MCB Unit Trust...The MCB Unit Trust (the “Trust”) was initially established in Mauritius on 19 August 1994 by way of a Trust Deed. The Trust The Trust and its sub-funds (collectively

MCB Unit Trust Annual report and accounts

For the year ended June 30, 2020

MCB Unit Trust | 1

MCB Unit Trust Annual report and accounts

For the year ended June 30, 2020

TABLE OF CONTENTS

Directory 2

The Trust 3 - 4

Manager’s Report 5 - 18

Report of the Custodian 19

Independent Auditor’s Report to the Unitholders 20 – 20 (b)

Financial Statements 21 – 65

Statement of Financial Highlights 66 – 76

2 | MCB Unit Trust

MCB Unit Trust Directory

Trustee

Multiconsult Trustees Ltd

c/o IQEQ

33, Edith Cavell Street,

Port Louis

11324 Republic of Mauritius

Tel: +230 405 2000

www.iqeq.com

Manager

MCB Investment Management Co Ltd

1st Floor, Raymond Lamusse Building, MCB Centre

Sir William Newton Street, Port Louis

Republic of Mauritius

Tel: +230 202 5515

www.mcbcapitalmarkets.mu

Custodian

The Mauritius Commercial Bank Ltd

Securities Services

5th Floor, Harbour Front Building,

President John Kennedy Street, Port Louis


www.mcb.mu

Registrar

MCB Registry & Securities Ltd




Tel: +230 202 5000


Auditors

BDO & Co.

10, Frère Félix de Valois Street

Port Louis


Tel: +230 202 3000

www.bdo.mu

Principal Distributor MCB Stockbrokers Ltd




Tel: +230 202 5555


Collective Investment Scheme under Mauritian Law

MCB Unit Trust | 3

The Trust

The Trust

The MCB Unit Trust (the “Trust”) was initially established in Mauritius on 19 August 1994 by way of a Trust Deed. The Trust

and its sub-funds (collectively “the Funds”) are authorised as Collective Investment Scheme under the Securities Act 2005. As

an authorised Collective Investment Scheme, the Funds comply with the Securities Act 2005 and the Securities Act (Collective

Investment Schemes and Closed-End Funds) Regulations 2008.

The Funds have not been registered for distribution in any other jurisdiction than Mauritius.

The Trust consisted of the following 10 sub-funds as at June 30, 2020:

• MCB General Fund

• MCB Tracker Fund

• MCB Yield Fund

• MCB Domestic Equities Fund

• MCB Overseas Fund

• MCB Bond & Currency Fund

• MCB 2025 Target Date Fund




4 | MCB Unit Trust

Members of the CIS Committee

The members of the CIS Committee are as follows:

Jeremy Paulson-Ellis Jeremy Paulson-Ellis was one of the founding directors of the Genesis Group, a specialist institutional investment manager in

Emerging Markets and was the Chairman from its formation in January 1989 until his retirement in June 2009. Prior to that, he

was Chairman of Vickers da Costa following its takeover by Citicorp in 1985. Vickers da Costa was an international London-

based stockbroker with substantial international operations particularly in the Asia Pacific region. Earlier in his career for

Vickers, he was involved in the management of the first offshore fund formed to invest in Japan and participated in the

development and launch of the first country funds for South Korea and Taiwan, and the second for Thailand while also working

on the development of local Stock Markets. This exposure to the development of Stock Markets and the direction of an

institutional investment manager brings to the Board extensive experience, which complements the existing knowledge base

within the Mauritian marketplace.

Michaël Naameh Mr Michael Naameh is an economist and specialist in sovereign asset and liability management, emerging markets and financial

sector development. He had a long career with Crown Agents for Overseas Governments and Administrations where he served

as director of investment management and advisory services. Prior to joining Crown Agents, Michael was a senior consultant

with an international firm of actuaries. He has published widely on central bank reserve management, pension fund

management, risk management and financial sector development. Michael holds a BA (Hons) in Business Studies and an MSc

in International and Monetary Economics and is a member of the Institute of Chartered Financial Analyst (CFA).

Couldip Basanta Lala Couldip is a Fellow of the Institute of Chartered Accountants in England and Wales. Between 1985 and 1993, he has been a

partner of one of the big accounting firms (DCDM) and was responsible for training, technical development & strategic

coordination. He has been leading audit assignments of World Bank financed projects in countries of East and West Africa. In

1993, Couldip co-founded International Financial Services Ltd (IFS), which for the past 25 years has been a leading Management

Company specializing in international tax, business and corporate advisory services. In January 2017, IFS was acquired by

SANNE Group PLC, a company quoted on the main market of the London Stock Exchange.

All along his career, Couldip has been a corporate affairs consultant and adviser and his area of focus has been the structuring

of both private equity and open-ended funds. He has the exceptional background of being the past chairman of the Stock

Exchange Commission in 1994 and a past member of the Executive Committee of Bourse Africa, an international multi-class

exchange. Couldip also has experience appearing for and advising administrative bodies. He has been called upon by the

Government of Mauritius to be a member of high-powered fact-finding committees. He has also led and directed the

production of the “IFS Guide to Mauritian Company Law”.

Couldip sits on other boards of directors of private equity and open ended funds. He continues to contribute to shaping the

global business sector through his practitioner’s perspective.

Gilles Trancart Mr Trancart is a senior advisor to ACCURACY since September 2018. Prior to this he was the Deputy CEO and managing partner

of Lazard Frères Gestion (June 2011 to April 2018). Mr Trancart also acted as a Director of Lazard Freres Banque. Previously Mr

Trancart was Chief Risk Officer for Newedge (Credit Agricole Group) from 2008 to 2011. From 2005 to 2008, Mr Trancart acted

as Global head of Markets Risk at Credit Agricole Corporate & Investment Bank (CACIB). He also worked as a general partner

of ODDO BHF together with Phillippe Oddo and has acted as an independent director and consultant for a number of stock

markets and clearing houses in Europe. Mr Trancart began his career at the Banque of France as Inspecteur in charge of control

of Banks for the Banking Commission, specialized in Retail Banking and Market Activities in 1983.

Catherine Swanepoel Mrs Catherine Swanepoel holds a Masters of Commerce in Economics and a Bachelor of Commerce, both from the University

of Cape Town. She is currently a Partner and the Chief Investment Officer of South Suez Capital, an African private equity fund

manager with $1bn under management. She is the chairperson of the Investment Committee and a Director of the Board. She

also serves on the Advisory Boards of eight private equity funds. Prior to joining South Suez, Catherine was an Investment

Manager at the CDC Group, which is a leading private equity investor in Emerging Markets. Before joining CDC, she worked in

Investment Banking at Goldman Sachs in London.

MCB Unit Trust | 5

Manager’s Report

The International economy

As stressed in the June update to its World Economic Outlook, the IMF expects a deep global recession in 2020 amidst the

fallout of the COVID-19 pandemic and a modest recovery in 2021. Global output is, as per the Fund, projected to decline by

4.9% in 2020, followed by a partial recovery, with global growth at 5.4% in 2021. A high degree of uncertainty surrounds the

outlook, with significant downside risks. Notably, further waves of infections could potentially reverse increased mobility and

spending and rapidly tighten financial conditions, triggering debt distress while geopolitical tensions could further damage

global trade.

The Mauritian Economy

After expanding by an estimated 3.0% last year, the Mauritian economy is set to witness a significant economic downturn in

2020. Indeed, in the wake of the COVID-19 outbreak, the confinement of the population, the closing of our borders and the

challenging global conditions, real GDP growth is projected to contract by more than 10%. However, the level of uncertainty

around the growth outlook remains exceptionally high, with the actual outcome likely to hinge on the depth and breadth of

the sanitary and economic crisis globally as well as the effectiveness of support and stimulus measures adopted by the

authorities locally. Almost all economic sectors are likely to be affected by both the direct and multiplier effects of the pandemic

and economic crisis, with a pronounced downturn also expected in SMEs. In particular, on account of the closing of frontiers

and disruption to air travel, a marked downturn is expected in the hospitality sector with tourist arrivals and gross tourism

earnings projected to be severely impacted in 2020 and even beyond. Likewise, the pandemic has triggered a major slowdown

in export oriented manufacturing, construction and property development. On the other hand, the sound buffers that

operators in the financial and business services industry have accumulated over the years should assist in partly cushioning the

repercussions on their operating activity levels. Against this backdrop, pressures would be exerted on nationwide investment

levels and net employment creation, while fiscal metrics would be impacted by dampened revenue collection amidst the

difficult context and higher expenditures linked to support measures. As for headline inflation, after remaining very low for

quite some time, it pursued a gradual uptrend to stand at 1.8% in July 2020. On the external front, despite support measures

announced in the Budget and the downward pressures on the value of the rupee, exports of goods are foreseen to fall by a

notable margin this year against the backdrop of the significant economic slowdown in our export markets in the wake of the

pandemic. Thus, in spite of some relief conveyed to the import bill by lower international oil prices and the reduction in business

operations locally, the balance of trade deficit is forecast to deteriorate further. Overall, after making allowance for the

significant decline in tourism earnings, the current account deficit is set to breach into double-digit territory this year. Capital

and financial and capital flows would also be lower, with the Balance of Payment, in all likelihood, moving in the negative

territory for the first time in nearly 15 years.

Local equity review

This financial year closed in negative territory. The Semdex, SEM-10 and the Demex were all down by 21.9%, 24.9% and 9.4%

respectively. There were foreign disinvestment of close to Rs2.2bn, geared towards MCBG and SBMH.

The year can be distinctly identified in two phases – the pre-Covid phase of July 2019 to February 2020 when SEMDEX was on

a rising trend and returned 2.3% for the period, and the Covid phase of March 2020 to June 2020 during which SEMDEX lost

23.6%. There were some noteworthy corporate actions during the first half of the financial year. NMH carved out its property

development activities from its core hotel operations by forming a new entity, called SEMARIS (listed on the DEM). While on

one hand, Medine Ltd moved from the DEM to the Official Market, on the other hand the Board of Eagle Insurance decided to

delist the company from the Official Market as only a small percentage of its shares was in public hands following the

acquisition of shares by HWIC Asia Fund. It is to be noted that IBL did not sell its stake in Eagle Insurance following the

acquisition offer by HWIC Asia Fund. With the start of the second half of the year, the effects of Covid-19 started being felt on

the market, mainly through hotel stocks taking a beating. As the crisis further unfolded and touched our local shores, the

Government decreed a national lockdown to mitigate the spread of the COVID-19, causing the SEM to halt its operations as

from 20 March 2020 until the 6th April 2020. When trading resumed, the markets remained volatile in the face of a myriad of

6 | MCB Unit Trust

uncertainties, both locally and globally. Many companies even decided to defer their dividend payments given the adverse

impact of the Covid-19 outbreak on their cash flows.

(Source: Stock Exchange of Mauritius)

Top gainers and losers for the year ended 30 June 2020

Foreign equity review

The financial year 2020 has been an unprecedented one with COVID-19 impacting human lives, economic growth and financial

markets. The MSCI All Countries World Index (Bloomberg Code: M1WD index) delivered a return of 2.1%, in USD terms, over

the period under review.

(Source: Bloomberg)

31.8%

28.1%

19.0%

5.9%

5.5%

-46.6%

-51.7%

-52.0%

-57.7%

-66.7%

Vivo Energy Mauritius Ltd

National Investment Trust…

MUA Ltd

Phoenix Beverages Ltd

Dale Capital Group Ltd

BlueLife Limited

Lux Island Resorts Ltd

Omnicane Ltd

Sun Limited

New Mauritius Hotels Ltd

SEM - Top Gainers & Losers

52.8%

24.7%

21.3%

9.1%

6.9%

-27.3%

-35.3%

-41.1%

-49.7%

-51.0%

C-Care (Mauritius) Ltd

MFD Group Ltd

Swan Life Ltd

Phoenix Investment Co Ltd

Kolos Cement Ltd

Hotelest Ltd

Les Gaz Industriels Ltd

Constance Hotels Services Ltd

The Union Sugar Estates Co Ltd

Lavastone Ltd

DEM - Top Gainers & Losers

60

70

80

90

100

110

120

Jun/19 Aug/19 Oct/19 Dec/19 Feb/20 Apr/20 Jun/20

MSCI ACWI NR Index

MCB Unit Trust | 7

FY20 - Q1 FY20 - Q2 FY20 - Q3 FY20 - Q4 FY20

Jul/19 - Sep/19 Oct/19 - Dec/19 Jan/20 -

Mar/20 Apr/20 - Jun/20 Jul/19 - Jun/20

MSCI ACWI NR Index 0.0% 8.9% -21.4% 19.2% 2.1%

MSCI USA 1.1% 8.6% -20.0% 21.2% 6.3%

MSCI Japan 2.6% 8.1% -18.2% 11.4% 1.0%

MSCI EM Latin America NR

Index -6.2% 9.4% -46.0% 18.4% -34.4%

MSCI Emerging Markets

NR Return Index -4.2% 11.8% -23.6% 18.1% -3.4%

MSCI EM Markets Africa TR

Index -12.6% 13.1% -40.3% 27.1% -25.0%

S&P500 TR Index 1.2% 8.5% -20.0% 20.0% 5.4%

Nikkei 225 TR Index 2.3% 8.7% -20.0% 17.8% 4.8%

Shanghai Stock Exchange

Comp. Index -2.5% 5.0% -9.8% 8.5% 0.2%

S&P BSE 100 TR Index -2.8% 5.7% -29.2% 20.1% -12.6%

STOXX Europe 600 NR

Index 2.6% 6.1% -22.6% 13.5% -4.3%

(Source : Bloomberg)

The geopolitical risks that dominated markets for much of the year 2019 faded in the last quarter of the year, helping global

equity markets to post gains. US equities benefitted as the US and China agreed on a ‘Phase-One’ trade deal announcement.

Under the outline ‘Phase-One’ trade agreement, the US will indefinitely suspend tariffs on close to $160 billion of Chinese

imports that were previously scheduled to take effect on 15 December. Existing tariffs on $120 billion of Chinese imports are

expected to be reduced to 7.5% from 15%. In exchange, China would increase purchases of US agricultural goods. The Federal

Reserve cut interest rates in 2019Q4 indicating that ‘the current stance of monetary policy is appropriate’. Eurozone shares

along with emerging market equities posted strong gains on the back of easing trade tensions. Domestic politics drove UK asset

prices following a landslide general election victory for the incumbent Conservative Party in December. UK equities performed

relatively well and, within the market, domestically focused areas significantly benefited as they responded very favourably to

the reduction in near-term political uncertainty.

The spread of Covid-19 profoundly affected global markets in the first quarter of 2020. Equities suffered steep declines and

government bond yields fell (prices rose) as investors favoured their perceived safety. Shares fell indiscriminately across

developed markets as coronavirus spread and countries went into lockdown to try to contain the outbreak. Governments and

central banks announced measures to support businesses and households and reduce borrowing costs. Emerging market (EM)

equities also tumbled, slightly underperforming developed markets as a strong US dollar proved an additional headwind.

In the final quarter of the financial year, the easing of Covid-19 lockdowns and early signs of economic recovery saw risk

appetite return rapidly in Q2, supporting equity and credit markets. US equities rebounded in Q2 and outperformed other

major equity markets, as improving jobs and retail sales data provided cause for optimism. Eurozone shares also rebounded in

as lockdown restrictions were eased. Another source of support was news of EU plans for post-Covid-19 recovery with the

European Commission proposing a €750 billion fund. UK equities also rose over the period after having contained the first wave

of Covid-19 and national lockdown measures bengeased. Meanwhile, economic indicators suggested the downturn was past

its worst point. Emerging market (EM) equities advanced amid global monetary and fiscal stimulus. However, there was an

acceleration in the number of new daily cases of Covid-19 in some EM countries.

8 | MCB Unit Trust

Local fixed income review

The Monetary Policy Committee (MPC) of the Bank of Mauritius, in response to the potential disruptive effects of COVID-

19 on the Mauritian economy, cut the Key Repo Rate by 100 bps to 1.85% per annum at its meeting held on 16th April

2020. The domestic economy contracted by 1.4% in the last quarter of FY 2020, reflecting the adverse impacts of the

measures taken to contain the spread of COVID-19, including the imposition of national confinement. The year-on- year

inflation rate subsided from 4.2% in April 2020 to 1.7% in June 2020.

During the last quarter of FY 2020, the Government issued mostly short-term tenors with maturities of up to five years,

with half in tenors less than one year. In April 2020, securities for a total nominal amount of Rs10.5 billion were issued,

with Rs6.5 billion in tenors of less than one year. A new tenor of 119-Day Government of Mauritius Bills was also

introduced. Rs 2 billion of the Twenty-year Bond was also issued, and was accepted at a yield of 3.17% (222 basis points

less than the last issue in November 2019). With excess liquidity on the market and a cut in the Key Repo Rate, yields

compressed further across the curve, between 60 to 100 basis points. In May 2020, an amount of Rs 3 billion of only the

182-Day tenor was issued, causing yields to fall further. In June 2020, Government securities of Rs 24.5 billion were issued,

of which Rs 13.8 billion were short term tenors with maturity up to one year. Yields picked up between 20 to 50 basis

points on the short tenors, up to five years. For all longer tenors, yields continued to fall between 16 to 88 basis points.

