united global portfolios · portfolio duration was kept neutral to benchmark. as at 31 december...

United Global Portfolios United Singapore Bond Fund United Global Dividend Balanced Fund United Renminbi Bond Fund

Semi Annual Report

for the half year ended 31st December 2017

MANAGERUOB Asset Management LtdRegistered Address:80 Raffles PlaceUOB PlazaSingapore 048624Company Registration No. : 198600120ZTel: 1800 22 22 228

DIRECTORS OF UOB ASSET MANAGEMENTLee Wai FaiEric Tham Kah JinPeh Kian HengThio Boon Kiat

TRUSTEEState Street Trust (SG) Limited168 Robinson Road#33-01, Capital TowerSingapore 068912

CUSTODIAN / ADMINISTRATOR / REGISTRARState Street Bank and Trust Company, acting through its Singapore Branch168 Robinson Road#33-01, Capital TowerSingapore 068912

AUDITORPricewaterhouseCoopers LLP7 Straits View, Marina OneEast Tower, Level 12Singapore 018936

United Global Portfolios(Constituted under a Trust Deed in the Republic of Singapore)

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A) Fund Performance

Fund Performance/Benchmark Returns

3 mth%

Growth

6 mth%

Growth

1 yr%

Growth

3 yrAnn

CompRet

5 yrAnn

CompRet

10 yrAnn

CompRet

SinceInception

26 November2004Ann

CompRet

United SingaporeBond Fund 0.96 1.51 5.12 3.77 2.81 3.58 3.15

Benchmark 0.80 0.96 4.65 2.88 1.73 2.92 2.94

Source: Lipper, a Thomson Reuters Company.

Note: The performance returns of the Fund are in Singapore dollars based on a NAV-to-NAV basis with dividends and distributionreinvested, if any.The benchmark of the Fund: Since Inception-May 17 : Singapore Government Bond Index All UOB ; Jun 17-Present: TR/SGX SFIGovernment Bond Index.

For the sixmonths ended 31December 2017, the Fund rose 1.51% on a net-asset-value basis, outperforming benchmark* thatreturned 0.96%. The Fund outperformed during the period due to an overweight on corporate bonds for enhanced yield. Theportfolio duration was kept neutral to benchmark.

As at 31 December 2017, 56.5% of the Fund was invested in Corporate Bonds, 42.7% invested in Singapore GovernmentSecurities(SGS) and the balance in Cash & Cash equivalents. The Fund had a yield-to-maturity of 3.0% and effectiveduration of 7.14 years.

* The UOB Singapore Government Bond Index (SGBIALL Index) was terminated and replaced by the Thomson Reuters/SGX Singapore Fixed

Income Government Bond Index (SFI) effective from 1st June 2017.

Economic and Market Review

The unwinding of Trump’s relation trade continued into early September where 10-year US Treasury (UST) yields hit year’s lowat 2.01% as investors re-focused on a muted inflation outlook and escalating tensions in the Korean Peninsula. However, the10-year UST yieldmade a quick reversal intra-month in September to end 2017 at 2.41%on hopes of US tax reforms, increasedprobability of a US Federate Reserve (Fed) rate hike in December and the possibility of a hawkish new Fed Chairperson.

While 10-year Singapore Government Securities (SGS) yield tracked that of UST yields most of the time, the correlation brokeoff in November-December as the latter closed at 2.00% at year-end (June: 2.1%). This was due to increasing demand forSGD-denominated assets on speculation that the Monetary Authority of Singapore (MAS) may change its monetary stance toallow appreciation of SGD in April 2018 on the account of more positive economic outlook for Singapore.

Singapore’s 4Q17 GDP advance estimates grew 3.1% yoy (2.8% SAAR qoq) compared to 3Q17 growth at 5.2% yoy (8.8%SAAR qoq). The Ministry of Trade and Industry (MTI) estimated Singapore’s full year 2017 GDP growth at 3.5%. Novemberheadline inflation numbers came in at 0.60% yoy (Oct: 0.40% yoy) and core inflation unchanged at 1.50% yoy. Headline andcore inflation for 2017 are expected to come in at 0.50% yoy and 1.50% yoy respectively.

New SGD bond issuances in 2H2017 picked up strongly at S$11.7 billion (2H16: S$5.4b). This compares to approximatelyS$11.8 billion bonds thatmatured orwere called in 2H2017. The strong pipelinewas attributed to (1) issuers looking to capitaliseon low interest rates, (2) strong demand amidst ample liquidity and (3) issuers raising capital to pursue growth opportunities inthe context of an improving global economic outlook and reduced event risk in 2017.

Outlook and Fund Strategy

MTI maintained the growth forecast for 2018 at 1.5% to 3.5%. Global growth is expected to pick up marginally on the back ofstronger global growth with the exception of China and the Eurozone that are projected to ease. The Monetary Authority ofSingapore (MAS) kept its headline inflation forecasts unchanged at 0.5% in 2017 and between a range of 0-1% next year, aswell as core inflation forecasts of 1.5% in 2017 and a range of 1-2% in 2018.

United Singapore Bond Fund(Constituted under a Trust Deed in the Republic of Singapore)

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A) Fund Performance (continued)

For SGD bond supply into 2018, activities are expected to remain robust as issuers are incentivised to tap the market beforeinterest rates rise. Approximately S$23.6 billion of bonds will either mature or be called in 2018. Nevertheless, investors areexpected to be selective with a focus on better quality credits that (1) have sufficient scale and adequate financial flexibility tomitigate higher funding costs; (2) have balance sheet headroom which allows growth without additional vulnerabilities shouldfinancial stability worsen; and (3) demonstrate visible operational improvements given a benign macro environment.

In terms of yield curve expectation, short-term yields are likely to remain elevated in tandem with Fed rate hike expectations(three hikes in 2018 as suggested by Fed’s Dot Plot) while the long end of the yield curve remains relatively flat on muted globalinflation. We are neutral on duration and will continue to be overweight on credits to enhance overall portfolio yield.

Disclosures

The foreign currency exposure in the Fund is partially hedged using foreign exchange forward contracts. CommitmentApproach with Netting Arrangements is used to calculate the global exposure to financial derivative instruments.


