Amundi Bond Global Emerging Blended Fund - Amundi Malaysia
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Amundi Bond
Global Emerging
Unaudited Quarterly Report
Blended Fund 31 October 2021AMUNDI BOND GLOBAL EMERGING BLENDED FUND
CONTENTS PAGE(S)
GENERAL INFORMATION ABOUT THE FUND 3–4
MANAGER’S REPORT 5 – 12
UNAUDITED STATEMENT OF FINANCIAL POSITION 13
UNAUDITED STATEMENT OF COMPREHENSIVE INCOME 14
UNAUDITED STATEMENT OF CHANGES IN NET ASSETS
15
ATTRIBUTABLE TO UNIT HOLDERS
UNAUDITED STATEMENT OF CASH FLOWS 16
NOTES TO THE UNAUDITED FINANCIAL STATEMENTS 17 – 19
STATEMENT BY THE MANAGER
20
2AMUNDI BOND GLOBAL EMERGING BLENDED FUND
GENERAL INFORMATION ABOUT THE FUND
Launch and Commencement Date
The Amundi Bond Global Emerging Blended Fund (the “Fund”) was launched on 14 February
2017 and commenced on 17 April 2017.
Fund Name, Category, Type
Fund Name Amundi Bond Global Emerging Blended Fund
Fund Category Wholesale - Feeder fund (fixed income)
Fund Type Growth and income
Investment Objective
The Fund aims to achieve investment returns by investing in Amundi Funds Bond Global
Emerging Blended (the “Target Fund”) which aims to outperform the reference indicator
composed to 50% of “JP Morgan EMBI Global Diversified EUR Hedged” index and to 50% of
“JP Morgan ELMI+” index (denominated in local currencies and converted in EUR) over an
investment horizon of at least three years after taking into account charges.
Investment Policy and Strategy
The Fund will invest a minimum of 90% of the NAV of the Fund in the Target Fund; the balance
of the Fund will be invested in liquid assets.
As the Fund is a wholesale feeder fund, the investments of the Fund will consist of a single
collective investment scheme, i.e. the Target Fund.
The Manager will monitor the investment objective of the Target Fund to ensure that it is
consistent with the investment objective of the Fund. In view of the aforesaid, the Fund will not
undertake any temporary defensive position. Accordingly, the Fund’s performance will be
directly correlated to the performance of the Target Fund subject to the Fund’s currency hedging
strategy being successful.
As the Target Fund is denominated in EUR, the Manager will invest in currency forwards at the
Class level (where necessary) to reduce exposure to foreign exchange fluctuations.
If and when the Manager considers the investment in the Target Fund is unable to meet the
objective of the Fund, the Manager may choose to replace the Target Fund with another
collective investment scheme that is deemed more appropriate. The Manager will seek Unit
Holders’ approval before any such changes are made.
The asset allocation of the Fund will be as follows:
Minimum 90% of the NAV of the Fund will be invested in the Target Fund;
Up to 10% of the NAV of the Fund will be invested in liquid assets.
3AMUNDI BOND GLOBAL EMERGING BLENDED FUND
Additional Information:
The Second Supplementary Information Memorandum of the Fund, dated 26 August 2021 was
issued by Amundi Malaysia Sdn. Bhd. (”the Manager”) to include the management process to
promote environmental, social and governance characteristics of the Target Fund’s assets and
in this regard, specific risks relating to the Target Fund have been updated. For further details,
please refer to the attached Second Supplementary Information Memorandum which was
provided earlier; or visit our website using the following link
https://www.amundi.com.my/retail/product/view/MYU9600AD000
Distribution Policy and Distribution Mode
In line with the distribution policy of the Target Fund, it is intended that the Fund will distribute
income at least once a year, subject to availability of income. Distribution will be reinvested as
additional units of the Fund at the NAV per unit on the distribution payment date.
4AMUNDI BOND GLOBAL EMERGING BLENDED FUND
MANAGER’S REPORT
Market Review
Inflation continued to be a key topic through August as investors weighed the impact of the
spreading Delta Covid-19 variant against upbeat forecasts globally. Early August saw the
release of very strong non-farm payroll numbers in the US, showing that the US economy
created 943 thousand jobs in July – setting the tone for the rest of the month. Various
inflation indices in the US showed that inflation was heading to levels not seen since the
early 1990’s with a few inflation measures showing more than 5%.