Over the financial year, yields fell all over across the curve, between 200 to 270 basis points.

On the corporate bond side, the year saw a few issuances, with the likes of CIM Financial services, Rogers, Bank One,

Omnicane Thermal Energy Operations (La Baraque) Limited ,across the yield curve. These corporate bonds, while less

liquid than government bonds, offered attractive yields in a yield starved market and were easily absorbed. We expect

corporate bond supply (mostly from Mauritian large cap corporates) to pick up but also expect it to be met by huge demand

for such paper.

91D 182D 364D 3Y 5Y 10Y 15Y 20Y

Jun 2019 2.96% 3.07% 3.28% 3.94% 4.33% 5.02% 5.60% 6.10%

Jun 2020 0.87% 0.96% 1.13% 1.68% 2.11% 2.66% 2.99% 3.24%

Difference -2.09% -2.11% -2.15% -2.25% -2.22% -2.36% -2.61% -2.86%

(Source: Bloomberg)

Foreign fixed income review

In the wake of lockdowns and rising virus case counts continuing to grip the real economy, 2020 saw both Developed and

Emerging market countries move to support their local economies with large-scale fiscal and monetary measures. Central

Banks across the G20 were proactive, swiftly cutting interest rates and injecting liquidity, often times at multiples of what was

seen during the 2008-2009 crisis.

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

91D 182D 364D 3Y 5Y 10Y 15Y 20Y

Jun 2019 Jun 2020

Jun 2019

Jun 2020

MCB Unit Trust | 9

Financial markets and bond markets in particular, reacted to this favourably as government bond yields on the whole generally

fell (i.e. prices rose) and credit spreads contracted significantly.

(Source: Bloomberg)

Non-government bonds on the other hand rallied hard during the H1 2020 and now, all fixed income indices except for

USD/EUR denominated high yield and EM local currency, are positive for the year.

The Fed is keeping yields well anchored, having in all likelihood staved off recession, and we expect policy to remain

accommodative for the foreseeable future as central banks globally have adopted a “do whatever it takes” mind-set.

Additionally, persistently low inflation during the last expansion may minimize any concerns that they need to raise rates pre-

emptively to keep inflation under control.

While we believe yields will continue to remain low for the short to medium term and investors need to reorient their return

targets to the current landscape, we take relative comfort in the fact that Central bank asset purchases will continue underpin

more segments of the financial markets, most notably corporate credit in the US and Europe. While corporate credit has

rebounded significantly since the drawdown in March due to unprecedented policy stimulus, current spreads still remain above

their 2020 lows and we see room for further spread compression.

We remain positive on high yield on expectations that low government bond yields will continue to push investors into higher

yielding sectors of the market. The search for yield will be enforced by Fed buying of high quality investment grade bonds,

which may lead to portfolio rebalancing down the quality spectrum, supportive of high yield corporate bonds. From a rating

perspective, we favor high quality bonds that offer good convexity, including recent fallen angels and new issues.

As such, we remain overweight risk assets, especially High Yield bonds and EM local currency, while staying shorter duration

than in the past.

11.46%

6.53%

2.31%

5.75%4.33%

6.13%

14.87%

0%

2%

4%

6%

8%

10%

12%

14%

16%

US

Treasury

US

Corporate

IG

US

Corporate

HY

EM USD

Agg

EM Lcl

Curr Gov

Africa USD

Gov

Africa Lcl

Curr Gov

Jun 19 – Jun 20

10 | MCB Unit Trust

MCB GENERAL FUND PERFORMANCE STATISTICS

Figure 1

For the financial year ended June 2020 (FY20), MCB General Fund returned 0.7%, adjusted for dividends. Net Asset Value fell

by Rs8.4 million during the year, to close at Rs 797.6 million at financial year end. The Net Asset Value per share remained

relatively unchanged at Rs32.64 on the 30 June 2020. The indiscriminate sell-off in the local equity market weighed on the

performance of the fund, but was attenuated by the a 165 bps cut in the Key Repo Rate by the Bank of Mauritius on augur of

the disruptive effects of COVID-19 on the Mauritian economy and its ensuing implications on growth. Subsequently, yields on

Treasury instruments and other fixed income instruments declined drastically and helped in the performance of the fund.

Foreign equity markets were not sparred from this indiscriminate sell-off and quick reaction by major central banks through

decisive monetary policies and governments, which stepped in by injecting record stimulus into the economy, helped equity

markets to rebound during the last quarter of the financial year.

At 30 June 2020, 35.0% of the Fund was invested in local equities, 41.2% in foreign equities via exposure to funds and 20.2%

allocated to a mix of local and foreign fixed income. The remaining cash balance amounted to 3.6% of the fund.

On the local fixed income side, changes included investing in longer-dated treasury bonds and high-yield corporate bonds

during the first half of the financial year. With the view that yields are going to be "low for longer", the fund stayed fully

invested in USD denominated fixed income corporate bonds, managing risk by decreasing duration into higher yielding, shorter

duration corporate bonds during the year.

Going forward, the fund manager will be on the lookout for undervalued stocks, albeit with a more cautious approach and

privileging those stocks with solid balance sheet and strong cash flows. To this end, financial stocks and companies operating

in essential services shall be favoured. On the international front, foreign investments shall be scaled back to neutral, with a

positive bias towards defensive funds, amid forward weakness in economic data and financial data of companies. It is expected

that yields will stay range bound with positive but limited returns than in the recent past and will position selectively in the

space.

0.7%

3.5%

7.1%

1Y 5Y Inception

Annualised return to June 30, 2020

MCB Unit Trust | 11

MCB TRACKER FUND PERFORMANCE STATISTICS

Figure 2

For the financial year ended 30th June 2020, the NAV per unit of MCB Tracker Fund, adjusted for dividends, fell by 24.2%

against a decline of 24.9% for the SEM-10 index. A dividend of Rs 0.78 was paid over the financial year.

The main entrants in the SEM-10 index during FY20 were Vivo Energy, Medine and Alteo while the main leavers were

Afreximbank, New Mauritius Hotels, and Lux Island Resorts. The Fund also received shares of SEMARIS as dividend in specie

following the carve-out of the property development activities from New Mauritius Hotels. The shares of Afreximbank proved

to be highly illiquid and the Manager could not completely exit the position until July 2020.

The Manager will continue to replicate the index as closely as possible.

-24.2%

-2.4%

7.3%

1Y 5Y Inception


12 | MCB Unit Trust

MCB YIELD FUND PERFORMANCE STATISTICS

Figure 3

MCB Yield Fund posted a return of 13.7% for the financial year 2020 on an NAV to NAV basis (adjusted for dividend). The fund

size increased by almost 70% over the year to Rs 2 billion as at the end of financial year 2020. The fund declared a dividend Rs

0.48 over the year (translating into a dividend yield of 3.3%).

During the first three quarters of FY 2020, the fund increased its exposure in long dated government bonds (15-20 year maturity

bucket) and some high dividend yielding stocks. In April 2020, the fund reduced its exposure in hotel stocks and select bonds

in the 5-10 year maturity bucket, moving into corporate bonds and government bonds with longer maturities. In this low yield

environment, cash is being managed by investing in bonds, where yields are anticipated to fall.

The fund was invested as follows: 18% in corporate bonds, 59.1% in Government bonds and 15.6% in local equities and 0.6%

in Bank deposits.

13.6%

5.9%7.1%

1Y 5Y Inception


MCB Unit Trust | 13

MCB DOMESTIC EQUITIES FUND PERFORMANCE STATISTICS

Figure 4

MCB Domestic Equities Fund for FY20 posted a negative return of 21.8% (on a NAV to NAV basis, adjusted for dividends) against

a negative return of 21.9% for the Semdex. Net assets of the fund stood at Rs 197.3 million. In December 2019, a dividend of

Rs 0.89 was declared and paid for FY20 (FY2019: Rs0.79).

Major contributors to the performance for the financial year included IBL and CIEL while the detractors were Rogers, PAD, and

NMH. Additions to the existing holdings included stocks from the banking, commerce, and sugar sectors, and the fund received

the shares of SEMARIS as dividend in specie during the year. The fund was well diversified across various sectors of economy.

Since the start of the calendar year, the sentiment on the local market has been negative mainly due to the impact of the Covid-

19 crisis on the hotel sector, and the broad economy. The market has corrected significantly and many counters are trading at

attractive levels. The fund manager will be on the hunt for undervalued stocks and will selectively add to its existing positions

seizing opportunity on lower prices. The Manager believes that the market is providing attractive buying opportunities for the

medium term.

-21.8%

-2.1%

10.0%

1Y 5Y Inception


14 | MCB Unit Trust

MCB OVERSEAS FUND PERFORMANCE STATISTICS

Figure 5

MCB Overseas Fund returned 14.3% in MUR and 1.8% in USD for FY20. The Fund was 71.3% allocated to overseas equities,

12.1% to foreign fixed income securities, 9.5% to alternative assets, and 7.1% held in cash and cash equivalents. Total net assets

value stood at 646.2 million rupees as at 30th June 2020, and NAV per unit rose from Rs17.36 rupees to 19.84 rupees over the

period under review.

Performance was essentially driven by late rebound in equities in the US, gold and thematics during the last quarter of the

financial year and the depreciation of the MUR with respect to the USD. The Fund’s active exposure to the USA, through

Comgest Growth America, Stryx America and Investec GSF American Equity, outperformed the S&P500 by 6.5%, 6.5% and 4.0%

respectively. The next largest contributors to performance were Gold denominated funds and ETFs, and Pictet Robotics.

The Manager initiated positions in WisdomTree WTI Crude oil and WisdomTree Brent Crude oil ETFs. The rationale behind the

investment is to tap into weakness faced in the energy sector and add some cyclicality to the fund.

For the coming financial year, the Manager intends to increase the defensive positioning of the fund amid potential weakness

which may still be experienced by foreign economies and foreign stocks. The Manager continues to adopt a cautious approach

towards management of the portfolio.

14.2%

6.8%6.2%

1.8%

4.2%4.7%

2.7%

4.1%6.1%

4.6%

9.4%

6.4%

0%

2%

4%

6%

8%

10%

12%

14%

16%

1Y 5Y Inception

Annualised return June 30, 2020

MUR USD EUR GBP

MCB Unit Trust | 15

MCB BOND AND CURRENCY FUND PERFORMANCE STATISTICS

Figure 6

As of 30 June 2020, the annualized performance of the fund (in USD) was 5.7% for the year and 1.6% since inception, with an

indicative portfolio yield of 3.16% and duration of 0.67 years. The fund size is now USD 5.5M. The continued fall in yields, since

H2 2019, contributed to the positive returns in the fund, even with the impact of the covid-19 crisis. We took profit from our

exposure to the African banks and moved towards Middle East and Asia at the start of the year. With the US yields very low,

especially at the shorter end (less than 5 years), the fund also moved from longer maturity to shorter maturity bonds at the

beginning of H1 2020, reducing duration in the process.

5.7%

4.1%

1.6%

0%

2%

4%

6%

1Y 5Y Inception


16 | MCB Unit Trust

MCB TARGET DATE FUNDS PERFORMANCE STATISTICS

Figure 7

Over FY20, the NAV per unit of MCB Target Date Fund 2025, 2030, 2035 and 2040 decreased by 10.5%, 11.3%, 12.0% and 11.4%

respectively. Total net assets for each respective fund were Rs123.1m, Rs114.3m, Rs115.6m and Rs197.2m.

MCB TDF 2025

The Manager reduced positions in Government of Mauritius bonds at a significant profit since yields fell. The proceeds were

reinvested in corporate bonds to match the duration of the fund. The portfolio mix also changed with more emphasis on local

corporate bonds as the asset allocation gradually shifts towards fixed income according to its glide path.

MCB TDF 2030, 2035 & 2040

The allocation to MCB TDF 2030, 2035 and 2040 remained highly geared towards equities and no significant shift to fixed

income has started. On the local equities side, the Manager consolidated various positions to benefit from the attractive

valuation of the stocks, following the indiscriminate sell-off in March 2020. The fund manager has adopted a selective approach

on the local equity side and is privileging those stocks with a solid balance sheet and strong cash flows.

On the foreign equity side, funds such as Pictet Robotics and a range of commodity driven ETFs were added to the fund amid

the current weakness in the energy sector.

For the coming financial year, the Manager intends to increase the allocation to Fixed Income for MCB TDF 2025 and manage

the remaining TDF, with a long-sighted approach. The Manager continues to adopt a cautious approach towards management

of the portfolio.

-10.5%-11.3%

-12.0% -11.4%

0.2%

-0.6% -0.7% -0.5%

2.8%2.0% 1.9%

1.1%

MCB 2025 TDF MCB 2030 TDF MCB 2035 TDF MCB 2040 TDF


1Y 5Y Inception

MCB Unit Trust | 17

INVESTMENT OBJECTIVES AND POLICY

MCB General Fund MCB General Fund adopts an active management approach within a medium risk strategy with the primary aim of achieving

long-term capital appreciation through investment in a diversified portfolio of both local and overseas securities whilst ensuring

the distribution of regular short-term income to its unitholders. In order to achieve its objective, the Fund invests in securities

quoted on the official list of the Stock Exchange of Mauritius as well as those listed on the Development and Enterprise Market.

The Fund equally invests in overseas equities market via globally established and reputable investment houses as well as in

foreign fixed income securities, money market instruments and Government securities.

The Fund can invest up to 60% of its net asset value in locally listed equities and 40% in overseas equities and foreign currency

deposits. It may not invest more than 15% of its assets in any single security or allocate over 10% of its assets in unquoted or

illiquid securities. The Fund is not allowed to make any direct investments in commodities including precious metals or involve

in the trading of derivative instruments.

The units of the Fund are entitled to dividends.

MCB Tracker Fund MCB Tracker Fund follows a ‘tracking’ strategy with the primary objective of replicating the performance of Sem-10 Index while

offering long-term capital appreciation to its investors. Although the Fund invests principally in the constituents of Sem-10

index, it can also invest (up to 15%) in companies on the reserve list of the index.

The Fund may not invest in any company which is neither included in Sem-10 index nor on its reserve list. It may not equally

invest more than 10% of its net asset value in any illiquid security or involve in the trading of derivatives and commodities.


MCB Yield Fund The MCB Yield Fund has, as its primary objective, the generation of a yield which is at least 1.75% above the average savings

rate offered by commercial banks in Mauritius over any given financial year. The fund invests a significant portion of its assets

in fixed income securities that make regular interest payments on set dates in the object of offering regular income to its unit

holders. It also pursues an active and conservative approach within a low risk strategy to credit assessment and establishes

specific limits for each financial institution with which deposits are made.

The Fund may also invest in high yielding equities or debt securities issued by unlisted Mauritian Companies or overseas

governments (and their agencies) as long as those securities are deemed appropriate by the Manager. However, the Fund may

not invest more than 15% of its net asset value in a single banking and financial institution or more than 20% of its assets in

overseas investments (or foreign currencies). It may not equally invest more than 10% of its net asset value in any illiquid

security or involve in the trading of derivatives and commodities.


MCB Domestic Equities Fund The MCB Domestic Equities Fund aims to provide long-term capital appreciation to its investors through investment in a

diversified and actively managed portfolio consisting of shares quoted on the Stock Exchange of Mauritius, including securities

listed on the Development Enterprise Market (DEM). The stock selection process is research and fundamentally driven, taking

into account both macroeconomic developments and stock specific factors.

The Fund may not invest in companies outside Mauritius or invest more than 10% of its net asset value in any illiquid security.

The Fund may neither purchase a security for the purpose of exercising control on the issuer nor involve in the trading of

derivatives and commodities.


18 | MCB Unit Trust

MCB Overseas Fund MCB Overseas Fund aims to provide long-term capital growth through investment in a diversified and actively managed

portfolio via overseas collective investment schemes. It adopts an active management approach within a medium to high risk

strategy to invest (through overseas investment houses) in overseas quoted equity securities, foreign fixed income securities,

alternative investments (such as hedge funds) with the object of providing exposure to global stock and bond markets and

enabling access to a worldwide balanced portfolio.

The Fund has a blend of investments and is unrestricted in its choice of investment houses either by size or industry, or the

geographical make-up of the portfolio. Nonetheless, it may not invest more than 5% of its net asset value in the units of any

single overseas collective investment scheme, make direct investment in real estate/mortgage or involve in the direct trading

of derivatives and commodities including precious metals.

The units of the Fund are not entitled to dividends.

MCB Bond and Currency Fund The MCB Bond & Currency Fund will invest in interest bearing securities and focus on generating a return for investors from

coupon income, capital appreciation and currency appreciation. The Investment Manager intends to invest in mostly USD

denominated assets and may take controlled non-USD risk whenever it deems fit. Exposure to bond and currency markets will

be routinely monitored and assessed as new information arises to ensure that the portfolio is structured in line with the

Investment Manager’s views.

