real estate multi strategy funds - uob group · united real estate multi strategy funds...

United Real EstateMulti StrategyFundsUnited Global Real

Estate Securities FundUnited Asia Pacific Real

Estate Income Fund

Semi Annual Report

for the half year ended 31st December 2017

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

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

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

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

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

SUB-MANAGER (UNITED ASIA PACIFIC REAL ESTATE INCOME FUND)Sumitomo Mitsui Asset Management Company, LimitedAtago Green Hills Mori Tower 28th Floor2-5-1 Atago Minato-kuTokyo 105-6228, Japan

United Real Estate Multi Strategy Funds(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

04 May 2005Ann

CompRet

United Global RealEstate SecuritiesFund 3.79 4.07 -2.29 0.97 4.66 -0.58 1.41

Benchmark 2.07 2.63 3.77 5.73 9.00 2.91 4.54

Source: Lipper, a Thomson Reuters Company.

Note: The performance returns of the Fund are in Singapore dollars based on a NAV-to-NAV basis with dividends and distributionsreinvested, if any.The benchmark of the Fund: S&P Developed Property Index.

For the 6 months ended 31 December 2017, the Fund rose 4.07% on a net asset value basis in Singapore dollar terms,compared to the benchmark, the S&P Developed Property Index, which increased by 2.63% during the same period.

As at 31 December 2017, the Fund was positioned 54.88% in the United States, 10.57% in Japan, 10.04% in Hong Kong,6.93% in Australia, 6.30% in United Kingdom, 5.19% in Singapore and 7.40% in other regions and -1.31% in cash.

Economic and Market Review

Global equities ended the year higher, with Asia ex-Japan and Europe markets outperforming while US lagged the broaderindex. Macroeconomic data in the global markets was broadly positive acrossmost major indices. Leading economic indicatorsfor most major regions moved higher while results were mixed for emerging markets. Purchasing managers’ indices (PMIs) inmost developed regions remained in expansionarymode and ended the review period strongly. Inflation remains benign despitethe strong economic activities globally and central bank monetary policies remain dovish globally. Global listed real estatefinished the year with a return of 2.63% (S&P Developed Property Index), underperforming global equities which returned7.66%.

Outlook and Fund Strategy

In the US, a weakening dollar and recent tax reforms should be tailwinds to corporate profits while the positive market outlookin the longer term continues to be underpinned by better labour market trends and resilient corporate earnings.

In Europe, a weaker euro has helped to lift confidence and boost economic activities. The region also has significant operatingleverage to an upturn in economic activity with profit margins currently at trough levels. The backdrop of increasing geopoliticalrisks in the region appears to be subsiding and this would remove any overhang on the region.

In Japan, economic data remains mixed but we believe that the Bank of Japan (BoJ) will remain accommodative, which wouldhelp to support the market. Despite disappointments on policy and the anaemic economic backdrop, there are some positivedevelopments in corporate governance and corporate performance. A weak Yen also should be beneficial to the exporters andcorporate earnings. However, we remain skeptical about any structural improvement in the economy in the longer term.

The emerging markets should benefit from the current global upcycle as being net exporters to the rest of the world. Thecontinuation of rate hike cycle by the US Federal Reserve in coming quarters could trigger fiscal and monetary adjustmentsglobally. This could adversely impact corporate earnings, capital flows and emerging market growth in the period ahead.

United Global Real Estate Securities Fund(Constituted under a Trust Deed in the Republic of Singapore)

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

i) Country

Fair Value(S$)

% of NAV

Australia 441,475 6.93

Canada 98,733 1.55

France 157,363 2.47

Germany 56,192 0.88

Hong Kong 639,678 10.04

Japan 673,363 10.57

Singapore 330,823 5.19

Sweden 103,179 1.62

Switzerland 56,405 0.88

United Kingdom 401,696 6.30

United States 3,497,744 54.88

Portfolio of investments 6,456,651 101.31

Other net assets/(liabilities) (83,372) (1.31)

Total 6,373,279 100.00

ii) Industry

Fair Value(S$)

% of NAV

Real Estate 6,456,651 101.31



Total 6,373,279 100.00

iii) Asset Class

Fair Value(S$) % of NAV

Quoted equities 6,456,651 101.31


Total 6,373,279 100.00

iv) Credit rating of quoted bonds

N/A


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C) Top Ten Holdings

10 largest holdings as at 31 December 2017

Fair Value(S$)