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B) Investments at fair value and as a percentage of net asset value (“NAV”) as at 31 December2017 under review classified by

i) Country

Fair Value(S$)

% of NAV

China 5,005,100 2.25

Hong Kong 3,929,340 1.77

India 5,250,069 2.37

Netherlands 5,276,490 2.38

Singapore 193,533,071 87.18

Switzerland 5,285,000 2.38

Accrued interest receivable on quoted bonds 1,873,822 0.84

Portfolio of investments 220,152,892 99.17

Other net assets/(liabilities) 1,836,650 0.83

Total 221,989,542 100.00

ii) Industry

Fair Value(S$)

% of NAV

Consumer Discretionary 7,028,602 3.17

Energy 5,250,069 2.36

Financials 25,623,390 11.54

Government 94,811,741 42.71

Industrials 21,035,149 9.48

Real Estate 64,530,119 29.07




Total 221,989,542 100.00

iii) Asset Class

Fair Value(S$) % of NAV

Quoted bonds 218,279,070 98.33



Total 221,989,542 100.00


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B) Investments at fair value and as a percentage of net asset value (“NAV”) as at 31 December2017 under review classified by (continued)

iv) Credit rating of quoted bonds by S & P


AAA 94,811,741 42.71

BBB 5,276,490 2.38

Non-rated 118,190,839 53.24

Total 218,279,070 98.33

v) Credit rating of quoted bonds by Moody’s


Aa1 2,589,208 1.17

Aaa 94,811,741 42.71

Baa1 8,934,440 4.03

Baa2 15,548,009 7.00

Baa3 17,191,265 7.74

Non-rated 79,204,407 35.68

Total 218,279,070 98.33

C) Top Ten Holdings

10 largest holdings as at 31 December 2017

Fair Value(S$)

Percentage oftotal net assetsattributable tounitholders

%

SINGAPORE GOVERNMENT SR UNSECURED 03/27 3.5 21,053,488 9.48



SINGAPORE GOVERNMENT SR UNSECURED 09/24 3 10,675,000 4.81




OVERSEA EDUCATION SR UNSECURED REGS 04/19 5.2 7,028,602 3.17

PRIME ASSET HOLDINGS LTD SR SECURED REGS 10/24 2.9 7,024,220 3.16

CITIC ENVIROTECH LTD SR UNSECURED REGS 12/99 VAR 6,955,410 3.13


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C) Top Ten Holdings (continued)


Fair Value


(S$) %

SINGAPORE GOVERNMENT BOND 3% DUE 01/09/2024 10,326,690 5.42

SINGAPORE GOVERNMENT BOND 3.50% DUE 01/03/2027 10,099,893 5.30



ABN AMRO BANK NV 4.75% DUE 01/04/2026 5,168,875 2.71


CITIC ENVIRONTECH LTD 4.70% DUE 29/04/2018 5,059,200 2.66

INDIAN OIL CORP LTD 4.10% DUE 15/10/2022 5,057,118 2.66

CAMBRIDGE MTN PTE LTD 3.95% DUE 21/05/2020 5,014,050 2.63


D) Exposure to derivatives

i) Fair value of derivative contracts and as a percentage of NAV as at 31 December 2017

Contract orunderlyingprincipalamount

Positivefair value % of NAV

Negativefair value % of NAV

$ $ $

Foreign currency contracts 5,212,688 70,411 0.03 - -

ii) There was a net realised gain of SGD 156,750 on derivative contracts during the financial period from 01 July 2017 to31 December 2017.

iii) There was a net unrealised gain of SGD 70,411 on outstanding derivative contracts marked to market as at 31 December2017.

E) Amount and percentage of NAV invested in other schemes as at 31 December 2017

N/A

F) Amount and percentage of borrowings to NAV as at 31 December 2017

N/A


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G) Amount of redemptions and subscriptions for the financial period from 01 July 2017 to31 December 2017

Total amount of redemptions SGD 30,838,939

Total amount of subscriptions SGD 35,371,114

H) The amount and terms of related-party transactions for the financial period from 01 July 2017to 31 December 2017

i) As at 31December 2017, theSub-Fundmaintained current accountswith StateStreet Bank andTrust Company as follows:

Bank balances SGD 1,001,792

ii) Investment in Initial Public Offerings managed by UOB Group

N/A

iii) As at 31 December 2017, there was no brokerage income earned by UOB Kay Hian Pte Ltd.

I) Expense ratios

2017 2016

$ $

Total operating expenses 1,641,800 1,201,458

Average daily net asset value 211,214,381 150,950,228

Expense ratio 0.78% 0.80%

Note: The expense ratio has been computed based on the guidelines laid down by the Investment Management Association ofSingapore (“IMAS”). The calculation of the Sub-Fund’s expense ratio at 31 December 2017 was based on total operatingexpenses divided by the average net asset value respectively for the financial period. The total operating expenses do not include(where applicable) brokerage and other transaction costs, performance fee, interest expense, distribution paid out to unitholders,foreign exchange gains/losses, front or back end loads arising from the purchase or sale of other funds and tax deducted atsource or arising out of income received. TheSub-Fund does not pay any performance fee. The average net asset value is basedon the daily balances.

J) Turnover ratios

2017 2016

$ $

Lower of total value of purchases or sales 83,502,141 41,194,572

Average daily net assets value 220,628,099 170,579,474

Turnover ratio 37.85% 24.15%

Note: The portfolio turnover ratio is calculated in accordance with the formula stated in the Code on Collective Investment Schemes.The calculation of the portfolio turnover ratio was based on the lower of the total value of purchases or sales of the underlyinginvestments divided by the average daily net asset value.


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K) Any material information that will adversely impact the valuation of the scheme such ascontingent liabilities of open contracts

N/A

L) For schemes which invest more than 30% of their deposited property in another scheme, thefollowing key information on the second-mentioned scheme (“the underlying scheme”)1should be disclosed as well

i) Top 10 holdings at fair value and as percentage of NAV as at 31 December 2017 and 31 December 2016

N/A

ii) Expense ratios for the financial period ended 31 December 2017 and 31 December 2016

N/A

iii) Turnover ratios for the financial period ended 31 December 2017 and 31 December 2016

N/A

1 Where the underlying scheme is managed by a foreign manager which belongs to the same group of companies as, or has aformal arrangement or investment agreement with, the Singapore manager, the above information should be disclosed on theunderlying scheme. In other cases, such information on the underlying scheme should be disclosed only if it is readily availableto the Singapore manager.