The Fund intends to maintain a high degree of liquidity to enable it to take advantage of attractive investment opportunities

as they arise. A minimum of 70% of the portfolio will consist of investment-grade instruments, i.e., instruments whose second

best rating with Fitch and S&P rating is at least BBB- or with a Moody’s rating of at least Baa3. The fund is not allowed to invest

more than 30% of its assets in non-investment grade bonds or to invest in equities, commodities and real estates.

The units of the Fund are not entitled to dividends.

MCB Target Date Funds Depending on its proximity to the Target Date, the Fund adopts an active management strategy with the primary objective of

achieving long term capital growth, income as well as capital conservation by investing in a mix of local and foreign securities

in different combinations and weightings. As the Fund approaches and passes the Target Date, it will increasingly emphasise

on income and conservation of capital by investing a greater portion of its assets in bonds or other fixed income securities and

high-yielding equities. In this endeavour the Fund seeks to balance the total return and stability over time in light of the Target

Date.

The planned asset mix will begin with a more aggressive allocation and gradually move to a more conservative allocation,

following an asset allocation glide path. In early investing years, the glide path allocates more to asset classes like stocks to

maximise wealth accumulation potential. In later investing years, the glide path increases allocation to fixed income and cash

securities to add stability and generate income within the Fund. The Manager may periodically rebalance or modify the asset

mix of the Fund and change the underlying investments.

The Fund may not directly invest more than 30% in foreign securities and currencies or invest more than 25% of its net asset

value in a single local stock.

The units of the Target Date Funds are not entitled to dividends.

Additional Information

Please refer to the Appendix for Financial Highlights of each sub-fund. The schedule of investments forming part of the notes

to the Financial Statements provides detailed portfolio holdings with comparative numbers.

MCB Unit Trust | 19

Report of the Custodian As required under the Securities (Collective Investment Schemes and Closed-End Funds) Regulations 2008 (‘’CIS Regulations”),

we are pleased to report the following for the Financial Year ended June 30, 2020:

� Section 23(4)(b) of the CIS Regulations

The sub-custodians detailed below which hold assets of the sub-funds where such assets are kept outside Mauritius, satisfy

the requirements of the Regulations:

1. Société Générale

29 Boulevard Haussmann 75009 Paris

2. Euroclear Bank SA/NV

I Boulevard du Roi Albert II, 1210 Brussels, Belgium

3. JP Morgan Chase BK, LDN

25 Bank Street, Canary Wharf, London E14 5JP

The Mauritius Commercial Bank Limited

Securities Services

5th Floor, Harbour Front Building,

President John Kennedy Street, Port Louis


MCB UNIT TRUST

STATEMENT OF FINANCIAL POSITION - JUNE 30, 2020

Combined Combined

Total Total

2019 Notes 2020

MUR'000 MUR'000 MUR'000 MUR'000 MUR'000 MUR'000 MUR'000 USD'000 MUR'000 MUR'000 MUR'000 MUR'000

ASSETS

Non-current assets

3,239,133

Financial assets at fair value through

profit or loss 3 3,399,471 720,216 212,401 1,170,907 196,716 548,184 1,067 118,983 101,372 108,525 179,551

182,374 Financial assets at amortised cost 4 747,803 21,001 - 726,802 - - - - - - -

3,421,507 4,147,274 741,217 212,401 1,897,709 196,716 548,184 1,067 118,983 101,372 108,525 179,551

Current assets

198,133

Financial assets at fair value through

profit or loss 3 246,652 29,788 - 5,863 - 53,292 3,836 3,460 316 309 362

66,449 Financial assets at amortised cost 4 - - - - - - - - - - -

16,600 Trade receivables 5 - - - - - - - - - - -

3,132 Other receivables 5 (a) 3,643 828 476 296 585 245 1 211 234 268 474

595 Current tax assets 7 938 - - 526 12 - 10 - 1 - 2

95,416 Cash and cash equivalents 9(b) 274,447 26,955 4,270 135,457 340 46,857 588 655 12,571 6,694 17,150

380,325 525,680 57,571 4,746 142,142 937 100,394 4,435 4,326 13,122 7,271 17,988

3,801,832 Total assets 4,672,954 798,788 217,147 2,039,851 197,653 648,578 5,502 123,309 114,494 115,796 197,539

NET ASSETS

3,789,806

Net assets attributable to holders of

redeemable units 4,663,468 797,330 216,270 2,037,074 197,302 646,001 5,494 123,058 114,261 115,558 197,148

Current liabilities

11,928 Trade and other payables 6 8,912 1,386 855 2,777 351 2,102 8 247 233 237 391

98 Current tax liabilities 7 574 72 22 - - 475 - 4 - 1 -

12,026 Total liabilities 9,486 1,458 877 2,777 351 2,577 8 251 233 238 391

3,801,832 4,672,954 798,788 217,147 2,039,851 197,653 648,578 5,502 123,309 114,494 115,796 197,539

- - - - - - - - - - -

Net asset value per unit 10 MUR 32.63 MUR 23.68 MUR 14.74 MUR 39.43 MUR 19.84 USD 11.53 MUR 12.48 MUR 11.74 MUR 11.64 MUR 10.87

These financial statements have been approved by the Manager and the Trustee on: November 05, 2020

Auditor's report on pages 20 to 20 (b).

The notes on pages 25 to 65 form an integral part of these financial statements.

MCB

OVERSEAS

FUND

MCB

GENERAL

FUND

MCB BOND

& CURRENCY

FUND

MCB 2025

TARGET

DATE FUND

MCB 2030

TARGET

DATE FUND

MCB 2035

TARGET

DATE FUND

MCB 2040

TARGET

DATE FUND

MCB

TRACKER

FUND

MCB

DOMESTIC

EQUITIES

FUND

MCB YIELD

FUND

Total net assets attributable to holders

of redeemable units and liabilities

21 | MCB Unit Trust

MCB UNIT TRUSTSTATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME - YEAR ENDED JUNE 30, 2020

Combined Combined

Total Total

2019 Notes 2020


Income

59,802 Dividends 55,582 11,420 9,828 11,247 7,344 3,833 - 2,545 2,556 2,636 4,173

80,385 Income on fixed income securities 95,531 8,243 - 67,466 - 4,960 351 1,127 129 92 231

17 Interest income 1 - - - - 1 - - - - -

140,204 151,114 19,663 9,828 78,713 7,344 8,794 351 3,672 2,685 2,728 4,404

`

Expenses

37,925 Manager's fees 43,595 8,119 2,257 14,216 2,456 5,757 54 2,117 1,796 1,865 2,999

8,649 Registrar's fees 9,887 1,991 665 3,933 590 1,382 9 230 199 206 343

3,752 Trustee's fees 3,088 590 210 1,157 181 412 4 96 80 84 134

3,752 Custodian's fees 3,215 591 207 1,219 176 438 4 102 86 96 144

907 Professional fees 9 929 156 42 413 39 131 1 24 22 23 39

859 Other direct expenses 1,187 135 55 210 51 224 2 72 84 91 183

55,844 61,901 11,582 3,436 21,148 3,493 8,344 74 2,641 2,267 2,365 3,842

(43,254)

Fair value (losses)/ gains on

financial assets 3 (2,490) (7,127) (61,529) 127,027 (57,934) 70,664 (33) (16,454) (15,037) (15,862) (24,987)

(185) Foreign exchange gains/ (losses) 6,870 2,350 300 - - 3,935 - 59 29 147 50

4,277

Gains/ (losses) on disposal of

financial assets 15,375 1,002 (14,180) 24,774 (1,179) 3,267 22 889 (5) (5) (6)

(39,162) 19,755 (3,775) (75,409) 151,801 (59,113) 77,866 (11) (15,506) (15,013) (15,720) (24,943)

45,198 Net income/ (loss) before taxation 108,968 4,306 (69,017) 209,366 (55,262) 78,316 266 (14,475) (14,595) (15,357) (24,381)

(6,503) Taxation 7 (4,397) (768) (29) (1,597) - (1,345) (11) (32) (57) (63) (92)

38,695 Net income/ (loss) after taxation 104,571 3,538 (69,046) 207,769 (55,262) 76,971 255 (14,507) (14,652) (15,420) (24,473)

Equalisation

4,577 Income received on units created 11,067 519 40 5,911 266 - - 703 948 800 1,880

(1,549) Income paid on units liquidated (2,872) (578) (321) (930) (187) - - (435) (123) (121) (177)

3,028 8,195 (59) (281) 4,981 79 - - 268 825 679 1,703

41,723 Total comprehensive income for the year 112,766 3,479 (69,327) 212,750 (55,183) 76,971 255 (14,239) (13,827) (14,741) (22,770)



MCB

DOMESTIC

EQUITIES

FUND

MCB YIELD

FUND

MCB

OVERSEAS

FUND

MCB

GENERAL

FUND

MCB BOND

& CURRENCY

FUND

MCB 2025

TARGET

DATE FUND

MCB 2030

TARGET

DATE FUND

MCB 2035

TARGET

DATE FUND

MCB 2040

TARGET

DATE FUND

MCB

TRACKER

FUND

22 | MCB Unit Trust |

MCB UNIT TRUST

STATEMENT OF NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS - YEAR ENDED JUNE 30, 2020

Combined Combined

Total Total

2019 Notes 2020


3,604,145


redeemable units at July 1, 2019 3,789,806 806,025 310,270 1,223,034 255,755 517,912 4,946 130,346 100,456 106,226 163,852

495,871 Proceeds from redeemable units created 1,045,780 49,965 10,578 727,258 17,823 81,348 472 18,007 31,676 28,278 61,889

(325,295) Liquidation of redeemable units (236,478) (53,536) (28,180) (75,705) (16,554) (30,230) (179) (11,056) (4,044) (4,205) (5,823)

170,576

Net proceeds on units created and

liquidated 809,302 (3,571) (17,602) 651,553 1,269 51,118 293 6,951 27,632 24,073 56,066

41,723 Total comprehensive income for the year 112,766 3,479 (69,327) 212,750 (55,183) 76,971 255 (14,239) (13,827) (14,741) (22,770)

(31,077) Distribution to unitholders 8 (70,476) (8,603) (7,071) (50,263) (4,539) - - - - - -

4,439 Exchange difference on retranslation 22,070 - - - - - - - - - -

3,789,806


redeemable units at June 30, 2020 4,663,468 797,330 216,270 2,037,074 197,302 646,001 5,494 123,058 114,261 115,558 197,148

-

-



MCB 2040

TARGET

DATE FUND

MCB BOND

& CURRENCY

FUND

MCB 2025

TARGET

DATE FUND

MCB 2030

TARGET

DATE FUND

MCB 2035

TARGET

DATE FUND

MCB

GENERAL

FUND

MCB

TRACKER

FUND

MCB YIELD

FUND

MCB

DOMESTIC

EQUITIES

FUND

MCB

OVERSEAS

FUND

23 | MCB Unit Trust |

MCB UNIT TRUST

STATEMENT OF CASH FLOWS - YEAR ENDED JUNE 30, 2020

Combined Combined

Total Total

2019 Notes 2020


Cash flows from operating activities

(18,103) Cash generated from/ (used in) operations 11(a) 6,429 14,902 6,671 (8,099) 2,759 (3,370) (75) (162) (1,274) (453) (1,696)

78,591 Interest received 92,726 8,682 - 62,788 - 5,286 393 968 137 132 310

(1,308,904) Purchase of financial assets (1,768,175) (102,316) (22,918) (1,055,049) (9,082) (113,424) (7,183) (43,145) (26,077) (33,316) (75,889)

1,137,737 Disposal of financial assets 1,096,141 81,573 45,496 527,422 9,527 80,931 6,900 26,596 8,240 10,695 30,073

(7,682) Tax paid (4,211) (697) - (1,652) - (967) (18) (23) (58) (62) (92)

(118,361)

Net cash (used in) / generated from operating

activities (577,090) 2,144 29,249 (474,590) 3,204 (31,544) 17 (15,766) (19,032) (23,004) (47,294)

Cash flows from financing activities

204,569 Net proceeds from units created and liquidated 769,593 (7,832) (21,078) 622,227 (1,377) 51,118 293 6,951 27,632 24,073 56,066

3,028 Net income on units created and liquidated 8,195 (59) (281) 4,981 79 - - 268 825 679 1,703

(22,709) Distribution to unitholders (30,767) (4,342) (3,595) (20,937) (1,893) - - - - - -

184,888 747,021 (12,233) (24,954) 606,271 (3,191) 51,118 293 7,219 28,457 24,752 57,769

66,527

Net increase/ (decrease) in cash and cash

equivalents 169,931 (10,089) 4,295 131,681 13 19,574 310 (8,547) 9,425 1,748 10,475

Movement in cash and cash equivalents

96,662 At July 1, 95,416 34,694 (325) 3,776 327 23,348 278 9,143 3,117 4,799 6,625

(1,459) Increase/ (Decrease) 169,931 (10,089) 4,295 131,681 13 19,574 310 (8,547) 9,425 1,748 10,475

(185) Effect of foreign exchange rate changes 6,870 2,350 300 - - 3,935 - 59 29 147 50

398 Exchange difference on retranslation 2,230 - - - - - - - - - -

95,416 At June 30, 11(b) 274,447 26,955 4,270 135,457 340 46,857 588 655 12,571 6,694 17,150

- - - - - - - - - - -



MCB BOND

& CURRENCY

FUND

MCB 2025

TARGET

DATE FUND

MCB 2030

TARGET

DATE FUND

MCB 2035

TARGET

DATE FUND

MCB 2040

TARGET

DATE FUND

Net cash generated from / (used in) financing activities

MCB

DOMESTIC

EQUITIES

FUND

MCB

OVERSEAS

FUND

MCB

GENERAL

FUND

MCB

TRACKER

FUND

MCB YIELD

FUND

24 | MCB Unit Trust

MCB UNIT TRUST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED JUNE 30, 2020

1. SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of preparation

(i) financial assets at fair value through profit or loss and financial liabilities are stated at their fair value; and

(ii) relevant financial assets and financial liabilities are stated at amortised cost.

Standards, Amendments to published Standards and Interpretations effective in the reporting period

Long-term interests in Associates and Joint Ventures (Amendments to IAS 28) clarify the accounting for long-term

interests in an associate or joint venture, which in substance form part of the net investment in associate or joint

venture, but to which equity accounting is not applied. Entities must account for such interests under IFRS 9 before

applying the loss allocation and impairment requirements in IAS 28. The amendmentshave no impacton the Fund's

financial statements.

Annual Improvements to IFRSs 2015–2017 Cycle

The amendments have no impact on the Fund’s financial statements.

The principal accounting policies adopted in the preparation of these financial statements are set out below. These

policies have been consistently applied to all the years presented unless otherwise stated.

The financial statements of the Funds have been prepared in compliance with the requirements of the Trust Deed, the

Securities Act 2005, the Securities Regulations 2008 and International Financial Reporting Standards (IFRS). Where

necessary, comparative figures have been amended to conform with change in presentation in the current year. The

financial statements are prepared under the historical cost convention, except that:

IFRS 16 Leases results in the recognition of almost all leases on balance sheet. The standard removes the current

distinction between operating and financing leases and requires recognition of an asset (the right to use the leased

item) and a financial liability to pay rentals for virtually all lease contracts. The interpretation has no impact on the

Fund’s financial statements

IFRIC 23 Uncertainty over Income Tax Treatments explains how to recognise and measure deferred and current income

tax assets and liabilities where there is uncertainty over a tax treatment. There are no new disclosure requirements but

requirement to provide information about judgements and estimates made in preparing the financial statements. The

interpretation has no impact on the Fund’s financial statements.

Prepayment Features with negative compensation (Amendments to IFRS 9) enable entities to measure certain

prepayable financial assets with negative compensation at amortised cost. These assets, which include some loan and

debt securities, would otherwise have to be measured at fair value through profit or loss. To qualify for amortised cost

measurement, the negative compensation must be ‘reasonable compensation for early termination of the contract’

and the asset must be held within a ‘held to collect’ business model. The amendments have no impact on the Fund’s

financial statements.

• IFRS 3 – clarified that obtaining control of a business that is a joint operation is a business combination achieved in

stages.

• IFRS 11 – clarified that party obtaining joint control of a business that is a joint operation should not remeasure its

previously held interest in the joint operation.

• IAS 23 – clarified that, if a specific borrowing remains outstanding after the related qualifying asset is ready for its

intended use or sale, it becomes part of general borrowings.

• IAS 12 – clarified that income tax consequences of dividends on financial instruments classified as equity should be

recognised according to where the past transactions or events that generated distributable profits were recognised.

Plan Amendment, Curtailment or Settlement (Amendments to IAS 19) clarify that entities must:

• calculate the current service cost and net interest for the remainder of the reporting period after a plan amendment,

curtailment or settlement by using the updated assumptions from the date of the change.