Percentage oftotal net assetsattributable tounitholders

%

THE BRITISH LAND CO PLC 401,696 6.30

SCENTRE GROUP 302,219 4.74

LINK REIT 291,062 4.57

KEPPEL REIT 290,934 4.56

THE MACERICH CO 272,102 4.27

GAMING AND LEISURE PROPERTIES INC 271,957 4.27

ALEXANDRIA REAL ESTATE EQUITIES INC 261,781 4.11

WP CAREY INC 257,818 4.04

SUN HUNG KAI PROPERTIES LTD 222,924 3.50

SUN COMMUNITIES INC 210,785 3.31


Fair Value


(S$) %

CARE CAPITAL PROPERTIES INC 344,019 4.61

OMEGA HEALTHCARE INVESTORS 338,710 4.54

SPIRIT REALTY CAPITAL INC 334,185 4.48

CBL & ASSOCIATES PROPERTIES INC 332,281 4.46

HOST HOTELS & RESORTS INC 332,061 4.45

SIA REIT INC 309,019 4.14

PUBLIC STORAGE 258,312 3.46

VICINITY CENTRES 245,456 3.29

SUN HUNG KAI PROPERTIES LTD 237,394 3.18

PROLOGIS INC 236,424 3.17


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D) Exposure to derivatives

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

Contract orunderlyingprincipalamount

Positivefair value % of NAV

Negativefair value % of NAV

$ $ $

Foreign currency contracts 2,088 2 -* 1 -*

* denotes amount less than 0.01%

ii) There was a net realised loss of SGD 3,414 on derivative contracts during the financial period from 01 July 2017 to31 December 2017.

iii) There was a net unrealised gain of SGD 1 on outstanding derivative contracts marked to market as at 31 December 2017.

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

Please refer to the Statements of Portfolio.

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

N/A

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

Total amount of redemptions SGD 496,517

Total amount of subscriptions SGD 307,868

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

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

Bank balances SGD 15,908

ii) Investment in Initial Public Offerings managed by UOB Group

N/A

iii) As at 31 December 2017, the brokerage income earned by State Street Bank and Trust Company, Singapore Branch wasSGD 17,004.


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I) Expense ratios

2017 2016

$ $

Total operating expenses 195,122 187,875

Average daily net asset value 6,704,895 7,859,277

Expense ratio 2.91% 2.39%

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

J) Turnover ratios

2017 2016

$ $

Lower of total value of purchases or sales 6,428,991 7,044,555

Average daily net assets value 6,464,141 7,624,478

Turnover ratio 99.46% 92.39%

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

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

N/A

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

should be disclosed as well

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

N/A

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

N/A

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

N/A

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


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M) Soft dollar commissions/arrangements

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

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

N/A


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A) Fund Performance

Class SGD Acc


3 mth%

Growth

6 mth%

Growth

1 yr%

Growth

3 yrAnn

CompRet

5 yrAnn

CompRet

10 yrAnn

CompRet

SinceInception

17 June 2013Ann

CompRet

United Asia PacificReal Estate IncomeFund 3.64 3.64 3.80 4.87 N/A N/A 6.65

Benchmark 4.42 4.89 3.85 7.25 N/A N/A 9.23


Note: The performance returns of the Fund are in Singapore dollars based on a NAV-to-NAV basis with dividends and distributionsreinvested, if any.The benchmark of the Fund: S&P Asia Pacific REITs Index.

Class SGD Dist


3 mth%

Growth

6 mth%

Growth

1 yr%

Growth

3 yrAnn

CompRet

5 yrAnn

CompRet

10 yrAnn

CompRet

SinceInception

17 June 2013Ann

CompRet


Benchmark 4.42 4.89 3.85 7.25 N/A N/A 9.23


Note: The performance returns of the Fund are in Singapore dollars based on a NAV-to-NAV basis with dividends and distributionsreinvested, if any.The benchmark of the Fund: S&P Asia Pacific REITs Index.

United Asia Pacific Real Estate Income Fund(Constituted under a Trust Deed in the Republic of Singapore)

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A) Fund Performance (continued)

Class USD Dist


3 mth%

Growth

6 mth%

Growth

1 yr%

Growth

3 yrAnn

CompRet

5 yrAnn

CompRet

10 yrAnn

CompRet

SinceInception

25 November2014Ann

CompRet


Benchmark 6.10 8.07 12.26 6.95 N/A N/A 7.50


Note: The performance returns of the Fund are in United States dollars based on a NAV-to-NAV basis with dividends and distributionsreinvested, if any.The benchmark of the Fund: S&P Asia Pacific REITs Index.