The US Treasury curve sold off ahead of the 5.4% CPI print on 11 August (the 10-year
UST yield rose 18 bps to 1.36%, before falling back to 1.25%) and in the lead-up to the
Jackson Hole Symposium on 27 August (the 10-year UST yield rose to 1.34%, ending the
month at 1.31%). On monetary policy, Fed chair Jerome Powell was perceived to strike a
dovish tone at the Jackson Hole Symposium: 1) acknowledging better economic conditions
with a sanguine assessment of inflation, 2) continued focus on a broad based and
inclusive employment goal, 3) patience towards tapering of asset purchases and rate hikes.
In Europe, meanwhile, the Euro area composite flash PMI fell from 60.2 in July to 59.5 in
August. The Account of the July Governing Council Policy Meeting indicated that the ECB
remained constructive on the outlook, noting that the new forward guidance on rates does
not necessarily imply lower for longer, if it succeeds in anchoring inflation expectations at
the target.
Turning to Emerging Markets, in contrast with the Fed, which has been comfortable with
the higher current inflation, most EM central banks moved to a more hawkish stance in
order to contain inflation expectations. In August, new comers on the tightening path
included South Korea, Mexico, Chile and Sri Lanka, while Brazil, Hungary and Czech
Republic continued in their policy normalisation.
The IMF approved a general SDR (special drawing rights) injection of $650bn to its
member countries. The additional SDR’s will boost member countries’ FX reserves, as
countries can unconditionally withdraw their SDR in USD, RMB, JPY, EUR or GBP to
meet external payments and/or financing needs. The new allocation will be distributed in
proportion to the size or the country’s quota within the IMF.
Geopolitical developments did not materially impact broader market sentiment across
Emerging Markets, following the fall of Afghanistan’s government to the Taliban after
withdrawal of US and global troops. In Zambia, the opposition presidential candidate,
Hakainde Hichilema, widely referred to as HH, and his party, the United Party for National
Development (UPND), defeated the incumbent president and a ruling party in Zambia’s
elections on 12 August.
Recent flows into EM bond funds remained positive albeit of a modest magnitude, keeping
the YTD flows in the asset class stable.
The key development over the past quarter was the shift in the tone of DM central banks,
with a gradual move from easy policies towards some normalisation in monetary policy
amidst higher inflation prints, as highlighted previously that this was already underway in
EM economies since several months.
5AMUNDI BOND GLOBAL EMERGING BLENDED FUND
US treasuries moved higher towards the end of the quarter - the 10-year UST yield rose
by ~18 bps in September, as both actual inflation and inflation expectations have
remained sticky. Energy prices moved sharply higher particularly since mid-August,
partly due to rising demand from a fading delta variant and Hurricane Ida; but also
caused by higher natural gas prices. The ongoing supply-chain challenges for products
like semiconductors have also lifted inflation anxiety across global markets, as shipping
and transport costs have remain elevated.
Following the hawkish tilt in the Fed narrative at the June FOMC meeting, in September
the Fed announced that it will soon (likely in November) begin to slow the pace of its
asset purchases; aiming to end their taper program by mid-2022. The meeting also
resulted in a more aggressive indication of rate hikes than prevalent market pricing, as
the median projection for the first rate hike was brought forward into 2022 from 2023.
The median dot plot projections also showed 3 hikes in 2023, and 3 more hikes in 2024.
Turning to emerging markets, Chinese growth numbers broadly surprised on the
downside, mainly driven by regulatory tightening. To recap: first, China’s move to turn
private tutoring companies into non-profit organisations worried risk sentiment, with
questions around measures around other sectors. Next, there were more regulations
on the technology sector including a ban on children playing computer games for more
than three hours per week. Finally, investors contended with fears around the potential
default of a large Chinese property developer and potential spill-over effects. More
recently, ongoing power shortage in China contributed to uncertainty.
