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United Global PortfoliosØ United Singapore Bond FundØ United Global Dividend Balanced Fund

Annual Report

for the financial year ended 30th June 2018

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 Singapore Bond Fund -0.48 -1.76 -0.27 2.89 3.12 3.55 2.90Benchmark -0.53 -1.68 -1.08 2.37 2.08 2.84 2.66

Source: Morningstar.

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 - May 17: Singapore Government Bond Index All UOB; Jun 17 - Present: TR/SGX SFIGovernment Bond Index.

For the full year ended 30 June 2018, the Fund lost 0.27% on a net-asset-value basis, outperforming itsbenchmark* that fell 1.08%. The outperformance was due to the overweight in corporate bonds whichprovided enhanced yield. The portfolio duration was kept neutral to benchmark.

As at 30 June 2018, 60.6% of the Fund was invested inCorporate Bonds, 37.3% invested in SingaporeGovernment Securities (SGS) and the balance in cash & cash equivalents. The Fund had ayield-to-maturity of 3.59% and effective duration of 7.67 years.

* The UOB Singapore Government Bond Index (SGBIALL Index) was terminated and replaced by the Thomson Reuters/SGX SingaporeFixed Income Government Bond Index (SFI) effective from 1st June 2017.

Economic and Market Review

The last 12 months were colourful amid three US Federal Reserve (Fed) rate hikes and a change in FedChair; geopolitical excitement ranging from “Italeave” fears to a historic US-North Korean summit; and theflickering overhang of trade tensions.

The 10-year US Treasury (UST) yield started July 2017 at 2.35% and drifted towards 2.00% in Septemberbefore beginning its inexorable climb past the closely-watched 3.00% to a 7-year high of 3.13% in Maybefore ending at 2.82% at the end of June 2018. Interest rate hikes of 25 basis points (bps) in December2017, March 2018 and June 2018 drove the 2-year UST yield to almost double from 1.38% to 2.53% overthe same period.

Singapore’s economy grew 3.60% for the whole of 2017 (2016: +1.80%), largely driven by themanufacturing sector (+10.10%). The growth was sustained in 1Q18 with a final GDP reading of 4.40%year-on-year (y/y). On the inflation front, the positive inflation seen in 2017 was sustained through to 2018with May 2018 core and headline inflation registering 1.50% and 0.40% respectively.

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

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A) Fund Performance (continued)

New issuance volume in the Singapore Dollar corporate bond market increased by almost 30.00% in2017 compared to 2016 as a result of low rates, bullish sentiment and anticipated monetary policytightening. As we moved into 2018, the combination of rate hikes and global uncertainties lead to a sharpreduction in supply where 1H2018 volumes were down by a third as compared to 1H2017. We also sawdiminished diversity in the SGD space as European financials looked elsewhere for their funding needs,a disappearance of smaller / high-yield issuers and a trend where perpetual bonds fell out of fashion.

Outlook and Fund Strategy

The Ministry of Trade and Industry (MTI) expects 2018 growth to be 2.50% - 3.50%, an upward revisionfrom its previous estimate of 1.50% - 3.50%. Whilst economic data for 1H2018 has been robust, theeconomy’s resilience will be tested by the mounting trade tensions. With imported inflation expected torise mildly and global oil prices expected to average higher for the full year as compared to 2017, theMonetary Authority of Singapore (MAS) maintains expectations for core and headline inflation to averagein the upper half of the 1.00% - 2.00% and 0.00% - 1.00% ranges respectively.

The bullish mood at the start of 2018 faded amid geopolitical uncertainties, negative headlines oncorporate restructuring and expected MAS policy tightening. Investors have become more selective witha focus on higher quality names and shorter tenors. These preferences have been reflected on thesupply-side and will likely persist throughout the rest of the year. Though issuers will look to tap themarketbefore rates rise further, opportunities come scarce with the weak sentiment and uninspiring outlook.

We expect one to twomore Fed rate hikes in 2H18 and 2 to 3more in 2019 as the central bank progresseswith monetary policy normalisation. The upward pressure on interest rates from the Fed’s actions will bepitted against the downward pressure stemming from UST buying on the back of trade tension concerns.As such, we remain neutral on duration and expect interest rates to be range-bound. We expect thepositive correlation between SGS and US Treasuries to persist and for SGS yields to remain range-boundin tandem.

Disclosures

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


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B) Investments at fair value and as a percentage of net asset value (“NAV”) as at 30 June 2018under review classified by

i) Country

Fair Value(S$)

% of NAV

China 4,939,068 2.31Hong Kong 3,795,463 1.77India 5,081,381 2.37Netherlands 5,152,500 2.40Singapore 185,682,529 86.67Switzerland 5,125,000 2.39Accrued interest receivable on quoted bonds 1,912,360 0.90Portfolio of investments 211,688,301 98.81Other net assets/(liabilities) 2,558,526 1.19Total 214,246,827 100.00

ii) Industry

Fair Value(S$)

% of NAV

Consumer Discretionary 6,966,290 3.25Consumer Staples 4,994,450 2.33Energy 5,081,381 2.37Financials 25,005,685 11.67Government 79,891,018 37.29Industrials 14,651,981 6.84Real Estate 73,185,136 34.16Accrued interest receivable on quoted bonds 1,912,360 0.90Portfolio of investments 211,688,301 98.81Other net assets/(liabilities) 2,558,526 1.19Total 214,246,827 100.00


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B) Investments at fair value and as a percentage of net asset value (“NAV”) as at 30 June 2018under review classified by (continued)

iii) Asset Class

Fair Value(S$) % of NAV

Quoted bonds 209,775,941 97.91Accrued interest receivable on quoted bonds 1,912,360 0.90Other net assets/(liabilities) 2,558,526 1.19Total 214,246,827 100.00

iv) Credit rating of quoted bonds by S & P


A- 4,977,100 2.32AAA 79,891,018 37.29BBB 5,152,500 2.40Non-rated 119,755,323 55.90Total 209,775,941 97.91

v) Credit rating of quoted bonds by Moody’s


Aaa 79,891,018 37.29Baa1 8,734,531 4.08Baa2 20,168,852 9.41Baa3 9,068,498 4.23Non-rated 91,913,042 42.90Total 209,775,941 97.91


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C) Top Ten Holdings

10 largest holdings as at 30 June 2018

Fair Value(S$)

Percentage oftotal net assetsattributable tounitholders

%

SINGAPORE GOVERNMENT BOND SR UNSECURED03/27 3.5 18,584,600 8.67SINGAPORE GOVERNMENT BOND SR UNSECURED03/46 2.75 11,226,818 5.24SINGAPORE GOVERNMENT BOND SR UNSECURED04/42 2.75 9,830,000 4.59SINGAPORE GOVERNMENT BOND SR UNSECURED09/33 3.375 9,461,056 4.42SINGAPORE GOVERNMENT BOND SR UNSECURED09/30 2.875 8,511,650 3.97SINGAPORE GOVERNMENT BOND SR UNSECURED08/36 2.25 7,199,712 3.36OVERSEAS EDUCATION LTD SR UNSECURED REGS04/19 5.2 6,966,290 3.25CITIC ENVIROTECH LTD SR UNSECURED REGS12/99 VAR 6,855,077 3.20PRIME ASSET HOLDINGS LTD SR SECURED REGS10/24 2.9 6,847,680 3.20SINGAPORE GOVERNMENT BOND SR UNSECURED05/28 2.625 6,057,082 2.83


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C) Top Ten Holdings (continued)


Fair Value


(S$) %

SINGAPORE GOVERNMENT BOND SR UNSECURED03/27 3.5 17,642,168 8.24SINGAPORE GOVERNMENT BOND SR UNSECURED07/23 2.75 12,572,350 5.87SINGAPORE GOVERNMENT BOND SR UNSECURED09/24 3 12,362,500 5.77SINGAPORE GOVERNMENT BOND SR UNSECURED04/42 2.75 10,364,450 4.84SINGAPORE GOVERNMENT BOND SR UNSECURED09/30 2.875 8,452,724 3.95SINGAPORE GOVERNMENT BOND SR UNSECURED03/46 2.75 8,013,450 3.74FCL TREASURY PTE LTD COMPANY GUARANT REGS07/21 2.5 7,215,502 3.37OVERSEA EDUCATION SR UNSECURED REGS 04/19 5.2 7,034,118 3.28SINGAPORE GOVERNMENT BOND SR UNSECURED09/33 3.375 6,466,650 3.02ABN AMRO BANK NV SUBORDINATED REGS 04/26 VAR 5,244,985 2.45

D) Exposure to derivatives

i) Fair value of derivative contracts and as a percentage of NAV as at 30 June 2018

Contract orunderlyingprincipalamount

Positivefair value % of NAV

Negativefair value % of NAV

$ $ $

Foreign currency contracts 4,892,588 - - 148,332 0.07


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D) Exposure to derivatives (continued)

ii) There was a net realised gain of SGD 259,483 on derivative contracts during the financial year ended30 June 2018.

iii) There was a net unrealised loss of SGD 148,332 on outstanding derivative contracts marked tomarket as at 30 June 2018.

E) Amount and percentage of NAV invested in other schemes as at 30 June 2018

N/A

F) Amount and percentage of borrowings to NAV as at 30 June 2018

N/A

G) Amount of redemptions and subscriptions for the financial year ended 30 June 2018

Total amount of redemptions SGD 71,036,548Total amount of subscriptions SGD 71,988,484

H) The amount and terms of related-party transactions for the financial year ended 30 June 2018

Please refer to Note 12 of the Notes to the Financial Statements.

