net

asset value

HKD


UNIVERSAL HEALTH SERVICES INC CLASS B 98 84,829 0.02

UNUM GROUP 131 51,289 0.01VALERO ENERGY CORP 271 145,979 0.04VARIAN MEDICAL SYSTEMS INC 115 87,230 0.03VERISIGN INC 152 120,103 0.03VERIZON COMMUNICATIONS INC 665 251,377 0.07VISA INC CLASS A 287 223,165 0.06VOYA FINANCIAL INC 375 114,926 0.03W W GRAINGER INC 26 33,859 0.01W. R. BERKLEY CORP 185 99,653 0.03WALGREENS BOOTS ALLIANCE INC 146 91,987 0.03WAL-MART STORES INC 295 184,296 0.05WATERS CORP 76 102,949 0.03WELLS FARGO & CO 872 367,356 0.11WESTERN UNION CO 545 84,067 0.02WYNDHAM WORLDWIDE CORP 188 153,247 0.04XEROX CORP 152 36,410 0.01XILINX INC 269 132,905 0.04YANDEX NV 295 66,770 0.02YUM BRANDS INC 100 58,951 0.02YUM CHINA HOLDINGS INC 319 89,169 0.03ZIMMER BIOMET HOLDINGS INC 89 84,330 0.02

33,312,496 9.61

Equities (Total) 177,517,492 51.20

Debt securities


AUSTRALIA (GOVERNMENT OF) 3.25% 21 APRIL 2025 205,000 1,344,729 0.39

AUSTRALIA (GOVERNMENT OF) 5.25% 15 MARCH 2019 172,000 1,133,751 0.33

AUSTRIA (REPUBLIC OF) 4.65% 15 JANUARY 2018 214,000 2,018,235 0.58

BELGIUM (KINGDOM OF) 4% 28 MARCH 2019 375,000 3,716,393 1.07

HoldingsMarket

value

% of net

asset value

HKD

BELGIUM (KINGDOM OF) 4% 28 MARCH 2022 128,000 1,409,542 0.41

CANADA (GOVERNMENT OF) 0.75% 1 MAY 2019 120,000 742,475 0.22


DENMARK (KINGDOM OF) 1.5% 15 NOVEMBER 2023 581,000 784,523 0.23

EUROPEAN INVESTMENT BANK 2.15% 18 JANUARY 2027 4,800,000 412,510 0.12

FRANCE (GOVERNMENT OF) 4.5% 25 APRIL 2041 75,000 1,088,613 0.31

FRANCE (GOVERNMENT OF) 5.75% 25 OCTOBER 2032 96,000 1,446,304 0.42

FRANCE (GOVERNMENT OF) OAT 4% 25 APRIL 2018 86,000 818,431 0.24

FRANCE (GOVERNMENT OF) OAT 4.25% 25 OCTOBER 2023 597,000 6,907,767 1.99

GERMANY (REPUBLIC OF) 0% 15 AUGUST 2026 125,000 1,110,102 0.32


GERMANY (REPUBLIC OF) 4% 4 JANUARY 2018 180,000 1,690,901 0.49


ITALY (REPUBLIC OF) 0.7% 1 MAY 2020 310,000 2,899,548 0.84

ITALY (REPUBLIC OF) 4% 1 FEBRUARY 2037 275,000 2,978,174 0.86


ITALY (REPUBLIC OF) 5% 1 MARCH 2022 335,000 3,675,833 1.06



JAPAN GOVERNMENT 20 YEAR BOND #150 1.4% 20 SEPTEMBER 2034 250,000 20,468 0.01


205



HoldingsMarket

value

% of net

asset value

HKD







NORWAY (GOVERNMENT OF) 4.5% 22 MAY 2019 288,000 304,502 0.09

POLAND (GOVERNMENT OF) 5.25% 25 OCTOBER 2020 285,000 675,170 0.19

SOUTH AFRICA (REPUBLIC OF) 10.5% 21 DECEMBER 2026 440,000 291,490 0.08




SWEDEN (GOVERNMENT OF) 4.25% 12 MARCH 2019 460,000 479,791 0.14

SWITZERLAND (GOVERNMENT OF) 3% 8 JANUARY 2018 28,000 230,547 0.07

UK TREASURY 4.25% 7 MARCH 2036 356,000 5,113,453 1.47UNITED KINGDOM OF GREAT

BRITAIN AND NORTHERN IRELAND (GOVERNMENT) 4.25% 7 DECEMBER 2027 210,000 2,795,401 0.81

UNITED STATES TREASURY 1.75% 15 MAY 2022 316,000 2,460,681 0.71

UNITED STATES TREASURY 4.25% 15 NOVEMBER 2017 700,000 5,516,010 1.59


HoldingsMarket

value

% of net

asset value

HKD

US TREASURY NOTES 2% 31 OCTOBER 2021 690,000 5,443,525 1.57

US TREASURY NOTES 2.125% 31 AUGUST 2020 640,000 5,086,555 1.47

US TREASURY NOTES 2.5% 15 MAY 2024 574,800 4,607,118 1.33

US TREASURY NOTES 3% 15 NOVEMBER 2044 474,000 3,781,257 1.09

US TREASURY NOTES 4% 15 AUGUST 2018 378,000 3,035,845 0.87

US TREASURY NOTES 4.5% 15 MAY 2038 511,000 5,129,665 1.48

134,463,450 38.79

Certificates of depositUnlisted but quoted investments

BANK OF CHINA LTD (TOKYO BRANCH) 0% CD 29 SEPTEMBER 2017 1,000,000 7,774,981 2.24

CHINA CONSTRUCTION BANK CORP (HONG KONG BRANCH) 1.76% CD 29 SEPTEMBER 2017 900,000 7,029,135 2.03

14,804,116 4.27

Debt securities (Total) 149,267,566 43.06


AGNC INVESTMENT CORP 640 105,868 0.03AMERICAN TOWER CORP 123 130,965 0.04DUKE REALTY CORP 531 118,568 0.03GGP INC 79 13,950 0.00HOSPITALITY PROPERTIES TRUST 380 86,246 0.02IRON MOUNTAIN INC 288 81,943 0.02KIMCO REALTY CORP 448 70,609 0.02LINK REIT 6,822 433,197 0.13PUBLIC STORAGE 77 123,626 0.04SIMON PROPERTY GROUP INC 81 100,271 0.03WEYERHAEUSER CO 351 90,520 0.03

1,355,763 0.39

206



HoldingsMarket

value

% of net

asset value

HKD


HSBC INDEX TRACKER INVESTMENT FUND – JAPAN INDEX FUND CLASS INSTITUTIONAL ACCUMULATION 574,869 7,144,407 2.06

Unit trusts (Total) 8,500,170 2.45

Derivative assets

Foreign currency forward contracts 222,490 0.06

Total financial assets 335,507,718 96.77


Foreign currency forward contracts (786,210) (0.23)

Total financial liabilities (786,210) (0.23)

Total investments (Total cost of investments: $302,999,005) 334,721,508 96.54


Total net assets 346,706,851 100.00

207



% ofnet asset

value

% ofnet asset

value2017 2016

Financial assets

Equities


51.20 50.29

208


% ofnet asset

value

% ofnet asset

value2017 2016

BondsListed investments 38.79 31.22Unlisted but quoted investments – 0.60

38.79 31.82



2.45 9.66

Rights – 0.00

Derivative assetsForeign currency forward contracts 0.06 –







209



(a) Price record (Dealing net asset value per unit)



HKD HKD HKD HKD

2007 13.81 16.65 13.81 16.652008 15.45 18.09 15.45 18.092009 11.46 16.17 11.46 16.172010 14.98 16.69 14.98 16.692011 15.83 18.15 15.83 18.152012 15.57 17.94 15.57 17.942013 16.56 18.65 16.56 18.652014 17.72 19.35 17.72 19.352015 18.26 19.57 18.26 19.572016 16.82 18.70 16.82 18.702017 18.14 20.58 18.14 20.58


2017 2016 2015 2014HKD HKD HKD HKD

Total net asset value 346,706,851 343,524,802 362,266,836 434,939,367


2017 2016 2015 2014HKD HKD HKD HKD

Net asset value per unit– Provident class units 20.58 18.70 18.62 19.25



Total expenses

Total expense ratio

HKD HKD %

Provident class 329,415,904 4,559,118 1.38%

210


HSBC Global Money Funds

Market review

HSBC Global Money Funds – Hong Kong Dollar

The Fed hiked policy rates by 25bp in December 2016, by 25bp in March 2017 and by another 25bp in June 2017. Liquidity conditions in Hong Kong have tightened over the 1-year period. 3M and 6M HIBOR levels have increased. For the rest of 2017, we expect HKD rates at the short-end to largely mirror movements in US short-end rates though the pace of pass-through would depend on the state of liquidity in HKD.