The EM monetary policy mix has relatively tightened: in Asia, the central bank of Korea
raised rates. Colombia joined other hiking Latin American central banks of Brazil, Chile,
Peru and Mexico. In CEEMEA, the central banks of Czech Republic, Hungary, Russia
and Ukraine also raised their policy rates over the quarter. In contrast, Turkey’s central
bank lowered its policy rate, despite higher inflation and against consensus
expectations, noting that a revision of its monetary policy stance was needed as past
monetary tightening was now dampening credit, domestic demand and commercial
loans.
EM sovereign issuance increased significantly in September, with a total of ~$20bn.
This was an estimated evenly split between IG and HY with the likes of Abu Dhabi,
Hungary, Indonesia and Chile in the IG space versus Maldives, Turkey, Nigeria, Egypt
and Guatemala in the HY space; and also ESG sovereign issuance from Chile with two
social bonds and the first ESG bond from Serbia.
EMs have been faring better in terms of Covid-19 developments; mobility and momentum
data had shown improvements in LATAM and CEEMEA. Meanwhile, more recent data
indicated that the number of cases appear to have peaked (though at different paces)
and some restrictions have been lifted across Asia. At the same time, the vaccination
rollout has sped up.
The market remained focused on inflation during October, as oil, amongst other
indicators, climbed through $84 per barrel amidst a surging energy crunch across
Europe and China. US long end rates sold off in a globally coordinated move starting in
late September with hawkish central bank rhetoric, higher inflation readings and surging
commodity prices. The 10-year yield rose from 1.3% in late September, peaking at 1.7%
in late October. These moves quickly reversed, with the 10-year trading below 1.5% at
6AMUNDI BOND GLOBAL EMERGING BLENDED FUND
the time of writing in November, following a more-dovish-than-expected hold from the
Bank of England. The 20s30s Treasury curve inverted for the first time since the 20-year
note was re-introduced last year, thus reflecting a trend towards flattening of yield
curves while highlighting market participant concerns about the 20-year point’s liquidity
and market sponsorship.
The Federal Reserve struck a neutral balance between the start of a tapering
programme and future plans for interest rate hikes at its November FOMC meeting. It
declared a formal end to the large-scale purchase programme launched with Covid-19
and preserved optionality for future policy moves based on the direction of the economy
and inflation. They maintained their view that inflation in the short term is ‘transitory’, but
acknowledged that supply and demand imbalances related to the pandemic and the
reopening of the economy have led to sizable price increases in some sectors.
Chinese macroeconomic data has broadly surprised on the downside in Q3, with
exports being the only exception. Policy tightening (housing), self-imposed constraints
(zero tolerance Covid-19 policy, de-carbonisation production cut/power
shortage/electricity rationing), and global chip shortage all contributed to the slowdown.
The Investment Manager expects a production comeback in Q1 2022 as global supply
constraints ease and energy use quota renews. On the monetary side, People’s Bank of
China Governor Yi Gang highlighted that the central bank would avoid any contagion
risk from individual property developers to the overall sector and financial markets. Vice
Premier Liu noted that risks on the property market were under control, and that
developers’ reasonable funding needs were being met. Notably, Evergrande made a
dollar bond coupon payment within the grace period and thus avoided an event of
default.
Moving on to the rest of EM, upside inflation surprises continue to drive EM central
banks to front load the tightening bias, notably across EEMEA and LatAm. The Polish
central bank finally started their hiking cycle on the back of sharply increasing inflation.
At the same time the Central Bank of Turkey cut interest rates amid higher inflation, after
all but one of the former central bank directors were fired, contributing to a plunge in the
Turkish Lira.
In Brazil, there were a number of factors contributing to market volatility. Firstly, the
Treasury Secretary resigned after President Bolsonaro pushed for the constitutional
expenditure cap to be softened. In addition, the Lower House of Congress proposed a
constitutional amendment bill retroactively, changing the inflation adjustment. Third, the
government announced a temporary support to truck drivers to alleviate the impact of
higher fuel prices, and finally, the annual payment of court-ordered debts was limited to
the 2016 value, thus increasing the 2022 primary fiscal deficit.
From an index perspective, JP Morgan confirmed that they would include both Egypt and
Ukraine in their local currency Global Bond Index Emerging Markets Global Diversified
(GBI EM GD) Index in the first quarter of 2022. Egypt is likely to join the index with an
estimated 1.85% weight, while Ukraine will join with an estimated weight of 0.12%.
