First State Indonesian USD Balanced Plus Fund Monthly fund fact sheet - brochures equivalent 30 December 2014 (in US Dollar) Investment objective To achieve capital appreciation and deliver income in the long term by investing in a balanced portfolio in equity and debt securities traded on either domestic or foreign Stock Exchange and / or money market instruments denominated in United States Dollars. Investment mandate Equities Fixed income &/or Money Market The Fund may invest in foreign securities as regulations permit 25% - 75% 25% - 75% Portfolio weightings Equities Fixed income Money market Foreign securities 65.12% 27.11% 7.77% 0.00% Top 5 holdings INDOIS 22 INDON 23 TD Bank QNB Kesawan Telkom Indonesia Unilever Government Bonds Government Bonds Liquidity Telecommunication Services Consumer Staples First State Indonesian USD Balanced Plus Fund’s portfolio may be exposed to foreign exchange risk Sector breakdown (%) Performance since inception Government Bonds 27.11% Financials 18.63% Consumer Staples 11.58% Industrials 9.84% Consumer Discretionary 6.91% Materials 6.21% Telecommunication Services 5.94% Energy 2.28% Utilities 2.21% Health Care 1.90% Others 0.53% Liquidity 6.86% 15% 10% 5% 0% -5% -10% -15% Aug-12 Mar-13 Oct-13 FSI USD Balanced Plus Fund Fund information Launch date Price (NAV / Unit) Total fund size Fund currency Dealing August 8, 2012 USD 1.0132 USD 51,616,373.65 US Dollar Daily May-14 Dec-14 Benchmark Annual Management Fee Annual Custodian Fee Subscription Fee Switching Fee Redemption Fee Max.2,5% Max.0,20% Min.1% - Max.2% Max.2% Max.2% Manager's comments • Effective 1 January 2015, the Indonesian government has officially taken RON 88 fuel subsidy out of their budget. The government will continue to subsidize diesel prices, but will fix the amount of the subsidy at 1,000 rupiah a liter for 2015. Its price will be determined by the government, with the international oil price used as a reference.. This fuel subsidy reform is expected to significantly reduce the percentage of total state spending for fuel subsidies from 9 percent into 2.5 percent. This move could provide Indonesia with an international confidence that the new government should be able to curb current account deficit (CAD). • On December 2014, Rupiah depreciated to its lowest level since the Asian Financial Crisis in the late 1990s. The depreciating trend of Rupiah has started since the second half of 2014. However, the weak Rupiah performance occurs in other emerging countries as well, triggered by the improvement of the US economy. This triggered speculations that the Fed could raise its key interest rate at the end of the first half of 2015. • We are currently fully invested in equity as we are confident that the new government will be able to execute strategic initiatives to improve the economy. However, we remain cautious on short term downside risk and looking forward to the revised state budget in January 2015. • We favor some sectors that should benefit from the nation’s oil and gas reform, such as transportation, cement and infrastructure. We continue to put less weight into the mining sector. • In general, we still maintain our previous strategy on our current portfolio while continue to monitor the execution of the nation’s reform agenda. • We continue to maintain our current portion in time deposit. • The duration of our USD denominated bonds portfolio is at 4.97 years. Cumulative performance (%) 1 mth First State Indonesian USD Balanced Plus Fund Benchmark (*) -0.40% -0.42% 3 mths 2.05% -0.27% 6 mths 4.38% 0.90% 1 yr 17.43% 9.61% YTD 17.43% 9.61% Since Annualized launch 1.32% 0.54% -3.86% -1.61% (*) 50% JCI (in USD) + 35% USD Indonesian Bond with 5 years maturity + 15% average USD Time Deposit 1 month All data are as of - 30 December 2014 PT First State Investments Indonesia Artha Graha Building, 29th Floor, Sudirman Central Business District, Jl. Jend. Sudirman Kav. 52-53, Jakarta 12190, Indonesia Tel : + 6221 2935 3300 Fax : +6221 2935 3388 Email : [email protected] www.firststateinvestments.com This report is prepared by First State Investments Indonesia and is provided for information purposes only. Investors should read the Prospectus before deciding whether to subscribe for or purchase units in the Fund. In the event of discrepancy between this report and the Prospectus, the Prospectus shall prevail. The value of the units in the Fund(s) and the income from them may rise as well as fall. Past performance figures are not necessarily a guide to future performance. Neither is any forecast made necessarily indicate of the future or likely performance of the Fund(s). Where information is provided on top holdings, such information does not constitute an investment recommendation. PT First State Investments Indonesia is registered and supervised by OJK and obtain its business license from OJK (previously Bapepam-LK) on December 2003 whose business license number: KEP-12/PM/MI/2003.