I) Expense ratios


J) Turnover ratios


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

N/A


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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 30 June 2018 and 30 June 2017

N/A

ii) Expense ratios for the financial year ended 30 June 2018 and 30 June 2017

N/A

iii) Turnover ratios for the financial year ended 30 June 2018 and 30 June 2017

N/A

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

M) Soft dollar commissions/arrangements

UOB Asset Management has entered into soft dollars arrangements with selected brokers fromwhom products and services are received from third parties. The products and services relateessentially to computer hardware and software to the extent that they are used to support theinvestment decision making process, research and advisory services, economic and politicalanalyses, portfolio analyses including performance measurements, market analyses, data andquotation services, all of which are believed to be helpful in the overall discharge of UOB AssetManagement’s duties to clients. As such services generally benefit all of UOB Asset Management’sclients in terms of input into the investment decision making process, the soft credits utilised are notallocated on a specific client basis. The Manager confirms that trades were executed on a bestexecution 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

Fund Performance/Benchmark Returns

3 mth%

Growth

6 mth%

Growth

1 yr%

Growth

3 yrAnn

CompRet

5 yrAnn

CompRet

10 yrAnn

CompRet

SinceInception

28 November2005Ann

CompRet

United Global DividendBalanced Fund 3.63 1.06 4.93 4.37 5.12 3.15 2.29Benchmark 2.42 1.14 5.36 4.78 5.78 3.30 2.84

Source: Morningstar.

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 twelve months ended 30 June 2018, the net asset value of the Fund rose 4.93%, compared to anincrease in the composite benchmark of 50% MSCI AC World Index, which gained 9.65%, and 50%1-month Singapore Interbank Bid Rate (SIBID) which averaged 5.36% during the period in SingaporeDollar terms.

As at 30 June 2018, the exposure to equities was 69.46% and the exposure to fixed income was 31.55%with -1.01% in cash. The equity exposure was represented by the United Global Dividend Equity Fundand the fixed income was comprised of an 18.40% exposure to the United Asian Bond Fund, an 8.09%exposure to the United SGD Plus Fund and a 5.06% exposure to the United SGD Fund.

During the period, the equity exposure represented by the United Global Dividend Equity Fundreturned 9.79%, which outperformed the MSCI ACWorld Index. During the first half of 2018, global bondyields rose. This put some pressure on dividend focused equities as the markets sought out growthassets over “bond proxies”. Despite the interest rate moves in the first half of 2018, we continue to expectthat dividend equities provide stable returns over the course of the cycle that should be in line with themarket and with the benefit of steady distributions.

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

Economic and Market Review

In Singapore Dollar terms, the MSCI All Country World Index delivered a total return of 9.65% over thetwelve months. However, the SFI Government Bond Index dipped 1.08% and the Barclays GlobalAggregate Corporate Benchmark Index lost 0.55%.

However, the equities performance was masked by a year of two distinct halves. While the second half of2017 was characterised by strong equity market performance globally, driven by synchronised globalgrowth, strong earningsmomentum and US fiscal stimulus in the form of corporate and personal tax cuts,the tide reversed in 2018.

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

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The first quarter of 2018 saw a turbulent start to the year, driven by a technical sell off in February,triggered by a spike in US government bond yields, which hit global equity markets with indiscriminateselling. In March, escalating trade tensions further added to the volatility.

Second quarter saw global market sentiment shift with the ebb and flow of trade tariffs related news.While initially trade tensions seemed to ease after North American Free Trade Agreement (NAFTA)negotiations progressed, and Chinese President Xi Jinping promised foreign companies greater accessto China’s financial and manufacturing sectors, subsequently, trade tensions escalated back as the USimposed additional levies on Chinese goods with China announcing retaliatory tariffs.

Meanwhile economic growth in Europe decelerated moderately in early 2018, with both services andmanufacturing indices softening. While domestic demand remains strong and both business andconsumer confidence remain high, political risks including Brexit and populism in Italy and Spain stillremain, which may hurt investment, consumer confidence and EU cohesion going forward. Brexit hasalready started impacting UK, which has underperformed relative to Europe, and will likely remain aheadwind.

US stocks gained over the period, driven by the technology sector, as companies continued to deliverpositive earnings surprises, which were further boosted by the corporate tax cuts. The rise in oil pricesalso helped the performances of energy companies.

European stocks dipped, as heightened political risks affected market sentiments. The weakness in theEuro was a further drag on equity performance when measured in Singapore Dollar terms.

The earnings revision for Asian markets, which was strong at the start of 2018, has trailed globalmarkets, largely due to moderating export growth momentum. The slower growth in technology handsetsales dented the technology momentum for Korea and Taiwan.

China saw a roller coaster ride in early 2018, posting double digit returns in January, but giving back mostof it towards the end of the period to end relatively flat. Despite steady economic growth through most ofthe period and strong reported earnings, there were rising concerns on escalating trade tensions with theUS including restrictions over Chinese technology licensing practices. There were further headwindsfrom domestic monetary tightening with the government’s unrelenting drive for financial and economicdeleveraging. The increased volatility in the Renminbi in the last 2 weeks of June, leading to thecurrency’s depreciation, further spooked investors.

The Fed hiked interest rates three times during the period. 10-year US Treasury yields remained rangebound for the second half of 2017, and rose significantly in the first half of 2018. The new Fedchairperson, Jeremy Powell voiced preference for communicating better guidance for the markets. Fedpolicy seems to have a greater impact on short term interest rates, with the 2-year UST yield climbingfrom 1.39% in end June 2017 to end at 2.53% in end June 2018. The European Central Bank (ECB)announced that quantitative easing will end in December 2018, and its June 2018 meeting kept a dovishundertone, as the Governing Council pledged to keep policy rates unchanged at least through thesummer of 2019.


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Outlook and Fund Strategy

Our assessment of global macro conditions in 2018 has been that global economic growth has beenabove trend, corporate earnings are growing at double digit rates and that inflation and rates arenormalising. At the same time, there have been a number of risks that have been a concern to investorsand were an overhang to markets. We have expected investments to ultimately be driven by the strongfundamentals but believe the risk issues need to be monitored and continually reassessed.

Trade relations between the two largest economies, US and China seem to be deteriorating with USincreasingly turning its tariff threats into actual policy. Our base case view on trade war risks has beenthat the rhetoric around negotiations will likely be more significant than the actual tariff policies. We alsohave been expecting that the first order effects of the trade disputes to be fairly limited. For example wecalculate that China’s GDP would only be reduced by 0.2% to 0.3% if tariffs were implemented onUS$100 billion of exports. While we ultimately continue to hold that view, we note that the events withinJune were worrisome. The tariffs moved beyond just rhetoric and turned into actual policy. Marketconfidence also showed how the secondary effects over trade disputes can be larger than the first ordereffects over time.

Overall, we continue to expect equities to outperform fixed income in 2018. As lackluster as equities havebeen in 2018, for the most part they continue to provide year-to-date positive performance while fixedincome returns have been negative. However, we are increasingly concerned that themarket volatility andconcerns over trade will hold Asia back in 2018. We have thought that above trend global growth andattractive valuations would be supportive of Asia outperforming in 2018, but we now suspect it will takeseveral months for the overhang issues of trade, and currency volatility to settle enough for Asia to startoutperforming again.

Our strategy is thus to continue to overweight equities over fixed income but to rein in the Asia geographicoverweight back to neutral. We continue to be overweight on the US and underweight on Europe withinequities. We expect long-term bond yields to rise from the end June levels of 2.86% toward 3% by the endof the year.


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B) Investments at fair value and as a percentage of net asset value (“NAV”) as at 30 June 2018under review classified by

i) Country

Fair Value(S$)

% of NAV

Singapore 13,353,191 101.01Portfolio of investments 13,353,191 101.01Other net assets/(liabilities) (134,042) (1.01)Total 13,219,149 100.00

ii) Industry

N/A

iii) Asset Class


Quoted unit trusts 13,353,191 101.01Other net assets/(liabilities) (134,042) (1.01)Total 13,219,149 100.00

iv) Credit rating of quoted bonds

N/A


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C) Top Ten Holdings


Fair Value(S$)


%

UNITED GLOBAL DIVIDEND EQUITY FUND 9,182,190 69.46UNITED ASIAN BOND FUND - CLASS SGD 2,431,985 18.40UNITED SGD PLUS FUND - CLASS A SGD DIST 1,069,200 8.09UNITED SGD FUND CLASS A (ACC) SGD 669,816 5.06

There were only 4 holdings as at 30 June 2018.


Fair Value


(S$) %

UNITED GLOBAL DIVIDEND EQUITY FUND 9,327,712 63.42UNITED ASIAN BOND FUND - CLASS SGD 2,707,326 18.40UNITED SGD FUND CLASS A (ACC) SGD 2,375,128 16.15

There were only 3 holdings as at 30 June 2017.

D) Exposure to derivatives

i) Fair value of derivative contracts and as a percentage of NAV as at 30 June 2018

N/A

ii) Net gains/(losses) on derivative contracts realised during the financial year ended 30 June 2018

N/A

iii) Net gains/(losses) on outstanding derivative contracts marked to market as at 30 June 2018

N/A


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E) Amount and percentage of NAV invested in other schemes as at 30 June 2018

Please refer to the Statements of Portfolio.

F) Amount and percentage of borrowings to NAV as at 30 June 2018

N/A

G) Amount of redemptions and subscriptions for the financial year ended 30 June 2018

Total amount of redemptions SGD 1,883,872Total amount of subscriptions SGD 273,058

H) The amount and terms of related-party transactions for the financial year ended 30 June 2018


I) Expense ratios


J) Turnover ratios


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

N/A


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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 2018 and 30 June 2017


United Global Dividend EquityFund

Fair Value


(S$) %

MICROSOFT CORP 543,197 5.04VISA INC 474,966 4.41HONEYWELL INTERNATIONAL INC 441,928 4.10ALPHABET INC 425,933 3.96RAYTHEON CO 374,029 3.47ROYAL DUTCH SHELL PLC A SHARES 373,877 3.47MERCK & CO INC 372,440 3.46EXXON MOBIL CORP 372,248 3.46UNITEDHEALTH GROUP INC 367,973 3.42THE HOME DEPOT INC 364,446 3.38


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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)

i) Top 10 holdings at fair value and as percentage of NAV as at 30 June 2018 and 30 June 2017(continued)


United Global Dividend EquityFund

Fair Value


(S$) %

HONEYWELL INTERNATIONAL INC 605,617 4.76VISA INC 503,572 3.96MICROSOFT CORP 493,513 3.88POWER GRID CORP OF INDIA LTD 466,434 3.67HESS CORP 465,099 3.66MERCK & CO INC 458,860 3.61TENCENT HOLDINGS LTD 448,115 3.52JOHNSON & JOHNSON 437,144 3.44HOUSING DEVELOPMENT FINANCE CO 409,363 3.22PFIZER INC 393,111 3.09

ii) Expense ratios for the financial year ended 30 June 2018 and 30 June 2017

United Global Dividend Equity Fund

30 June 2018 1.99%30 June 2017 1.85%

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 2018 was based on total operatingexpenses divided by the average net asset value respectively for the financial year. The total operating expenses do notinclude (where applicable) brokerage and other transaction costs, performance fee, interest expense, distribution paid out tounitholders, 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. Theaverage net asset value is based on the daily balances.