Indian local currency bonds are also under consideration for a potential inclusion in H2
2022.
7AMUNDI BOND GLOBAL EMERGING BLENDED FUND
Market Outlook
Inflation has continued to surprise to the upside, in both EM and DM, driven by strong
domestic demand, notably within EMs, and supply bottlenecks in DMs. Although rate
hikes are not expected for at least another year, core rates are expected to pick up from
the current levels and therefore maintains a short duration positioning versus the benchmark.
The Investment Manager holds a constructive outlook on EM Hard Currency Debt overall,
particularly in HY, given the outperformance of EM growth versus DM, continued resilience
of commodity prices, and room for further spread compression. Global growth, albeit
slowing from a high base, remains healthy and particularly strong in EM. Data surprises
continue to be positive in EM, while they have fallen into negative territory in the US
since early August. In terms of risks, while an over-tightening of monetary policy by the
Fed could be a headwind, especially in the face of weakening growth, remained far from
such macro conditions in the Investment Manager view.
Local Currency are selectively positioned as much of the sell-off has been warranted by a
turn in central bank policy inclination away from easing towards tightening, and by the
emergence of inflationary pressures. Having said that, the Investment Manager have moved
to a more positive bias on EM rates than the portfolio has have had since the start of the
year. Rates are seen rates to be a lot closer to fair value in many EM countries than they
are in core rates markets. Therefore, the Investment Manager maintains selective longs in
EM local rates in countries where EM tightening cycles are closer to the end than the start.
On EM FX, the Investment Manager turn down the dial on bullishness on EM FX, given
their strong performance following the latest US jobs data, which points towards much
slower than expected job creation versus much higher than expected wage growth. It is
not clear to us that this set of data should trigger further weakness in the USD, given the
data’s stagflationary flavour, which is the most feared market environment for risky assets.
While the Investment Manager does not believe currently in a stagflationary environment,
given stronger growth prospects and acknowledged the risk that market participants may
want to trade that theme in the short run. Great risk-reward is not seen in EM FX at this
juncture; and hence prefer to turn neutral, moving out of outperformers into laggards.
8AMUNDI BOND GLOBAL EMERGING BLENDED FUND
Review of the Fund Performance During The Period
Performance calculated up to 31 October 2021
Amundi Bond Global Emerging
3 Months 1 year Since 17 April 2017
Blended Fund
RM class -0.91% 4.41% 10.26%
USD class -1.28% 3.43% 5.39%
SGD class -1.34% 3.29% 0.99%
50% of JP Morgan EMBI
Global Diversified EUR
Hedged index and 50% of JP 0.19% 3.83% 4.84%
Morgan ELMI+ (EUR) index,
hedged in EUR.
*Benchmark performance since 20 April 2017
NA = Not Available
Source: Amundi Malaysia Sdn Bhd
Review of the Target Fund Performance During the Period
Overall, October brought mixed performances for risk assets, including Emerging Market
debt. In USD terms, Emerging Market Hard Currency Sovereign (JPM EMBI Global
Diversified) was flat, returning 0.02% with the IG component (0.32%) strongly
outperforming HY (-0.27%). Local Currency bonds also generated losses and
underperformed Hard Currency Debt significantly; the JPM GBI EM Global Diversified
index lost -1.33%, dragged down by the rates component. Meanwhile, EM FX (JPM ELMI+)
ended up 0.31% for the period. On the corporate side, the EM Corporate Index (JPM
CEMBI Broad Diversified) lost -0.46%, with both IG (-0.31%) and HY (-0.65%) debt in
negative territory. In terms of flows, monthly flows into EM bond funds were mixed, while
the YTD flows in the asset class remain positive.
The Investment Manager’s short duration positioning attributed positively given the re-
pricing in core rates markets on the back of higher energy prices and inflation. In hard
currency, the Investment Manager directional overweight exposure was slightly loss
generating as spreads widened on the back of rising concerns around Chinese growth
and thereby the impact on global growth. Country selection was also a detractor driven by
selection and bias to HY credits, which were hardest hit by the volatility in US rates. The
worst performing region was Latin America, where overweight in Argentina and Brazil
contributed to the majority of the downside. In Brazil, uncertainty over fiscal rules and
impact on the 2022 budget amidst higher inflation resulted in an underperformance, while
in Argentina, IMF’s rejection of a request for temporary surcharges relief led to losses.