The Fund Manager will endeavor to extend WAM (via solid issuers) if sufficiently compensated from a term premium standpoint. The Fund Manager will monitor market levels and expectations around further Fed hikes in order to benefit from any uptick in short-term rates.

HSBC Global Money Funds – US Dollar

The Fed hiked policy rates by 25bp in December 2016, by 25bp in March 2017 and by another 25bp in June 2017. The July FOMC meeting signaled that balance sheet reduction would commence “relatively soon”.

3 Month US T-bill yields increased by 82bp to 107bp and 6 Month US T-bill yields increased by 76bp to 113bp.

We maintain liquidity in the front-end buckets primarily via US T-bill positions and overnight deposits. We would look to extend WAM only if compensated in yield terms, given expectations of further rate hikes as well as the prospect of Fed balance sheet unwinding.


211

HSBC Global Money Funds (“the Fund”)

We hereby confirm that, to the best of our knowledge, the Manager of the sub-funds of the Fund (“the sub-funds”) has, in all material respects, managed the sub-funds in accordance with the provisions of the Trust Deed dated 12 February 1991, as amended, for the year ended 31 July 2017.


Trustee’s Report

212

Report on the Audit of Financial Statements

Opinion

We have audited the financial statements of Hong Kong Dollar sub-fund and US Dollar sub-fund (“the sub-funds”), sub-funds of HSBC Global Money Funds set out on pages 214 to 230, which comprise the statements of financial position as at 31 July 2017, the statements of comprehensive income, statements of changes in net assets attributable to unitholders/statements of changes in equity and cash flow statements for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the financial statements give a true and fair view of the financial disposition of the sub-funds at 31 July 2017, and of their financial transactions and cash flows for the year then ended in accordance with Hong Kong Financial Reporting Standards (“HKFRSs”) issued by the Hong Kong Institute of Certified Public Accountants (“HKICPA”).

Basis for Opinion

We conducted our audit in accordance with Hong Kong Standards on Auditing (“HKSAs”) issued by the HKICPA. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the sub-funds in accordance with the HKICPA’s Code of Ethics for Professional Accountants (“the Code”) together with the ethical requirements that are relevant to our audit of the financial statements in Cayman Islands, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


The Manager and the Trustee of the sub-funds are responsible for the other information. The other information comprises the information included in the annual report, but does not include the financial statements and our auditors’ report thereon.


In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Manager and the Trustee of the Sub-Funds for the Financial Statements

The Manager and the Trustee of the sub-funds are responsible for the preparation and fair presentation of financial statements in accordance with HKFRSs issued by the HKICPA and for such internal control as the Manager and the Trustee determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Manager and the Trustee of the sub-funds are responsible for assessing the sub-funds’ ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Manager and the Trustee of the sub-funds either intend to liquidate the sub-funds or to cease operations, or have no realistic alternative but to do so.

In addition, the Manager and the Trustee of the sub-funds are required to ensure that the financial statements have been properly prepared in accordance with the relevant provisions of the Trust Deed as amended (“the Trust Deed”) and the relevant disclosure provisions of Appendix E of the Code on Unit Trusts and Mutual Funds (“the SFC Code”) issued by the Hong Kong Securities and Futures Commission.


Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. This report is made solely to you, as a body, in accordance with our agreed terms of engagement, and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report.


213

Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with HKSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. In addition, we are required to assess whether the financial statements of the sub-funds have been properly prepared, in all material respects, in accordance with the relevant provisions of the Trust Deed and the relevant disclosure provisions of Appendix E of the SFC Code.


• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control.

• Obtain an understanding of internal control relevant to the audit 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 sub-funds’ internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Manager and the Trustee of the sub-funds.

• Conclude on the appropriateness of the Manager’s and the Trustee’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the sub-funds’ ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion.


Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the sub-funds to cease to continue as a going concern.


We communicate with the Manager and the Trustee of the sub-funds regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.




27 November 2017


214


HSBC Global Money Fundsas at 31 July 2017

2017 2016

HK Dollarsub-fund

US Dollarsub-fund

HK Dollarsub-fund

US Dollarsub-fund

Note HKD USD HKD USD

ASSETSFinancial assets at fair value through profit or loss 5 1,923,228,292 144,322,804 1,278,963,063 117,967,432Interest receivable 793,167 122,492 641,731 –Cash and cash equivalents 7(b), 12 2,108,180,796 26,742,677 1,863,104,421 14,912,640

4,032,202,255 171,187,973 3,142,709,215 132,880,072

LIABILITIESRedemptions payable 48,492,375 1,401,324 1,259,150 441,247Amounts due to brokers 6 129,632,995 4,995,726 49,933,295 –Other payables 7(a), 7(c) 1,638,362 178,702 1,123,182 121,639

179,763,732 6,575,752 52,315,627 562,886

NET ASSETS ATTRIBUTABLE TO UNITHOLDERS 3,852,438,523 164,612,221 3,090,393,588 132,317,186

Representing:Financial liabilities 3,852,438,523 – 3,090,393,588 –Total equity – 164,612,221 – 132,317,186


– Series A units 9(a) 185,786,502 83,259,253 149,420,889 67,186,450

– Series L units 9(b) 225,265 – 200,714 –


– Series A units 20.71 1.98 20.66 1.97

– Series L units 19.64 – 19.75 –





215

HSBC Global Money Fundsfor the year ended 31 July 2017

2017 2016

HK Dollarsub-fund

US Dollarsub-fund

HK Dollarsub-fund

US Dollarsub-fund

Note HKD USD HKD USD

Interest income 7(b) 7,646,118 47,169 5,526,514 –Net gains from financial assets at fair value through

profit or loss 3 9,004,873 875,158 4,108,964 283,004

TOTAL REVENUE 16,650,991 922,327 9,635,478 283,004

Management fees 7(a) 4,446,249 149,281 3,409,093 131,756Trustee’s fees 7(c) 1,770,269 77,288 1,440,403 73,472Registrar’s fees 7(a) 20,000 1,291 20,000 1,291Administrative fees 7(a) 152,600 10,411 386,233 31,901Auditor’s remuneration 136,243 5,828 209,080 10,884Legal and professional fees 2,426 313 – 1,090Bank charges 3,750 2,418 3,600 1,500Miscellaneous expenses 832,446 73,685 260,535 37,674

TOTAL OPERATING ExPENSES 7,363,983 320,515 5,728,944 289,568

NET PROFIT/(LOSS) FROM OPERATIONS BEFORE FINANCE COSTS 9,287,008 601,812 3,906,534 (6,564)

Interest expense – (2,054) – (325)

INCREASE/(DECREASE) IN NET ASSETS ATTRIBUTABLE TO UNITHOLDERS AND TOTAL COMPREHENSIVE INCOME FOR THE YEAR 9,287,008 599,758 3,906,534 (6,889)



216


2017 2016

HK Dollarsub-fund

US Dollarsub-fund

HK Dollarsub-fund

US Dollarsub-fund

HKD USD HKD USD

Balance at the beginning of the year 3,090,393,588 132,317,186 2,206,723,959 115,251,019

Increase/(decrease) in net assets attributable to unitholders and total comprehensive income for the year 9,287,008 599,758 3,906,534 (6,889)

Subscriptions of units 1,706,849,008 108,582,345 1,382,830,620 85,271,449

Redemptions of units (954,091,081) (76,887,068) (503,067,525) (68,198,393)

752,757,927 31,695,277 879,763,095 17,073,056

Balance at the end of the year 3,852,438,523 164,612,221 3,090,393,588 132,317,186

The redeemable units of the Hong Kong Dollar sub-fund are classified as financial liabilities. This sub-fund presents a statement of changes in net assets attributable to unitholders, and the issue and redemption of units are treated as transactions with unitholders.