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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)

iii) Turnover ratios for the financial year ended 30 June 2018 and 30 June 2017

United Global Dividend Equity Fund

30 June 2018 29.88%30 June 2017 12.03%

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

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

M) Soft dollar commissions/arrangements

UOB Asset Management has entered into soft dollars arrangements with selected brokers fromwhom products and services are received from third parties. The products and services relateessentially to computer hardware and software to the extent that they are used to support theinvestment decision making process, research and advisory services, economic and politicalanalyses, portfolio analyses including performance measurements, market analyses, data andquotation services, all of which are believed to be helpful in the overall discharge of UOB AssetManagement’s duties to clients. As such services generally benefit all of UOB Asset Management’sclients in terms of input into the investment decision making process, the soft credits utilised are notallocated on a specific client basis. The Manager confirms that trades were executed on a bestexecution 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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REPORT OF THE TRUSTEE

The Trustee is under a duty to take into custody and hold the assets of the sub-funds of United GlobalPortfolios, namely United Singapore Bond Fund and United Global Dividend Balanced Fund (collectivelyreferred to as the “Sub-Funds”) in trust for the unitholders. In accordance with the Securities and FuturesAct (Cap. 289), its subsidiary legislation and the Code on Collective Investment Schemes, the Trusteeshall monitor the activities of the Manager for compliance with the limitations imposed on the investmentand borrowing powers as set out in the Trust Deed in each annual accounting year and report thereon tounitholders in an annual report.

To the best knowledge of the Trustee, the Manager has, in all material respects, managed the Sub-Fundsduring the financial year covered by these financial statements, set out on pages 24 to 68, in accordancewith the limitations imposed on the investment and borrowing powers set out in the Trust Deed.

For and on behalf of the TrusteeSTATE STREET TRUST (SG) LIMITED

Authorised signatory21 September 2018


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STATEMENT BY THE MANAGER

In the opinion of UOB Asset Management Ltd, the accompanying financial statements set out on pages24 to 68, comprising the Statements of Total Return, Statements of Financial Position, Statements ofMovements of Unitholders’ Funds, Statements of Portfolio and Notes to the Financial Statements aredrawn up so as to present fairly, in all material respects, the financial positions and portfolio holdings ofthe sub-funds of United Global Portfolios, namely United Singapore Bond Fund and United GlobalDividend Balanced Fund (collectively referred to as the “Sub-Funds”) as at 30 June 2018, and thefinancial performance and movements of unitholders’ funds for the year then ended in accordance withthe recommendations of Statement of Recommended Accounting Practice 7 “Reporting Framework forUnit Trusts” issued by the Institute of Singapore Chartered Accountants. At the date of this statement,there are reasonable grounds to believe that the Sub-Funds will be able to meet their financial obligationsas and when they materialise.

For and on behalf of the ManagerUOB ASSET MANAGEMENT LTD

THIO BOON KIATAuthorised signatory21 September 2018


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INDEPENDENT AUDITOR’S REPORT TO THE UNITHOLDERS OF THE SUB-FUNDS OF UNITEDGLOBAL PORTFOLIOS

Our Opinion

In our opinion, the accompanying financial statements of the sub-funds of United Global Portfolios,namely United Singapore Bond Fund and United Global Dividend Balanced Fund (collectively referred toas the “Sub-Funds”), are properly drawn up in accordance with the recommendations of Statement ofRecommended Accounting Practice 7 “Reporting Framework for Unit Trusts” issued by the Institute ofSingapore Chartered Accountants, so as to present fairly, in all material respects, the financial positionsand portfolio holdings of the Sub-Funds as at 30 June 2018, and of the financial performance andmovements of unitholders’ funds for the financial year ended on that date.

What we have audited

The financial statements of the Sub-Funds comprise:

• the Statements of Total Return for the financial year ended 30 June 2018;

• the Statements of Financial Position as at 30 June 2018;

• the Statements of Movements of Unitholders’ Funds for the financial year ended 30 June 2018;

• the Statements of Portfolio as at 30 June 2018; and

• the notes to the financial statements, including a summary of significant accounting policies.

Basis for Opinion

We conducted our audit in accordance with Singapore Standards on Auditing (“SSAs”). Ourresponsibilities under those standards are further described in the Auditor’s Responsibilities for the Auditof the Financial Statements section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion.

Independence

We are independent of the Sub-Funds in accordance with the Accounting and Corporate RegulatoryAuthority Code of Professional Conduct and Ethics for Public Accountants and Accounting Entities(“ACRA Code”) together with the ethical requirements that are relevant to our audit of the financialstatements in Singapore, and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the ACRA Code.

Other Information

The Sub-Funds’ Manager (the “Manager”) is responsible for the other information. The other informationcomprises all sections of the annual report but does not include the financial statements and our auditor’sreport thereon.


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Our opinion on the financial statements does not cover the other information and we do not and will notexpress any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other informationand, in doing so, consider whether the other information is materially inconsistent with the financialstatements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If,based on the work we have performed on the other information, we conclude that there is a materialmisstatement of this other information, we are required to report that fact. We have nothing to report inthis regard.

Responsibilities of the Manager for the Financial Statements

The Manager is responsible for the preparation and fair presentation of these financial statements inaccordance with the recommendations of Statement of Recommended Accounting Practice 7“Reporting Framework for Unit Trusts” issued by the Institute of Singapore Chartered Accountants andfor such internal control as the Manager determines is necessary to enable the preparation of financialstatements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Manager is responsible for assessing the Sub-Funds’ ability tocontinue as a going concern, disclosing, as applicable, matters related to going concern and using thegoing concern basis of accounting unless the Manager either intends to terminate the Sub-Funds or tocease the Sub-Funds’ operations, or has no realistic alternative but to do so.

The Manager’s responsibilities include overseeing the Sub-Funds’ financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole arefree from material misstatement, whether due to fraud or error, and to issue an auditor’s report thatincludes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that anaudit conducted in accordance with SSAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if, individually or in theaggregate, they could reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

As part of an audit in accordance with SSAs, we exercise professional judgement and maintainprofessional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due tofraud or error, design and perform audit procedures responsive to those risks, and obtain auditevidence that is sufficient and appropriate to provide a basis for our opinion. The risk of notdetecting a material misstatement resulting from fraud is higher than for one resulting from error,as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the overrideof internal control.


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• Obtain an understanding of internal control relevant to the audit in order to design auditprocedures that are appropriate in the circumstances, but not for the purpose of expressing anopinion on the effectiveness of the Sub-Funds’ internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accountingestimates and related disclosures made by the Manager.

• Conclude on the appropriateness of the Manager’s use of the going concern basis of accountingand, based on the audit evidence obtained, whether a material uncertainty exists related to eventsor conditions that may cast significant doubt on the Sub-Funds’ ability to continue as a goingconcern. If we conclude that a material uncertainty exists, we are required to draw attention in ourauditor’s report to the related disclosures in the financial statements or, if such disclosures areinadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained upto the date of our auditor’s report. However, future events or conditions may cause the Sub-Fundsto cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including thedisclosures, and whether the financial statements represent the underlying transactions andevents in a manner that achieves fair presentation.

We communicate with the Manager regarding, among other matters, the planned scope and timing of theaudit and significant audit findings, including any significant deficiencies in internal control that we identifyduring our audit.

PricewaterhouseCoopers LLPPublic Accountants and Chartered Accountants

Singapore, 21 September 2018


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STATEMENTS OF TOTAL RETURN

For the financial year ended 30 June 2018

United Singapore BondFund

United Global DividendBalanced Fund

2018 2017 2018 2017Note $ $ $ $

IncomeDividends - - 333,686 266,477Interest 264 20 25 -Other income 4,500 22,500 - -Total 4,764 22,520 333,711 266,477

Less: ExpensesManagement fee 12 1,224,788 1,022,118 176,362 205,228Less: Management fee rebate 12 - - (186,725) (201,615)Trustee fee 12 78,704 71,751 5,014 6,261Audit fee 14,400 12,800 15,200 12,800Registrar fee 12 15,010 15,000 15,010 15,000Valuation fee 12 278,361 232,300 17,636 20,523Custody fee 12 41,466 34,175 5,001 153Transaction costs - 1,085 - -Interest expenses - 10 - -Other expenses 163,425 31,592 36,392 18,928Total 1,816,154 1,420,831 83,890 77,278

Net income/(losses) (1,811,390) (1,398,311) 249,821 189,199

Net gains/(losses) on value ofinvestments and financial derivativesNet gains/(losses) on investments 842,278 5,007,693 471,797 940,841Net gains/(losses) on financialderivatives 111,151 72,353 - 3Net foreign exchange gains/(losses) 7,985 10,975 (1,444) 1,671

961,414 5,091,021 470,353 942,515

Total return/(deficit) for the yearbefore income tax (849,976) 3,692,710 720,174 1,131,714Less: Income tax 3 - - (37,379) (45,301)Total return/(deficit) for the year (849,976) 3,692,710 682,795 1,086,413


The accompanying notes form an integral part of these financial statements.