MCB Unit Trust | 25

MCB UNIT TRUST



1. SIGNIFICANT ACCOUNTING POLICIES (CONT'D)

(a) Basis of preparation (cont'd)

Standards, Amendments to published Standards and Interpretations effective in the reporting period (cont'd)

Annual Improvements to IFRSs 2015–2017 Cycle (cont'd)

• separately recognise any changes in the asset ceiling through other comprehensive income.

The amendments have no impact on the Fund’s financial statements

Standards, Amendments to published Standards and Interpretations issued but not yet effective

At the reporting date of these financial statements, the following were in issue but not yet effective:

IFRS 17 Insurance Contracts

Definition of a Business (Amendments to IFRS 3)

Definition of Material (Amendments to IAS 1 and IAS 8)

Interest Rate Benchmark Reform (Amendments to IFRS 9, IAS 39 and IFRS 7)

Classification of Liabilities as Current or Non-current (Amendments to IAS 1)

Annual Improvements 2018–2020

Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16)

Onerous Contracts - Cost of Fulfilling a Contract (Amendments to IAS 37)

Reference to the Conceptual Framework (Amendments to IFRS 3)

Covid-19-Related Rent Concessions (Amendment to IFRS 16)

Amendments to IFRS 17

Extension of the Temporary Exemption from Applying IFRS 9 (Amendments to IFRS 4)

(b) Presentation of combined totals

(c) Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Fund and the revenue

can be reliably measured.

(i) - For all financial instruments measured at amortised cost, interest income and interest expenses are recognised in a

time-proportion basis using the effective interest method. This method uses the effective interest rate (EIR) that exactly

discounts the estimated future cash receipts or payments over the expected life of the financial instrument or a shorter

period, where appropriate, to the net carrying amount of the financial asset or financial liability. The carrying amount of

the financial asset or financial liability is adjusted if the Fund revise their estimates of payments or receipts. The

adjusted carrying amount is calculated based on the original effective interest rate and the change in carrying amount is

recorded as interest income or expense.

(ii)

• recognise any reduction in a surplus immediately in profit or loss, either as part of past service cost or as a gain or loss

on settlement. In other words, a reduction in a surplus must be recognised in profit or loss even if that surplus was not

previously recognised because of the impact of the asset ceiling.

- Dividend income - recognised on the ex-dividend date and when the shareholder's right to receive payment is

established.

The combined totals presented in the financial statements represent the aggregation of all the Sub-Funds' net assets

and operations in Mauritian Rupees.

Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to IFRS 10 and IAS

28)

Certain standards, amendments to published standards and interpretations have been issued that are mandatory for

accounting periods beginning on or after 1 January 2020 or later periods, but which the Fund has not early adopted.

Where relevant, the Fund is still evaluating the effect of these Standards, Amendments to published Standards and

Interpretations issued but not yet effective, on the presentation of its financial statements.

26 | MCB Unit Trust

MCB UNIT TRUST



1.

(d)

(i)

(ii)

(e)

(f) Financial assets

(i) Fair value through profit or loss

Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates

prevailing at the date that their fair value was determined.

Functional and presentation currency

Items are recorded in the Funds’ records in the relevant functional currency of each Sub-Fund, the functional

currencies of the Sub-Funds include Mauritian Rupees and US Dollars. These currencies are identified based on the

currency in which the Units of that Sub-Fund are issued and the currency in which the investors of that Sub-Fund are

seeking investment returns.

The presentation currency of the Trust as a whole is Mauritian Rupees and the results of the Sub-Funds have been

aggregated into Mauritian Rupees using the exchange rates ruling at the year-end date for the Statement of Financial

Position and the average rates for the Statement of Profit or Loss and Other Comprehensive Income and the Statement

of Net Assets attributable to holders of redeemable units. The adjustment in Mauritian Rupee terms arising from this

aggregation is classified as a currency adjustment in the Statement of Net Assets attributable to holders of redeemable

units. This adjustment has no effect on the value of the net assets allocated to individual Sub-Funds.

SIGNIFICANT ACCOUNTING POLICIES (CONT'D)

Foreign currencies

Transactions and balances

Foreign currency transactions are translated into the functional currency of the relevant Sub-Fund using the mid-

exchange rates prevailing on the dates of the transactions. Foreign exchange gains and losses resulting from the

settlement of such transactions and from the translation at year-end mid-exchange rates of monetary assets and

liabilities denominated in foreign currencies are recognised in the statement of profit or loss and other comprehensive

income.

Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rates

at the date of the transaction.

Translation differences on non-monetary items, such as equities held at fair value through profit or loss, are reported

as part of fair value gain or loss. Translation differences on non-monetary items, such as equities classified as available-

for-sale financial assets, are included in the fair value reserve in equity.

The Fund classifies its financial assets into one of the categories discussed below, depending on the purpose for which

the asset was acquired. The Manager determines the classification of investments at initial recognition. The Fund

accounting policy for each category is as follows:

The Fund classifies the following financial assets at fair value through profit or loss (FVPL):

- debt investments that do not qualify for measurement at either amortised cost or fair value through other

comprehensive income

- equity investments that are held for trading, and

- equity investments for which the entity has not elected to recognise fair value gains and losses through other

comprehensive income.

Equalisation

Accrued income included in the issue and repurchase price of units is dealt with in the statement of profit or loss and

other comprehensive income.

MCB Unit Trust | 27

MCB UNIT TRUST




(f) Financial assets (cont'd)

(ii) Amortised cost

Cash and cash equivalents include bank balances. `

Derecognition of financial assets

(g) Financial liabilities

The Fund classifies its financial liabilities as follows:

Derecognition of financial liabilities

(h) Provisions

(i) Redeemable units

Units are redeemable at the unitholder's option.

(j) Current and deferred income tax

These assets arise principally where the objective is to hold these assets in order to collect contractual cash flows

and the contractual cash flows are solely payments of principal and interest. They are initially recognised at fair

value plus transaction costs that are directly attributable to their acquisition or issue, and are subsequently

carried at amortised cost using the effective interest rate method, less provision for impairment.

- bank borrowings are initially recognised at fair value net of any transaction costs directly attributable to the issue of

the instrument. Such interest bearing liabilities are subsequently measured at amortised cost using the effective

interest rate method, which ensures that any interest expense over the period to repayment is at a constant rate on

the balance of the liability carried in the statement of financial position. For the purposes of each financial liability,

interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or

coupon payable while the liability is outstanding.

Provisions are recognised when the Fund have a present legal or constructive obligation as a result of past events and it

is probable that an outflow of resources that can be reliably estimated will be required to settle the obligation.

The Fund derecognises a financial asset only when the contractual rights to the cash flows from the asset expire; or it

transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If

the Fund neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the

transferred asset, the Fund recognises its retained interest in the asset and an associated liability for amounts it may

have to pay. If the Fund retains substantially all the risks and rewards of ownership of a transferred financial asset, the

Fund continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds

received.

The Fund derecognises financial liabilities when, and only when, the Fund obligations are discharged, cancelled or they

expire.

The Fund financial assets measured at amortised cost comprise of financial assets at amortised cost, trade and

other receivables and cash and cash equivalents in the statement of financial position.

- Trade payables and other short-term monetary liabilities, which are initially recognised at fair value and subsequently

carried at amortised cost using the effective interest method.

The amount recognised as a provision is the best estimate of the consideration required to settle the present

obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is

the present value of those cash flows (when the effect of the time value of money is material)

The tax expense for the period comprises of current and deferred tax. Tax is recognised in profit or loss, except that it

relates to items recognised in other comprehensive income or directly in equity.

28 | MCB Unit Trust

MCB UNIT TRUST




(j) Current and deferred income tax (cont'd)

Current tax

Deferred tax

(k) Dividend distribution

(l) Trade and other payables

2. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

(a) Critical accounting estimates and assumptions

(b) Limitation of sensitivity analysis

(c) Fair value of securities not quoted in an active market

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax

bases of assets an liabilities and their carrying amounts in the financial statements. However, if the deferred income

tax arises from initial recognition of and asset or liability in a transaction, other than a business combination, that at the

time of the transaction affects neither accounting nor taxable profit or loss, it is not accounted for.

Deferred income tax is determined using the tax rates that have been enacted or substantively enacted at the

reporting date and are expected to apply in the period when the related deferred income tax asset is realized or the

deferred income tax liability is settled.

Deferred tax assets are recognised to the extent that it is probable that future taxable amounts will be available

against which deductible temporary differences and losses can be utilized.

The current income tax charge is based on taxable income for the year calculated on the basis of tax laws enacted or

substantively enacted by the end of the reporting period.

Dividend distribution to the Fund's unitholders is recognised as a liability in the Fund's financial statements in the

period in which the dividends are declared.

Sensitivity analysis does not take into consideration that the Fund's assets and liabilities are managed. Other

limitations include the use of hypothetical market movementsto demonstrate potential risk that only represent the

Fund's view of possible near-term market changes that cannot be predicted with any certainty.

The fair value of securities not quoted in an active market may be determined by the Fund using valuation techniques

including third party transaction values, earnings, net asset value or discounted cash flows, whichever is considered to

be appropriate The Fund would exercise judgement and estimates on the quantity and quality of pricing sources used.

Changes in assumptions about these factors could affect the reported fair value of financial instruments.

Estimates and judgements are continuously evaluated and are based on historical experience and other factors,

including expectations of future events that are believed to be reasonable under the circumstances.

The Fund makes estimates and assumptions concerning the future. The result accounting estimates will, by definition,

seldom equal the related actual results. The estimates and assumptions that have a significant risk causing a material

adjustment to the carrying amount of assets and liabilities within the next financial year are discussed below.

Sensitivity analysis in respect of interest rate risk demonstrates the effect of a change in a key assumption while other

assumptions remain unchanged. In reality, there is a correlation between the assumptions and other factors. It should

also be noted that these sensitivities are non-linear and larger or smaller impacts should not be interpolated or

extrapolated from these results.

Trade and other payables are stated at fair value and subsequently meausured at amortised cost using the effective

interest method.

MCB Unit Trust | 29

MCB UNIT TRUST



Combined Combined

Total Total

2019 2020


3. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS 81,573

The movements in financial assets at fair value through profit or loss may be summarised as follows:

(7,183)

3,383,013 Opening balance 3,418,646 737,473 310,688 976,883 256,274 493,914 4,562 121,106 98,879 102,074 159,078

1,311,178 Additions 1,156,335 108,409 22,918 435,499 9,082 113,585 7,183 43,906 26,301 33,525 76,151

(1,139,200) Disposals (951,415) (89,813) (67,986) (356,641) (10,544) (76,307) (6,879) (25,600) (8,468) (10,907) (30,342)

(43,254) Fair value (losses)/gains on financial assets (4,228) (7,127) (63,266) 127,027 (57,934) 70,664 (33) (16,454) (15,038) (15,862) (24,987)

(15,974) Fair value release on disposal (15,145) (758) 3,590 (15,626) (161) (1,357) 1 (868) (1) (2) 1

(81,467) Reclassification to FAAC - - - - - - - - - - -

4,350 Exchange difference on retranslation 19,913 - - ` - - - - - - -

3,418,646 Closing balance 3,624,106 748,184 205,944 1,167,142 196,717 600,499 4,834 122,090 101,673 108,828 179,901

18,620 Interest receivable on financial assets 15,560 1,820 - 9,628 - 977 69 353 14 6 12

3,437,266 Closing balance 3,639,666 750,004 205,944 1,176,770 196,717 601,476 4,903 122,443 101,687 108,834 179,913

Split as follows:

3,239,133 Non-current assets 3,393,014 720,216 205,944 1,170,907 196,717 548,184 1,067 118,983 101,371 108,525 179,551

198,133 Current assets 246,652 29,788 - 5,863 - 53,292 3,836 3,460 316 309 362

3,437,266 3,639,666 750,004 205,944 1,176,770 196,717 601,476 4,903 122,443 101,687 108,834 179,913

3.a Non cash transactions

Additions 75,085 10,093 4,720 58,655 - 161 - 761 224 209 262

Disposals (75,408) (10,000) (4,720) (59,212) - - - (766) (228) (213) (269)

- - - - - - - - - - -

4. FINANCIAL ASSETS AT AMORTISED COST

The movement in financial assets at amortised cost (FAAC) may be summarised as follows:

135,402 Opening balance 248,823 16,924 - 231,899 - - - - - - -

79,924 Additions 682,205 4,000 - 678,205 - - - - - - -

(50,500) Redemptions (189,035) - - (189,035) - - - - - - -

81,467 Reclassification from Financial Assets at FVTPL - - - - - - - - - - -

13,402 Interest Accrual for the year 26,085 1,032 - 25,053 - - - - - - -

(10,872) Interest Received (20,275) (955) - (19,320) - - - - - - -

248,823 Closing balance 747,803 21,001 - 726,802 - - - - - - - - - - - - - - - - - - -

Split as follows:

182,374 Non-current assets 747,804 21,001 - 726,803 - - - - - - -

66,449 Current assets - - - - - - - - - - -

248,823 747,804 21,001 - 726,803 - - - - - - -

MCB 2035

TARGET

DATE FUND

MCB 2040

TARGET

DATE FUND

MCB

GENERAL

FUND

MCB

TRACKER

FUND

MCB YIELD

FUND

MCB

DOMESTIC

EQUITIES

FUND

MCB

OVERSEAS

FUND

MCB BOND

& CURRENCY

FUND

MCB 2025

TARGET

DATE FUND

MCB 2030

TARGET

DATE FUND

Designated as financial assets at fair value through profit or loss (FVTPL)

30 | MCB Unit Trust

MCB UNIT TRUST



Combined Combined

Total Total

2019 2020


MCB 2035

TARGET

DATE FUND

MCB 2040

TARGET

DATE FUND

MCB

GENERAL

FUND

MCB

TRACKER

FUND

MCB YIELD

FUND

MCB

DOMESTIC

EQUITIES

FUND

MCB

OVERSEAS

FUND

MCB BOND

& CURRENCY

FUND

MCB 2025

TARGET

DATE FUND

MCB 2030

TARGET

DATE FUND

5. TRADE RECEIVABLES

16,600 Trade Receivables - - - - - - - - - - -

16,600 - - - - - - - - - - -

The carrying amount of trade receivables approximate their fair value.

5 (a) OTHER RECEIVABLES

2,222 Dividends Receivable 2,659 702 448 77 533 - - 167 180 206 346

910 Other Receivables 984 126 28 219 52 245 1 44 54 62 128

3,132 3,643 828 476 296 585 245 1 211 234 268 474

The carrying amount of other receivables approximate their fair value.

6. TRADE & OTHER PAYABLES

209 Deposit on Units Payable 1,386 127 54 23 39 1,143 - - - - -

6,270 Trade payables 539 56 483 - - - - - - - -

1,002 Professional fees 993 167 61 418 46 133 1 29 28 28 43

3,146 Manager's fees 3,829 658 147 1,399 167 529 5 163 152 154 261

310 Trustee's fees 1,024 176 54 441 49 134 1 28 25 26 43

681 Registrar's fees 843 151 42 379 38 122 1 18 17 17 28

310 Custodian's fees 298 51 14 117 12 41 - 9 11 12 16 .

11,928 8,912 1,386 855 2,777 351 2,102 8 247 233 237 391

- - - - - - - - - - -

The carrying amount of trade and other payables approximate their fair value.

31 | MCB Unit Trust

MCB UNIT TRUST



Combined Combined

Total Total

2019 2020


MCB 2035

TARGET

DATE FUND

MCB 2040

TARGET

DATE FUND

MCB

GENERAL

FUND

MCB

TRACKER

FUND

MCB YIELD

FUND

MCB

DOMESTIC

EQUITIES

FUND

MCB

OVERSEAS

FUND

MCB BOND

& CURRENCY

FUND

MCB 2025

TARGET

DATE FUND

MCB 2030

TARGET

DATE FUND

7. TAXATION

6,503

Income tax on the adjusted profit for the year at

15% (2019: 15%) 4,397 768 29 1,597 - 1,345 11 32 57 63 92


6,780 Tax calculation at 15% (2019: 15%) 16,345 646 (10,353) 31,405 (8,289) 11,747 40 (2,171) (2,189) (2,304) (3,657)

(6,908) Income not subject to tax (20,840) (1,546) 9,882 (32,553) 7,765 (11,758) (40) 1,824 1,885 2,003 3,141

5,349 Expenses not deductible for tax purposes 7,671 1,330 501 2,813 524 656 8 373 310 310 524

(361) Relief on consolidated tax computation (112) (13) (1) (68) - (16) - (1) - - -

1,643 Unrelieved foreign tax suffered 1,333 351 - - - 716 3 7 51 54 84

6,503 Tax charge 4,397 768 29 1,597 - 1,345 11 32 57 63 92

718 At July 01, (497) 1 (7) (471) (12) 97 (3) (5) - - (2)

6,503 Charged for the year 4,397 768 29 1,597 - 1,345 11 32 57 63 92

(7,694) Paid (4,211) (697) - (1,652) - (967) (18) (23) (58) (62) (92)

12 Tax refund - - - - - - - - - - -

(36) Exchange difference on retranslation (53) - - - - - - - - - -

(497) At June 30, (364) 72 22 (526) (12) 475 (10) 4 (1) 1 (2) #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF!