The redeemable units of the US Dollar sub-fund are classified as equity. This sub-fund presents a statement of changes in equity, and the issue and redemption of units are treated as transactions with owners and recorded directly in the statement of changes in equity.


Statement of Changes in Net Assets Attributable to Unitholders/Statement of Changes in Equity

217


2017 2016

HK Dollarsub-fund

US Dollarsub-fund

HK Dollarsub-fund

US Dollarsub-fund

HKD USD HKD USD

OPERATING ACTIVITIESInterest received 7,494,682 44,417 5,672,716 –Management fees paid (4,353,537) (146,684) (3,312,479) (129,960)Trustee’s fees paid (1,701,164) (73,868) (1,418,078) (73,322)Payments on purchase of investments (5,575,560,656) (685,154,863) (3,480,465,548) (777,519,408)Proceeds from sale of investments 5,020,000,000 659,554,909 2,935,000,000 764,840,089Other operating expenses paid (794,102) (44,954) (801,745) (56,838)

Cash used in operating activities (554,914,777) (25,821,043) (545,325,134) (12,939,439)

FINANCING ACTIVITIESProceeds from issue of units 1,706,849,008 113,578,071 1,382,830,620 85,271,449Payments on redemption of units (906,857,856) (75,926,991) (506,739,409) (68,374,511)

Cash provided by financing activities 799,991,152 37,651,080 876,091,211 16,896,938

Net increase in cash and cash equivalents 245,076,375 11,830,037 330,766,077 3,957,499

Cash and cash equivalents at the beginning of the year 1,863,104,421 14,912,640 1,532,338,344 10,955,141

Cash and cash equivalents at the end of the year 2,108,180,796 26,742,677 1,863,104,421 14,912,640


Cash Flow Statement

218



1 The Fund

HSBC Global Money Funds (“the Fund”) was established under a trust deed dated 12 February 1991, as amended (“the Trust Deed”), and is governed by the laws of the Cayman Islands. The Fund registered under the Mutual Funds Law of the Cayman Islands on 25 July 1994. The investment objective of the Fund is to preserve capital and provide daily liquidity together with an investment return that is comparable to normal money market rate in the base currency of the relevant sub-fund through investing in short-term deposit and other money market instruments.

The Fund is an umbrella investment fund divided into a number of underlying sub-funds, each of which is linked to a different currency. Currently, the Fund has two sub-funds (“the sub-funds”) linked to Hong Kong dollars and United States dollars respectively.

The sub-funds are authorised by the Hong Kong Securities and Futures Commission (“SFC”) under section 104 of the Hong Kong Securities and Futures Ordinance (“HKSFO”) and are governed by the Hong Kong Code on Unit Trusts and Mutual Funds.



The financial statements have been prepared in accordance with all applicable Hong Kong Financial Reporting Standards (“HKFRSs”), which collective term includes all applicable individual Hong Kong Financial Reporting Standards, Hong Kong Accounting Standards (“HKASs”) and Interpretations issued by the Hong Kong Institute of Certified Public Accountants (“HKICPA”), accounting principles generally accepted in Hong Kong, the relevant provisions of the Trust Deed and the relevant disclosure provisions of the Hong Kong Code on Unit Trusts and Mutual Funds issued by the SFC. A summary of the significant accounting policies adopted by the Fund are set out below.


The functional and presentation currencies of the Hong Kong Dollar sub-fund and the US Dollar sub-fund are Hong Kong dollars and United States dollars respectively reflecting the fact that the participating redeemable units of each sub-fund are issued and redeemed in those respective currencies.

The financial statements are prepared on a fair value basis for financial assets and financial liabilities at fair value through profit or loss. Other financial assets and financial liabilities are stated at amortised cost or redemption amount (redeemable units).

The Fund maintains a separate account for each sub-fund to which the proceeds of issue and the income arising from the investment of those proceeds are credited and against which the expenses are allocated accordingly. Upon redemption, unitholders are entitled only to their proportion of the net assets held in the account relating to the sub-fund in which the units are designated.

The preparation of financial statements in conformity with HKFRSs requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.






Foreign currency transactions during the year are translated into the reporting currencies of the respective sub-funds at the exchange rates ruling at the transaction dates. Monetary assets and liabilities denominated in foreign currencies that are stated at fair value are translated into the reporting currencies of the respective sub-funds at the foreign exchange rates ruling at the date of the statement of financial position. Foreign currency exchange differences arising on

219


translation and realised gains and losses on disposals or settlements of monetary assets and liabilities are recognised in profit or loss.


(i) Classification

All of the sub-funds’ investments are classified as financial assets or financial liabilities at fair value through profit or loss. This category comprises financial instruments held for trading, which are instruments that the sub-funds have acquired principally for the purpose of short-term profit-taking. These include investments in fixed income instruments.

Financial assets at amortised cost are classified as loans and receivables include interest receivable.

Financial l iabilities at amortised cost include redemptions payable, amounts due to brokers, other payables and financial liabilities arising on redeemable units. Financial liabilities arising from the redeemable units issued by the Hong Kong Dollar sub-fund are carried at the redemption amount.

(ii) Recognition

The sub-funds recognise financial assets and financial liabilities on the date they become a party to the contractual provisions of the instrument.

A regular way purchase or sale of financial assets is recognised using trade date accounting. From this date any gains and losses arising from changes in fair value of the financial assets or financial liabilities are recorded.


(iii) Measurement


Subsequent to initial recognition, all instruments classified at fair value through profit or loss are

measured at fair value with changes in their fair values recognised in profit or loss.


Financial liabilities other than those at fair value through profit or loss, are measured at amortised cost using the effective interest rate method. Financial liabilities arising from the redeemable units issued by the Hong Kong Dollar sub-fund are carried at the redemption amount representing the unitholders’ right to a residual interest in the sub-fund’s assets.


Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or, in its absence, the most advantageous market to which the Fund has access at that date. The fair value of a liability reflects its non performance risk.



The best evidence of the fair value of a financial instrument at initial recognition is normally the transaction price – i.e. the fair value of the consideration given or received. If the Fund determines that the fair value at initial recognition differs from the transaction price and the fair value is evidenced neither by a quoted price in an active market for an identical asset or liability nor based on a valuation technique that uses only data from observable markets, the financial instrument is

220


initially measured at fair value, adjusted to defer the difference between the fair value at initial recognition and the transaction price. Subsequently, that difference is recognised in profit or loss on an appropriate basis over the life of the instrument but no later than when the valuation is supported wholly by observable market data or the transaction is closed out.





(vi) Impairment


If in a subsequent period the amount of an impairment loss recognised on a financial asset carried at amortised cost decreases and the decrease can be linked objectively to an event occurring after the write down, the write down is reversed through profit or loss.

(vii) Derecognition

The sub-funds derecognise a financial asset when the contractual rights to the cash flows from the financial assets expire or it transfers the financial asset and the transfer qualifies for derecognition in accordance with HKAS 39.