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STATEMENTS OF FINANCIAL POSITION

As at 30 June 2018



2018 2017 2018 2017Note $ $ $ $

AssetsPortfolio of investments 211,688,301 210,831,271 13,353,191 14,410,166Receivables 5 461,025 845,106 50,934 54,310Cash and bank balances 3,379,325 3,059,129 8,009 901,919Fixed deposits 8 2,800,000 - - -Financial derivatives at fair value 7 - 93,863 - -Total assets 218,328,651 214,829,369 13,412,134 15,366,395

LiabilitiesPurchases awaiting settlement 3,233,020 - - -Payables 6 700,472 592,545 149,248 609,680Distribution payable 4 - - 43,737 48,628Financial derivatives at fair value 7 148,332 91,957 - -Total liabilities 4,081,824 684,502 192,985 658,308

EquityNet assets attributable to unitholders 9 214,246,827 214,144,867 13,219,149 14,708,087



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STATEMENTS OF MOVEMENTS OF UNITHOLDERS’ FUNDS




2018 2017 2018 2017Note $ $ $ $

Net assets attributable to unitholdersat the beginning of the financial year 214,144,867 147,378,753 14,708,087 17,137,219

OperationsChange in net assets attributable tounitholders resulting from operations (849,976) 3,692,710 682,795 1,086,413

Unitholders’contributions/(withdrawals)Creation of units 71,988,484 94,349,634 273,058 366,170Cancellation of units (71,036,548) (31,276,230) (1,883,872) (3,229,965)

Change in net assets attributable tounitholders resulting from net creationand cancellation of units 951,936 63,073,404 (1,610,814) (2,863,795)

Distributions 4 - - (560,919) (651,750)

Total increase/(decrease) in net assetsattributable to unitholders 101,960 66,766,114 (1,488,938) (2,429,132)

Net assets attributable to unitholdersat the end of the financial year 9 214,246,827 214,144,867 13,219,149 14,708,087



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STATEMENTS OF PORTFOLIO

As at 30 June 2018

United Singapore Bond Fund

Holdings at Fair value at

Percentage oftotal net assetsattributable tounitholders at

30 June2018

30 June2018$

30 June2018%

By Industry - Primary

Quoted bonds

CONSUMER DISCRETIONARYOVERSEAS EDUCATION LTD SRUNSECURED REGS 04/19 5.2 7,000,000 6,966,290 3.25

CONSUMER STAPLESBREADTALK GROUP LTD SR UNSECUREDREGS 01/23 4 5,000,000 4,994,450 2.33

ENERGYINDIAN OIL CORP LTD SR UNSECUREDREGS 10/22 4.1 4,950,000 5,081,381 2.37

FINANCIALSABN AMRO BANK NV SUBORDINATEDREGS 04/26 VAR 5,000,000 5,152,500 2.41HUARONG FINANCE 2017 CO LTDCOMPANY GUARANT REGS 04/21 3.2 5,000,000 4,939,068 2.31JULIUS BAER GROUP LTD JRSUBORDINATED REGS 12/49 VAR 5,000,000 5,125,000 2.39MERCATUS CO-OPERATIVE LTD SRUNSECURED REGS 07/24 2.8 5,000,000 4,895,317 2.28OUE TREASURY PTE LTD COMPANYGUARANT REGS 05/23 3.55 5,000,000 4,893,800 2.28

TOTAL FINANCIALS 25,005,685 11.67

GOVERNMENTSINGAPORE GOVERNMENT BOND SRUNSECURED 03/27 3.5 17,200,000 18,584,600 8.67



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As at 30 June 2018




30 June2018

30 June2018$

30 June2018%

By Industry - Primary (continued)Quoted bonds

GOVERNMENT (continued)SINGAPORE GOVERNMENT BOND SRUNSECURED 03/46 2.75 11,500,000 11,226,818 5.24SINGAPORE GOVERNMENT BOND SRUNSECURED 04/42 2.75 10,000,000 9,830,000 4.59SINGAPORE GOVERNMENT BOND SRUNSECURED 05/28 2.625 6,000,000 6,057,082 2.83SINGAPORE GOVERNMENT BOND SRUNSECURED 06/26 2.125 4,800,000 4,692,000 2.19SINGAPORE GOVERNMENT BOND SRUNSECURED 07/29 2.875 4,200,000 4,328,100 2.02SINGAPORE GOVERNMENT BOND SRUNSECURED 08/36 2.25 7,800,000 7,199,712 3.36SINGAPORE GOVERNMENT BOND SRUNSECURED 09/30 2.875 8,300,000 8,511,650 3.97SINGAPORE GOVERNMENT BOND SRUNSECURED 09/33 3.375 8,800,000 9,461,056 4.42

TOTAL GOVERNMENT 79,891,018 37.29

INDUSTRIALSCITIC ENVIROTECH LTD SR UNSECUREDREGS 12/99 VAR 7,000,000 6,855,077 3.20KEPPEL CORP LTD SR UNSECURED REGS11/23 3.725 3,750,000 3,813,688 1.78SINGAPORE AIRLINES LTD SRUNSECURED REGS 11/26 3.13 4,000,000 3,983,216 1.86

TOTAL INDUSTRIALS 14,651,981 6.84



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As at 30 June 2018




30 June2018

30 June2018$

30 June2018%


REAL ESTATEAACI REIT MTN PTE LTD COMPANYGUARANT REGS 03/22 3.6 4,750,000 4,515,635 2.11ASCENDAS INDIA TRUST SR UNSECUREDREGS 10/20 3.9 3,750,000 3,812,063 1.78ASCOTT REIT MTN PTE LTD COMPANYGUARANT REGS 11/22 4.205 3,750,000 3,943,498 1.84CACHE LOGISTICS TRUSTSUBORDINATED REGS VAR 3,750,000 3,759,150 1.75ESR-REIT SUBORDINATED REGS 12/99VAR 5,000,000 4,768,800 2.23FCOT TREASURY PTE LTD COMPANYGUARANT REGS 02/23 3.185 5,000,000 5,015,184 2.34FH-REIT TREASURY PTE LTD COMPANYGUARANT REGS 11/24 3.08 5,000,000 4,919,787 2.30FRASERS PROPERTY TREASURY PTECOMPANY GUARANT REGS 07/21 2.5 4,000,000 5,164,801 2.41FRASERS PROPERTY TREASURY PTECOMPANY GUARANT REGS VAR 5,000,000 4,641,873 2.17GOLD RIDGE PTE LTD SR SECURED REGS08/23 2.9 5,000,000 4,947,695 2.31LEND LEASE RETAIL INVESTMENTS SRSECURED REGS 09/21 3.28 4,250,000 4,292,229 2.00LIPPO MALLS INDONESIA RETAIL TSUBORDINATED REGS 12/99 VAR 3,000,000 2,844,000 1.33MAPLETREE NORTH ASIA COMMERCIALCOMPANY GUARANT REGS 03/23 3.5 3,750,000 3,795,463 1.77PRIME ASSET HOLDINGS LTD SRSECURED REGS 10/24 2.9 7,000,000 6,847,680 3.20RCS TRUST SR UNSECURED REGS 03/253.2 5,000,000 4,977,100 2.32



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As at 30 June 2018




30 June2018

30 June2018$

30 June2018%


REAL ESTATE (continued)SOILBUILD BUSINESS SPACE REIT SRUNSECURED REGS 04/21 3.6 5,000,000 4,940,178 2.30

TOTAL REAL ESTATE 73,185,136 34.16

Accrued interest receivable on quotedbonds 1,912,360 0.90

Total Bonds 211,688,301 98.81

Portfolio of investments 211,688,301 98.81Other net assets/(liabilities) 2,558,526 1.19

Net assets attributable to unitholders 214,246,827 100.00



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As at 30 June 2018

United Singapore Bond FundPercentage oftotal net assetsattributable tounitholders at30 June2018%

Percentage oftotal net assetsattributable tounitholders at30 June2017%

By Industry - Primary (Summary)Quoted bonds

Consumer Discretionary 3.25 7.65Consumer Staples 2.33 1.56Energy 2.37 2.43Financials 11.67 11.94Government 37.29 43.68Industrials 6.84 7.23Real Estate 34.16 20.69Telecommunication Services - 2.35Accrued interest receivable on quoted bonds 0.90 0.92Portfolio of investments 98.81 98.45Other net assets/(liabilities) 1.19 1.55Net assets attributable to unitholders 100.00 100.00



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As at 30 June 2018


Fair value at30 June2018$



By Geography - SecondaryQuoted bonds

China 4,939,068 2.31 2.34Hong Kong 3,795,463 1.77 1.77India 5,081,381 2.37 2.42Netherlands 5,152,500 2.40 2.45Singapore 185,682,529 86.67 83.75Switzerland 5,125,000 2.39 2.43United Kingdom - - 2.37Accrued interest receivable on quoted bonds 1,912,360 0.90 0.92Portfolio of investments 211,688,301 98.81 98.45Other net assets/(liabilities) 2,558,526 1.19 1.55Net assets attributable to unitholders 214,246,827 100.00 100.00



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As at 30 June 2018

United Global Dividend Balanced Fund



30 June2018

30 June2018$

30 June2018%

By Industry - Primary

Quoted unit trusts

UNIT TRUSTSUNITED ASIAN BOND FUND - CLASS SGD 1,418,067 2,431,985 18.40UNITED GLOBAL DIVIDEND EQUITY FUND 6,044,892 9,182,190 69.46UNITED SGD FUND CLASS A (ACC) SGD 363,635 669,816 5.06UNITED SGD PLUS FUND - CLASS A SGDDIST 1,100,000 1,069,200 8.09

TOTAL UNIT TRUSTS 13,353,191 101.01

Portfolio of investments 13,353,191 101.01Other net assets/(liabilities) (134,042) (1.01)

Net assets attributable to unitholders 13,219,149 100.00



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As at 30 June 2018

United Global Dividend BalancedFund



By Industry - Primary (Summary)

Unit Trust 101.01 97.97Portfolio of investments 101.01 97.97Other net assets/(liabilities) (1.01) 2.03Net assets attributable to unitholders 100.00 100.00

As the Sub-Fund invests only into the above underlying unit trusts governed by the laws of Republic ofSingapore, hence no secondary representation is provided.