Split as follows:

(595) Current tax assets (938) - - (526) (12) - (10) - (1) - (2)

98 Current tax liabilities 574 72 22 - - 475 - 4 - 1 -

(497) (364) 72 22 (526) (12) 475 (10) 4 (1) 1 (2)

Income Tax is charged on the net income of the Funds, adjusted for tax purposes, at the rate of 15%. The tax on the Fund's net income before taxation differs from the theoretical amount that would arise using the basic tax rate of the Fund as

follows:

The movement in current tax liabilities/ (assets) is as follows:

32 | MCB Unit Trust

MCB UNIT TRUST



Combined Combined

Total Total

2019 2020


MCB 2035

TARGET

DATE FUND

MCB 2040

TARGET

DATE FUND

MCB

GENERAL

FUND

MCB

TRACKER

FUND

MCB YIELD

FUND

MCB

DOMESTIC

EQUITIES

FUND

MCB

OVERSEAS

FUND

MCB BOND

& CURRENCY

FUND

MCB 2025

TARGET

DATE FUND

MCB 2030

TARGET

DATE FUND

8. DISTRIBUTION TO UNITHOLDERS

22,709 Cash Distribution 30,767 4,342 3,595 20,937 1,893 - - - - - -

33,993 Non-Cash Distribution 39,709 4,261 3,476 29,326 2,646 - - - - - -

- Outstanding at June 30, - - - - - - - - - - -

56,702 70,476 8,603 7,071 50,263 4,539 - - - - - - - - - - - - - - - -

Year ended June 30, 2020

Interim per unit - - 0.22 - - - - - - -

Final per unit 0.35 0.78 0.25 0.89 - - - - - -

0.35 0.78 0.47 0.89 - - - - - -

Year ended June 30, 2019

Interim per unit - - 0.24 - - - - - - -

Final per unit - 0.56 - 0.79 - - - - - -

- 0.56 0.24 0.79 - - - - - -

9. PROFESSIONAL FEES

889 Auditor's remuneration 911 156 42 399 39 127 1 24 22 23 39

18 Taxation fees 18 - - 14 - 4 - - - - -

907 929 156 42 413 39 131 1 24 22 23 39

- - - - - - - - - - -

10. UNITS No of Units No of Units No of Units No of Units No of Units No of Units No of Units No of Units No of Units No of Units

Movements in units during the period: '000 '000 '000 '000 '000 '000 '000 '000 '000 '000

At July 01, 24,580 9,697 90,838 4,985 29,826 452 9,346 7,581 8,035 13,355

Units created 2,300 477 63,505 482 5,648 51 1,454 2,565 2,382 5,515

Units liquidated (2,445) (1,038) (16,145) (462) (2,899) (25) (939) (410) (485) (730)

At June 30, 24,435 9,136 138,198 5,005 32,575 478 9,861 9,736 9,932 18,140

MUR'000 MUR'000 MUR'000 MUR'000 MUR'000 USD'000 MUR'000 MUR'000 MUR'000 MUR'000

Net Assets Value of the Fund 797,330 216,270 2,037,074 197,302 646,001 5,494 123,058 114,261 115,558 197,148

Net assets value per unit - As at 30 June 2020 MUR 32.63 MUR 23.68 MUR 14.74 MUR 39.43 MUR 19.84 USD 11.53 MUR 12.48 MUR 11.74 MUR 11.64 MUR 10.87

Net assets value per unit - As at 30 June 2019 MUR 32.79 MUR 32.00 MUR 13.46 MUR 51.30 MUR 17.36 USD 10.94 MUR 13.95 MUR 13.25 MUR 13.22 MUR 12.27

Prices per unit - As at 30 June 2020

Issue price MUR 33.06 MUR 24.07 MUR 14.94 MUR 40.08 MUR 20.29 USD 11.65 MUR 12.68 MUR 11.93 MUR 11.82 MUR 11.04

Repurchase price MUR 32.38 MUR 23.41 MUR 14.61 MUR 38.98 MUR 19.49 USD 11.47 MUR 12.35 MUR 11.62 MUR 11.52 MUR 10.76

33 | MCB Unit Trust

MCB UNIT TRUST



Combined Combined

Total Total

2019 2020


MCB 2035

TARGET

DATE FUND

MCB 2040

TARGET

DATE FUND

MCB

GENERAL

FUND

MCB

TRACKER

FUND

MCB YIELD

FUND

MCB

DOMESTIC

EQUITIES

FUND

MCB

OVERSEAS

FUND

MCB BOND

& CURRENCY

FUND

MCB 2025

TARGET

DATE FUND

MCB 2030

TARGET

DATE FUND

11. NOTES TO THE STATEMENT OF CASH FLOWS

(a) Cash generated from operations


Adjustments for:

43,254

Fair value losses/ (gains) on financial assets at

fair value through profit or loss 2,490 7,127 61,529 (127,027) 57,934 (70,664) 33 16,454 15,037 15,862 24,987

185 Foreign exchange differences (6,870) (2,350) (300) - - (3,935) - (59) (29) (147) (50)

(3,711) Dividend Income * (254) (93) - - - (161) - - - - -

(80,385) Interest on fixed income securities (95,531) (8,243) - (67,466) - (4,960) (351) (1,127) (129) (92) (231)

(4,277) (Gains) / Losses on disposal of financial assets (15,375) (1,002) 14,180 (24,774) 1,179 (3,267) (22) (889) 5 5 6

264 (6,572) (255) 6,392 (9,901) 3,851 (4,671) (74) (96) 289 271 331

Changes in working capital:

(17,366) Trade and other receivables 16,063 14,945 (149) 625 (223) (19) - (65) (95) 585 485

(1,001) Trade and other payables (3,062) 212 428 1,177 (869) 1,320 (1) (1) (1,468) (1,309) (2,512)

(18,103) Cash generated from/ (used in) operations 6,429 14,902 6,671 (8,099) 2,759 (3,370) (75) (162) (1,274) (453) (1,696)

* The principal non-cash transactions are the purchase and disposal of financial assets through conversion of equity instruments, dividend in specie and overseas dividend reinvested in financial assets.

- - - - - - - - - - -

- (b) Cash and cash equivalents

95,416 Cash at bank 274,447 26,955 4,270 135,457 340 46,857 588 655 12,571 6,694 17,150

While Cash and Cash equivalents are also subject to the impairment requirements of IFRS 9, the identified impairment loss was immaterial.

(c) Reconciliation of Financing activities

2,713,929 At July 01, 2,884,505 385,887 153,311 1,164,476 181,401 374,753 4,531 114,640 93,748 99,706 155,404

495,871 Units created 1,045,780 49,965 10,578 727,258 17,823 81,348 472 18,007 31,676 28,278 61,889

(325,295) Units Liquidated (236,478) (53,536) (28,180) (75,705) (16,554) (30,230) (179) (11,056) (4,044) (4,205) (5,823)

170,576 Net Subscription/ (Liquidation) cash flows 809,302 (3,571) (17,602) 651,553 1,269 51,118 293 6,951 27,632 24,073 56,066

2,884,505 At June 30, 3,693,807 382,316 135,709 1,816,029 182,670 425,871 4,824 121,591 121,380 123,779 211,470

Distribution to unit holders

25,625 At July 01, - - - - - - - - - - -

31,077 Distribution declared during the year 70,476 8,603 7,071 50,263 4,539 - - - - - -

(22,709) Distribution paid during the year (30,767) (4,342) (3,595) (20,937) (1,893) - - - - - -

(33,993) Distribution re-invested during the year (39,709) (4,261) (3,476) (29,326) (2,646) - - - - - -

- At June 30, - - - - - - - - - - -

34 | MCB Unit Trust

MCB UNIT TRUST



12. FUNCTIONARIES' FEES

To the

Manager

To the

Registrar

To the

Trustee

To the

Custodian

(% of NAV) (% of NAV) Fixed Annual (% of NAV)

MCB General Fund 1.00% 0.20% Fixed fee 0.07%MCB Tracker Fund 0.80% 0.20% Fixed fee 0.07%MCB Yield Fund 0.85% 0.20% Fixed fee 0.07%MCB Domestic Equities Fund 1.00% 0.20% Fixed fee 0.07%MCB Overseas Fund 1.00% 0.20% Fixed fee 0.07%MCB Bond & Currency Fund 1.00% 0.15% Fixed fee 0.07%MCB 2025 Target Date Fund 1.60% 0.15% Fixed fee 0.07%MCB 2030 Target Date Fund 1.60% 0.15% Fixed fee 0.07%MCB 2035 Target Date Fund 1.60% 0.15% Fixed fee 0.07%MCB 2040 Target Date Fund 1.60% 0.15% Fixed fee 0.07%

13. OTHER DIRECT EXPENSES

14. FINANCIAL RISK MANAGEMENT

(a) Financial risk factors

The Sub-Funds' activities expose them to a variety of financial risks, including:

- Foreign currency risk;

- Liquidity risk, and

- Market risk.

Foreign currency risk

Liquidity risk

Market risk

Under the Supplemental Deed to the new Trust Deed the functionaries are entitled to receive the following annual

fees from the Sub-Funds calculated on the Net Asset Value (NAV) of the Fund and payable monthly in arrears.

Other direct expenses mainly consist of licence fees, printing expenses, postage fees, stationery and bank charges.

A description of the significant risk factors is given below together with the risk management policies applicable.

The Sub-Funds operate internationally and are exposed to foreign exchange risks arising from various currency

exposures. Appropriate diversification is ensured through the investment policy and guidelines approved by the CIS

Committee.

The currency profile of each Sub-Fund and the impact of a change of the various foreign currencies vis-a-vis the

presentation currency of each Sub-Fund are detailed in the schedule of investments.

Liquidity risk is the risk that the Sub-Funds will encounter difficulty in meeting the obligations associated with its

financial liabilities that are settled by delivery of cash or another financial asset.

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the ability to

close out market positions. The Funds keep a minimum cash ratio and invest primarily in easily marketable securities

at each Sub-Fund level to meet any redemptions.

The trustee fees payable to the trustees was 0.10% of the NAV up to December 2019. As from January 2020, the

annual trustee fee has been fixed to USD 50k.

The relevant Sub-Funds' activities expose them to market risk, i.e., the risk that the value of the financial instruments

will fluctuate as a result of changes in market prices, whether these changes are caused by factors specific to the

individual security or its issuer or factors affecting all securities traded on the market. Appropriate diversification is

ensured through the investment policy and guidelines approved by the Fund's CIS Committee.

The impact of a change in fair value on net income after tax is detailed in the schedule of investments.

MCB Unit Trust | 35

MCB UNIT TRUST



14. FINANCIAL RISK MANAGEMENT (CONT'D)

(a) Financial risk factors (Cont'd)

Interest rate risk

(b) Fair value estimation

• Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1).

•

•

The fair value hierarchy of each Sub-Fund is detailed in the schedule of investments.

A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available

from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent

actual and regularly occurring market transactions on an arm’s length basis.

The determination of what constitutes ‘observable’ requires significant judgement by the Fund. The Fund considers

observable data to be that market data that is readily available, regularly distributed or updated, reliable and

verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market.

The hierarchy categorises the inputs used in valuation techniques into three levels. The hierarchy gives the highest

priority to (unadjusted) quoted prices in active markets for identical assets or liabilities and the lowest priority to

unobservable inputs.

The fair value measurement is categorised in its entirety in the level of the lowest level input that is significant to the

entire measurement.

Valuation models are used primarily to value unlisted equity, debt securities and other debt instruments for which

markets were or have been inactive during the financial year. Some of the inputs to these models may not be market

observable and are therefore estimated based on assumptions.

The fair value of financial assets that are not traded in an active market is determined by using valuation techniques.

The Fund uses a variety of methods and makes assumptions that are based on market conditions existing at each

year end date.

The Fund's investments expose its financial assets to fluctuations in interest rates. Movements in interest rates are

caused by macro economic changes and policy decisions by Central Banks.

If a fair value measurement uses observable inputs that require significant adjustment based on unobservable

inputs, that measurement is a level 3 measurement. Assessing the significance of a particular input to the fair value

measurement in its entirety requires judgement and considering factors specific to the asset or liability.

Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either

directly (that is, as prices) or indirectly (that is, derived from prices) (level 2).

Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level

3).

The Sub-Funds adopted the amendment to IFRS 7, effective 1 January 2009. This requires the Sub-Funds to classify

fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the

measurements.

The fair value of financial assets traded in active markets (such as trading securities) is based on quoted market

prices at the close of trading on the year end date.

The impact of changes in interest rates on net income before taxation is detailed in the schedule of investments.

36 | MCB Unit Trust

MCB UNIT TRUST



MCB General FundSchedule of Investments as at June 30

2019

Market Value

(MUR'000) Security Description

2020

Market Value

(MUR'000)

% of Net

Assets

Non-Current Assets – Financial Asset at Fair Value Through Profit or Loss

Collective Investment Schemes

34,721 Comgest Growth America Fund 44,457 5.6%

23,253 Comgest Growth Asia USD 29,836 3.7%

10,279 Comgest Growth Emerging Markets Fund 10,693 1.3%

41,345 Comgest Growth Europe EUR Class Units Cap 50,364 6.3%

7,666 Comgest Growth Greater Europe Opportunities Fund 9,831 1.2%

11,073 Comgest Growth Japan Fund 14,658 1.8%

9,219 Comgest Growth World Fund 10,905 1.4%

808 Investec Global Gold A Acc (OEIC) 1,319 0.2%

24,068 Investec Global Strategy Fund - American Equity Fund 'A' 30,150 3.8%

2,082 Investec Global Strategy Fund - GBL Natural Resources A AC 2,014 0.3%

8,323 Investec Global Strategy Fund - Global Strategic Equity Fund 9,023 1.1%

6,314 Investec Global Strategy - UK Alpha A Inc Gross GBP 6,329 0.8%

7,600 Pictet Robotics P USD 10,508 1.3%

4,828 Pictet Emerging Markets P USD 5,448 0.7%

7,203 Sarasin Food and Agriculture Opportunities Class A Fund GBP 7,159 0.9%

19,951 Seilern Stryx America - F USD 25,763 3.3%

3,944 Vestathena Hanseatique-A 4,300 0.5%

222,677 TOTAL COLLECTIVE INVESTMENT SCHEMES 272,757 34.2%

Quoted Overseas Equities

4,042 Global X Longevity Thematic ETF USD 5,251 0.7%

4,488 Global X Millennials Thematic ETF USD 5,609 0.7%

12,057 iShares S and P 500 Index Fund 14,228 1.7%

13,429 iShares Emerging Markets High Yield Bond ETF 13,574 1.7%

3,434 iShares MSCI Emerging Markets ETF 3,595 0.5%

6,532 iShares MSCI Frontier 100 ETF 5,994 0.8%

7,446 iShares S and P Europe 350 Index Fund 7,666 0.9%

51,428 TOTAL QUOTED OVERSEAS EQUITIES 55,917 7.0%

Quoted Mauritian Equities

378 Air Mauritius Limited (ordinary) 244 0.0%

7,450 Alteo Limited (ordinary) 7,042 0.9%

2,368 Ascencia Limited (Class A Shares ) 2,279 0.3%

358 Ascencia Limited (Preference) - -

1,912 Attitude Property Ltd (ordinary) 1,718 0.2%

581 Automatic Systems Limited (ordinary) 593 0.1%

545 BlueLife Limited (ordinary) 291 0.0%

1,952 BMH Ltd (ordinary) 1,671 0.2%

7,094 Caudan Development Limited (ordinary) 6,762 0.8%

14,509 CIEL Limited 8,349 1.0%

6,037 CIM Financial Services Limited 5,174 0.6%

1,032 CIE Des Villages De Vacances De L’Isle De France Ltee (ordinary) 864 0.1%

288 Constance Hotels Services Limited 170 0.0%

14,736 ENL Limited ( Ordinary A) 9,281 1.2%

199 Excelsior United Development Companies Ltd (ordinary) 155 0.0%

2,815 Fincorp Investment Limited (ordinary) 2,273 0.3%

28,468 IBL Ltd (ordinary) 34,130 4.3%

1,759 Innodis Ltd (ordinary) 1,782 0.2%

2,501 Lavastone Ltd (ordinary) 1,225 0.2%

37 | MCB Unit Trust

MCB UNIT TRUST




2019

Market Value


2020

Market Value

(MUR'000)