M) Soft dollar commissions/arrangements

UOB Asset Management has entered into soft dollars arrangements with selected brokers from whom products andservices are received from third parties. The products and services relate essentially to computer hardware and softwareto the extent that they are used to support the investment decision making process, research and advisory services,economic and political analyses, portfolio analyses including performance measurements, market analyses, data andquotation services, all of which are believed to be helpful in the overall discharge of UOB Asset Management’s duties toclients. As such services generally benefit all of UOB Asset Management’s clients in terms of input into the investmentdecision making process, the soft credits utilised are not allocated on a specific client basis. The Manager confirms thattrades were executed on a best execution basis and there was no churning of trades.

N) Where the scheme offers pre-determined payouts, an explanation on the calculation of theactual payouts received by participants and any significant deviation from thepre-determined payouts

N/A


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A) Fund Performance


3 mth%

Growth

6 mth%

Growth

1 yr%

Growth

3 yrAnn

CompRet

5 yrAnn

CompRet

10 yrAnn

CompRet

SinceInception

28 November2005Ann

CompRet

United GlobalDividend BalancedFund 1.96 3.83 7.06 4.41 5.53 1.85 2.29

Benchmark 2.14 4.16 7.56 5.18 6.57 2.35 2.85

Source: Lipper, a Thomson Reuters Company

Note: The performance returns of the Fund are in Singapore dollar based on a NAV-to-NAV basis with dividends and distributionsreinvested, if any.The benchmark of the Fund: 50% MSCI AC World Index & 50% 1 month SIBID.

For the six months ended 31 December 2017, the net asset value of the Fund rose 3.83%, compared to a 4.16% increase inthe composite benchmark of 50% MSCI AC World Index and 50% 1-month Singapore Interbank Bid Rate (SIBID). The returnon the equity benchmark of the MSCI ACWorld index return was 8.2% in Singapore dollar terms, and the return on SIBID overthe period averaged 0.6%.

As at 31 December 2017, the exposure to equities was 68.26% and the exposure to fixed income was 31.43%. The equityexposure was represented by the United Global Dividend Equity Fund and the fixed income was comprised of a 17.57%exposure to the United Asian Bond Fund, 7.75% exposure to United SGD Plus Fund, and 6.11% exposure to United SGDFund.

During the period, the equity exposure represented by the United Global Dividend Equity Fund underperformed the MSCIAC World Index as the global market rally proved to be a cyclical rally in which safer dividend paying equities did not performas well. We continue to expect that dividend equities provided returns in line with the market over the cycle and with the benefitof steady distributions.

The equity and fixed income exposures for the Fund are thus heavily income focused and the Fund aims to achieve a balancebetween safe lower duration income returns and equity income that provides a balance of stable dividends and some exposureto growing dividends.


For the second half of 2017, global equities posted a strong performance, with the MSCI World All Country Index delivering an8.4% return in Singapore Dollar (SGD) terms. Asian equity markets were among the stronger performs with the MSCI Asiaex-Japan Index gaining 11.7% in SGD terms. Among the G3 developedmarkets, Japan led with a 10.2% return, followed by theUS as the S&P 500 gained 8.8% and the MSCI Europe returned 5.3% (all in SGD terms).

Measured in USD, global fixed income returns were reasonable. Broad indices including the BarclaysGlobal Aggregate yieldeda return of 1.5% in USD terms (if hedged to SGD). On an unhedged basis, the fixed income returns would fall 1.3% measuredin SGD terms. This underscores the importance of hedging strategies when investing in fixed income.

Financial markets entered the second half of 2017 with strong optimism as geopolitical risks from the Korean Peninsula, MiddleEast and Europe gradually subsided. Meanwhile, economic data showed continued momentum and synchronised growthglobally, with most purchasing manager indices (PMIs) reaching multi-year highs.

Asia ex-Japan stood out as an outperformer as China’s economy slowed down less than market expected, and the CentralPolitburo presided over a smooth leadership transition. Europeanmarkets saw some hiccups partially due to German’s inabilityto form a coalition government after its parliamentary election, raising concerns of re-emergence of nationalistic sentiments inthe Eurozone. However, the passing of the US tax reform bill in Congress late in the year revived investors’ sentiment, as lowercorporate and personal tax rates are expected to boost corporate profits and consumptions.

United Global Dividend Balanced Fund(Constituted under a Trust Deed in the Republic of Singapore)

-9-


After raising interest rates twice in the first half of the 2017, the US Federal Reserve (Fed) began to shrink its balance sheet inOctober by gradually reducing the amount it would reinvest as its bond holdings mature, and hiked interest rates one more timein December, fulfilling its promise of three rate hikes for the year. While these would have previously been seen as monetarytightening measures and cause US Treasury (UST) yields to spike, the bond markets took the news in stride as 10-year USTyields remained largely range bound in the second half of 2017. This was despite the further fiscal stimulus from the passingof the US tax reform bill. The Fed policy seems to have a greater impact on short term interest rates, with the 2-year UST yieldclimbing from approximately 1.25% in August to end the year at 1.89%.

Outlook and Strategy

The current cycle is mature by historical standards and at a stage when market observers are monitoring for signs of aslowdown. As it is into its ninth year, and veering close to the record of 10 years of expansion set in the 1990’s, some investorsview this as a cause for concern and reason to cut risk exposure. However, our checklist of indicators are telling us that the cyclehas not yet peaked nor about to come to an end. The checklist includes the shape of the yield curve, momentum of leadingindicators, recession probabilitymodels, excessive credit expansion, financial stress indicators,market indicators such as assetcorrelations, aswell as spreads between investment grade and high yield bonds, with none signaling that recession is imminent.

Our view is that because the pace of this recovery cycle has been more modest than usual, we suspect this length of this cyclewill extend for a couple of more years.We do not have the evidence of “overheating” which usually indicates the start of the nextdownturn. Instead, economicmomentum continues to surprise to the upside, with growth being broad-based and synchronisedglobally.