The sub-funds use the weighted average method to determine realised gains and losses on derecognition.


(viii) Offsetting

Financial assets and liabilities are offset and the net amount is reported in the statement of financial position when the sub-funds have a legally enforceable right to offset the recognised amounts and the transactions are intended to be settled on a net basis or simultaneously, e.g. through a market clearing mechanism.



Cash comprises current deposits with banks. Cash equivalents are short term highly liquid investments that are readily convertible to known amounts of cash, are subject to an insignificant risk of changes in value, having been within three months of maturity at acquisition.


Provided it is probable that the economic benefits will flow to the sub-funds and the revenue and costs if applicable, can be measured reliably, revenue is recognised in profit or loss as follows:

Interest income

Interest income is recognised in profit or loss as it accrues, using the effective interest rate method. Interest income on bank deposits is disclosed separately on the face of profit or loss. Interest income on fixed income instruments is included in net gains or losses from financial assets at fair value through profit or loss.

221


(g) Expenses


(h) Related parties










(v) The entity is a post-employment benefit plan for the benefit of employees of an entity related to the Fund.





(i) Subscriptions and redemptions

The sub-funds recognise unitholders’ subscriptions and allot units upon receipt of a valid subscription application and derecognise them upon receipt of a valid redemption application.

(j) Units in issue

The sub-funds classify financial instruments issued as financial liabilities or equity instruments in accordance with the substance of the contractual terms of the instruments.

The Hong Kong Dollar sub-fund has two classes of redeemable units in issue – “Series A” class and “Series L” class. Both classes belong to the most subordinate class of financial instruments in the sub-fund and rank pari passu in all material respects and have the same terms and conditions other than different management fee rates. The redeemable units provide unitholders with the right to require redemption for cash at a value proportionate to the unitholders’ share in the sub-fund’s net assets at each redemption date, and also in the event of the sub-fund’s liquidation. The redeemable units are classified as financial liabilities and are measured at the present value of the redemption amounts.

The US Dollar sub-fund has one class of redeemable units in issue. This is the most subordinate class of financial instruments in the sub-fund and ranks pari passu in all material respects and has identical terms and conditions. The redeemable units provide unitholders with the right to require redemption for cash at a value proportionate to the unitholders’ share in the sub-fund’s net assets at redemption date and also in the event of the sub-fund’s liquidation.

A puttable financial instrument that includes a contractual obligation for the issuer to repurchase or redeem that instrument for cash or another financial asset is classified as equity instrument if it meets the following conditions:

(i) it entitles the holder to a pro rata share of the sub-funds’ net assets in the event of the sub-funds’ liquidation;

(ii) it is in the class of instruments that is subordinate to all other classes of instruments;

222


(iii) all financial instruments in the class of instruments that is subordinate to all other classes of instruments have identical features;

(iv) apart from the contractual obligation for the sub-funds to repurchase or redeem the instrument for cash or another financial asset, the instrument does not include any other features that would require classification as a liability; and

(v) the total expected cash flows attributable to the instrument over its life are based substantially on profit or loss, the change in the recognised net assets or the change in the fair value of the recognised and unrecognised net assets of the sub-funds over the life of the instrument.

The US Dollar sub-fund’s redeemable units meet all of these conditions and are classified as equity.

(k) Segment reporting

An operating segment is a component of the sub-funds that engages in business activities from which they may earn revenues and incur expenses, including revenues and expenses that relates to transactions with any of the sub-funds’ other components, whose operating results are reviewed regularly by the chief operating decision maker to make decisions about resources allocated to the segment and assess its performance, and for which discrete financial information is available. Segment results that are reported to the chief operating decision maker include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. The chief operating decision maker of the sub-funds is identified as the manager, HSBC Investment Funds (Hong Kong) Limited.

3 Net gains from financial assets at fair value through profit or loss

2017 2016

HK Dollarsub-fund

US Dollarsub-fund

HK Dollarsub-fund

US Dollarsub-fund

HKD USD HKD USD

Realised gains – 31,125 – 10,671Unrealised gains 9,004,873 844,033 4,108,964 272,333

9,004,873 875,158 4,108,964 283,004

4 Taxation

There are currently no taxes on income or gains under Cayman Islands law. Accordingly, no provision for income taxes is included in these financial statements.

No provision for Hong Kong profits tax has been made in the financial statements as the sub-funds are exempt from taxation under section 26A(1A) of the Hong Kong Inland Revenue Ordinance.

Interest income received by the sub-funds may be subject to non-recoverable withholding tax imposed in the country of origin. Interest income is recorded gross of such taxes and the withholding tax is recognised in profit or loss as incurred.


On 18 March 2010, the Hiring Incentives to Restore Employment Act of 2010 added chapter 4 to Subtitle A (“Chapter 4”) of the US Internal Revenue Code (the “Code”). The provisions in Chapter 4 are commonly referred to as the Foreign Account Tax Compliance Act (“FATCA”). US Treasury regulations providing guidance on the due diligence, reporting, and withholding obligations under FATCA were passed and came into effect in January 2013 (“the Regulations”).


223




2017 2016

HK Dollarsub-fund

US Dollarsub-fund

HK Dollarsub-fund

US Dollarsub-fund

HKD USD HKD USD

Fixed income instruments

Unlisted but quoted investments, at fair value 1,923,228,292 144,322,804 1,278,963,063 117,967,432

1,923,228,292 144,322,804 1,278,963,063 117,967,432

Investments, at cost 1,905,674,514 143,140,785 1,270,414,158 117,617,404Net unrealised

appreciation in value of investments 17,553,778 1,182,019 8,548,905 350,028

Investments, at fair value 1,923,228,292 144,322,804 1,278,963,063 117,967,432

6 Amounts due to brokers

2017 2016

HK Dollarsub-fund

US Dollarsub-fund

HK Dollarsub-fund

US Dollarsub-fund

HKD USD HKD USD

Balance due to brokers

Amounts payable on purchases of investments 129,632,995 4,995,726 49,933,295 –


The following is a summary of significant related party transactions or transactions entered into during the year between the Fund and the Trustee, the Manager and their Connected Persons. Connected Persons are those as defined in the Code on Unit Trusts and Mutual Funds issued by the SFC. All transactions during the year between the Fund and

the Manager and its Connected Persons were entered into in the ordinary course of business and under normal commercial terms. To the best of the knowledge of the Trustee and the Manager, the Fund did not have any other transactions with Connected Persons except for those disclosed below.

(a) The sub-funds are managed by HSBC Investment Funds (Hong Kong) Limited (“the Manager”). The Manager receives a management fee, payable monthly in arrears, equivalent to a percentage per annum of the net asset value of the sub-funds as follows:

Management feeHong Kong Dollar sub-fund

– For Series A units 0.13%– For Series L units 0.58%

US Dollar sub-fund

– For Series A units 0.10%

In addition, the Manager, as the registrar, receives registrar’s fees of HK$20,000 (2016: HK$20,000) per annum for the Hong Kong Dollar sub-fund and of HK$10,000 (2016: HK$10,000) per annum for the US Dollar sub-fund and fees for various administrative functions performed on behalf of the sub-funds.