% of Net

Assets

879 Les Moulins de La Concorde Ltée (Preference) 879 0.1%

1,208 Livestock Feed Limited (ordinary) 1,166 0.1%

236 Lottotech Ltd (ordinary) 203 0.0%

9,425 Lux Island Resorts Ltd (ordinary) 5,285 0.7%

758 Mauritius Oil Refineries Limited (ordinary) 1,080 0.1%

85,061 MCB Group Limited (ordinary) 69,462 8.7%

- MCB Group Ltd (Preference) 11,600 1.5%

8,062 Medine Limited (ordinary) 6,907 0.9%

4,540 MFD Group Limited (ordinary) 5,663 0.7%

11,037 New Mauritius Hotels Limited (Ordinary) 3,670 0.5%

2,757 New Mauritius Hotels Limited (Preference) 2,522 0.3%

1,945 Omnicane Limited (ordinary) 1,548 0.2%

10,703 Phoenix Beverages Limited (ordinary) 12,742 1.7%

13,517 Promotion and Development Ltd (ordinary) 11,811 1.5%

16,686 Rogers and Company Limited (ordinary) 9,618 1.2%

21,440 SBM Holdings Ltd (ordinary) 15,450 1.9%

- Semaris Ltd (ordinary) 718 0.1%

9,311 Sun Limited (ordinary) 4,374 0.5%

3,703 Swan Life Ltd (ordinary) 4,492 0.6%

7,170 Terra Mauricia Ltd (ordinary) 6,709 0.8%

349 The Bee Equity Partners Ltd (ordinary) 265 0.0%

824 The Mauritius Development Investment Trust Co Ltd (ordinary) 478 0.1%

12,069 The United Basalt Products Limited (ordinary) 11,816 1.6%

96 Tropical Paradise Co. Ltd (ordinary) 74 0.0%

5,983 United Docks Ltd (ordinary) 3,943 0.5%

- Vivo Energy Mauritius Limited (ordinary) 1,665 0.2%

322,741 TOTAL QUOTED MAURITIAN EQUITIES 278,143 34.9%

Unquoted Mauritian Equities

181 AfrAsia Bank Ltd - -

550 The Lux Collective Ltd 590 0.1%

731 TOTAL UNQUOTED MAURITIAN EQUITIES 590 0.1%

Quoted Foreign Fixed Income Securities

1,343 Adani Ports AND - 19-Jan-2022 1,494 0.2%

1,346 African Export-Import Bank - 20-Jun-2024 - -

2,411 Banque Ouest Africaine De Developpement - 05-Jun-2021 - -

1,029 Commerzbank - 19-Sep-2023 - -

- Ecobank Transnational - 18-Apr-2024 1,784 0.2%

- QNB Finance Ltd - 07-Sep-2021 3,019 0.4%

1,132 Seplat Petroleum Development Co Plc - 01-Apr-2023 - -

831 Standard Chartered - 25-Jan-2022 929 0.1%

3,570 The Royal Bank of Scotland - 15-Dec-2022 3,491 0.4%

11,662 TOTAL QUOTED FOREIGN FIXED INCOME SECURITIES 10,717 1.3%

Quoted Mauritian Fixed Income Securities

1,089 Ascencia Limited (10 Yrs Bonds) 1,112 0.1%

9,615 Compagnie De Beau Vallon Limitée (Debenture 5.1% Class B Bond) - -

5,241 IOST Company Ltd (Debenture 6% 5 Yrs Notes) 4,995 0.6%

1,921 MCB Group Limited (Debenture 3.5% 5 Yrs Notes) 1,925 0.2%

10,129 MCB Group Limited (Debenture 4.85% 10 Yrs Notes) - -

2,084 Omnicane Limited (Debenture 6.8% 7 Yrs Notes) 2,084 0.3%

MCB Unit Trust | 38

MCB UNIT TRUST




2019

Market Value


2020

Market Value

(MUR'000)

% of Net

Assets

10,002 SBM Holdings Ltd (Debenture 4.85% class A 1 Bonds) 9,517 1.2%

10,396 Sun Limited (Debenture 6.5% FRNMUR7Y Note) 9,490 1.2%

6,120 The Mauritius Union Assurance Company Limited

(Debenture 5.35% 10 Yrs Notes)-

-

4,614 15-Year Inflation Indexed GOM Bonds - 09-Nov-2027 5,458 0.7%

4,891 15-Year Inflation Indexed GOM Bonds - 07-April-2032 6,238 0.8%

2,565 15-Year Inflation Indexed GOM Bonds - 20-April-2033 3,401 0.4%

7,577 3 YR Government of Mauritius Treasury Notes - 27-Jul-2021 7,741 1.0%

- 4.20% Mauritius Govt Bond - 07-Feb-2030 11,469 1.4%

- 4.48% Mauritius - 09-Sep-2022 5,339 0.7%

5,080 4 YR Bank of Mauritius Notes - 07-Sep-2022 - 0.0%

10,436 10-Year GOM Bond - 20-Jul-2028 12,148 1.5%

5,232 15-Year GOM Bond - 09-Nov-2033 6,827 0.9%

9,149 20-YR Government of Mauritius - 07-Sep-2038 12,857 1.6%

106,141 TOTAL QUOTED MAURITIAN FIXED INCOME SECURITIES 100,601 12.6%

1,762 Interests Receivable on Non-Current Assets 1,491 0.2%

717,142

TOTAL NON-CURRENT ASSETS – FINANCIAL ASSETS AT FAIR VALUE

THROUGH PROFIT OR LOSS 720,216 90.3%

Non-Current Assets – Financial Assets at Amortised Cost

7,000 La Sabloniere Limited Secured Fixed Rates Notes - 11-Jan-2029 7,000 0.9%

3,000 MaxCity Property Fund Ltd - Mixed Rate Notes (secured)

Senior Tranche - 22-May-20273,000 0.4%

1,500 MaxCity Property Fund Ltd - Mixed Rate Notes (secured)

Junior Tranche - 22-May-20271,500 0.2%

5,000 Spice Finance Ltd 5,000 0.6%

-

Omnicane Holdings (La Baraque) Thermal Energy Ltd Senior

Secured - 03-Jun-2027 4,000 0.5%

16,500 20,500 2.6%

424 Interests Receivable on Non-Current Assets 501 0.1%

16,924

TOTAL NON-CURRENT ASSETS – FINANCIAL ASSETS AT

AMORTISED COST 21,001 2.7%

Current Assets – Financial Asset at Fair Value Through Profit or Loss


- African Export Import Bank - 24-May-2021 2,622 0.3%

1,894 Arab Republic of Eqypt Linked Notes - 19-Aug-2019 - -

- Bank Of India London - 16-Feb-2021 2,781 0.3%

- Banque Ouest Africaine De Developpement - 05-Jun-2021 2,658 0.3%

2,390 Braskem Finance Ltd Note - 07-May-2020 - -

- Deutsche Bank AG Secreg - 12-May-2021 3,645 0.5%

2,679 ICICI Bank Ltd | Dubai - 18-Mar-2020 - -

2,616 JPMorgan Structured Products - 10 Feb 2020 - -

- Nigeria T-Bill Linked Notes - 20-Aug-2020 2,828 0.4%

- Sinochem Overseas Capital Co Ltd - 12-Nov-2020 2,623 0.3%

- Sinopec GRP Overseas Development 2017 Ltd - 13-Sep-2020 2,802 0.4%

2,496 State Bank India/London - 06-Apr-2020 - -


39 | MCB Unit Trust

MCB UNIT TRUST




2019

Market Value


2020

Market Value

(MUR'000)

% of Net

Assets


- Compagnie De Beau Vallon Limitée (Debenture 5.1% Class B Bond) 9,500 1.2%

10,018 New Mauritius Hotels Limited (Debenture 5.35% Tranche B Notes) - -


574 Interests Receivable on Current Assets 329 0.0%

22,667

TOTAL CURRENT ASSETS – FINANCIAL ASSETS AT FAIR VALUE


Current Assets – Receivables

456 Dividends Receivable on Non-Current Assets 702 0.1%

456 TOTAL CURRENT ASSETS – RECEIVABLES 702 0.1%

757,189 TOTAL MARKET VALUE OF INVESTMENTS 771,707 99.4%

48,836 OTHER ASSETS AND LIABILITIES 25,623 3.2%

806,025 NET ASSETS 797,330 100.0%

Currency Profile

153 AUD 167 0.1%

53,108 EUR 64,665 8.1%

14,761 GBP 15,283 1.9%

11,073 JPY 14,658 1.8%

491,432 MUR 418,040 52.4%

235,498 USD 284,517 35.7%

806,025 NET ASSETS 797,330 100.0%

Fair Value Hierarchy

739,534 Level 1 748,296 93.9%

16,924 Level 2 22,821 2.9%

731 Level 3 590 0.0%


At June 30, 2020, if MUR had weakened/ strengthened by 5% against the above other currencies with all other

variables held constant, net income before taxation would have been Rs 19.0m (2019: Rs 15.7m) higher/ lower,

mainly as a result of retranslation of foreign currency denominated bank balances and financial assets.

Had fair value increased/ decreased by 10%, the impact on net Income would have been MUR 75.0m (June 30, 2019:

MUR 74.0m) higher/ lower with all other variables held constant.

At June 30, 2020, if interest rates had been 25 basis points higher/ lower, with all other variables held constant, net

income before taxation would have been MUR 0.4m higher/ lower (2019: MUR 0.4m), mainly as a result of higher/

lower interest income on bonds and deposits.

All Mauritian fixed income securitius have coupon rates ranging between 2.125% and 9.50% and maturity dates

ranging from August 24, 2020 to April 18, 2024.

All financial assets at fair value through profit or loss have coupon rates ranging between 1.85% and 6.80% and

MCB Unit Trust | 40

MCB UNIT TRUST




2019

Market Value


2020

Market Value

(MUR'000)

% of Net

Assets

All financial assets at amortised cost have coupon rates ranging between 3.45% and 6.30% and maturity dates

ranging from September 04, 2022 to January 11, 2029.

None of the financial assets are either past due or impaired.

All financial assets at fair value through profit or loss have coupon rates ranging between 1.85% and 6.80% and

maturity dates ranging from October 27, 2020 to September 07, 2038.

41 | MCB Unit Trust

MCB UNIT TRUST



MCB Tracker FundSchedule of Investments as at June 30

2019

Market Value


2020

Market Value

(MUR'000)

% of Net

Assets

Non-Current Assets – Financial Assets at Fair Value through Profit or Loss


- African Export Import Bank (DR) 3,644 1.7%

17,450 CIEL Limited (ordinary) 8,687 4.0%

20,139 ENL Limited (ordinary A) 10,329 4.8%

15,124 Grit Real Estate Income Group Limited (ordinary) 8,985 4.2%

60,041 IBL Ltd (ordinary) 49,026 22.7%

12,993 Lux Island Resorts Ltd (ordinary) - -


- Medine Limited (ordinary) 2,945 1.4%

15,116 New Mauritius Hotels Limited (ordinary) 1,727 0.8%



11,121 Sun Limited (ordinary) - -

- Phoenix Beverages Limited (ordinary) 4,451 2.0%

- Vivo Energy Mauritius Limted (ordinary) 4,213 1.9%


310,688







(718) OTHER ASSETS AND LIABILITIES 3,421 1.6%

310,270 NET ASSETS 216,270 100.0%

Currency Profile

295,146 MUR 202,249 93.5%

15,124 USD 14,021 6.5%

310,270 NET ASSETS 216,270 100.0%


310,988 Level 1 212,849 98.4%


None of the financial assets are impaired.

Had fair value increased/ decreased by 10%, the impact on net loss before taxation would have been MUR 21.2m (June

2019: MUR 31.1m) lower/higher with all other variables held constant.


variables held constant, net loss before taxation would have been Rs 0.7m (2019: Rs 0.8m) higher/ lower, mainly as a

result of retranslation of foreign currency denominated bank balances and financial assets.

MCB Unit Trust | 42

MCB UNIT TRUST



MCB Yield FundSchedule of Investments as at June 30

2019

Market Value


2020

Market Value

(MUR'000)

% of Net

Assets



31,021 Ascencia Limited (Class A Shares ) 13,166 0.6%

1,908 Ascencia Limited (Preference) - -

- Automatic Systems Limited (ordinary) 10,149 0.5%

37,995 Attitude Property Ltd (ordinary) 95,675 4.7%

893 CIEL Limited (ordinary) - -

4,520 Les Moulins de La Concorde Ltée (Preference) - -

2,225 Lottotech Ltd (ordinary) 1,911 0.1%

553 Mauritius Oil Refineries Limited 430 0.0%


- MCB Group Limited (Preference) 71,688 3.5%

6,659 New Mauritius Hotels Limited (Preference) 6,091 0.3%

1,577 P.O.L.I.C.Y Limited (ordinary) - -

3,965 Rogers and Company Limited (ordinary) - -


2,524 Sun Limited (ordinary) - -

23,924 The Mauritius Development Investment Trust Co Ltd (ordinary) 21,111 1.0%

1,302 Tropical Paradise Co. Ltd (Preference) 1,067 0.1%

26,117 Vivo Energy Mauritius Limited (ordinary) 39,605 2.0%



6,030 Ascencia Limited ( 10 Yrs Bond) 6,154 0.3%

34,207

Commercial Investment Property Fund Limited

(Debenture 6.5% JR Tranche Notes) 34,207 1.7%

4,883

Commercial Investment Property Fund Limited

(Debenture 5.5% sR Tranche Notes) 4,883 0.2%

20,962 IOST Company Ltd (Debenture 6% 5Yrs Notes) - 25-Jan-2024 19,979 1.0%

20,962 IOST Company Ltd (Debenture 6% 5Yrs Notes) - 27-Mar-2024 19,023 0.9%

9,388

The Mauritius Union Assurance Company Limited

(Debenture 5.35% 10 Yrs Notes) - -

36,039 New Mauritius Hotels Ltd. (Debenture 5.4% FRNMUR7Y Note) 35,036 1.7%

5,785 Omnicane Limited (Debenture 6.3% 5 Yrs Notes) - 0.0%

10,125 Southern Cross Tourist Co Ltd (Debenture 6.5% 10 Yrs Notes) 10,024 0.5%

31,217 Sun Limited (Debenture 6.5% FRNMUR7Y Note) 28,497 1.4%

67,748 5 YR Government of Mauritius Bonds - 08-Jun-2023 37,347 1.8%

24,191 5 YR Government of Mauritius Bonds - 05-Nov-2023 - -

20,002 10 Year BOM Bond - 20-Jan-2027 22,937 1.1%

35,871 10 Year GOM Bond - 09-Mar-2028 - -

31,391 15 Year GOM Bond - 09-Nov-2033 40,961 2.0%

13,389 20 YR Bank of Mauritius Bonds - 15-Jan-2036 17,843 0.9%

28,110 20 YR Government of Mauritius Bonds - 15-Apr-2036 68,338 3.4%

107,844 20 YR Government of Mauritius Bonds - 17-Mar-2037 148,133 7.3%

80,296 20 YR Government of Mauritius Bonds - 15-Sep-2037 112,092 5.5%

84,692 20 YR Government of Mauritius Bonds - 08-Feb-2039 119,828 5.9%

9,325 15 Year Inflation Indexed GOM Bonds - 09-Nov-2027 11,029 0.6%

39,127 15 Year Inflation Indexed GOM Bonds - 07-April-2032 49,904 2.4%

42,755

15 Year Inflation Indexed Government of Mauritius Bond

- 20-April-2033 56,673 2.8%

43 | MCB Unit Trust

MCB UNIT TRUST




2019

Market Value


2020

Market Value

(MUR'000)

% of Net

Assets


10,684 Interest Receivable on Non-Current Assets 9,604 0.5%

947,721


THROUGH PROFIT AND LOSS 1,170,907 57.5%

Non-Current Assets – Financial Assets At Amortised Cost

9,000 Alteo Limited Secured Fixed Rate Notes - 27-May-2026 9,000 0.4%

30,000 Ciel Limited - Fixed Rate Secured Notes - 02-Feb-2025 30,000 1.5%

20,300 Ciel Limited - Fixed Rate Secured Notes - 02-Feb-2028 20,300 1.0%

23,000 La Sabloniere Limited Secured Fixed Rate Notes - 11-Jan-2024 23,000 1.1%

18,667

MaxCity Property Fund Ltd - Mixed Rate Notes (secured)

Senior Tranche - 22-May-2027 18,667 0.9%

8,000

MaxCity Property Fund Ltd - Mixed Rate Notes (secured)

Junior Tranche - 22-May-2027 8,000 0.4%

40,924 7 Yr Sugar Investment Trust Note Investment- 23-Apr-2024 40,924 2.0%

12,000 Spice Finance Ltd 12,000 0.6%

- 4.24% Mauritius Government Bond - 14-Dec-2021 14,732 0.7%

- 4.94% Mauritius Govt Bond - 26-Jul-2034 177,229 8.7%

- 20 YR Government of Mauritius Bonds - 08-Nov-2039 175,092 8.6%

- 6.08% Mauritius - 07-Sep-2038 3,192 0.2%



- 4.35% Mauritius Govt Bond - 06-Sep-2029 82,209 4.0%

- BANK ONE LIMITED - 5.00% - 29-Jun-2030 50,000 2.5%

161,891 715,662 35.1%

3,559 Interests Receivable on Non-Current Assets 11,140 0.5%

165,450

TOTAL NON-CURRENT ASSETS – FINANCIAL ASSETS AT AMORTISED

COST 726,802 35.6%

Current Assets – Financial Assets at Fair Value through Profit or Loss


- Omnicane Limited (Debenture 6.3% 5 Yrs Notes) 5,839 0.3%

- TOTAL QUOTED MAURITIAN FIXED INCOME SECURITIES 5,839 0.3%

Unquoted Mauritian Securities

18,733 Government of Mauritius Treasury Bills - 19-Jun-2020 - -

21,113 Government of Mauritius Treasury Bills - 08-Nov-2019 - -

39,846 TOTAL UNQUOTED MAURITIAN SECURITIES - -

67 Interest Receivable on Current Assets 24 0.0%

39,913


THROUGH PROFIT AND LOSS 5,863 0.3%

Current Assets – Financial Assets At Amortised Cost

36,600 Spice Finance Ltd - -

28,000 La Prudence Leasing Finance Co Ltd - -

1,849 Interest Receivable - -

MCB Unit Trust | 44

MCB UNIT TRUST




2019

Market Value


2020

Market Value

(MUR'000)

% of Net

Assets

66,449

TOTAL CURRENT ASSETS – FINANCIAL ASSETS AT AMORTISED

COST - 0.0%




1,220,252 TOTAL MARKET VALUE OF INVESTMENTS 1,903,649 93.5%


1,223,101 NET ASSETS 2,037,074 100.0%

Currency Profile

1,223,034 MUR 2,037,515 100.0%

- USD -441 0.0%

1,223,034 NET ASSETS 2,037,074 100.0%


988,286 Level 1 1,167,219 57.3%

231,899 Level 2 736,430 36.2%

1,220,185 TOTAL MARKET VALUE OF INVESTMENTS 1,903,649 93.5%


Had fair value increased/ decreased by 10%, the impact on net income before taxation would have been MUR 117.7m

(June 30, 2019: MUR 98.8m) higher/ lower with all other variables held constant.


income before taxation would have been MUR 4m higher/ lower (June 2019: MUR 2m), mainly as a result of higher/

lower interest income on bonds and deposits.