Our view is that because the pace of this recovery cycle has been more modest than usual, we suspect this length of this cyclewill extend for a couple of more years. We don’t have the evidence of “overheating” which usually indicates the start of the nextdownturn. Instead, economicmomentum continues to surprise to the upside, with growth being broad-based and synchronizedglobally.

We had previously opined that both equities and bonds would perform well in a world of modest growth and low inflation.However, continued confidence in growth with modest increases in inflation probability would tilt the investment environment tofavour risk assets that benefit from the continued upcycle, over safe assets. Major commodities, particularly oil, have performedwell over the year andwe think the outlook remains positive.While we continue tomonitor geopolitical risks, we see no near termcatalyst that might disrupt the current expansion, and hence no reason to raise our cash levels.

With such as backdrop, we will therefore start 2018 with the recommendation to overweight equities and commodities, and tounderweight fixed income and cash.


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i) Country

Fair Value(S$)

% of NAV

Singapore 14,168,621 99.69


Other net assets/(liabilities) 43,717 0.31

Total 14,212,338 100.00

ii) Industry

N/A

iii) Asset Class


Quoted unit trusts 14,168,621 99.69


Total 14,212,338 100.00

iv) Credit rating of quoted bonds

N/A

C) Top Ten Holdings


Fair Value(S$)


%

UNITED GLOBAL DIVIDEND EQUITY FUND 9,701,109 68.26

UNITED ASIAN BOND FUND - CLASS SGD 2,497,400 17.57

UNITED SGD PLUS FUND - CLASS SGD DIST 1,102,200 7.75

UNITED SGD FUND CLASS A (ACC) SGD 867,912 6.11

There were only 4 holdings as at 31 December 2017.


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Fair Value


(S$) %

UNITED GLOBAL DIVIDEND EQUITY FUND 11,372,792 67.55

UNITED SGD FUND CLASS A (ACC) SGD 4,429,161 26.31

UNITED ASIAN BOND FUND - CLASS SGD 721,941 4.29




N/A

ii) There was a net realised gain of SGD 1,177 on derivative contracts during the financial period from 01 July 2017 to31 December 2017.

iii) Net gains/(losses) on outstanding derivative contracts marked to market as at 31 December 2017

N/A


Please refer to the Statements of Portfolio.


N/A



Total amount of subscriptions SGD 153,842



Bank balances SGD 53,713


N/A


-12-

H) The amount and terms of related-party transactions for the financial period from 01 July 2017to 31 December 2017 (continued)


I) Expense ratios

2017 2016

$ $

Total operating expenses 87,216 80,938


Weighted average of the Investee Funds’ expense ratio 1.59% 1.46%


Note: The expense ratio has been computed based on the guidelines laid down by the Investment Management Association ofSingapore (“IMAS”). This is the sumof theSub-Fund’s expense ratio and theweighted average of the InvesteeFunds’ unauditedexpense ratios. The unaudited expense ratios of the Investee Funds’ are obtained from Investee Funds’ Manager. Thecalculation of theSub-Fund’s expense ratio at 31December 2017was based on total operating expenses divided by the averagenet asset value respectively for the financial period. The total operating expenses do not include (where applicable) brokerageand other transaction costs, performance fee, interest expense, distribution paid out to unitholders, foreign exchangegains/losses, front or back end loads arising from the purchase or sale of other funds and tax deducted at source or arising outof income received. The Sub-Fund does not pay any performance fee. The average net asset value is based on the dailybalances.

J) Turnover ratios

2017 2016

$ $

Lower of total value of purchases or sales 1,259,489 126,488


Turnover ratio 8.71% 0.75%



N/A


-13-

L) For schemes which invest more than 30% of their deposited property in another scheme, thefollowing key information on the second-mentioned scheme (“the underlying scheme”)1

should be disclosed as well

i) Top 10 holdings at fair value and as percentage of NAV as at 31 December 2017 and 31 December 2016


United Global Dividend EquityFund

Fair Value


(S$) %

HONEYWELL INTERNATIONAL INC 594,356 5.18

TENCENT HOLDINGS LTD 555,259 4.84

VISA INC 533,317 4.65

MICROSOFT CORP 525,852 4.58

THE HOME DEPOT INC 443,254 3.86

HESS CORP 431,385 3.76

BROADCOM LTD 411,985 3.59

JOHNSON & JOHNSON PTY LTD 392,116 3.42

POWER GRID CORP OF INDIA LTD 379,635 3.31

RAYTHEON CO 376,564 3.28


United Global Dividend Equity Fund

Fair Value


(S$) %

MICROSOFT CORP 807,964 4.49

HONEYWELL INTERNATIONAL INC 686,331 3.82

MERCK & COMPANY INC 680,397 3.78

CELEGENE CORP 552,031 3.07

TENCENT HOLDINGS LTD 516,083 2.87

JPMORGAN CHASE & CO 486,413 2.71

CHEVRON CORP 476,440 2.65

BANCO BILBAO VIZCAYA ARGENTARIA SA 473,045 2.63

CVS HEALTH CORP 467,584 2.60

US BANCORP 460,219 2.56


-14-

L) For schemes which invest more than 30% of their deposited property in another scheme, thefollowing key information on the second-mentioned scheme (“the underlying scheme”)1should be disclosed as well (continued)

ii) Expense ratios for the financial period ended 31 December 2017 and 31 December 2016


31 December 2017 1.94%

31 December 2016 1.88%

Note: The expense ratio has been computed based on the guidelines laid down by the Investment Management Association ofSingapore (“IMAS”). The calculation of the underlying scheme’s expense ratio at 31 December 2017 was based on totaloperating expenses divided by the average net asset value respectively for the financial period. The total operating expensesdo not include (where applicable) brokerage and other transaction costs, performance fee, interest expense, distribution paid outto unitholders, foreign exchange gains/losses, front or back end loads arising from the purchase or sale of other funds and taxdeducted at source or arising out of income received. The underlying scheme does not pay any performance fee. The averagenet asset value is based on the daily balances.

iii) Turnover ratios for the financial period ended 31 December 2017 and 31 December 2016


31 December 2017 15.53%

31 December 2016 57.45%






N/A


-15-

A) Fund Performance

Class SGD


3 mth%

Growth

6 mth%

Growth

1 yr%

Growth

3 yrAnn

CompRet

5 yrAnn

CompRet

10 yrAnn

CompRet

SinceInception

03 May 2011Ann

CompRet

United RenminbiBond Fund -0.08 1.63 0.46 0.99 3.35 N/A 4.17

Benchmark 0.59 2.96 3.17 2.43 4.40 N/A 4.25

Source: Lipper, a Thomson Reuters Company, Bloomberg

Note: The performance returns of the Fund are in Singapore dollar based on a NAV-to-NAV basis with dividends and distributionreinvested, if any.The benchmark of the Fund: Since Inception – Jul 12: CNY 1 Year Offshore Deposit Rate; Aug 12-Feb 13: CNH 12 Month DepositRate; Feb 13- Apr 16: HSBC Offshore Renminbi Bond Index; May 16- Current: Citi Dim Sum (Offshore CNY) Bond Index.