Class SGD Acc

For the six months ended 31 December 2017, the Fund rose by 3.64%, compared with a 4.89% gain in the benchmark S&PAsia Pacific REITs Index, in Singapore dollar terms.

Class SGD Dist

For the six months ended 31 December 2017, the Fund rose by 3.69%, compared with a 4.89% gain in the benchmark S&PAsia Pacific REITs Index, in Singapore dollar terms.

Class USD Dist

For the six months ended 31 December 2017, the Fund rose by 6.80%, compared with a 8.07% gain in the benchmark S&PAsia Pacific REITs Index, in US dollar terms.

The Fund’s underperformance was due to its underweight position in Australia REITs which outperformed towards the end ofthe year and negative stock selection in this market. This was offset by an overweight position in Singapore REITs whichoutperformed during the period under review. Positive stock selection in Japan contributed to performance. Contributors toperformance include Capitaland Commercial Trust (Singapore), Goodman Group (Australia) and MCUBS MidcityInvestment Corp (Japan).

The key detractors from performance were Aeon REIT Investment Corp (Japan), Fukuoka REIT (Japan) and Lippo MallsIndonesia Retail (Singapore).

During the period under review, the Fund reduced its exposure to Singapore as valuations turned less attractive after a strongperformance. The Fund raised its weight to Australia and Hong Kong.

As at 31 December 2017, the Fund was positioned 39.41% in Japan, 30.52% in Australia, 20.61% in Singapore, 9.07% inHong Kong with the remainder 0.39% in cash.

Economic and Market Review

Asia Pacific REITs rose even as it underperformed the broad equitymarkets. The equitymarkets in Asia Pacific registered stellargains supported by a “Goldilocks Nirvana” - that is stable growth and benign inflation as global economic data continued toimprove. Investors continued to adopt a risk-on approach, shrugging off geopolitical tensions from North Korea to the MiddleEast.


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As expected, the US Federal Reserve (Fed) raised interest rates twice in 2H2017, reflecting confidence in the US economy. TheFed also announced its balance sheet reduction and quantitative measures which had supported bond prices in recent years.Other major central banks including the Bank of England and the European Central Bank indicated a strong willingness toreduce monetary stimulus.

The best performing Asia Pacific REITmarket for the period under review wasSingapore. Attractive dividend yields and strongSingapore currency attracted fund flows to the S-REITs. Grade A office rents have turned positive while improved economybackdrop and diminishing supply supported positive outlook in the industrials and hospitality sector. Singapore REITs wereactive in asset recycling and making acquisitions overseas to deliver growth.

Australia REITs was the second best performing REIT market in the Asia Pacific region. The outperformance towards the endof the year was fuelled by merger & acquisition activity. This has boosted investors’ sentiment as demand in the physicalproperty market remained strong. Meanwhile, the Reserve Bank of Australia held its official cash rate steady at a record lowof 1.5%

Hong Kong REITs also outperformed. Successful asset monetisation at steep valuations has led to re-rating of Hong KongREITs. Retail sales continued to accelerate underpinned by higher tourist arrivals and positive consumer sentiments. Grade Aoffice rentals remained steady despite new supply in the decentralised area, supported by strong demand from the mainlandChinese firms.

Japan REITs underperformed due to outflows from domestic mutual fund market. Domestic mutual funds turned net-sellers ofJ-REITs as investors switched out of the dividend funds. Meanwhile, share buy-back andmerger and acquisition activities sinceNovember provided some support to the market.

Outlook and Fund Strategy

While global interest rates normalise, central banks in major developed economies are unlikely to embark on aggressivetightening policies given benign inflation. REITs in the region offer attractive headline dividend yields and yield spreads over the10-year government bond yields. Active direct property transaction on compressed cap rates also supports Net Asset Value(NAV) of the REITs. Hence, we believe that Asia Pacific REITs can still deliver positive returns in this “Goldilocks Nirvana”environment.

Against the backdrop of ample liquidity, we expect Asia Pacific REITs to continue to adopt active asset recycling strategies.Positive economic growth also supports the leasingmarkets and asset value in this region. Rising income fromboth organic andinorganic growth should support distribution per unit (DPU) amid a rising interest rate environment. The REITs are not highlyleveraged with large proportion of debt on fixed rates and hence we see limited impact from higher interest costs. We focus onREITs that can deliver above average growth from rental increases as well as those active in asset acquisitions, assetenhancement or capital recycling.