Underweight exposure to Uruguay, Chile and Panama also detracted.
In Asia, the performance was mixed; the overweight in Indonesia generated gains, which
were offset by the overweight in China.
On the other hand, the portfolio benefited from the selections in CEEMEA, due to the
overweight to UAE and Bahrein; as well as the overweight in Serbia and Ukraine. Gains
also resulted from the selection on SSA.
The overweight in Zambia was the top driver of gains as the sovereign continued to
benefit from higher copper prices and a positive outcome of the Presidential election
9AMUNDI BOND GLOBAL EMERGING BLENDED FUND
results, which are supportive for the debt restructuring discussions with the IMF. The
portfolio also benefited from overweight in the Ivory Coast.
The off-benchmark local currency exposure was a primary detractor, led by the long rates
exposure in Brazil followed by exposure to Russia and other high yielding frontier
countries such as Ukraine and Serbia. On the other hand, the portfolio benefited from the
short positioning in low yielding countries such as Poland. Finally, EM FX was a strong
generator of gains - the long positioning in high yielding currencies, such as Ukrainian
Hryvnia and Egyptian Pound, drove performance as did the long in Russian Rouble versus
the US Dollar. The short positioning on the Turkish Lira also posted gains as the currency
suffered given the rate cut by the Central Bank despite higher levels of inflation. On the
other hand, the weakest currency was the positioning in Brazilian Real, where the
Investment Manager had maintained a short positioning given the political environment.
Portfolio Positioning of the Target Fund
Duration: The Investment Manager reduced further underweight duration positioning in
August, given bearish outlook on core rates.
Credit (Hard Currency bonds): The Investment Manager holds an overweight beta
exposure to the asset class. The Investment Manager increased underweight in Panama,
while moved to an underweight in Jordan after its exceptional rally in August. On the
other hand, positions in SSA were further added via some high yielding credits including
Angola, Gabon and Nigeria as well as to Turkey. The Investment Manager maintained a
constructive outlook on EM Hard Currency Debt overall, particularly in HY.
Local Currency rates: The Investment Manager maintained an off-benchmark exposure
of 17.0% (129 bps modified duration), which includes sovereigns and quasi sovereign
bonds. The Investment Manager see rates to be a lot closer to fair value in many EM
countries than they are in core rates markets. Therefore, the Investment Manager
maintain selective longs in EM local rates, in countries where EM tightening cycles are
closer to the end than the start i.e. Russian rates as the monetary policy tightening cycle
is approaching its end. The Investment Manager expects the bear flattening of the
Russian curve observed since the start of the year to be replaced with bull flattening of
the curve going forward – with long end yields falling in absolute terms. The Investment
Manager holds a long in Brazil; the central bank has adopted a much faster pace of rate
hikes than anticipated, in large part thanks to stronger than expected inflationary
pressures. Nevertheless, the Investment Manager continues to view the terminal policy
rate of ~9.5% priced by the market to be too high; and remain long Brazilian rates as
there is too much risk premia embedded in the curve. The Investment Manager remain
long in South Africa through long dated bonds, which expects to perform strongly given
excessive curve steepness and sharply improving technicals. South Africa’s improving
terms of trade should reduce the government’s financing needs, resulting in significantly
lower than expected local currency bond issuance. The local rates are viewed to be
showing the most premium compared to other assets in South Africa– namely FX and
credit. The Investment Manager maintained the bias to high yielding countries, such as
Egypt and Ukraine, as they offer the potential for a better risk adjusted performance
and to countries with a strong IMF or EU anchor, which are expected to be included in
the benchmark index, such as Serbia, that has been confirmed for index inclusion.