2017 2016

HK Dollarsub-fund

US Dollarsub-fund

HK Dollarsub-fund

US Dollarsub-fund

HKD USD HKD USD

(i) Management fees for the year 4,446,249 149,281 3,409,093 131,756

(ii) Registrar’s fees and administrative fees for the year 172,600 11,702 406,233 33,192

(iii) Management fees payable at year end 433,423 13,997 340,711 11,400

(iv) Registrar’s fees and administrative fees payable at year end 141,019 8,536 68,676 5,079

224


(b) Bank accounts are maintained with The Hongkong and Shanghai Banking Corporation Limited, which are members of the HSBC Group. The balances of these accounts and interest income earned are set out below:

2017 2016

HK Dollarsub-fund

US Dollarsub-fund

HK Dollarsub-fund

US Dollarsub-fund

HKD USD HKD USD

(i) Cash held at the year end 180,796 442,677 10,104,421 14,912,640

(ii) Interest income earned for the year 2,506 2,138 2,127 –

(c) The trustee of the sub-funds is HSBC Trustee (Cayman) Limited (“the Trustee”), a fellow subsidiary of the Manager within the HSBC Group. The Trustee receives a monthly fee of the net asset value of the sub-funds. The following basis is used for the calculation of the trustee fee:

% charged

The first US$250 million of the aggregate NAV of both sub-funds 0.065% per annumThe next US$250 million of the aggregate NAV of both sub-funds 0.045% per annumThe remaining balance of the aggregate NAV of both sub-funds 0.025% per annum

Effective from 1 July 2017, the Trustee receives a monthly fee equivalent to 0.05% per annum of the net asset value of the sub-funds and the daily valuation service fee is USD100 for each valuation per share class.

During the year, the Trustee provided financial reporting service to the sub-funds and charged each sub-fund financial reporting fee of US$3,000 (2016: US$ nil).

2017 2016

HK Dollarsub-fund

US Dollarsub-fund

HK Dollarsub-fund

US Dollarsub-fund

HKD USD HKD USD

(i) Trustee’s fees for the year 1,770,269 77,288 1,440,403 73,472

(ii) Trustee’s fees payable at year end 199,498 9,098 130,393 5,678

(d) In its purchases and sales of investments, the Hong Kong Dollar sub-fund utilised the brokerage services of The Hongkong and Shanghai Banking Corporation Limited, which is a member of the HSBC Group. Details of transactions effected through the sub-fund are as follows:

The Hongkong andShanghai Banking

Corporation Limited2017 2016HKD HKD

HSBC Global Money Funds – Hong Kong Dollar sub-fund

Commission paid for the year – –Average rate of commission – –Total aggregate value of such transactions

for the year 369,635,610 –Percentage of such transactions in value to total

transactions for the year 3.46% –

The figures for commission paid do not include any trading margin which may be reflected in the market price of transactions with this entity on any transactions by the sub fund during the year.


No soft commission arrangements were entered into with brokers during the year (2016: nil).


2017 2016

HK Dollarsub-fund

US Dollarsub-fund

HK Dollarsub-fund

US Dollarsub-fund

(a) Series A units

Number of units in issue brought forward 149,420,889 67,186,450 106,827,889 58,516,446

Units issued during the year 82,500,480 55,053,056 66,962,575 43,306,880

Units redeemed during the year (46,134,867) (38,980,253) (24,369,575) (34,636,876)

Number of units in issue carried forward 185,786,502 83,259,253 149,420,889 67,186,450

225


(b) Series L units

Number of units in issue brought forward 200,714 – 171,991 –

Units issued during the year 29,495 – 31,153 –

Units redeemed during the year (4,944) – (2,430) –

Number of units in issue carried forward 225,265 – 200,714 –

The Fund and the sub-funds do not have any externally imposed capital requirements.

(e) The capital of the Fund is represented by the net assets attributable to unitholders which are subject to subscriptions and redemptions of units. The Fund does not have any externally imposed capital requirements.

The minimum investment in each Series of units (except for Series L Units) for each sub-fund is US$1,000 or the equivalent in other currencies, except for the Hong Kong Dollar sub-fund where the minimum is HK$50,000. The minimum increase in any sub-fund following initial investment is US$1,000 (or the equivalent in other currencies) (except for Series L Units to which the minimum of US$1,000 does not apply), except for the Hong Kong Dollar sub-fund where the minimum increase is HK$10,000 (except for Series L Units to which the minimum of HK$10,000 does not apply). The Manager, however, has discretion to accept such lower amount of minimum investment or minimum increase in investment in any sub-fund.

Units in the sub-funds may normally be redeemed at the dealing price of the relevant Series of Units in the relevant sub-fund following receipt in writing of an application to the Managers using a special redemption request form available from the Managers. Partial redemptions are allowed for a minimum of US$1,000 (or the equivalent in other currencies) (except for Series L Units to which the minimum of US$1,000 does not apply), provided that the remaining balance of units of the relevant Series in the relevant sub-fund is not less than US$1,000 or the equivalent in other currencies, except for the Hong Kong Dollar sub-fund where the remaining balance must be at least HK$50,000 (except for Series L Units to which the minimum of HK$50,000 does not apply). Redemption requests received after the Dealing Deadline on any Dealing Day are carried over to the next Dealing Day.


The sub-funds maintain an investment portfolio in a variety of listed and unlisted financial instruments as dictated by their respective investment management strategies. The investment objective of the sub-funds is to provide unitholders with a rate of return higher than that normally available for personal deposits through investing in monetary instruments such as treasury bills, bill of exchange, commercial paper, certificates of deposits or interbank deposits.

The sub-funds’ investing activities expose them to various types of risks that are associated with the financial instruments and markets in which they invest. The Manager and the Trustee have set out below the most important types of financial risks inherent in each type of financial instrument. The Manager and the Trustee would like to highlight that the following list of associated risks only sets out some of the risks but does not purport to constitute an exhaustive list of all the risks inherent in an investment in the sub-funds. Investors should note that additional information in respect of risks associated with financial instruments in the sub-funds can be found in the offering document of the relevant sub-funds.

The nature and extent of the financial instruments outstanding at the date of statement of financial position and the risk management policies employed by the sub-funds are discussed below:

(a) Price risk

Price risk is the risk that the value of a financial instrument will fluctuate as a result of changes in market prices, whether caused by factors specific to an individual investment, its issuer or all factors affecting all instruments traded in the market.

The sub-funds hold debt securities in both 2017 and 2016. As a result, the sub-funds are not exposed to significant price risk arising from changes in market price.


Interest rate risk arises from changes in interest rates which may affect the value of fixed income instruments and therefore result in potential gain or loss to the sub-funds. The sub-funds’ interest rate risk is managed on an ongoing basis by the Manager.

226


The following table indicates the period in which the interest bearing assets mature at the date of the statement of financial position:

Hong Kong Dollar sub-fund

2017 20161 yearor less Total

1 yearor less Total

HKD’000 HKD’000 HKD’000 HKD’000

Financial assets at fair value through profit or loss 1,923,228 1,923,228 1,278,963 1,278,963

Total interest bearing assets 1,923,228 1,278,963

US Dollar sub-fund

2017 20161 yearor less Total

1 yearor less Total

USD’000 USD’000 USD’000 USD’000

Financial assets at fair value through profit or loss 144,323 144,323 117,967 117,967

Total interest bearing assets 144,323 117,967


At the date of the statement of financial position, assuming all other factors unchanged, it is estimated that an increase in interest rate of 100 basis points (2016: 50 basis points) would result in a decrease in the net assets attributable to unitholders and the profit for the year as follows; an equal change in the opposite direction would result in an increase in the net assets attributable to unitholders by an approximately equal amount.

Change in net assets if interestrate increased by 100 b.p.

(2016: 50b.p.)2017 2016

Hong Kong Dollar sub-fund HKD(2,955,192) HKD(1,062,306)US Dollar sub-fund USD(143,483) USD(81,505)

(c) Currency risk

Each of the sub-funds does not invest in financial instruments or enter into transactions that are denominated in currencies other than its functional currency. All investments will be

settled in the functional currency of the respective sub-fund at the maturity date. Consequently, the sub-funds are exposed to minimal currency risk.

(d) Credit risk

Credit risk is the risk that a counterparty to a financial instrument will fail to discharge an obligation or commitment that it has entered into with the sub-funds. The sub-funds’ exposure to credit risk is monitored by the Manager on an ongoing basis.