Class USD


3 mth%

Growth

6 mth%

Growth

1 yr%

Growth

3 yrAnn

CompRet

5 yrAnn

CompRet

10 yrAnn

CompRet

SinceInception

03 May 2011Ann

CompRet

United RenminbiBond Fund 1.60 4.68 8.63 0.70 1.52 N/A 2.84

Benchmark 2.21 6.08 11.53 2.14 2.54 N/A 2.90

Source: Lipper, a Thomson Reuters Company, Bloomberg.

Note: The performance returns of the Fund are in Singapore dollar based on a NAV-to-NAV basis with dividends and distributionreinvested, if any.The benchmark of the Fund: Since Inception – Jul 12: CNY 1 Year Offshore Deposit Rate; Aug 12-Feb 13: CNH 12 Month DepositRate; Feb 13- Apr 16: HSBC Offshore Renminbi Bond Index; May 16- Current: Citi Dim Sum (Offshore CNY) Bond Index.

For the six months ended 31 December 2017, the Fund’s net asset value appreciated 1.63% in SGD terms versus the 2.96%return for the reference benchmark the Citi Dim Sum (Offshore CNY) Bond Index. The Fund’s net asset value declined 1.15%while the reference benchmark increased 0.20% in the first half of 2017. During the period under review, the Fund’sunderperformed against its benchmark due to FX positioning.

As of the end of December, the Fund had a 75.9%weight in CNH bonds, 19.4%weight in USD bonds and 4.7%weight in cash.Investment grade credits comprised 74.3% of the Fund’s NAV, with 21.0% in non-investment grade credits and the remainderin cash. Within investment grade, the Fund had more credits in the A rated and higher buckets at 38.1% vs 37.1% in the BBBrated bucket.

The Fund had a 98.94% allocation to Ireland for the month of December and the remainder in cash.

As at the end of December, the Fund had an average yield of 4.8% p.a., an effective duration of 2.5 years and an average creditrating of BBB+ comprising 23 bond issues.

United Renminbi Bond Fund(Constituted under a Trust Deed in the Republic of Singapore)

-16-



For the six months ended 31 December 2017, the Citi Dim Sum (Offshore CNY) Bond Index returned 1.88% in CNH terms,2.96% in SGD terms and 6.08% in USD terms. The strong performance in USD terms was a result of the strong appreciationof the CNH against the USD over 2017.

Asian currencies rallied against the USD for the 6 months ending December 2017, with the three best performing Asiancurrencies KRW, MYR and THB appreciating +6.8%, +6.1% and +4.2%, respectively. The CNY and CNH followed next,appreciating +4.2% and +4.1%, respectively. The SGD, TWD, INR and PHP also appreciated between +1.1% to +3.0% duringthis period. The HKD was depreciated slightly at -0.1% while the JPY and IDR depreciated -0.3% and -1.8%.

In terms of average yields, the reference benchmark saw average yields increase 4 basis points (bps) for the six months ending31 December 2017. Investment grade bond yields rose 9 bps while the High Yield and Unrated average yields rose 8 bps.Government bond yields rose 16 bps during this period.

Outlook and Fund Strategy

China’s Central Economic Work Conference concluded in mid-December 2017 with a continued commitment on deleveragingand controlling asset bubbles. We therefore expect tight conditions for the onshore bond markets, and correspondingly, theoffshore CNH bond markets to continue.

Sentiment and activity remained weak in December for the dim sum bond market, as market participants stayed cautious onrising onshore Chinese Government Bond (CGB) yields and general market liquidity drifted quietly into the last weeks of theyear.

For 2018, the supply of new issues is expected to remainmuted which provides short term support for existing corporate bondsin the market. Onshore CGB yield movements will continue to drive offshore CGBs, but swings will be broadly muted in theweeks before Chinese New Year in the middle of February.

On the currency front, the authorities appear to be more comfortable with the general flow of demand for the RMB and havefine-tuned certainmeasures such as the counter-cyclical adjustment factor. TheUSDCNHhas passed the previous lows of 6.48to reach 6.44 in mid-January. With continued USD weakness, the strength of the RMB looks set to continue at least till theChinese New Year.

We maintain a defensive carry strategy, focused on stringent credit selection and monitoring.

We remain overweight on Corporate bonds over Government bonds to benefit from the yield differentials and the decliningnumber of corporate credit issues. We favour an overweight position in non-investment grade over investment grade credit forcarry amidst tightening liquidity in both onshore and offshore money markets. We continue to remain positioned in certainnon-China domiciled issues for diversification.

Disclosures

The Fund’s global exposure to financial derivatives is calculated using the Commitment Approach with netting arrangementsand has never exceeded 100% of the Fund’s NAV at all times. As at the end of December 2017, the currency hedge was 19%of the Fund’s NAV.


-17-


i) Country

Fair Value(S$)

% of NAV

Ireland 4,007,381 98.94



Total 4,050,374 100.00

ii) Industry

N/A

iii) Asset Class


Quoted unit trusts 4,007,381 98.94


Total 4,050,374 100.00

iv) Credit rating of quoted bonds

N/A

C) Top Ten Holdings


Fair Value(S$)


%

UOB UNITED RENMINBI BOND FUND (SGD) 3,852,831 95.12

UOB UNITED RENMINBI BOND FUND (USD) 154,550 3.82



-18-



Fair Value


(S$) %

UOB UNITED RENMINBI BOND FUND (SGD) 7,264,490 95.66

UOB UNITED RENMINBI BOND FUND (USD) 150,641 1.98




N/A

ii) There was a net realised gain of SGD 500 on derivative contracts during the financial period from 01 July 2017 to31 December 2017.

iii) Net gains/(losses) on outstanding derivative contracts marked to market as at 31 December 2017

N/A


Please refer to the Statements of Portfolio.


