The reduction in Net Interest Income reflects reduced investment holdings, and lower/negative prevailing yields on bonds and cash held. Sale and Repurchase agreements are also transacted between the Fund and primary dealers in the bond market. The related income or interest cost arising from these transactions is reflected in Net Interest Income.

The increase in the loss on investments in 2017 when compared to 2016, reflects a reduction in bonds with short-dated maturities. Such bonds were held at their original cost as the Fund accounts for its bond holdings on a historic cost basis and does not recognise unrealised gains/losses. While unrealised gains/losses on the Fund are not recognised, the Fund’s investment performance is monitored on a total return basis (i.e. including unrealised gains/losses).

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