All financial assets at amortised cost have coupon rates ranging between 3.32% and 6.50% and maturity dates ranging

from December 14, 2021 to November 08, 2039.

All quoted fixed income securities have coupon rates ranging between 3.85% and 7.00% and maturity dates ranging

from June 08, 2021 to February 08, 2039.


variables held constant, net income before taxation would have been Rs 0m (2019: Rs 0m) higher/ lower, mainly as a


45 | MCB Unit Trust

MCB UNIT TRUST



MCB Domestic Equities FundSchedule of Investments as at June 30

2019

Market Value


2020

Market Value

(MUR'000)

% of Net

Assets





2,153 BMH Ltd (ordinary) 1,843 0.9%




4,890 CIM Financial Services Limited (ordinary) 4,192 2.1%

132 CIE Des Villages De Vacances De L’Isle De France Ltee (ordinary) 110 0.1%

11,827 ENL Limited ( Ordinary A) 7,037 3.6%


2,300 Fincorp Investment Limited (ordinary) 1,858 0.9%

26,289 IBL Ltd (ordinary) 29,690 15.0%


2,026 Lavastone Ltd (ordinary) 973 0.5%

1,313 Livestock Feed Limited (Ordinary) 1,268 0.6%



711 Mauritius Oil Refineries Limited (ordinary) 553 0.3%




10,316 New Mauritius Hotel Limited (ordinary) 2,722 1.4%

1 New Mauritius Hotels Limited (Preference) 1 0.0%

1,638 Omnicane Limited (ordinary) 786 0.4%


9,334 Promotion and Development Limited (ordinary) 7,706 3.9%





1,990 Swan Life Ltd (ordinary) 2,413 1.2%


317 The Bee Equity Partners Ltd (ordinary) 241 0.1%




- Vivo Energy Mauritius Limited (ordinary) 533 0.3%



165 AfrAsia Bank Limited - -

146 Camp Investment Company Ltd 146 0.1%



256,274



MCB Unit Trust | 46

MCB UNIT TRUST



MCB Domestic Equities FundSchedule of Investments as at June 30

2019

Market Value


2020

Market Value

(MUR'000)

% of Net

Assets





(832) OTHER ASSETS AND LIABILITIES 53 0.0%

255,755 NET ASSETS 197,302 100.0%

Currency Profile

255,755 MUR 197,351 100.0%

- USD -49 0.0%

255,755 NET ASSETS 197,302 100.0%


255,809 Level 1 196,650 99.7%

- Level 2 - -

778 Level 3 599 0.3%


None of the financial assets are impaired.


30, 2019: MUR 25.7m) higher/ lower with all other variables held constant.


variables held constant, net income before taxation would have been Rs 0m (2019: Rs 0m) higher/ lower, mainly as a


47 | MCB Unit Trust

MCB UNIT TRUST



MCB Overseas FundSchedule of Investments as at June 30

2019

Market Value


2020

Market Value

(MUR'000)

% of Net

Assets



28,585 Comgest Growth America Fund 36,601 5.7%

1,327 Comgest Growth Asia PAC Ex-Japan USD 1,562 0.2%

17,403 Comgest Growth Asia USD 22,330 3.5%


22,255 Comgest Growth Europe EUR Class Units Cap 27,110 4.2%

7,020 Comgest Growth GEM Promising Companies EUR 6,045 0.9%

5,032 Comgest Growth Greater China A Class Units 6,099 0.9%

13,077 Comgest Growth Greater Europe Opportunities Fund 20,929 3.2%

5,565 Comgest Growth India Fund 5,053 0.8%

23,771 Comgest Growth Japan Fund 31,467 4.9%

8,888 Comgest Growth Latin America USD 7,396 1.1%

13,621 Comgest Growth World Fund 16,111 2.5%

4,475 Diversified Growth Company Stock Selection A EUR 5,255 0.8%

13,404 Investec Global Strategy Fund - American Equity Fund 'A' 23,251 3.6%

8,181 Investec Global Strategy Fund - European Equity A USD ACC 8,641 1.3%

600 Investec Global Strategy Fund – Global Energy Fund 492 0.1%

6,679 Investec Global Strategy Fund – Global Gold Fund 'A' Inc 11,115 1.7%

6,692 Investec Global Strategy Fund - Global Natural Resources A ACC 6,476 1.0%

12,628 Investec Global Strategy Fund - Global Strategic Equity Fund 17,565 2.7%

10,305 Investec Global Strategy Fund UK Alpha A Inc Gross GBP 10,329 1.6%

189 JSS Investmentfonds - JSS Emergingsar Global A (USD) Inc 172 0.0%

4,314 JSS Investmentfonds - JSS Equisar Global (EUR) 5,474 0.8%

12,942 Sarasin Food and Agriculture Opportunities Class A Fund GBP 16,097 2.5%

27,123 Seilern Stryx America - F USD 35,023 5.4%

15,684 Vestathena Hanseatique-A 17,099 2.6%



2,669 Global X Longevity Thematic ETF 10,067 1.6%

2,943 Global X Millennials Thematic ETF 9,805 1.5%

10,484 iShares Core S&P 500 Index Fund 12,372 1.9%

8,924 iShares Emerging Markets High Yield Bond ETF 9,021 1.4%

8,764 iShares Gold Trust Fund 12,387 1.9%

15,629 iShares Global REIT ETF 13,743 2.1%

16,991 iShares Listed Private Equity UCITS ETF 17,339 2.7%

5,098 iShares MSCI Emerging Markets ETF 5,336 0.8%


7,243 iShares Russell 2500 ETF 7,639 1.2%

10,268 iShares S&P Europe 350 Index Fund 10,572 1.6%

11,095 Pictet Emerging Markets P 12,520 1.9%

13,779 Pictet Robotics P USD 22,639 3.5%

6,267 Pictet Sicav High Dividend Selection HP USD 7,488 1.2%

8,725 Vaneck Vectors Africa Index ETF 7,272 1.1%

- WisdomTree Brent Crude Oil 4,804 0.7%

- WisdomTree WTI Crude Oil 4,801 0.7%



MCB Unit Trust | 48

MCB UNIT TRUST




2019

Market Value


2020

Market Value

(MUR'000)

% of Net

Assets

3,557 Adani Ports AND - 19-Jan-2022 3,957 0.6%

3,567 African Export-Import Bank - 20-Jun-2024 - -

5,934 Banque Ouest Africaine De Developpement - 05-Jun-2021 - 0.0%

6,215 Commerzbank - 19-Sep-2023 - -

- Ecobank Transnational - 18-Apr-2024 1,581 0.2%

7,176 General Motors - 14-Jan-2022 - -

- QNB Finance Ltd - 07-Sep-2021 8,050 1.2%

3,018 Seplat Petroleum Development Co Plc - 01-Apr-2023 - 0.0%

2,605 Standard Chartered - 25-Jan-2022 2,914 0.5%

7,293 The Royal Bank of Scotland - 15-Dec-2022 - -


446 Interest Receivable on Non-Current Assets 221 0.0%

464,552





5,652 Arab Republic of Eqypt Linked Notes - 19-Aug-2019 - -

- African Export Import Bank 4PCT - 24-May-2021 8,068 1.2%

- Banque Ouest Africaine De Developpement - 05-Jun-2021 6,543 1.0%

6,066 Braskem Finance Ltd Note - 07-May-2020 - -

- IBQ Finance - 25-Nov-2020 7,851 1.2%

7,145 ICICI Bank Ltd | Dubai - 18-Mar-2020 - -

6,310 Nigeria T-Bill Linked Notes - 10-Feb-2020 - -

- JP Morgan Structured Products BV - 24-Aug-2020 8,603 1.3%

- Sinochem Overseas Capital - 12-Nov-2020 5,043 0.8%

- Sinopec GRP Overseas Dev - 13-Sep-2020 8,005 1.2%

4,635 State Bank India/London - 06-Apr-2020 - 0.0%

- State Bank India/London - 16-Feb-2021 8,424 1.3%



30,665





517,912 NET ASSETS 646,001 100.0%

49 | MCB Unit Trust

MCB UNIT TRUST




2019

Market Value


2020

Market Value

(MUR'000)

% of Net

Assets

Currency Profile

1 AUD 1 0.0%

67,608 EUR 84,097 13.0%

26,854 GBP 27,958 4.2%

23,771 JPY 31,467 4.9%

4,993 MUR (1,865) -0.30%

394,685 USD 504,343 78.2%

517,912 NET ASSETS 646,001 100.0%


495,217 Level 1 601,476 93.1%




variables held constant, net income before taxation would have been MUR 32.4m (2019: MUR 25.6m) higher/ lower,



(2019: MUR 49.5m) higher/ lower with all other variables held constant.


income before taxation would have been MUR 0m higher/ lower (2019: MUR 0m), mainly as a result of higher/ lower

interest income on bonds and deposits.

All foreign fixed income securities have coupon rates ranging between 2.25% and 9.50% and maturity dates ranging

from August 24, 2020 to April 18, 2024.

MCB Unit Trust | 50

MCB UNIT TRUST



MCB Bond & Currency FundSchedule of Investments as at June 30

2019

Market Value

(USD'000) Security Description

2020

Market Value

(USD'000)

% of Net

Assets



235 Adani Ports AND - 19-Jan-2022 232 4.2%

469 Banque Ouest Africaine De Developpement - 05-Jun-2021 - 0.0%

435 Commerzbank - 19-Sep-2023 - 0.0%

- Ecobank Transnational - 18-Apr-2024 164 3.0%

- QNB Finance Ltd - 07-Sep-2021 459 8.3%

239 Seplat Petroleum Development Co Plc - 01-Apr-2023 - 0.0%

197 Standard Chartered - 25-Jan-2022 197 3.6%

469 The Royal Bank of Scotland - 15-Dec-2022 - 0.0%



2,072





- African Export Import Bank 4PCT - 24-May-2021 399 7.3%

641 Arab Republic of Eqypt Linked Notes - 19-Aug-2019 - -

- Banque Ouest Africaine De Developpement - 05-Jun-2021 461 8.4%

471 Braskem Finance Ltd Note - 07-May-2020 - -

- EI SUKUK CO LTD- 31-May-2021 508 9.2%

- IBQ Finance - 25-Nov-2020 206 3.7%

377 ICICI Bank Ltd | Dubai - 18-Mar-2020 - -

- National Grid North America Inc - 30-Sep-2020 201 3.7%

558 Nigeria T-Bill Linked Notes - 10-Feb-2020 - -

- JP Morgan Structured Products BV - 24-Aug-2020 539 9.8%

- Sinochem Overseas Capital - 12-Nov-2020 464 8.4%

- Sinopec GRP Overseas Development 2017 Ltd .- 13-Sep-2020 481 8.8%

471 Bank of India London - 06-Apr-2020 - -

- Bank of India London - 16-Feb-2021 523 9.5%



2,601




273 OTHER ASSETS AND LIABILITIES 591 10.8%

4,946 NET ASSETS 5,494 100.0%

51 | MCB Unit Trust

MCB UNIT TRUST



MCB Bond & Currency FundSchedule of Investments as at June 30

2019

Market Value

(USD'000) Security Description

2020

Market Value

(USD'000)

% of Net

Assets

Currency Profile

4,946 USD 5,494 100.0%

- MUR

4,946 NET ASSETS 5,494 100.0%


4,673 Level 1 4,903 89.2%



Had fair value increased/ decreased by 10%, the impact on net income before taxation would have been USD 0m (2019:

USD 0m) higher/ lower with all other variables held constant.

All foreign fixed income securities have coupon rates ranging between 2.25% and 9.50% and maturity dates ranging from

August 24, 2020 to April 18, 2024.

MCB Unit Trust | 52

MCB UNIT TRUST



MCB 2025 Target Date FundSchedule of Investments as at June 30

2019

Market Value


2020

Market Value

(MUR'000)

% of Net

Assets





2,294 Investec Emerging Markets Equity A ACC Gross 2,417 2.0%

1,875 Investec Global Strategy Fund GBL Natural Resources A ACC USD 1,814 1.5%

2,428 Investec Global Strategy Fund - Global Gold Fund 'A' Inc 4,041 3.3%


2,965 Threadneedle Lux - Global Emerging Market Equities - -



2,646 iShares Global Aggregate Bond ETF USD 3,045 2.5%

418 iShares Gold Trust ETF 590 0.5%

2,738 iShares MSCI EAFE ETF - -

485 UBS CMCI Composite SF UCITS ETF - -





480 Ascencia Limited (Class A Shares ) 419 0.3%

413 Attitude Property Ltd (ordinary) 371 0.3%



521 BMH Ltd (ordinary) 446 0.4%




239 Constance Hotels Services Limited (ordinary) 141 0.1%



809 Fincorp Investment Limited (ordinary) 654 0.5%

8,227 IBL Ltd (ordinary) 9,961 8.1%

519 Innodis Ltd (ordinary) 526 0.4%

621 Lavastone Ltd (ordinary) 304 0.2%

424 Livestock Feed Limited (ordinary) 410 0.3%





- MCB Group Limited (Preference) 883 0.7%


956 MFD Group Limited (ordinary) 1,193 1.0%

378 NewGold Issuer Limited (securities) - -


- New Mauritius Hotels Limited (Preference) 113 0.1%

445 Omnicane Limited (ordinary) 214 0.2%



53 | MCB Unit Trust

MCB UNIT TRUST




2019

Market Value


2020

Market Value

(MUR'000)