N/A



Total amount of subscriptions SGD 370,869



Bank balances SGD 45,102


N/A


-19-

H) The amount and terms of related-party transactions for the financial period from 01 July 2017to 31 December 2017 (continued)


I) Expense ratios

2017 2016

$ $

Total operating expenses 73,530 74,282


Weighted average of the Investee Funds’ expense ratio 1.70% 1.44%


Note: The expense ratio has been computed based on the guidelines laid down by the Investment Management Association ofSingapore (“IMAS”). This is the sumof theSub-Fund’s expense ratio and theweighted average of the InvesteeFunds’ unauditedexpense ratios. The unaudited expense ratios of the Investee Funds’ are obtained from Investee Funds’ Manager. Thecalculation of theSub-Fund’s expense ratio at 31December 2017was based on total operating expenses divided by the averagenet asset value respectively for the financial period. The total operating expenses do not include (where applicable) brokerageand other transaction costs, performance fee, interest expense, distribution paid out to unitholders, foreign exchangegains/losses, front or back end loads arising from the purchase or sale of other funds and tax deducted at source or arising outof income received. The Sub-Fund does not pay any performance fee. The average net asset value is based on the dailybalances.

J) Turnover ratios

2017 2016

$ $

Lower of total value of purchases or sales 529,693 -


Turnover ratio 12.05% -



N/A


-20-

L) For schemes which invest more than 30% of their deposited property in another scheme, thefollowing key information on the second-mentioned scheme (“the underlying scheme”)1

should be disclosed as well

i) Top 10 holdings at fair value and as percentage of NAV as at 30 June 2017 and 30 June 2016

10 largest holdings as at 30 June 2017

UOB United Renminbi Bond Fund

Fair Value


(S$) %

HUNGARY GOVERNMENT INTERNATIONAL BOND 6.25% 25/04/2019 836,453 8.38

TINGYI CAYMAN ISLANDS HOLDING CORP 4.38% 06/08/2018 809,716 8.11

VALUE SUCCESS INTERNATIONAL LTD 4.75% 04/11/2018 613,264 6.14

CHINA CONSTRUCTION BANK CORP 4.90% 12/11/2024 611,836 6.13

BOC AVIATION LTD 4.20% 05/11/2018 608,036 6.09CENTRAL AMERICAN BANK FOR ECONOMIC INTEGRATION 4.20%21/09/2021 599,284 6.00

FANTASIA HOLDINGS GROUP CO LTD 9.50% 04/05/2019 417,727 4.18

LONGFOR PROPERTIES CO LTD 6.75% 28/05/2018 413,530 4.14

COMMONWEALTH BANK OF AUSTRALIA 5.15% 11/03/2025 412,964 4.14

TMB BANK PCL/CAYMAN ISLANDS 5.50% 09/03/2018 408,134 4.09

10 largest holdings as at 30 June 2016


Fair Value


(S$) %

TINGYI CAYMAN ISL 4.375% 06/08/2018 1,095,013 6.67

TMB BANK PCL/CAY 5.50% 09/03/2018 929,067 5.66

RICHTEX HLDGS. VIA 5.25% 07/07/2017 917,522 5.59

AUSTRALIA & NEW ZEAL F2V 30/01/2025 907,260 5.52

BESTGAIN REAL ESTA 4.50% 04/12/2018 908,363 5.53

CAGAMAS GBL. 3.70% 22/09/2017 753,271 4.59

CATERPILLAR FINL. 3.55% 23/06/2018 749,410 4.56

LONGFOR PROPS. 6.75% 28/05/2018 621,289 3.78

SK GBL. CHEM. INV 4.125% 26/09/2016 607,568 3.70

PANDA FUNDING INVE 3.9% 17/12/2016 601,270 3.66


-21-

L) For schemes which invest more than 30% of their deposited property in another scheme, thefollowing key information on the second-mentioned scheme (“the underlying scheme”)1should be disclosed as well (continued)

ii) Expense ratios for the financial year ended 30 June 2017 and 30 June 2016


30 June 2017 1.71%

30 June 2016 1.47%

Note: The expense ratio has been computed based on the guidelines laid down by the Investment Management Association ofSingapore (“IMAS”). The calculation of the underlying scheme’s expense ratio at 30 June 2017 was based on total operatingexpenses divided by the average net asset value respectively for the financial year. The total operating expenses do not include(where applicable) brokerage and other transaction costs, performance fee, interest expense, distribution paid out to unitholders,foreign exchange gains/losses, front or back end loads arising from the purchase or sale of other funds and tax deducted atsource or arising out of income received. The underlying scheme does not pay any performance fee. The average net assetvalue is based on the daily balances.

iii) Turnover ratios for the financial year ended 30 June 2017 and 30 June 2016


30 June 2017 2.59%

30 June 2016 1.93%






N/A


-22-

STATEMENTS OF TOTAL RETURNFor the half year ended 31 December 2017 (Un-audited)

United Singapore Bond FundUnited Global Dividend

Balanced Fund31 December 31 December 31 December 31 December

2017 2016 2017 2016

$ $ $ $

Income

Dividends - - 266,907 243,224

Interest 84 4 25 -

Other income 4,500 22,500 - -

Total 4,584 22,504 266,932 243,224

Less: Expenses

Management fee 611,472 472,484 91,189 105,955

Less: Management fee rebate - - (95,192) (102,137)

Trustee fee 39,317 34,362 2,527 3,391

Audit fee 8,558 6,447 9,011 6,447

Registrar fee 7,582 7,541 7,582 7,541

Valuation fee 138,971 107,383 9,119 10,595

Custody fee 25,292 21,141 2,853 96

Other expenses 82,993 39,091 20,159 5,422

Total 914,185 688,449 47,248 37,310

Net income/(losses) (909,601) (665,945) 219,684 205,914

Net gains/(losses) on value of investmentsand financial derivatives

Net gains/(losses) on investments 3,987,941 (2,266,666) 449,174 530,226

Net gains/(losses) on financial derivatives 227,161 (254,118) 1,177 -

Net foreign exchange gains/(losses) 6,999 20,571 (2,605) 440

4,222,101 (2,500,213) 447,746 530,666

Total return/(deficit) for the period beforeincome tax 3,312,500 (3,166,158) 667,430 736,580