At 31 July 2017 and 2016, all of the sub-funds’ financial assets were exposed to credit risk. These include investments and cash and cash equivalents placed with banks and the custodian.

At the date of the statement of financial position, the sub-funds invested in fixed income instruments with the following credit quality, as determined by Moody’s, expressed as a percentage of total fixed income instruments:

As at 31 July 2017

Hong KongDollar

sub-fund% of fixed

incomeinstruments

US Dollarsub-fund

% of fixedincome

instruments

Rating (Moody’s)P-1 87.54 99.31NR 12.46 0.69

Total 100.00 100.00

As at 31 July 2016

Hong KongDollar

sub-fund% of fixed

incomeinstruments

US Dollarsub-fund

% of fixedincome

instruments

Rating (Moody’s)P-1 77.36 78.80NR 22.64 21.20

Total 100.00 100.00

227


Credit risk is managed by reviewing and monitoring the credit quality of fixed income instruments or the issuers of the fixed income instruments held by the sub-funds on an ongoing basis.

Credit risk arising on transactions with brokers relates to transactions awaiting settlement. Risk relating to unsettled transactions is considered small due to the short settlement period involved and the high credit quality of the brokers used.

All of the cash held by the sub-funds are placed with banks. Bankruptcy or insolvency of the banks may cause the sub-funds’ rights with respect to the cash held by the banks to be delayed or limited. The Manager monitors the credit rating and financial position of the banks on an ongoing basis.

Substantially all of the assets of the sub-funds are held by the custodian. Bankruptcy or insolvency of the custodian may cause the sub-funds’ rights with respect to securities held by the custodian to be delayed or limited. The custodian is a group company of HSBC, for which credit risk is considered insignificant.

The carrying amounts of the financial assets best represent the maximum credit risk exposure at the date of the statement of financial position.

As of 31 July 2017, the Hong Kong Dollar sub-fund does not have investments greater than 7% (2016: 5%) of net assets value while the US Dollar sub-fund had fixed income investments issued by the US Government amounting to 57.04% (2016: 64.97%) of net assets value.

There were no other significant concentrations of credit risk at both 31 July 2017 and 2016 other than outlined above.

(e) Liquidity risk

Liquidity risk arises from the risk that the Manager may not be able to convert investments into cash to meet liquidity needs in a timely manner. The sub-funds are exposed to daily liquidity risk on redemption of units.

The sub-funds’ policy is to regularly monitor current and expected liquidity requirements to ensure that it maintains sufficient reserves of cash and readily realisable marketable securities to meet its liquidity requirements in the short and longer term.

The Manager aims to maintain an average portfolio maturity of not exceeding 90 days, therefore the sub-funds are not subject to a significant liquidity risk.

The sub-funds invest in unlisted fixed income instruments, which are not publicly traded on exchanges and may be illiquid.

As at 31 July 2017 and 2016, the sub-funds’ financial liabilities are due within three months.


The sub-funds’ capital as at the year-end date is represented by their redeemable units.

The objective of each sub-fund in managing the capital is to ensure a stable and strong base to select high grade monetary instruments to achieve the highest possible return and, to manage liquidity risk arising from the redemptions. The Manager manages the capital of the sub-funds in accordance with the sub-funds’ investment objectives and policies stated in the sub-funds’ Explanatory Memorandum.

There were no changes in the policies and procedures during the year with respect to the sub-funds’ approach to their capital management.

The amount and the movement of net assets attributable to unitholders and equity are stated in the statement of changes in net assets attributable to unitholders and the statement of changes in equity respectively. As the redeemable units are redeemed on demand at the unitholders’ option, the actual level of redemption may differ significantly from historical experience.


The sub-funds’ financial instruments are measured at fair value on the date of the statement of financial position. Fair value estimates are made at a specified point in time, based on market conditions and information about the financial instruments. Usually, fair values can be reliably determined within a reasonable range of estimates. For certain other financial instruments, including cash and cash equivalents, interest receivable, redemptions payable, amounts due to brokers and other payables, the carrying amounts approximate fair values due to the intermediate or short term nature of these financial instruments.

228



The sub-funds’ accounting policy on fair value measurements is detailed in note 2(e)(iv).

The sub-funds measure fair values using the following fair value hierarchy that reflects the significance of the inputs used in making the measurements.


– Level 2: Inputs other than quoted prices included within Level 1 that are observable either directly (i.e. as prices) or indirectly (i.e. derived from prices). The category includes instruments valued using: quoted market price in active markets for similar instruments; quoted prices for identical or similar instruments in markets that are considered less than active; or other valuation techniques in which all significant inputs are directly or indirectly observable from market data.


When fair values of debt securities at the reporting date represent quoted prices in markets that are considered less than active or consensus prices derived by third parties using valuation techniques where all significant inputs are directly or indirectly observable from market data, those debt securities are included within Level 2 of the hierarchy. For all other financial instruments, the sub-funds determine fair value using valuation techniques.

The sub-funds use widely recognised valuation models for determining the fair value of the debt securities which do not have quoted market prices in active markets. Valuation techniques include net present value, discounted cash flow models, comparison to similar instruments for which market observable prices exist, comparison to quoted prices for identical instruments that are considered less than active and other valuation models.

The following analyses financial assets at fair value at the date of the statement of financial position, by the level in the fair value hierarchy into which the fair value measurement is categorised.


As at 31 July 2017



Listed fixed income instruments – – – –

Unlisted fixed income instruments – 1,923,228,292 – 1,923,228,292

– 1,923,228,292 – 1,923,228,292

US Dollar sub-fund

Level 1 Level 2 Level 3 TotalUSD USD USD USD

Listed fixed income instruments – 111,307,339 – 111,307,339

Unlisted fixed income instruments – 33,015,465 – 33,015,465

– 144,322,804 – 144,322,804

As at 31 July 2016



Unlisted fixed income instruments – 1,278,963,063 – 1,278,963,063

– 1,278,963,063 – 1,278,963,063

US Dollar sub-fund


Unlisted fixed income instruments – 117,967,432 – 117,967,432

– 117,967,432 – 117,967,432

229


There were no transfer of financial instruments between the fair value hierarchy levels during the year ended 31 July 2017 and 2016.




As at 31 July 2017



Financial assets

Interest receivable – 793,167 – 793,167Cash and cash

equivalents – 2,108,180,796 – 2,108,180,796

– 2,108,973,963 – 2,108,973,963






– 4,032,202,255 – 4,032,202,255

US Dollar sub-fund


Financial assets


equivalents – 26,742,677 – 26,742,677

– 26,865,169 – 26,865,169




Other payables – 178,702 – 178,702Net assets

attributable to unitholders – – – –

– 6,575,752 – 6,575,752

As at 31 July 2016



Financial assets


equivalents – 1,863,104,421 – 1,863,104,421

– 1,863,746,152 – 1,863,746,152






– 3,142,709,215 – 3,142,709,215

US Dollar sub-fund


Financial assets

Interest receivable – – – –Cash and cash

equivalents – 14,912,640 – 14,912,640

– 14,912,640 – 14,912,640

230



Redemptions payable – 441,247 – 441,247

Amounts due to brokers – – – –

Other payables – 121,639 – 121,639Net assets

attributable to unitholders – – – –

– 562,886 – 562,886

12 Cash and cash equivalents

As at 31 July 2017 As at 31 July 2016

HK Dollarsub-fund

US Dollarsub-fund

HK Dollarsub-fund

US Dollarsub-fund

HKD USD HKD USD

Cash at bank 180,796 442,677 10,104,421 14,912,640Time deposits 2,108,000,000 26,300,000 1,853,000,000 –

2,108,180,796 26,742,677 1,863,104,421 14,912,640


The Manager makes the strategic resource allocation on behalf of the sub-funds and determines the operating segments based on the internal reporting used to make strategic decisions.