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These notes form an integral part of and should be read in conjunction with the accompanying financialstatements.

1 General

United Global Portfolios (the “Fund”) is a Singapore-registered umbrella fund constituted under a TrustDeed dated 24 September 1998 between UOB Asset Management Ltd (the “Manager”) and HSBCInstitutional Trust Services (Singapore) Limited (the “Retired Trustee”). The Trust Deed is governed by thelaws of the Republic of Singapore.

With effect from 1 April 2017, the Trustee of the Fund has changed from HSBC Institutional TrustServices (Singapore) Limited to State Street Trust (SG) Limited (the “Trustee”), and the global custodianof the Fund has changed from The Hongkong and Shanghai Banking Corporation Limited to State StreetBank and Trust Company, Singapore Branch.

The Fund comprises of three sub-funds, namely, United Singapore Bond Fund, United Global DividendBalanced Fund and United Renminbi Bond Fund. Only the financial statements of United SingaporeBond Fund and United Global Dividend Balanced Fund (collectively referred to as the “Sub-Funds” orindividually referred to as the “Sub-Fund”) are included in this report. United Renminbi Bond Fund wasterminated on 31 July 2018.

United Singapore Bond Fund is included under the Central Provident Fund (“CPF”) Investment Scheme.

The primary activities of the Sub-Funds are that of investment trading. The Sub-Funds’ investmentobjectives are stated below:


The investment objective of this Sub-Fund is to maximise returns over the longer term by investing mainlyin bonds denominated in the Singapore Dollars (issued by entities incorporated or domiciled globally) andbonds denominated in foreign currencies (issued by entities incorporated or domiciled in Singapore).Apart from investments in bonds, the Sub-Fund may also invest in money market instruments(denominated in SGD or foreign currencies), bond funds (including funds managed by the Manager) andtime deposits in any currency. Investments shall be made in accordance with the CPF InvestmentGuidelines. There is no target industry or sector.

Subscriptions and redemptions of the units of the United Singapore Bond Fund are denominated in theSingapore Dollar. Units of the Sub-Fund are currently not offered in different classes.


NOTES TO THE FINANCIAL STATEMENTS


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1 General (continued)


The investment objective of this Sub-Fund is to provide investors with regular distributions and long-termgrowth through investments in global equities, global fixed income and money market instruments. TheManager intends to achieve the investment objective of the Sub-Fund primarily by investing all orsubstantially all of its assets into other collective investment schemes. Currently, the Sub-Fund is investedin other Singapore-authorised open-ended collective investment schemes constituted in Singaporewhich are managed by the Manager.

Subscriptions and redemptions of the units of the Sub-Fund are denominated in the Singapore Dollarand the United States Dollar. Investors may subscribe in the United States Dollar at the applicable rate ofexchange from the Singapore Dollar. Units of the Sub-Fund are currently not offered in different classes.

2 Significant accounting policies

(a) Basis of preparation

The financial statements have been prepared under the historical cost convention, as modified by therevaluation of financial assets held at fair value through profit or loss, and in accordance with therecommendations of Statement of Recommended Accounting Practice 7 “Reporting Framework for UnitTrusts” issued by the Institute of Singapore Chartered Accountants.

(b) Recognition of income

Dividend income is recognised when the right to receive payment is established. Interest income isrecognised on a time proportion basis using the effective interest method.

(c) Investments

Investments are classified as financial assets at fair value through profit or loss.

(i) Initial recognition

Purchases of investments are recognised on the trade date. Investments are recorded at fair value oninitial recognition.

(ii) Subsequent measurement

Investments are subsequently carried at fair value. Net changes in fair value on investments are includedin the Statements of Total Return in the year in which they arise.




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2 Significant accounting policies (continued)

(c) Investments (continued)

(iii) Derecognition

Investments are derecognised on the trade date of disposal. The resultant realised gains and losses onthe sale of investments are computed on the basis of the difference between the weighted average costand selling price gross of transaction costs, and are taken up in the Statements of Total Return.

(d) Basis of valuation of investments

The fair value of financial assets and liabilities traded in active markets is based on market mid prices forthe quoted debt securities on the financial year end date. Accrued interest or discount or premium on debtsecurities at financial year end date is included in the fair value of debt securities. Interest income on debtsecurities is presented within “Net gains/losses on investments” on the Statements of Total Return.

The fair value of investments held in underlying funds is the quoted net asset value of the underlyingfunds as determined by the underlying funds’ administrator. Net changes in fair value of investments areincluded in the Statements of Total Return in the year in which they arise.

(e) Foreign currency translation

(i) Functional and presentation currency

The Sub-Funds’ investors are mainly from Singapore with the subscriptions and redemptions of the unitsdenominated in the Singapore Dollar, except for United Global Dividend Balanced Fund, which the unitscan be subscribed and redeemed in the United States Dollar as well.

The performance of the Sub-Funds is measured and reported to the investors in the Singapore Dollar.The Manager considers the Singapore Dollar as the currency of the primary economic environment inwhich the Sub-Funds operate. The financial statements are presented in the Singapore Dollar, which isthe Sub-Funds’ functional and presentation currency.

(ii) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange ratesprevailing at the dates of the transactions. Foreign exchange gains and losses resulting from thesettlement of such transactions and from the translation at year-end exchange rates of monetary assetsand liabilities denominated in foreign currencies are recognised in the Statements of Total Return.Translation differences on non-monetary financial assets and liabilities are also recognised in theStatements of Total Return within “Net gains/losses on investments”.




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(f) Management fee rebates

Themanagement fees charged on investments in underlying fundsmanaged by theManager are rebatedto the Sub-Funds.

(g) Financial derivatives

Financial derivatives including forwards and swaps may be entered into for the purposes of efficientportfolio management, tactical asset allocation or specific hedging of financial assets held as determinedby the Manager and in accordance with the provision of the Trust Deed and the Code on CollectiveInvestment Schemes.

Financial derivatives outstanding on the financial year end date are valued at the forward rate or at thecurrent market prices using the “mark-to-market” method, as applicable, and the resultant gains andlosses are taken up in the Statements of Total Return.

(h) Distributions

The Manager has the absolute discretion to determine whether a distribution is to be made. In such anevent, an appropriate amount will be transferred to a distribution account, to be paid out on the distributiondate. The amount shall not be treated as part of the property of the Sub-Funds. Distributions are accruedfor at the financial year end date if the necessary approvals have been obtained and a legal orconstructive obligation has been created.

(i) Offsetting financial instruments

Financial assets and liabilities are offset and the net amount reported in the Statements of FinancialPosition when there is a legally enforceable right to offset the recognised amounts and there is anintention to settle on a net basis, or realise the asset and settle the liability simultaneously. The legallyenforceable right must not be contingent on future events and must be enforceable in the normal courseof business and in the event of default, insolvency or bankruptcy of the Sub-Funds or the counterparty.




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(j) Structured entities

A structured entity is an entity that has been designed so that voting or similar rights are not the dominantfactor in deciding who controls the entity, such as when any voting rights relate to administrative tasks onlyand the relevant activities are directed by means of contractual arrangements. A structured entity oftenhas some or all of the following features or attributes: (a) restricted activities, (b) a narrow andwell-defined objective, such as to provide investment opportunities for investors by passing on risks andrewards associated with the assets of the structured entity to investors, (c) insufficient equity to permit thestructured entity to finance its activities without subordinated financial support and (d) financing in theform of multiple contractually linked instruments to investors that create concentrations of credit or otherrisks (tranches).

The Sub-Funds consider all of their investments in other funds (“Investee Funds”) to be investments inunconsolidated structured entities. The Sub-Funds invest in Investee Funds whose objectives range fromachieving short to long term capital growth and whose investment strategy does not include the use ofleverage. The Investee Funds aremanaged by unrelated/related asset managers and the Investee Fundsapply various investment strategies to accomplish their respective investment objectives. The InvesteeFunds finance their operations by issuing redeemable shares which are puttable at the holder’s optionand entitles the holder to a proportional stake in the respective fund’s net assets. The Sub-Funds holdredeemable shares in each of its Investee Funds.

The changes in fair value of the Investee Funds are included in the Statements of Total Return within “Netgains/losses on investments”.

3 Income tax


2018 2017$ $

Singapore income tax 37,379 45,301

The Sub-Funds were granted the status of Designated Unit Trust (“DUT”) in Singapore. The Trustee ofthe Sub-Funds ensures that the Sub-Funds fulfill their reporting obligations under the DUT Scheme.

Under the DUT Scheme, subject to certain conditions and reporting obligations being met, certainincome of the DUT Fund is not taxable in accordance with Sections 35(12) and 35(12A) of the IncomeTax Act. Such income includes:




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3 Income tax (continued)

(i) gains or profits derived from Singapore or elsewhere from the disposal of securities;

(ii) interest (other than interest for which tax has been deducted under Section 45 of the Income TaxAct);

(iii) dividends derived from outside Singapore and received in Singapore;

(iv) gains or profits derived from foreign exchange transactions, transactions in futures contracts,transactions in interest rate or currency forwards, swaps or option contracts and transactions inforwards, swaps or option contracts relating to any securities or financial index;

(v) discount, prepayment fee, redemption premium and break cost from qualifying debt securitiesissued during the prescribed period; and

(vi) distributions from foreign unit trusts derived from outside Singapore and received in Singapore.

The Singapore income tax represents tax deducted at source for Singapore sourced dividends.