% of Net

Assets




2,115 Sun Limited (ordinary) 894 0.7%

452 Swan Life Ltd (ordinary) 548 0.4%




136 Tropical Paradise Co. Ltd (Ordinary) 105 0.1%

1,168 United Docks Ltd (ordinary) 770 0.6%






187 Compagnie De Beau Vallon Limitée - Class A Bond - 27-Oct-2020 - -

385 Compagnie De Beau Vallon Limitée - Class B Bond - 27-Oct-2020 - -

1,010 Government of Mauritius Bond - 27-Jul-2021 - -

- Government of Mauritius Bond - 07-Feb-2030 1,720 1.4%

1,570 Government of Mauritius Bond - 09-Nov-2033 2,048 1.7%

2,541 Government of Mauritius Bond - 07-Sep-2038 3,572 2.9%

391 Government of Mauritius Inflation Linked Bond - 07-Apr-2032 - -

427 Government of Mauritius Inflation Linked Bond - 20-Apr-2033 - -

1,048 IOST Company Ltd (Debenture 6% 5yrs notes) - 25-Jan-2024 999 0.8%

- IOST Company Ltd (Debenture 6% 5yrs notes)- 27-Mar-2024 4,375 3.6%

480 MCB Group Limited - Senior Unsecured Notes - 22-Jan-2023 4,789 3.9%

315 MCB Group Limited - Subordinated Notes - 08-Aug-2023 3,127 2.5%

- Medine Limited (Debenture 3.45% 7yrs notes) - 26-Dec-2025 2,205 1.8%

354 Mauritius Union Assurance Company Limited - 24-Sep-2024 - -

500 SBM Holdings Ltd (Debenture 3.2% Class A 1 Bonds)- 10-Mar-2024 476 0.4%

- Southern Cross Tourist Co Ltd - 14-Jun-2023 1,096 0.9%

652 Sun Limited (Debenture 6% FRNMUR5Y Notes) - 04-Nov-2021 3,976 3.2%

- Sun Limited (Debenture 6 FRNMUR5Y Notes) - 04-Nov-2023 760 0.6%

- Zenith Cross Asset - 24-Jan-2022 2,344 1.9%

- Omnicane Holdings (La Baraque) Thermal Energy - 03-Jun-2027 1,000 0.8%



116,157





- Compagnie De Beau Vallon Limitée - Class A Bond - 27-Oct-2020 189 0.2%

- Compagnie De Beau Vallon Limitée - Class B Bond - 27-Oct-2020 380 0.3%

157 New Mauritius Hotels Limited - 15-Jul-2019 - -

- Omnicane Limited - 08-Jun-2021 2,876 2.3%

MCB Unit Trust | 54

MCB UNIT TRUST




2019

Market Value


2020

Market Value

(MUR'000)

% of Net

Assets

157 TOTAL QUOTED MAURITIAN FIXED INCOME SECURITIES 3,445 2.8%


4,919 Government of Mauritius T-Bills 09-Aug-2019 - -


67 Interests Receivable on Current Assets 15 0.0%

5,143







8,943 OTHER ASSETS AND LIABILITIES 448 0.4%

130,346 NET ASSETS 123,058 100.0%

10,017 Interest Bearing Securities 35,932

Currency Profile

106,827 MUR 103,391 84.0%

23,519 USD 19,667 16.0%

130,346 NET ASSETS 123,058 100.0%


116,342 Level 1 122,472 99.5%

4,919 Level 2 - -

142 Level 3 138 0.1%121,403 TOTAL MARKET VALUE OF INVESTMENTS 122,610 99.6%



At June 30, 2020, if interest rates had been 25 basis points higher/ lower, with all other variables held constant, net loss

before taxation would have been MUR 0m higher/ lower (2019: MUR 0m), mainly as a result of higher/ lower interest

income on bonds and deposits.


variables held constant, net income before taxation would have been MUR 1.0m (2019: MUR 1.2m) higher/ lower,


All fixed income securities have variable coupon rates ranging between 1.85% and 6.50% and maturity dates ranging

from October 27, 2020 to September 07, 2038.

55 | MCB Unit Trust

MCB UNIT TRUST




2019

Market Value


2020

Market Value

(MUR'000)

% of Net

Assets


MCB Unit Trust | 56

MCB UNIT TRUST




2019

Market Value


2020

Market Value

(MUR'000)

% of Net

Assets




968 Comgest Growth GEM Promising Companies EUR 834 0.7%



- Comgest Growth Greater Europe Opportunities Fund 2,014 1.8%

1,392 Investec Emerging Markets Equity A Acc 1,466 1.3%


1,167 Investec Global Strategy Fund - GBL Natural Resources A ACC 1,130 1.0%


- Pictet Robotics P USD 2,050 1.8%

1,924 Threadneedle Lux - Global Emerging Market Equities 1U - USD 2,286 1.9%



1,573 iShares Gold Trust ETF 2,223 2.0%

1,569 iShares MSCI EAFE ETF 1,632 1.4%


249 UBS CMCI Composite SF UCITS ETF 236 0.2%


- WisdomTree Brent Crude Oil ETF 564 0.5%

- WisdomTree WTI Crude Oil ETF USD 568 0.5%

- iShares Core S&P 500 ETF (USD) ETF - Ishares S and P 500 Index Fund 1,175 1.0%












956 CIM Financial Services Limited (ordinary) 819 0.7%



3,538 ENL Limited (Ordinary A) 2,527 2.2%



7,775 IBL Ltd (ordinary) 9,551 8.4%

940 Innodis Ltd (ordinary) 952 0.8%







57 | MCB Unit Trust

MCB UNIT TRUST




2019

Market Value


2020

Market Value

(MUR'000)

% of Net

Assets



574 MFD Group Limited (ordinary) 716 0.6%

178 NewGold Issuer Limited (securities) 266 0.2%

2,903 New Mauritius Hotels Limited (ordinary) 965 0.8%












80 Tropical Paradise Co. Ltd (Ordinary) 62 0.1%

953 United Docks Ltd (ordinary) 1,266 1.1%









- Government of Mauritius Inflation-Indexed Bond - 07-Apr-2032 249 0.2%


227 MCB Group Limited - Subordinated Notes - 08-Aug-2023 - -


891 Sun Limited (Debenture 6% FRNMUR5Y Notes) - 04-Nov-2021 820 0.7%



196 Government of Mauritius Inflation-Indexed Bond - 07-Apr-2032 - -

196 TOTAL UNQUOTED MAURITIAN SECURITIES - -


98,821







78 New Mauritius Hotels Limited - 15-Jul-2019 - 0.0%

78 TOTAL QUOTED MAURITIAN FIXED INCOME SECURITIES 314 0.3%

MCB Unit Trust | 58

MCB UNIT TRUST




2019

Market Value


2020

Market Value

(MUR'000)

% of Net

Assets


80


THROUGH PROFIT OR LOSS 316 0.3%






100,456 NET ASSETS 114,261 100.0%

Currency Profile

79,940 MUR 84,621 74.1%

972 EUR 3,425 3.0%

19,544 USD 26,215 23.0%

100,456 NET ASSETS 114,261 100.1%


98,676 Level 1 101,753 89.1%

196 Level 2 - -




from October 27, 2020 to April 07, 2032.

At June 30, 2020, if MUR had weakened/ strengthened by 5% against the above other currencies with all other variables

held constant, net income before taxation would have been MUR 1.5m (2019: MUR 1.0m) higher/ lower, mainly as a







59 | MCB Unit Trust

MCB UNIT TRUST




2019

Market Value


2020

Market Value

(MUR'000)

% of Net

Assets




999 Comgest Growth GEM Promising Companies EUR 860 0.8%


- Comgest Growth Greater Europe Opportunities Fund 2,174 1.9%


1,296 Investec Emerging Markets Equity A Acc Gross USD 1,365 1.2%


1,088 Investec Global Strategy Fund - GBL Natural Resources A ACC USD 1,053 0.9%

- NewGold ETF 266 0.2%






- iShares Core S and P 500 Index Fund 1,200 1.0%

























8,263 IBL Ltd (ordinary) 11,634 10.0%

988 Innodis Ltd (ordinary) 1,344 1.2%






MCB Unit Trust | 60

MCB UNIT TRUST




2019

Market Value


2020

Market Value

(MUR'000)

% of Net

Assets




760 MFD Group Limited (ordinary) 1,288 1.1%

179 NewGold Issuer Limited (securities) - -

2,879 New Mauritius Hotels Limited (ordinary) 957 0.8%













934 United Docks Ltd (ordinary) 1,613 1.4%











196 Government of Mauritius Inflation-Indexed Bond - 07-Apr-2032 250 0.2%


1,068 TOTAL QUOTED MAURITIAN FIXED INCOME SECURITIES 392 0.3%


100,053









61 | MCB Unit Trust

MCB UNIT TRUST




2019

Market Value


2020

Market Value

(MUR'000)

% of Net

Assets





2,067








106,226 NET ASSETS 115,558 100.0%

Currency Profile

84,811 MUR 83,361 72.1%

1,006 EUR 3,661 3.2%

20,409 USD 28,536 24.7%

106,226 NET ASSETS 115,558 100.0%


99,931 Level 1 108,922 94.3%

2,163 Level 2 - -






before taxation would have been MUR 0m higher/ lower (June 2019: MUR 0m), mainly as a result of higher/ lower

interest income on bonds and deposits.




variables held constant, net loss before taxation would have been MUR 1.6m (2019: MUR 1.1m) higher/ lower, mainly

as a result of retranslation of foreign currency denominated bank balances and financial assets.

MCB Unit Trust | 62

MCB UNIT TRUST




2019

Market Value


2020

Market Value

(MUR'000)

% of Net

Assets




1,507 Comgest Growth GEM Promising Companies EUR 1,297 0.7%


- Comgest Growth Greater Europe Opportunities 5,672 2.9%


1,926 Investec Emerging Markets Equity A Acc Gross USD 2,029 1.0%

1,653 Investec Global Strategy Fund - GBL Natural Resources A ACC USD 1,600 0.8%







- iShares Core S and P 500 Index Fund 2,004 1.0%












450 Ascencia Limited (Class A Shares) 393 0.2%









109 Constance Hotels Services Limited 64 0.0%



882 Fincorp Investment Limited (ordinary) 1,357 0.7%

12,775 IBL Ltd (ordinary) 20,148 10.2%







34,045 MCB Grou Limited (ordinary) 30,988 15.7%

63 | MCB Unit Trust

MCB UNIT TRUST




2019

Market Value


2020

Market Value

(MUR'000)

% of Net

Assets




184 NewGold Issuer Limited (securities) 274 0.1%











144 The Mauritius Development Investment Trust Co. Ltd (ordinary) 83 0.0%












- Government of Mauritius Inflation-Indexed Bond - 07-Apr-2032 374 0.2%




523 Sun Limited (Debenture 6% FRNMUR5Y Notes) - 04-Nov-2021 480 0.2%

1,480 TOTAL QUOTED MAURITIAN FIXED INCOME SECURITIES 978 0.5%


293 Government of Mauritius Inflation-Indexed Bond - 07-Apr-2032 - -

293 TOTAL UNQUOTED MAURITIAN SECURITIES - -


154,092









MCB Unit Trust | 64

MCB UNIT TRUST




2019

Market Value


2020

Market Value

(MUR'000)

% of Net

Assets





5,077








163,852 NET ASSETS 197,148 100.0%

6,625 Interest Bearing Securities 1,338

Currency Profile

133,510 MUR 144,197 73.1%

1,514 EUR 7,991 4.1%

28,828 USD 44,960 22.8%

163,852 NET ASSETS 197,148 100.0%


153,921 Level 1 180,082 91.3%

5,212 Level 2 - -






variables held constant, net loss before taxation would have been MUR 2.6m (2019: MUR 1.5m) higher/ lower, mainly

as a result of retranslation of foreign currency denominated bank balances and financial assets.






65 | MCB Unit Trust

MCB UNIT TRUST

APPENDIX: STATEMENT OF FINANCIAL HIGHLIGHTS

FOR THE YEAR ENDED JUNE 30, 2020

APPENDIX: FINANCIAL HIGHLIGHTS

Average exchange rates: MUR

AUD 27.6000

EUR 44.8450

GBP 49.0950

JPY 37.0150

USD 39.9500

Calculation notes:

Management Expense Ratio = Management & Administration Expenses

(Total Expense Ratio) Daily Average Net Assets

Portfolio Turnover Rate = (Purchases - Subscriptions) + (Disposals - Redemptions)Daily Average Net Assets

MCB Unit Trust | 66

MCB UNIT TRUST



MCB General Fund

2020 2019 2018 2017

(MUR'000) (MUR'000) (MUR'000) (MUR'000)

Net assets value at July 01, 806,025 756,859 633,851 537,948

Total revenue 19,604 24,036 17,996 13,826

Total expenses (12,350) (12,744) (11,599) (9,293)

Realised gains for the year 1,002 814 409 7,900

Unrealised (losses)/ gains for the year (4,777) (4,826) 36,686 59,347

Total increase from operations 3,479 7,280 43,492 71,780

Distributions from net income (8,603) - (10,562) -

Net (liquidations)/subscriptions (3,571) 41,886 90,078 24,123

Net assets value at June 30, 797,330 806,025 756,859 633,851

Number of units outstanding ('000) 24,435 24,580 23,293 20,480

Total Expense Ratio 1.99% 1.95% 1.96% 1.99%

Portfolio turnover rate 12.5% 57.4% 39.3% 37.3%

Closing market price per unit (NAV) 32.63 32.79 32.49 30.96

67 | MCB Unit Trust

MCB UNIT TRUST



MCB Tracker Fund

2020 2019 2018 2017

(MUR'000) (MUR'000) (MUR'000) (MUR'000)


Total revenue 9,547 10,360 9,018 9,201

Total expenses (3,465) (4,107) (4,242) (3,540)

Realised (losses) / gains for the year (14,180) (337) (1,210) 1,517


Total (decrease)/ increase from operations (69,327) (8,305) 14,321 63,128

Distributions from net income (7,071) (5,504) (5,330) (5,915)

Net (liquidations)/ subscriptions (17,602) (7,469) 4,221 4,492






MCB Unit Trust | 68

MCB UNIT TRUST



MCB Yield Fund

2020 2019 2018 2017

(MUR'000) (MUR'000) (MUR'000) (MUR'000)

Net assets value at July 01, 1,223,034 1,087,911 695,653 572,870

Total revenue 83,694 61,200 53,535 32,897

Total expenses (22,745) (18,984) (16,627) (11,116)

Realised gains/ (losses) for the year 24,774 1,218 (317) (92)

Unrealised gains/ (losses) for the year 127,027 (11,069) 17,158 12,114



Net subscriptions 651,553 124,308 386,369 98,314

Net assets value at June 30, 2,037,074 1,223,034 1,087,911 695,653





69 | MCB Unit Trust

MCB UNIT TRUST



MCB Domestic Equities Fund

2020 2019 2018 2017

(MUR'000) (MUR'000) (MUR'000) (MUR'000)


Total revenue 7,423 10,269 7,061 6,075

Total expenses (3,493) (4,023) (3,707) (2,835)

Realised (losses)/ gains for the year (1,179) (881) - 1








Portfolio turnover rate -6.5% 1.3% -6.6% -11.2%


MCB Unit Trust | 70

MCB UNIT TRUST



MCB Overseas Fund

2020 2019 2018 2017

(MUR'000) (MUR'000) (MUR'000) (MUR'000)


Total revenue 8,794 7,375 5,725 4,012

Total expenses (9,689) (8,574) (7,873) (6,158)

Realised gains for the year 3,267 281 1,358 2,887

Unrealised gains for the year 74,599 26,967 33,812 26,941


Distributions from net income - - - -

Net subscriptions/ (liquidations) 51,118 (29,153) 63,497 41,646






71 | MCB Unit Trust

MCB UNIT TRUST



MCB Bond & Currency Fund

2020 2019 2018 2017

(USD'000) (USD'000) (USD'000) (USD'000)


Total revenue 351 378 323 139

Total expenses (85) (114) (112) (59)

Realised gains for the year 22 129 29 37

Unrealised (losses)/ gains for the year (33) 36 (184) (5)

Total increase from operations 255 429 56 112


Net subscriptions/ (liquidations) 293 (1,649) 1,360 2,083


Number of units outstanding ('000) 478 452 606 473




MCB Unit Trust | 72

MCB UNIT TRUST



MCB 2025 Target Date Fund

2020 2019 2018 2017

(MUR'000) (MUR'000) (MUR'000) (MUR'000)


Total revenue 3,940 4,401 3,068 2,477

Total expenses (2,673) (2,638) (2,325) (1,793)

Realised gains/ (losses) for the year 889 (446) 6 (6)

Unrealised (losses)/ gains for the period/year (16,395) (5,163) 4,414 13,736







Portfolio turnover rate 32.2% 27.2% -11.8% -13.9%


73 | MCB Unit Trust

MCB UNIT TRUST




2020 2019 2018 2017

(MUR'000) (MUR'000) (MUR'000) (MUR'000)


Total revenue 3,510 3,194 2,112 1,446

Total expenses (2,324) (1,973) (1,647) (1,059)

Realised (losses)/ gains for the year (5) (295) 2 -








Portfolio turnover rate 0.9% -4.0% 1.1% -8.7%


MCB Unit Trust | 74

MCB UNIT TRUST




2020 2019 2018 2017

(MUR'000) (MUR'000) (MUR'000) (MUR'000)


Total revenue 3,407 3,479 2,004 1,352

Total expenses (2,428) (2,063) (1,583) (1,015)









Portfolio turnover rate 12.1% 8.3% 2.3% -6.0%


75 | MCB Unit Trust

MCB UNIT TRUST




2020 2019 2018 2017

(MUR'000) (MUR'000) (MUR'000) (MUR'000)


Total revenue 6,107 5,459 3,113 1,912

Total expenses (3,934) (3,180) (2,380) (1,405)









Portfolio turnover rate 20.9% 13.8% -1.1% -6.5%


MCB Unit Trust | 76

PAGE LEFT BLANK INTENTIONALLY

Documents

MCB Unit Trust...The MCB Unit Trust (the “Trust”) was initially established in Mauritius on 19 August 1994 by way of a Trust Deed. The Trust The Trust and its sub-funds (collectively