10AMUNDI BOND GLOBAL EMERGING BLENDED FUND
FX: The Investment Manager made significant changes during the month. The long-
standing Brazilian Real overweight to neutral given the currency’s outperformance versus
other EM High Yielders year-to-date. While the currency suffers from political noise, the
Investment Manager believes that, the broader macro backdrop of strong growth, healthy
balance of payments, and tightening monetary policy should ultimately prove
supportive. The portfolio was shift to an underweight position on Mexican Peso given
the currency’s strong performance this year, despite a half-hearted tightening cycle by
the central bank. The currency may also face downward pressure from a US economy
with negative delta on growth. Position in Colombian Peso is remained long as forced
selling related to the country’s downgrade to HY should be behind us. Meanwhile,
position in the Chilean Peso havs turned from short to neutral.. In CEEMEA, the key
change has been a shift to long Polish Zloty. The currency has significantly
underperformed its regional peers. In the Investment Manager’s view, the persistently
high inflationary prints may force the perma-dovish central bank towards adopting a
more hawkish stance in the upcoming monetary policy meetings. In the rest of the region,
the Investment Manager remain long Russian Rouble and neutral elsewhere.
11AMUNDI BOND GLOBAL EMERGING BLENDED FUND
UNAUDITED STATEMENT OF FINANCIAL POSITION AS AT 31 OCTOBER 2021
31/10/2021 31/10/2020
Note EUR EUR
ASSETS
Investment 1 382,372 511,440
Forward foreign currency contracts 2 2,439 8,080
Cash at bank 15,896 4,280
Amount due from stockbrokers 833 -
TOTAL ASSETS 401,540 523,800
LIABILITIES
Amount due to stockbrokers 418 105,855
Amount due to Manager 414 517
Amount due to Trustee 7 9
Other payables and accruals - 1,410
TOTAL LIABILITIES (EXCLUDING NET ASSETS
ATTRIBUTABLE TO UNIT HOLDERS) 839 107,791
NET ASSETS ATTRIBUTABLE TO UNIT HOLDERS 400,701 416,009
REPRESENTED BY:
UNITHOLDERS' CAPITAL 517,911 554,947
(ACCUMULATED LOSSES) / RETAINED EARNINGS (117,210) (138,938)
400,701 416,009
NET ASSETS ATTRIBUTABLE TO UNITHOLDERS
- RM CLASS 313,633 332,718
- USD CLASS 55,331 53,146
- SGD CLASS 31,737 30,145
400,701 416,009
UNITS IN CIRCULATION
- RM CLASS 1,539,832 1,722,681
- USD CLASS 60,710 60,710
- SGD CLASS 49,058 49,058
1,649,600 1,832,449
NET ASSET VALUE PER UNIT IN EUR
- RM CLASS 0.2037 0.1931
- USD CLASS 0.9114 0.8754
- SGD CLASS 0.6469 0.6145
NET ASSET VALUE PER UNIT IN RESPECTIVE
CURRENCIES
- RM CLASS 0.9755 0.9342
- USD CLASS 1.0546 1.0196
- SGD CLASS 1.0092 0.9771
The accompanying notes form an integral part of the financial statements.
12AMUNDI BOND GLOBAL EMERGING BLENDED FUND
UNAUDITED STATEMENT OF COMPREHENSIVE INCOME FOR THE FINANCIAL PERIOD
FROM 1 AUGUST 2021 TO 31 OCTOBER 2021
01/08/2021 01/08/2020
TO TO
31/10/2021 31/10/2020
EUR EUR
INVESTMENT INCOME
Dividend Income 18,557 25,116
Net gain/(loss) from investment: - -
Financial assets at fair value through profit or loss
(“FVTPL”) (22,694) 15,500
Net realised foreign currency exchange gain/(loss) 33 (197)
Net realised gain/(loss) on forward foreign currency
contracts 13,715 (22,830)
Net unrealised gain/(loss) foreign currency exchange gain 293 (1,122)
Net unrealised gain/(loss) on forward foreign currency
contracts 4,476 11,197
Gross Income 14,380 27,664
EXPENDITURE
Manager’s fee 1,281 3,116
Trustee’s fee 21 52
Other expenses 183 117
Audit fee - 52
Total Expenditure 1,485 3,337
PROFIT / (LOSS) BEFORE FINANCE COST AND
TAXATION 12,895 24,327
Finance Cost (excluding increase in Net Asset Attributable
to unitholders
- Class MYR - -
- Class USD - -
- Class SGD - -
PROFIT / (LOSS) BEFORE TAXATION 12,895 24,327
Taxation - -
PROFIT / (LOSS) AFTER TAXATION AND TOTAL
COMPREHENSIVE INCOME FOR THE PERIOD 12,895 24,327
Profit after taxation is made up as follows:
Realised amount (24,522) 34,419
Unrealised amount 37,417 (10,092)
12,895 24,327
The accompanying notes form an integral part of the financial statements.