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4 Distributions

United Global Dividend Balanced Fund2018 2017

Per 100 units Amount Per 100 units Amount$ $ $ $

July interim distribution on unitsoutstanding as at 1 August 2017(2017: 1 August 2016) 0.246 48,702 0.240 56,678August interim distribution on unitsoutstanding as at 4 September 2017(2017: 1 September 2016) 0.261 50,979 0.254 59,227September interim distribution onunits outstanding as at 2 October2017 (2017: 3 October 2016) 0.261 50,649 0.254 59,087October interim distribution on unitsoutstanding as at 1 November 2017(2017: 1 November 2016) 0.248 47,431 0.236 54,549November interim distribution on unitsoutstanding as at 1 December 2017(2017: 1 December 2016) 0.249 46,962 0.239 54,835December interim distribution on unitsoutstanding as at 2 January 2018(2017: 3 January 2017) 0.249 46,649 0.242 55,419January interim distribution on unitsoutstanding as at 1 February 2018(2017: 1 February 2017) 0.255 47,190 0.240 53,921February interim distribution on unitsoutstanding as at 1 March 2018(2017: 1 March 2017) 0.248 45,841 0.243 54,264March interim distribution on unitsoutstanding as at 2 April 2018(2017: 3 April 2017) 0.240 43,913 0.244 52,372April interim distribution on unitsoutstanding as at 2 May 2018(2017: 2 May 2017) 0.242 44,071 0.247 51,810May interim distribution on unitsoutstanding as at 1 June 2018(2017: 1 June 2017) 0.246 44,795 0.246 50,960June final distribution on unitsoutstanding as at 2 July 2018(2017: 3 July 2017) 0.247 43,737 0.245 48,628

560,919 651,750




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5 Receivables



2018 2017 2018 2017$ $ $ $

Amounts receivable for creation ofunits 460,868 797,048 5,000 4,628Interests receivable 157 - - -Management fee rebate receivable - - 45,934 48,759Other receivables - 48,058 - 923

461,025 845,106 50,934 54,310

6 Payables



2018 2017 2018 2017$ $ $ $

Amount payable for cancellation ofunits 286,708 207,999 - 467,901Amount due to the Manager 377,651 348,969 47,342 53,391Amount due to Trustee 19,363 18,095 1,260 1,247Tax payables - - 83,396 83,378Other creditors and accruedexpenses 16,750 17,482 17,250 3,763

700,472 592,545 149,248 609,680




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7 Fair value of financial derivatives

Financial derivatives contracts comprise foreign currency contracts for the sale and purchase of foreigncurrencies. The contract or underlying principal amounts of these financial derivatives and theircorresponding gross positive or negative fair values at the financial year end date are analysed below.

United Singapore Bond Fund2018 2017


Positivefair value

Negativefair value


Positivefair value

Negativefair value

$ $ $ $ $ $

Foreign currency contracts 4,892,588 - 148,332 11,863,877 93,863 91,957

There are no outstanding financial derivatives for United Global Dividend Balanced Fund.

8 Fixed deposits

Fixed deposit as at 30 June 2018 held by United Singapore Bond Fund has amaturity of 6 days (2017: nil)from the end of the financial year with an effective interest rate of 1.02% (2017: nil).

9 Units in issue

During the financial year ended 30 June 2018 and 2017, the numbers of units issued, redeemed andoutstanding were as follows:


2018 2017

Units at the beginning of the financial year 147,019,805 103,138,694Units created 49,125,402 65,725,767Units cancelled (48,599,944) (21,844,656)Units at the end of the financial year 147,545,263 147,019,805

$ $

Net assets attributable to unitholders 214,246,827 214,144,867Net assets value per unit 1.452 1.456




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9 Units in issue (continued)

There is no difference between the net asset attributable to unitholders per unit per financial statementsand the net assets attributable to unitholders per unit for issuing/redeeming of units.


2018 2017

Units at the beginning of the financial year 19,886,232 23,774,351Units created 363,440 499,104Units cancelled (2,507,181) (4,387,223)Units at the end of the financial year* 17,742,491 19,886,232

*Included above are units denominated in USD 149,471 147,229

$ $

Net assets attributable to unitholders 13,219,149 14,708,087Net assets value per unit 0.745 0.739

A reconciliation of the net assets attributable to unitholders per unit per the financial statements and thenet assets attributable to unitholders per unit for issuing/redeeming units at the financial year end date isprepared below:


2018 2017$ $

Net assets attributable to unitholders per financial statements per unit 0.745 0.739Effect of distribution payable 0.002 0.002Net assets attributable to unitholders for issuing/redeeming per unit 0.747 0.741




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10 Financial risk management

The Sub-Funds’ activities expose them to a variety of market risks (including currency risk, interest raterisk and price risk), credit risk and liquidity risk. The Sub-Funds’ overall risk management programmeseeks to minimise potential adverse effects on the Sub-Funds’ financial performance. The Sub-Fundsmay use financial futures contracts, financial options contracts and/or foreign currency contracts subjectto the terms of the Trust Deed to moderate certain risk exposures. Specific guidelines on exposures toindividual securities and certain industries are in place for the Sub-Funds at any time as part of the overallfinancial risk management to reduce the Sub-Funds’ risk exposures.

The Sub-Funds’ assets may consist of investments in open-ended collective investment schemes whichare also managed by the Manager. They are held in accordance with the published investment policies ofthe Sub-Funds. The allocation of assets between the various types of investments is determined by theManager to achieve their investment objectives.

(a) Market risk

Market risk is the risk of loss arising from uncertainty concerning movements in market prices and rates,including observable variables such as interest rates, credit spreads, exchange rates, and others thatmay be only indirectly observable such as volatilities and correlations. Market risk includes such factorsas changes in economic environment, consumption pattern and investor’s expectation etc. which mayhave significant impact on the value of the investments. The Sub-Funds’ investments are substantiallydependent on changes in market prices and are monitored by the Manager on a regular basis so as toassess changes in fundamentals and valuation. Although the Manager makes reasonable efforts in thechoice of investments, events beyond reasonable control of the Manager could affect the prices of theunderlying investments and hence the asset value of the Sub-Funds. Guidelines are set to reduce theSub-Funds’ risk exposures to market volatility such as diversifying the portfolio by investing acrossvarious geographies, alternatively, the Sub-Funds may be hedged using derivative strategies.

(i) Foreign exchange risk

The Sub-Funds have monetary financial assets and liabilities denominated in currencies other than theSingapore Dollar and it may be affected favourably or unfavourably by exchange rate regulations orchanges in the exchange rates between the Singapore Dollar and such other currencies. The Managermay at his discretion, implement a currency management strategy either to reduce currency volatility orto hedge the currency exposures of the Sub-Funds.




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10 Financial risk management (continued)

(a) Market risk (continued)

(i) Foreign exchange risk (continued)

The tables below summarise the Sub-Funds’ exposures to foreign currencies at the end of the financialyear.

United Singapore Bond FundAs at 30 June 2018

USD SGD Total$ $ $

AssetsPortfolio of investments 5,225,401 206,462,900 211,688,301Receivables - 461,025 461,025Cash and bank balances 19,339 3,359,986 3,379,325Fixed deposits - 2,800,000 2,800,000Total Assets 5,244,740 213,083,911 218,328,651

LiabilitiesPurchases awaiting settlement - 3,233,020 3,233,020Payables - 700,472 700,472Total Liabilities - 3,933,492 3,933,492

Net Assets 5,244,740 209,150,419Foreign currency contracts (notional value) (4,892,588) 4,892,588Net currency exposure 352,152 214,043,007




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United Singapore Bond FundAs at 30 June 2017

USD SGD Total$ $ $

AssetsPortfolio of investments 10,921,744 199,909,527 210,831,271Receivables - 845,106 845,106Cash and bank balances 71,095 2,988,034 3,059,129Total Assets 10,992,839 203,742,667 214,735,506

LiabilitiesPayables - 592,545 592,545Total Liabilities - 592,545 592,545

Net Assets 10,992,839 203,150,122Foreign currency contracts (notional value) (10,598,017) 10,598,017Net currency exposure 394,822 213,748,139




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United Global Dividend Balanced FundAs at 30 June 2018

USD SGD Total$ $ $

AssetsPortfolio of investments - 13,353,191 13,353,191Receivables - 50,934 50,934Cash and bank balances 13 7,996 8,009Total Assets 13 13,412,121 13,412,134

LiabilitiesPayables - 149,248 149,248Distribution payable 369 43,368 43,737Total Liabilities 369 192,616 192,985

Net currency exposure (356) 13,219,505




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United Global Dividend Balanced FundAs at 30 June 2017

USD SGD Total$ $ $

AssetsPortfolio of investments - 14,410,166 14,410,166Receivables - 54,310 54,310Cash and bank balances 10,635 891,284 901,919Total Assets 10,635 15,355,760 15,366,395

LiabilitiesPayables - 609,680 609,680Distribution payable 360 48,268 48,628Total Liabilities 360 657,948 658,308

Net currency exposure 10,275 14,697,812


Investments, which is the significant item in the Statements of Financial Position, is exposed to currencyrisk and interest rate risk. Currency risk sensitivity analysis is prepared and disclosed only for monetaryassets and liabilities. The table below summarises the sensitivity of the Sub-Fund’s monetary assets andliabilities to changes in foreign exchangemovements at 30 June 2018 and 2017. The analysis is based onthe assumptions that the functional currency increased/decreased to the relevant foreign exchange ratesas disclosed below. This represents the Manager’s best estimate of a reasonable possible shift in theforeign exchange rates, having regard to historical volatility of those rates.

Currency

2018Net impact tonet assets

attributable tounitholders



$ % $ %USD 17,608 5 23,689 6




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Investments, which is the significant item in the Statements of Financial Position, is exposed to currencyrisk and other price risk. Other price risk sensitivity analysis includes the impact of currency risk onnon-monetary investments. The Sub-Fund’s net financial assets comprise significantly non-monetaryinvestments, hence currency risk sensitivity analysis has not been presented on the remaining financialassets.