Less: Income tax - - (20,888) (61,676)

Total return/(deficit) for the period 3,312,500 (3,166,158) 646,542 674,904


-23-

STATEMENTS OF TOTAL RETURNFor the half year ended 31 December 2017 (Un-audited)

United Renminbi Bond Fund31 December 31 December

2017 2016

$ $

Income

Interest 15 6

Total 15 6

Less: Expenses

Management fee 22,173 44,248

Less: Management fee rebate (21,553) (43,846)

Trustee fee 3,165 1,770

Audit fee 9,110 6,550

Registrar fee 7,582 7,531

Valuation fee 2,771 5,531

Administration fee 2,771 -

Custody fee 2,428 -

Other expenses 11,699 4,330

Total 40,146 26,114

Net income/(losses) (40,131) (26,108)

Net gains/(losses) on value of investments and financial derivatives

Net gains/(losses) on investments 113,940 345,771

Net gains/(losses) on financial derivatives 500 -

Net foreign exchange gains/(losses) (240) (32)

114,200 345,739

Total return/(deficit) for the period before income tax 74,069 319,631

Total return/(deficit) for the period 74,069 319,631


-24-

STATEMENTS OF FINANCIAL POSITIONAs at 31 December 2017 (Un-audited)


Balanced Fund31 December 30 June 31 December 30 June

2017 2017 2017 2017

$ $ $ $

Assets

Portfolio of investments 220,152,892 210,831,271 14,168,621 14,410,166

Receivables 1,391,812 845,106 168,545 54,310

Cash and bank balances 1,001,792 3,059,129 53,713 901,919

Financial derivatives at fair value 70,411 93,863 - -

Total assets 222,616,907 214,829,369 14,390,879 15,366,395

Liabilities

Payables 627,365 592,545 131,892 609,680

Distribution payable - - 46,649 48,628

Financial derivatives at fair value - 91,957 - -

Total liabilities 627,365 684,502 178,541 658,308

Equity

Net assets attributable to unitholders 221,989,542 214,144,867 14,212,338 14,708,087


-25-

STATEMENTS OF FINANCIAL POSITIONAs at 31 December 2017 (Un-audited)

United Renminbi Bond Fund31 December 30 June

2017 2017

$ $

Assets

Portfolio of investments 4,007,381 4,423,134

Receivables 28,672 21,610

Cash and bank balances 45,102 271,503

Total assets 4,081,155 4,716,247

Liabilities

Payables 30,781 40,589

Total liabilities 30,781 40,589

Equity

Net assets attributable to unitholders 4,050,374 4,675,658


-26-

STATEMENTS OF MOVEMENTS OF UNITHOLDERS’ FUNDSFor the half year ended 31 December 2017 (Un-audited)


Balanced Fund31 December 30 June 31 December 30 June

2017 2017 2017 2017

$ $ $ $Net assets attributable to unitholders at thebeginning of the financial period/year 214,144,867 147,378,753 14,708,087 17,137,219

OperationsChange in net assets attributable to unitholdersresulting from operations 3,312,500 3,692,710 646,542 1,086,413

Unitholders’ contributions/(withdrawals)

Creation of units 35,371,114 94,349,634 153,842 366,170

Cancellation of units (30,838,939) (31,276,230) (1,004,761) (3,229,965)

Change in net assets attributable to unitholdersresulting from net creation and cancellation ofunits 4,532,175 63,073,404 (850,919) (2,863,795)

Distributions - - (291,372) (651,750)

Total increase/(decrease) in net assetsattributable to unitholders 7,844,675 66,766,114 (495,749) (2,429,132)

Net assets attributable to unitholders at theend of the financial period/year 221,989,542 214,144,867 14,212,338 14,708,087


-27-

STATEMENTS OF MOVEMENTS OF UNITHOLDERS’ FUNDSFor the half year ended 31 December 2017 (Un-audited)

United Renminbi Bond Fund31 December 30 June

2017 2017

$ $Net assets attributable to unitholders at the beginning of the financialperiod/year 4,675,658 10,927,897

Operations

Change in net assets attributable to unitholders resulting from operations 74,069 245,747

Unitholders’ contributions/(withdrawals)

Creation of units 370,869 913,177

Cancellation of units (1,070,222) (7,411,163)

Change in net assets attributable to unitholders resulting from net creation andcancellation of units (699,353) (6,497,986)

Total increase/(decrease) in net assets attributable to unitholders (625,284) (6,252,239)

Net assets attributable to unitholders at the end of the financial period/year 4,050,374 4,675,658


-28-

STATEMENTS OF PORTFOLIOAs at 31 December 2017 (Un-audited)

United Singapore Bond Fund

Holdings at Fair value at

Percentage oftotal net assetsattributable tounitholders at

31 December2017

31 December2017$

31 December2017%

By Industry - Primary

Quoted Bonds

CONSUMER DISCRETIONARY

OVERSEA EDUCATION SR UNSECURED REGS 04/19 5.2 7,000,000 7,028,602 3.17

ENERGY

INDIAN OIL CORP LTD SR UNSECURED REGS 10/22 4.1 4,950,000 5,250,069 2.36

FINANCIALS

ABN AMRO BANK NV SUBORDINATED REGS 04/26 VAR 5,000,000 5,276,490 2.38HUARONG FINANCE 2017 CO COMPANY GUAR REGS 04/213.2 5,000,000 5,005,100 2.25

JULIUS BAER GROUP LTD JR SUBORDINA REGS 12/49 VAR 5,000,000 5,285,000 2.38MERCATUS CO OPERATIVE SR UNSECURED REGS 07/242.8 5,000,000 5,035,550 2.27