13AMUNDI BOND GLOBAL EMERGING BLENDED FUND
UNAUDITED STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO
UNITHOLDERS FOR THE FINANCIAL PERIOD 1 AUGUST 2021 TO 31 OCTOBER 2021
Retained
Unit holders' earnings/ Total
(Accumulated Net Asset
Capital losses) value
EUR EUR EUR
Balance as at 01 August 2021 566,852 (130,105) 436,747
Movement in Net Asset Value:
Total comprehensive income for
the financial period - 12,895 12,895
Creation of units:
- RM Class 415 - 415
- USD Class - - -
- SGD Class - - -
Cancellation of units:
- RM Class (49,356) - (49,356)
- USD Class - - -
- SGD Class - - -
Reinvestment of distributions:
- RM Class - - -
- USD Class - - -
- SGD Class - - -
Distributions:
- RM Class - - -
- USD Class - - -
- SGD Class - - -
Balance as at 31 October 2021 517,911 (117,210) 400,701
The accompanying notes form an integral part of the financial statements.
14AMUNDI BOND GLOBAL EMERGING BLENDED FUND
UNAUDITED STATEMENT OF CASH FLOWS FOR THE FINANCIAL PERIOD FROM
1 AUGUST 2021 TO 31 OCTOBER 2021
01/08/2021 01/08/2020
TO TO
31/10/2021 31/10/2020
EUR EUR
CASH FLOWS FROM OPERATING AND INVESTING
ACTIVITIES
Proceeds from sale of investments 74,135 9,285
Dividend received 18,557 25,116
Purchase of investment (50.721) (34,707)
Manager’s fee paid (1,314) (1,564)
Trustee fee paid (22) (26)
Payment for other expenses (183) (67)
Net realised foreign currency exchange gain/(loss) 326 (935)
Net realised gain/(loss) on forward foreign currency contracts 13,715 3,347
Net cash used in operating and investing activities 54,493 449
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from creation of units (2) 7,071
Payment for cancellation of units (49,356) (12,371)
Distribution paid - -
Net cash generated from financing activities (49,358) (5,300)
NET INCREASE/DECREASE IN CASH AND CASH EQUIVALENTS 5,135 (4,851)
CASH AND CASH EQUIVALENTS AT BEGINNING OF
FINANCIAL PERIOD 10,761 9,131
CASH AND CASH EQUIVALENTS AT END OF
FINANCIAL PERIOD 15,896 4,280
Cash and cash equivalents comprise:
Cash at bank 15,896 4,280
The accompanying notes form an integral part of the financial statements.