(ii) Price risk

Price risk is the risk of potential adverse changes to the value of financial investments because ofchanges in market conditions and volatility in security prices.


The market prices of financial assets held by the Fund are dependent on prevailing market interest rates,as the Fund invests in bonds issued by government and corporations. No separate price risk sensitivityanalysis is prepared as it is covered as part of interest risk sensitivity analysis.




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(ii) Price risk (continued)


The table below summarises the impact of increases/decreases from the Sub-Fund’s investments inInvestee Funds on the Sub-Fund’s net assets attributable to unitholders at 30 June 2018 and 2017. Theanalysis is based on the assumption that the index components within the benchmark and the prices ofthe Investee Funds increased/decreased by a reasonable possible shift, with all other variables heldconstant and that the prices of the Investee Funds moved according to the historical correlation with theindex. For Investee Funds with an absolute return benchmark, the analysis is based on the assumptionthat the prices of the Investee Funds increased/decreased by a reasonable possible shift.

Benchmark component





$ % $ %

MSCI AC World Index(Benchmark of UnitedGlobal Dividend EquityFund)

1,436,611 20 1,641,677 20

JP Morgan Asia CreditIndex Total ReturnComposite (Benchmark ofUnited Asian Bond Fund)

470,947 20 514,392 20

United SGD Fund 6,698 1 23,751 1United SGD Plus Fund 10,692 1 n/a n/a

(iii) Interest rate risk

Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in marketinterest rates.




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(iii) Interest rate risk (continued)

Interest rate risk arises from the effects of fluctuations in the prevailing levels of markets interest rates onthe fair value of financial assets and liabilities and future cash flow. The United Singapore Bond Fundholds interest bearing securities that expose the Sub-Fund to fair value interest rate risk. The Sub-Fundholds securities of varying maturities and interest rate sensitivities. Movement in market interest rates willaffect the valuation of the Sub-Fund’s securities by varying degrees. The Sub-Fund’s policy requires theManager to manage this risk by measuring the mismatch of the interest rate sensitivity gap of financialassets and liabilities and calculating the average duration of the portfolio of fixed interest securities. Theaverage effective duration of the Sub-Fund’s portfolio is a measure of the sensitivity of the fair value ofthe Sub-Fund’s fixed interest securities to changes in market interest rates.

The tables below summarise the Sub-Fund’s exposure to interest rate risks. They include the Sub-Fund’sassets and trading liabilities at fair value, categorised by interest rate types.

United Singapore Bond FundVariablerates

Fixedrate

Non-interestbearing Total

$ $ $ $

As at 30 June 2018AssetsPortfolio of investments 33,146,400 176,629,541 1,912,360 211,688,301Receivables - - 461,025 461,025Cash and bank balances 3,379,325 - - 3,379,325Fixed deposits - 2,800,000 - 2,800,000Total Assets 36,525,725 179,429,541 2,373,385 218,328,651

LiabilitiesPurchases awaiting settlement - - 3,233,020 3,233,020Payables - - 700,472 700,472Financial derivatives at fair value - - 148,332 148,332Total Liabilities - - 4,081,824 4,081,824




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United Singapore Bond FundVariablerates

Fixedrate

Non-interestbearing Total

$ $ $ $

As at 30 June 2017AssetsPortfolio of investments 30,886,478 177,972,254 1,972,539 210,831,271Receivables - - 845,106 845,106Cash and bank balances 3,059,129 - - 3,059,129Financial derivatives at fair value - - 93,863 93,863Total Assets 33,945,607 177,972,254 2,911,508 214,829,369

LiabilitiesPayables - - 592,545 592,545Financial derivatives at fair value - - 91,957 91,957Total Liabilities - - 684,502 684,502

As at 30 June 2018 and 2017, should interest rates have lowered or risen by the respective basis points(“bps”) as disclosed below with all other variables remaining constant, the increase or decrease in netassets attributable to unitholders for the year would be as follows:

2018 2017Net impact tonet assets


Net impact tonet assets


$ bps $ bps

United Singapore BondFund 6,775,509 50 5,988,766 50




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The United Singapore Bond Fund has direct exposure to interest rate changes on the valuation and cashflows of its interest bearing assets and liabilities. However, it may also be indirectly affected by the impactof changes on the earnings of certain companies in which the Sub-Fund invests and impact on thevaluation of certain over-the-counter derivative products that use market interest rates as an input.Therefore, the above sensitivity analysis may not fully indicate the total effect on the Sub-Fund’s netassets attributable to unitholders of future movements in interest rates.

The United Global Dividend Balanced Fund invests into underlying bond and equity funds. The impact ofa change in interest rates on the net assets attributable to unitholders is analysed in Note 10(a)(ii), wheresuch a change has an impact on the benchmark index of the Investee Funds used in the price risksensitivity analysis. Hence, no separate interest rate risk sensitivity analysis is presented.

(b) Liquidity risk

The Sub-Funds are exposed to daily cash redemptions and disbursements for the settlements ofpurchases. The Manager therefore ensures that the Sub-Funds maintain sufficient cash and cashequivalents and that they are able to obtain cash from the sale of investments held to meet its liquidityrequirements. Reasonable efforts will be taken to invest in securities which are traded in a relatively activemarket and which can be readily disposed of.

The United Singapore Bond Fund’s investments are listed securities and are considered to be readilyrealisable as they are listed on established regional stock exchanges. The United Global DividendBalanced Fund’s Investee Funds are considered to be readily realisable as the net asset value of eachInvestee Fund is struck daily, and units are redeemable on demand at the published price.

The Manager may from time to time employ derivatives to implement a portfolio strategy to reduce risk orfor the purpose of efficient portfolio management. Market liquidity of complex derivatives are significantlyless than traditional investment instruments and such positions may therefore require a longer time toreverse than would be typically be expected for traditional investment instruments. No such investmentswere held at the financial year end date.




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(b) Liquidity risk (continued)

The tables below analyse the Sub-Funds’ financial liabilities into relevant maturity groupings based onthe remaining period at the financial year end to the contractual maturity date. The amounts in the tablesare the contractual undiscounted cash flows. Balances due within 12 months equal their carryingbalances, as the impact of discounting is not significant.

United Singapore Bond FundLess than 3months

3 months to1 year

Over1 year

$ $ $

As at 30 June 2018Purchases awaiting settlement 3,233,020 - -Payables 700,472 - -Financial derivatives at fair value- Foreign currency contracts 148,332 - -

Less than 3months

3 months to1 year

Over1 year

$ $ $As at 30 June 2017Payables 592,545 - -Financial derivatives at fair value- Foreign currency contracts 91,957 - -




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(b) Liquidity risk (continued)

United Global Dividend Balanced FundLess than 3months

3 months to1 year

Over1 year

$ $ $

As at 30 June 2018Payables 149,248 - -Distribution payable 43,737 - -

Less than 3months

3 months to1 year

Over1 year

$ $ $As at 30 June 2017Payables 609,680 - -Distribution payable 48,628 - -

(c) Credit risk

Credit risk is the risk that counterparty will fail to perform contractual obligations, either in whole or in part,under a contract.

Concentrations of credit risk are minimised primarily by:

• ensuring counterparties, together with the respective credit limits, are approved,

• ensuring that transactions are undertaken with a large number of counterparties, and

• ensuring that the majority of transactions are undertaken on recognised exchanges.

As such, the Sub-Funds do not have a concentration of credit risk that arises from an exposure to a singlecounterparty. Furthermore, the Sub-Funds do not have a material exposure to group of counterpartieswhich are expected to be affected similarly by changes in economic or other conditions.




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(c) Credit risk (continued)

The table below analyses the Sub-Fund’s investments by credit ratings expressed as a percentage of netassets attributable to unitholders. The credit ratings are reviewed regularly.

United Singapore Bond FundDebt securities

2018 2017Fixed RateSecurities

Floating Ratesecurities

Fixed RateSecurities

Floating Ratesecurities

Aa1 - - 2% -Aaa 37% - 44% -Baa1 4% - 4% -Baa2 7% 2% - 5%Baa3 2% 2% 7% 5%Non-rated 32% 11% 27% 5%

In order to monitor the credit quality of the “Non-rated” underlying debt securities, the Manager, on thebasis of internal research, prepares its own shadow ratings for the various instruments for whichpublically available credit ratings are not available. The non-rated securities comprise of debt securitiesissued mainly by Singapore companies.

The United Global Dividend Balanced Fund’s investments comprise solely unit trust funds as at 30 June2018. As such, credit risk has been represented as the custodian’s credit rating on the following page.

All transactions in listed securities are settled/paid upon delivery using approved brokers. The risk ofdefault is considered minimal, as delivery of securities is only made once the broker has receivedpayment. Payment is made on a purchase once the securities have been received by the broker. Thetrade will fail if either party fails to meet its obligation.




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(c) Credit risk (continued)

Credit risk also arises from cash and cash equivalents and derivative positions held with financialinstitutions. The tables below summarise the credit rating of banks and custodians in which theSub-Fund’s assets are held as at 30 June 2018 and 30 June 2017.

The credit ratings are based on the Viability ratings published by Fitch.

United Singapore Bond FundCredit ratingas at 30 June

2018

Credit ratingas at 30 June

2017

Bank and custodianState Street Bank and Trust Company aa- aa-

Fixed depositsUnited Overseas Bank Limited aa- n/a

Counterparties of foreign currency contractsState Street Bank and Trust Company n/a aa-Citibank n/a aAustralia and New Zealand Banking Group aa- aa-United Overseas Bank Limited n/a aa-

United Global Dividend Balanced FundCredit ratingas at 30 June

2018

Credit ratingas at 30 June

2017

Bank and custodianState Street Bank and Trust Company aa- aa-

The custodian of the Investee Funds is also State Street Bank and Trust Company, with credit ratings

disclosed in the table above.

The maximum exposure to credit risk at the financial year end is the carrying amount of the portfolio of

investments and cash and bank balances as presented in Statements of Financial Position.