The Manager’s asset allocation decisions are based on one single and integrated investment strategy, and the sub-funds’ performance is evaluated on an overall basis. Accordingly the Manager considers that the sub-funds have one single operating segment which is investing in a portfolio of financial instruments to generate investment returns in accordance with the investment objective stipulated in its Explanatory Memorandum. There were no changes in the operating segment during the year.

All revenues and losses generated from investments by the sub-funds are disclosed in note 3. The segment information provided to the Manager is the same as that disclosed in the statement of comprehensive income and statement of financial position.

The sub-funds are domiciled in the Cayman Islands. All income from investments in Hong Kong Dollar sub-fund and US Dollar sub-fund are linked to Hong Kong dollars and United States dollars respectively.


Up to the date of issue of these financial statements, the HKICPA has issued a few amendments and new standards which are not yet effective for the year ended 31 July 2017 and which have not been adopted in these financial statements. These include the following which may be relevant to the sub-funds.



HKFRS 9 Financial instruments 1 January 2018

The sub-funds are in the process of making an assessment of what the impact of these amendments and new standards is expected to be in the period of initial application. So far it has concluded that the adoption of them is unlikely to have a significant impact on the sub-funds’ results of operations and financial position.

231


HSBC Global Money Funds – Hong Kong Dollar sub-fundas at 31 July 2017

HoldingsMarket

value

% of net

asset value

HKD

Fixed income instrumentsUnlisted but quoted investments

AGRICULTURAL BANK OF CHINA (TOKYO BRANCH) 0% 18 OCTOBER 2017 60,000,000 59,918,069 1.55

AGRICULTURAL BANK OF CHINA LIMITED SYDNEY BRANCH 0% 15 SEPTEMBER 2017 20,000,000 19,981,787 0.52

AGRICULTURAL BANK OF CHINA LIMITED SYDNEY BRANCH 0% 22 SEPTEMBER 2017 70,000,000 69,918,392 1.81

AGRICULTURAL BANK OF CHINA LTD (DUBAI BRANCH) 0% 18 OCTOBER 2017 70,000,000 69,904,417 1.81

BANK OF CHINA LTD (SYDNEY BRANCH) 0% 08 AUGUST 2017 100,000,000 99,986,599 2.59

BANK OF CHINA LTD (SYDNEY BRANCH) 0% 31 AUGUST 2017 50,000,000 49,972,512 1.30

BANK OF CHINA LTD (TOKYO BRANCH) 0% 12 SEPTEMBER 2017 50,000,000 49,959,797 1.30

BANK OF NOVA SCOTIA (HONG KONG BRANCH) 0% 4 SEPTEMBER 2017 60,000,000 59,942,180 1.56

BANQUE FEDERATIVE DU CREDIT MUTUEL SA 0% 4 AUGUST 2017 60,000,000 59,996,014 1.56

BANQUE FEDERATIVE DU CREDIT MUTUEL SA 0% 6 NOVEMBER 2017 70,000,000 69,909,980 1.81

CHINA CONSTRUCTION BANK CORP (SYDNEY BRANCH) 0% 2 FEBRUARY 2018 60,000,000 59,723,016 1.55

DBS BANK HONG KONG LTD 0% 18 OCTOBER 2017 50,000,000 49,926,402 1.30

DZ BANK AG DEUTSCHE ZENTRAL GENOSSENSCHAFTSBANK FRANKFURT AM MAIN 0% 29 SEPTEMBER 2017 50,000,000 49,978,193 1.30

EXPORT-IMPORT BANK OF KOREA 0% 11 SEPTEMBER 2017 50,000,000 49,946,345 1.30

HONG KONG MORTGAGE CORP LTD 0% 11 DECEMBER 2017 30,000,000 29,954,530 0.78

HoldingsMarket

value

% of net

asset value

HKD

HONG KONG SPECIAL ADMINISTRATIVE REGION OF THE PEOPLE’S REPUBLIC OF CHINA 0% 23 AUGUST 2017 150,000,000 149,977,410 3.89

HONG KONG SPECIAL ADMINISTRATIVE REGION OF THE PEOPLE’S REPUBLIC OF CHINA 0% 30 AUGUST 2017 30,000,000 29,993,330 0.78

HONG KONG SPECIAL ADMINISTRATIVE REGION OF THE PEOPLE’S REPUBLIC OF CHINA 0% 06 SEPTEMBER 2017 240,000,000 239,936,131 6.23

INDUSTRIAL AND COMMERCIAL BANK OF CHINA LTD (LUXEMBOURG BRANCH) 0% 15 SEPTEMBER 2017 85,000,000 84,935,129 2.20

INDUSTRIAL AND COMMERCIAL BANK OF CHINA LTD (LUXEMBOURG BRANCH) 0% 25 OCTOBER 2017 70,000,000 69,895,836 1.81

INDUSTRIAL AND COMMERCIAL BANK OF CHINA LTD (SYDNEY BRANCH) 0% 10 OCTOBER 2017 60,000,000 59,936,799 1.55

ING BANK NV 0% 14 AUGUST 2017 70,000,000 69,985,313 1.82ING BANK NV 0% 26 SEPTEMBER

2017 60,000,000 59,956,784 1.56ING BANK NV 0% 11 OCTOBER 2017 60,000,000 59,945,208 1.56MIZUHO BANK LTD (HONG KONG

BRANCH) 0% 11 OCTOBER 2017 60,000,000 59,937,063 1.55NATIXIS HONG KONG BRANCH 0%

15 AUGUST 2017 60,000,000 59,990,115 1.56NATIXIS HONG KONG BRANCH 0%

29 SEPTEMBER 2017 60,000,000 59,968,990 1.56TORONTO DOMINION BANK (LONDON

BRANCH) 0% 2 MARCH 2018 70,000,000 69,751,951 1.81 Fixed income instruments (Total) 1,923,228,292 49.92

Total investments (Total cost of investments: HK$1,905,674,514) 1,923,228,292 49.92

Other net assets 1,929,210,231 50.08

Total net assets 3,852,438,523 100.00

232


HSBC Global Money Funds – US Dollar sub-fundas at 31 July 2017

HoldingsMarket

value

% of net

asset value

USD

Fixed income instrumentsListed investments

AUSTRALIA AND NEW ZEALAND BANKING GROUP LTD (NEW YORK BRANCH) 1.5% 16 JANUARY 2018 2,000,000 2,000,616 1.21

BANK OF MONTREAL 1.4% 11 SEPTEMBER 2017 2,300,000 2,300,164 1.40

BANK NEDERLANDSE GEMEENTEN NV 1.375% 27 SEPTEMBER 2017 1,500,000 1,500,377 0.91

BANK OF TOKYO-MITSUBISHI UFJ LTD 1.45% 8 SEPTEMBER 2017 2,000,000 2,000,267 1.21

COMMONWEALTH BANK OF AUSTRALIA (NEW YORK BRANCH) 1.9% 18 SEPTEMBER 2017 2,000,000 2,001,431 1.22

EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT 0.75% 1 SEPTEMBER 2017 2,300,000 2,299,505 1.40