15AMUNDI BOND GLOBAL EMERGING BLENDED FUND
NOTES TO THE UNAUDITED FINANCIAL STATEMENTS AS AT 31 OCTOBER 2021
1. INVESTMENT
31/10/2021 31/10/2020
EUR EUR
Financial assets at FVTPL:
Foreign collective investment
scheme 382,372 511,440
01/08/2021 01/08/2020
TO TO
31/10/2021 31/10/2020
EUR EUR
Net gain/(loss) on financial assets at FVTPL
comprised:
− Net realised gain/(loss) on sale of investments (17,197) (1,124)
− Net realised gain/(loss) on foreign currency
exchange 91 (197)
− Net realised gain/(loss) on foreign currency
exchange – forward 14,474 (22,830)
− Net unrealised gain/(loss) on changes in fair value of
investment - 16,623
− Net unrealised gain/(loss) on foreign currency
fluctuation of investment denominated in foreign
currency –
Investment & Forward 980 10.075
(1,652) 2,547
Financial assets at FVTPL as at 31/10/2021 as are
follows:
Fair value as a
Fair value percentage of
Foreign collective No. Purchase as at net asset value
investment scheme of units cost 31/10/2021 as at 31/10/2021
EUR EUR %
AMUNDI Funds
Emerging Markets
Blended Bond 442 416,786 382,372 95.43
Excess of fair value over cost (34,414)
16AMUNDI BOND GLOBAL EMERGING BLENDED FUND
NOTES TO THE UNAUDITED FINANCIAL STATEMENTS AS AT 31 OCTOBER 2021
(CONTINUED)
1. INVESTMENT (Continued)
Financial assets at FVTPL as at 31/10/2020 as are
follows:
Fair value as a
Fair value percentage of
Foreign collective No. Purchase as at net asset value
investment scheme of units cost 31/10/2020 as at 31/10/2020
EUR EUR %
AMUNDI Funds
Emerging Markets
Blended Bond 588 565,573 511,440 122.94
Excess of fair value over cost (54,133)
2. FORWARD FOREIGN CURRENCY CONTRACTS
Unquoted derivative instruments comprise forward currency contract. The financial period end
positive fair value represents the unrealised gain on the revaluation of forward currency
contract at the reporting date. The contract underlying principal amount of the forward
currency contract and the corresponding gross positive fair value at financial period end date
is analysed below:
Contract or
underlying
Maturity principal Fair value
date amount EUR
31/10/2021
Ringgit Malaysia 30.11.2021 1,486,542 2,879
31/10/2021
United States Dollar 30.11.2021 64,457 (365)
31/10/2021
Singapore Dollar 30.11.2021 47,158 (75)
Unquoted derivative assets
2,439
17AMUNDI BOND GLOBAL EMERGING BLENDED FUND
NOTES TO THE UNAUDITED FINANCIAL STATEMENTS AS AT 31 OCTOBER 2021
(CONTINUED)
2. FORWARD FOREIGN CURRENCY CONTRACTS (Continued)
Contract or
underlying
Maturity principal Fair value
date amount EUR
31/10/2020
Ringgit Malaysia 30.11.2020 (2,123,031) 6,935
31/10/2020
United States Dollar 30.11.2020 (63,211) 874
31/10/2020
Singapore Dollar 30.11.2020 (48,373) 271
Unquoted derivative assets
8,080
3. MANAGEMENT EXPENSE RATIO ("MER")
The Fund’s MER is as follows:
01/08/2021 01/08/2020
TO TO
31/10/2021 31/10/2020
% p.a. % p.a.
Manager’s fee 2.43 2.40
Trustee’s fee 0.04 0.04
Fund’s other expenses (0.10) 0.10
Total MER 2.37 2.54
18AMUNDI BOND GLOBAL EMERGING BLENDED FUND
NOTES TO THE UNAUDITED FINANCIAL STATEMENTS AS AT 31 OCTOBER 2021
(CONTINUED)
4. PORTFOLIO TURNOVER RATIO (“PTR”)
01/08/2021 01/08/2020
TO TO
31/10/2021 31/10/2020
PTR (times) 0.15 0.04
5. QUARTERLY REPORT (Continued)
The quarterly report for the financial period from 01/08/2021 to 31/10/2021 is unaudited.
The manager has, at its discretion, decided to reimburse the Fund partially for the expenses
incurred by the Fund until such time the Fund is able to bear such expenses fully.
19AMUNDI BOND GLOBAL EMERGING BLENDED FUND
STATEMENT BY THE MANAGER
We, Haizan Johari and Edna Vimala Koshy, being two of the directors of the Manager, Amundi
Malaysia Sdn. Bhd, for Amundi Bond Global Emerging Blended Fund do hereby state that, in
the opinion of the Manager, the accompanying unaudited statement of financial position,
unaudited statement of comprehensive income, unaudited statement of changes in net asset
attributable to unit holders and unaudited statement of cash flows are drawn up by applying the
appropriate accounting policies so as to give a true and fair view of the financial position of the
Fund as at 31 October 2021.
Signed for and on behalf of the Manager.
....................................................................................
HAIZAN JOHARI
....................................................................................
EDNA VIMALA KOSHY
Dated 20 December 2021
Kuala Lumpur, Malaysia
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