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(d) Capital management

The Sub-Funds’ capital is represented by the net assets attributable to unitholders. The Sub-Funds striveto invest the subscriptions of redeemable participating units in investments that meet the Sub-Funds’investment objectives while maintaining sufficient liquidity to meet unitholder redemptions.

(e) Fair value estimation

The Sub-Funds classify fair valuemeasurements using a fair value hierarchy that reflects the significanceof the inputs used in making the measurements. The fair value hierarchy has the following levels:

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

• 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, unobservableinputs) (Level 3).




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(e) Fair value estimation (continued)

The following tables analyse within the fair value hierarchy, the Sub-Funds’ financial assets and liabilities(by class) measured at fair value at 30 June 2018 and 2017:

United Singapore Bond FundLevel 1 Level 2 Level 3 Total$ $ $ $

As at 30 June 2018AssetsPortfolio of investments- Quoted bonds - 211,688,301 - 211,688,301

Total - 211,688,301 - 211,688,301

LiabilitiesFinancial derivatives at fair value - 148,332 - 148,332Total - 148,332 - 148,332

Level 1 Level 2 Level 3 Total$ $ $ $

As at 30 June 2017AssetsPortfolio of investments- Quoted bonds - 210,831,271 - 210,831,271

Financial derivatives at fair value - 93,863 - 93,863Total - 210,925,134 - 210,925,134

LiabilitiesFinancial derivatives at fair value - 91,957 - 91,957Total - 91,957 - 91,957




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(e) Fair value estimation (continued)

United Global Dividend Balanced FundLevel 1 Level 2 Level 3 Total$ $ $ $

As at 30 June 2018AssetsPortfolio of investments- Quoted unit trusts 13,353,191 - - 13,353,191

Total 13,353,191 - - 13,353,191

Level 1 Level 2 Level 3 Total$ $ $ $

As at 30 June 2017AssetsPortfolio of investments- Quoted unit trusts 14,410,166 - - 14,410,166

Total 14,410,166 - - 14,410,166

Investment in open-ended investment funds whose net asset value is struck daily, price information ispublished and readily available and units are subscribed and redeemable on demand at the publishedprice, are classified within Level 1. The quotes price for these financial instruments is not adjusted.

Financial instruments that trade in markets that are not considered to be active but are valued based onquoted market prices, dealer quotations or alternative pricing sources supported by observable inputsare classified within Level 2. These include investment grade corporate and government bonds and overthe counter derivatives.

Except for cash and bank balances which are classified as Level 1, the Sub-Funds’ assets and liabilitiesnot measured at fair value at 30 June 2018 and 2017 have been classified as Level 2. The carryingamounts of these assets and liabilities approximate their fair values as at the financial year end date.




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(f) Offsetting financial assets and financial liabilities

Financial assets and liabilities are offset and the net amount reported in the Statements of FinancialPosition when there is a legally enforceable right to offset the recognised amounts and there is anintention to settle on a net basis or realise the asset and settle the liability simultaneously. The gross andnet positions of financial assets and liabilities that have been offset in the Statements of FinancialPosition are disclosed in the first three columns of the tables below.


Financial assets Effects of offsetting on the Statementsof Financial Position

Related amount not offset

Grossamounts offinancialassets

Grossamountsset off in

theStatements

ofFinancialPosition

Net amountof

financialassets

presentedin the

Statementsof

FinancialPosition

Financialinstruments

Collateralpledged/received Net amount

$ $ $ $ $ $30 June 2018Derivative financialinstruments - - - - - -Total - - - - - -

30 June 2017Derivative financialinstruments 93,863 - 93,863 (2,973) - 90,890Total 93,863 - 93,863 (2,973) - 90,890




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(f) Offsetting financial assets and financial liabilities (continued)


Financial liabilities Effects of offsetting on the Statementsof Financial Position

Related amounts not offset

Grossamounts offinancialliabilities

Grossamountsset off in

theStatements

ofFinancialPosition

Net amountof

financialliabilitiespresented

in theStatements

ofFinancialPosition

Financialinstruments

Collateralpledged/received Net amount

$ $ $ $ $ $

30 June 2018Derivative financialinstruments 148,332 - 148,332 - - 148,332Total 148,332 - 148,332 - - 148,332

30 June 2017Derivative financialinstruments 91,957 - 91,957 (2,973) - 88,984Total 91,957 - 91,957 (2,973) - 88,984

11 Structured entities


The Sub-Fund’s investments in Investee Funds are subject to the terms and conditions of the respectiveInvestee Fund’s offering documentation and are susceptible to market price risk arising fromuncertainties about future values of those Investee Funds. The Manager makes investment decisionsafter extensive due diligence of the Investee Funds, their strategy and the overall quality of the respectiveInvestee Fund’s manager. The Investee Funds in the investment portfolio are managed by portfoliomanagers who are compensated by the respective Investee Funds for their services. Such compensationgenerally consists of an asset based fee and is reflected in the valuation of the Sub-Fund’s investmentsin each of the Investee Funds.




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11 Structured entities (continued)

The Sub-Fund has the right to request redemption of its investments in the Investee Funds on a dailybasis.

The exposure to investments in the Investee Funds at fair value is disclosed under the Statements ofPortfolio. These investments are included within “Portfolio of Investments” in the Statements of FinancialPosition.

The Sub-Fund’s holdings in an Investee Fund, as a percentage of the Investee Fund’s total net assetvalue, will vary from time to time, dependent on the volume of subscriptions and redemptions at theInvestee Fund level. It is possible that the Sub-Fund may, at any point in time, hold a majority of anInvestee Fund’s total units in issue.

The Sub-Fund’smaximum exposure to loss from its interests in the Investee Funds is equal to the total fairvalue of its investments in Investee Funds.

Once the Sub-Fund has disposed of its shares in an Investee Fund, the Sub-Fund ceases to be exposedto any risk from it.

12 Related party transactions

(a) The Manager and the Trustee of the Sub-Funds are UOB Asset Management Ltd and State StreetTrust (SG) Limited respectively. State Street Trust (SG) Limited replaced HSBC Institutional TrustServices (Singapore) Limited as the Trustee with effect from 1 April 2017. The Manager is a subsidiary ofUnited Overseas Bank Limited while the Trustee is a subsidiary of State Street Bank and Trust Company.

Management fee and valuation fee are paid to the Manager for the financial year. Management feerebates are received from the Manager in respect of Investee Funds that are managed by the Manager.Trustee fee and registrar fee were paid to the Retired Trustee for the period from 1 July 2016 to 31 March2017. With effect from 1 April 2017, trustee fee and registrar fee are paid to the Trustee and State StreetBank and Trust Company, Singapore Branch respectively.

Custody fee is paid to State Street Bank and Trust Company, Singapore Branch for the financial year.

These fees paid or payable by the Sub-Funds shown in the Statements of Total Return and in therespective Notes to the Financial Statements are on terms set out in the Trust Deed. All other relatedparty transactions are shown elsewhere in the financial statements.




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12 Related party transactions (continued)

(b) As at the end of the financial year, the Sub-Fundsmaintained the following accounts with their relatedparties:



2018 2017 2018 2017$ $ $ $

State Street Bank and TrustCompany, Singapore BranchCash and bank balances 3,379,325 3,059,129 8,009 901,919

United Overseas Bank LimitedFixed deposits 2,800,000 - - -

(c) The following transactions took place during the financial year between the Sub-Funds and relatedparties at terms agreed between the parties:

United Singapore Bond FundUnited Global Dividend Balanced

Fund2018 2017 2018 2017$ $ $ $

State Street Bank andTrust Company,Singapore BranchBank charges - 389 - 252Interest income 264 - 25 -

United Overseas BankLimitedBank charges 10,778 50 1,781 50Interest expense - 10 - -

The Hongkong andShanghai BankingCorporation LimitedBank charges - 62 - 431




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13 Financial ratios

United Singapore Bond Fund2018 2017$ $

Total operating expenses 1,816,154 1,412,437Average daily net asset value 222,757,197 185,928,478Expense ratio1 0.82% 0.76%

Lower of total value of purchases or sales 139,343,086 159,135,951Average daily net assets value 222,757,197 185,928,478

Turnover ratio2 62.55% 85.59%

1 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 financial year end was based on total operating expensesdivided by the average net asset value respectively for the financial year. The total operating expenses do not include (whereapplicable) brokerage and other transactions costs, performance fee, interest expense, distribution paid out to unitholders, foreignexchange gains/losses, front or back end loads arising from the purchase or sale of other funds and tax deducted at source orarising out of income received. The Sub-Fund does not pay any performance fee. The average net asset value is based on thedaily balances.

2 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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13 Financial ratios (continued)


2018 2017$ $

Total operating expenses 83,890 76,848Average daily net asset value 14,106,389 16,415,190Weighted average of the Investee Funds’ expense ratio 1.90% 1.51%Expense ratio1 2.49% 1.98%

Lower of total value of purchases or sales 1,417,322 2,266,477Average daily net assets value 14,106,389 16,415,190

Turnover ratio2 10.05% 13.81%

1 The expense ratio has been computed based on the guidelines laid down by the Investment Management Association ofSingapore (“IMAS”).This is the sum of the Sub-Fund’s expense ratio and the weighted average of the Investee Funds’ unauditedexpense ratios. The unaudited expense ratios of the Investee Funds’ are obtained from Investee Funds’ manager. The calculationof the Sub-Fund’s expense ratio at financial year end was based on total operating expenses divided by the average net assetvalue respectively for the financial year. The total operating expenses do not include (where applicable) brokerage and othertransactions costs, performance fee, interest expense, distribution paid out to unitholders, foreign exchange gains/losses, front orback end loads arising from the purchase or sale of other funds and tax deducted at source or arising out of income received. TheSub-Fund does not pay any performance fee. The average net asset value is based on the daily balances.

2 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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14 Comparative

Certain comparative figures have been revised to conform to the current year’s presentation. Theserevisions have no impact on the Sub-Funds’ net assets attributable to unitholders as at 30 June 2018 and2017.




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