INDUSTRIAL AND COMMERCIAL BANK OF CHINA LTD (SINGAPORE BRANCH) 2.75% 12 SEPTEMBER 2017 2,300,000 2,302,859 1.40

MIZUHO BANK LTD 1.55% 17 OCTOBER 2017 2,000,000 2,000,658 1.21

ROYAL BANK OF CANADA 1.5% 16 JANUARY 2018 1,000,000 1,000,327 0.61

UNITED STATES TREASURY 3 AUGUST 2017 10,000,000 9,999,538 6.07

UNITED STATES TREASURY 7 SEPTEMBER 2017 15,000,000 14,985,037 9.10

UNITED STATES TREASURY 28 SEPTEMBER 2017 30,000,000 29,952,392 18.20





HoldingsMarket

value

% of net

asset value

USD

UNITED STATES TREASURY 26 OCTOBER 2017 8,000,000 7,978,963 4.85

Total listed investments 111,307,339 67.62

Unlisted but quoted investments AGRICULTURAL BANK OF CHINA LTD

(SINGAPORE BRANCH) 1.5% 25 SEPTEMBER 2017 2,000,000 1,999,391 1.21

BANK OF TOKYO-MITSUBISHI UFJ LTD (NEW YORK BRANCH) 1 AUGUST 2017 1,000,000 1,000,000 0.61

BANQUE ET CAISSE D’EPARGNE DE L’ETAT LUXEMBOURG 1 SEPTEMBER 2017 1,000,000 998,924 0.61

BANQUE FEDERATIVE DU CREDIT MUTUEL SA 1 SEPTEMBER 2017 2,000,000 1,997,851 1.21

BPCE SA 3 OCTOBER 2017 2,000,000 1,995,567 1.21CAISSE AMORTISSEMENT DE LA

DETTE SOCIALE 4 OCTOBER 2017 1,000,000 997,699 0.60CANADIAN IMPERIAL HOLDINGS INC

29 SEPTEMBER 2017 1,000,000 998,099 0.61CHINA DEVELOPMENT BANK CORP

(HONG KONG BRANCH) 1.15% 31 AUGUST 2017 1,500,000 1,499,546 0.91

DANSKE CORP 18 AUGUST 2017 1,000,000 999,466 0.61ERSTE ABWICKLUNGSANSTALT 16

OCTOBER 2017 2,000,000 1,994,614 1.21EUROFIMA EUROPAEISCHE

GESELLSCHAFT FUER DIE FINANZIERUNG VON EISENBAHN 02 AUGUST 2017 2,000,000 1,999,941 1.21

JP MORGAN SECURITIES LLC 28 AUGUST 2017 1,000,000 999,123 0.61

MACQUARIE BANK LTD 29 SEPTEMBER 2017 2,000,000 1,995,753 1.21

NATIONWIDE BUILDING SOCIETY 1 AUGUST 2017 2,000,000 2,000,000 1.21

NATIONWIDE BUILDING SOCIETY 1 AUGUST 2017 1,000,000 1,000,000 0.61

ONTARIO TEACHERS FINANCE TRUST 6 SEPTEMBER 2017 1,000,000 998,750 0.61

233


HSBC Global Money Funds – US Dollar sub-fundas at 31 July 2017

HoldingsMarket

value

% of net

asset value

USD

Fixed income instrumentsUnlisted but quoted investments SOCIETE GENERALE SA 4 AUGUST

2017 1,000,000 999,898 0.61STANDARD CHARTERED BANK

(SINGAPORE BRANCH) 6 SEPTEMBER 2017 2,000,000 1,997,560 1.21

SUMITOMO MITSUI BANKING CORP (BRUSSELS BRANCH) 1.34% 1 SEPTEMBER 2017 2,250,000 2,250,102 1.37

SWEDISH EXPORT CREDIT CORP 17 AUGUST 2017 1,000,000 999,533 0.61

TEMASEK FINANCIAL (II) PVT LTD 5 OCTOBER 2017 2,300,000 2,294,698 1.39

WESTPAC SECURITIES NZ LTD 5 SEPTEMBER 2017 1,000,000 998,950 0.61

Total unlisted investments 33,015,465 20.05

Fixed income instruments (Total) 144,322,804 87.67

Total investments (Total cost of investments: US$143,140,785) 144,322,804 87.67


Total net assets 164,612,221 100.00

234


HSBC Global Money Funds – Hong Kong Dollar sub-fundfor the year ended 31 July 2017

% ofnet asset

value

% ofnet asset

value2017 2016


Unlisted but quoted investments 49.92 41.39




HSBC Global Money Funds – US Dollar sub-fundfor the year ended 31 July 2017

% ofnet asset

value

% ofnet asset

value2017 2016


Listed investment 67.62 –

Unlisted but quoted investments 20.05 89.16




235

Performance record (Unaudited)


Hong Kong Dollar sub-fundSeries A units Series L units US Dollar sub-fund

Price Price PriceYear Lowest Highest Lowest Highest Lowest Highest

HKD HKD HKD HKD USD USD

2007 19.00 19.77 19.31 19.72 1.82 1.912008 19.73 20.29 19.68 20.14 1.91 1.982009 20.30 20.56 20.14 20.37 1.97 1.982010 20.45 20.46 20.11 20.20 1.98 1.982011 20.45 20.47 20.02 20.10 1.98 1.982012 20.47 20.51 19.97 20.02 1.98 1.982013 20.51 20.54 19.90 19.97 1.96 2.022014 20.54 20.58 19.86 19.90 1.97 1.982015 20.58 20.63 19.80 19.86 1.97 1.972016 20.63 20.66 19.75 19.81 1.97 1.972017 20.66 20.71 19.64 19.75 1.97 1.98

2017 2016 2015 2014

Total net asset value of Hong Kong Dollar sub-fund (in HK$) (calculated in accordance with HKFRS)– Series A units 3,848,013,760 3,086,429,365 2,203,316,894 2,153,355,080– Series L units 4,424,763 3,964,223 3,407,065 2,898,920

3,852,438,523 3,090,393,588 2,206,723,959 2,156,254,000

Net asset value per unit of Hong Kong Dollar sub-fund (in HK$) (calculated in accordance with HKFRS)– Series A units 20.71 20.66 20.62 20.58– Series L units 19.64 19.75 19.81 19.86

Total net asset value of US Dollar sub-fund (in US$) (calculated in accordance with HKFRS) 164,612,221 132,317,186 115,251,019 111,224,408

Net asset value per unit of US Dollar sub-fund (in US$) (calculated in accordance with HKFRS) 1.98 1.97 1.97 1.97

The Manager of the sub-funds has been issuing and redeeming units at the same bid and ask prices for the years ended 31 July 2017, 2016, 2015 and 2014. As such, the above records have not shown the bid and offer prices separately.

236

Administration


Manager and registrar’s agentHSBC Investment Funds (Hong Kong) LimitedHSBC Main Building1 Queen’s Road CentralHong Kong

Directors of the ManagerStuart Glenn BERRYPedro Augusto BOTELHO BASTOSGuillermo Eduardo MALDONADO-CODINAChun Pong Stephen TAMKa Yin Joanne LAU

Investment adviserHSBC Global Asset Management (Hong Kong) LimitedHSBC Main Building1 Queen’s Road CentralHong Kong

Investment sub-advisersHSBC Global Asset Management (France)Immeuble lle de France4 Place de la PyramideLa Défense 992800 PuteauxFrance

HSBC Global Asset Management (UK) Limited8 Canada SquareLondon E14 5HQUnited Kingdom

Custodian, trustee and registrarHSBC Trustee (Cayman) LimitedP.O. Box 484HSBC House68 West Bay RoadGrand Cayman KY1-1106Cayman Islands

AuditorsKPMGP.O. Box 493Century YardCricket SquareGrand Cayman KY1-1106Cayman Islands

Administration

237

Administration









238

Administration









239

Administration









240

Administration





TrusteeHSBC Trustee (Cayman) LimitedP.O. Box 484HSBC House68 West Bay RoadGrand Cayman KY1-1106Cayman Islands

Custodian, administrator and valuation agentHSBC Institutional Trust Services (Asia) LimitedHSBC Main Building1 Queen’s Road CentralHong Kong


241

Stuart Glenn BERRY

Pedro Augusto BOTELHO BASTOS

Guillermo Eduardo MALDONADO-CODINA

Chun Pong Stephen TAM

Ka Yin Joanne LAU

Board of Directors of HSBC Investment Funds (Hong Kong) Limited

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