OUE TREASURY PTE LTD COMPANY GUAR REGS 05/23 3.55 5,000,000 5,021,250 2.26

TOTAL FINANCIALS 25,623,390 11.54

GOVERNMENT

SINGAPORE GOVERNMENT SR UNSECURED 03/27 3.5 18,700,000 21,053,488 9.48







SINGAPORE GOVERNMENT SR UNSECURED 09/24 3 10,000,000 10,675,000 4.81



TOTAL GOVERNMENT 94,811,741 42.71

INDUSTRIALS

CENTURION CORP LTD SR UNSECURED REGS 07/18 5.25 2,500,000 2,507,700 1.13

CITIC ENVIROTECH LTD SR UNSECURED REGS 12/99 VAR 7,000,000 6,955,410 3.13

EZION HOLDINGS LTD SR UNSECURED REGS 08/20 3.65 2,750,000 2,589,208 1.17

KEPPEL CORP LTD SR UNSECURED REGS 11/23 3.725 3,750,000 3,875,711 1.75


-29-





31 December2017

31 December2017$

31 December2017%

By Industry - Primary (continued)

Quoted Bonds

INDUSTRIALS (continued)SINGAPORE AIRLINES LTD SR UNSECURED REGS 11/263.13 5,000,000 5,107,120 2.30

TOTAL INDUSTRIALS 21,035,149 9.48

REAL ESTATE

AACI REIT MTN PTE LTD COMPANY GUAR REGS 03/22 3.6 4,750,000 4,671,530 2.10

ASCENDAS INDIA TRUST SR UNSECURED REGS 10/20 3.9 3,750,000 3,803,963 1.71ASCOTT REIT MTN PTE LTD COMPANY GUAR REGS 11/224.205 3,750,000 4,007,782 1.81

ESR REIT SUBORDINATED REGS 12/99 VAR 5,000,000 4,919,750 2.22

FCL TREASURY PTE LTD COMPANY GUAR REGS 07/21 2.5 4,000,000 5,118,412 2.31

FCL TREASURY PTE LTD COMPANY GUAR REGS VAR 5,000,000 4,951,450 2.23FH REIT TREASURY PTE LTD COMPANY GUAR REGS 11/243.08 5,000,000 5,021,450 2.26

GOLD RIDGE PTE LTD SR SECURED REGS 08/23 2.9 5,000,000 5,053,295 2.28LEND LEASE RETAIL INVEST SR SECURED REGS 09/213.28 4,250,000 4,345,914 1.96LIPPO MALLS INDONESIA RE SUBORDINATED REGS 12/99VAR 3,000,000 2,978,733 1.34MAPLETREE GREATER CHINA COMPANY GUAR REGS03/23 3.5 3,750,000 3,929,340 1.77OUE CT TREASURY PTE LTD COMPANY GUAR REGS 09/203.03 3,750,000 3,755,250 1.69PRIME ASSET HOLDINGS LTD SR SECURED REGS 10/242.9 7,000,000 7,024,220 3.16


-30-





31 December2017

31 December2017$

31 December2017%

By Industry - Primary (continued)

Quoted Bonds

REAL ESTATE (continued)SOILBUILD BUSINESS SPACE SR UNSECURED REGS 04/213.6 5,000,000 4,949,030 2.23

TOTAL REAL ESTATE 64,530,119 29.07


Total Bonds 220,152,892 99.17



Net assets attributable to unitholders 221,989,542 100.00


-31-


United Singapore Bond FundPercentage oftotal net assetsattributable tounitholders at31 December

2017%

Percentage oftotal net assetsattributable tounitholders at30 June2017%

By Industry - Primary (Summary)

Quoted Bonds

Consumer Discretionary 3.17 7.65

Consumer Staples - 1.56

Energy 2.36 2.43

Financials 11.54 11.94

Government 42.71 43.68

Industrials 9.48 7.23

Real Estate 29.07 20.69

Telecommunication Services - 2.35

Accrued interest receivable on quoted bonds 0.84 0.92

Portfolio of investments 99.17 98.45

Other net assets/(liabilities) 0.83 1.55

Net assets attributable to unitholders 100.00 100.00


-32-



Fair value at31 December

2017$

Percentage oftotal net assetsattributable tounitholders at31 December

2017%


By Geography - Secondary

Quoted Bonds

China 5,005,100 2.25 2.34

Hong Kong 3,929,340 1.77 1.77

India 5,250,069 2.37 2.42

Netherlands 5,276,490 2.38 2.45

Singapore 193,533,071 87.18 83.75

Switzerland 5,285,000 2.38 2.43

United Kingdom - - 2.37

Accrued interest receivable on quoted bonds 1,873,822 0.84 0.92

Portfolio of investments 220,152,892 99.17 98.45

Other net assets/(liabilities) 1,836,650 0.83 1.55

Net assets attributable to unitholders 221,989,542 100.00 100.00


-33-


United Global Dividend Balanced Fund



31 December2017

31 December2017$

31 December2017%


Quoted Unit Trusts

UNIT TRUSTS

UNITED ASIAN BOND FUND - CLASS SGD 1,382,835 2,497,400 17.57

UNITED GLOBAL DIVIDEND EQUITY FUND 6,506,445 9,701,109 68.26

UNITED SGD FUND CLASS A (ACC) SGD 468,635 867,912 6.11

UNITED SGD PLUS FUND - CLASS SGD DIST 1,100,000 1,102,200 7.75

TOTAL UNIT TRUSTS 14,168,621 99.69





-34-


United Global Dividend BalancedFund

Percentage oftotal net assetsattributable tounitholders at31 December

2017%



Unit Trusts 99.69 97.97




As the Sub-Fund invests only into the above underlying Quoted Unit Trusts governed by the laws of Republic of Singapore,hence no secondary representation is provided.


-35-


United Renminbi Bond Fund



31 December2017

31 December2017$

31 December2017%


Quoted Unit Trusts

UNIT TRUSTS

UOB UNITED RENMINBI BOND FUND (SGD) 30,493 3,852,831 95.12

UOB UNITED RENMINBI BOND FUND (USD) 982 154,550 3.82

TOTAL UNIT TRUSTS 4,007,381 98.94





-36-


United Renminbi Bond FundPercentage oftotal net assetsattributable tounitholders at31 December

2017%



Unit Trusts 98.94 94.60




As the Sub-Fund invests only into the above underlying Quoted Unit Trusts domiciled in Ireland, hence no secondaryrepresentation is provided.


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united global portfolios · portfolio duration was kept neutral to benchmark. as at 31 december...

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