In Singapore, REITs remain an attractive asset class, offering visible earnings and distributions supported by rental income.Improved supply-demand dynamics in the office, industrials and hospitality sector underpins positive outlook for 2018 and 2019.Given limited growth in the home market, S-REITs will continue their overseas acquisitions. We prefer REITS that are wellpositioned in the rental upcycle and have the ability to make accretive acquisitions.

In Hong Kong, a buoyant sentiment and low rates in the physical transaction market could lead to more asset monetisationopportunities for the REITs. Retail sales have recovered and hence retail rentals have started to improve. Meanwhile, rents inGrade A office in the central business district should stay strong given lack of supply and strong demand from the mainlandChinese firms.

In Japan, uncertainty created by continuous outflows from the mutual fund market is expected to remain. On the other hand,downside risk seems to be limited backed by attractive valuations. The yield spread of JREITs has widened to above historicalaverage after underperforming in the past 1 year. The property leasing market is expected to be solid in 2018 underpinned bya strong economy.

In Australia, we are cautious on the residential market as the prices have peaked and activities are set to moderate. Retailleasing market will continue to be under pressure given weak income growth and digital disruption. We like the logistics sectorgiven rising e-commerce acitivities. Meanwhile, office rentals in the key cities will be supported by lack of new supply in the nearterm.


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The Asia Pacific REIT market still presents an attractive investment proposition from a total return perspective, with acombination of stable dividend yield supported by predictable cash flow and upside potential for capital values. REITs offerinvestors liquidity and pure exposure to commercial real estate, which had typically been only been available through directinvestment to large, long-term institutional investors. Hence we believe Asia Pacific REITs should feature as a key investmentcomponent in investors’ diversified portfolios.


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

i) Country

Fair Value(S$)

% of NAV

Australia 2,015,281 30.52

Hong Kong 598,527 9.07

Japan 2,602,414 39.41

Singapore 1,361,079 20.61


Other net assets/(liabilities) 25,789 0.39

Total 6,603,090 100.00

ii) Industry

Fair Value(S$)

% of NAV

Real Estate 6,577,301 99.61



Total 6,603,090 100.00

iii) Asset Class

Fair Value(S$) % of NAV

Quoted equities 6,577,301 99.61


Total 6,603,090 100.00

iv) Credit rating of quoted bonds

N/A


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C) Top Ten Holdings


Fair Value(S$)


%


GOODMAN GROUP 325,642 4.93

DEXUS 301,664 4.57

LINK REIT 297,255 4.50

DAIWA OFFICE INVESTMENT CORP 253,685 3.84

JAPAN RENTAL HOUSING INVESTMENT 250,617 3.80

MIRVAC GROUP 243,181 3.68

ICHIGO OFFICE REIT INVESTMENT CORP 240,262 3.64

NIPPON ACCOMMODATIONS FUND INC 237,207 3.59



Fair Value


(S$) %


ACTIVIA PROPERTIES INC 327,598 5.79

STOCKLAND 291,782 5.15

GOODMAN GROUP 275,974 4.88

NOMURA REAL ESTATE MASTER FUND INC 258,412 4.57

DEXUS PROPERTY GROUP 251,589 4.44

ASCENDAS REAL ESTATE INVESTMENT TRUST 249,473 4.41


KENEDIX REALTY INVESTMENT CO 208,093 3.68

WESTFIELD CORP 203,609 3.60

D) Exposure to derivatives

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

N/A

ii) There was a net realised loss of SGD 952 on derivative contracts during the financial period from 01 July 2017 to31 December 2017.

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

N/A


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

Please refer to the Statements of Portfolio.

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

N/A

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

Total amount of redemptions SGD 296,684

Total amount of subscriptions SGD 165,176

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

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

Bank balances SGD 55,823

ii) Investment in Initial Public Offerings managed by UOB Group

N/A

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

I) Expense ratios

2017 2016

$ $

Total operating expenses 189,316 146,829

Average daily net asset value 6,170,041 5,484,660

Expense ratio 3.07% 2.68%

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


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J) Turnover ratios

2017 2016

$ $

Lower of total value of purchases or sales 5,756,192 2,964,690

Average daily net assets value 6,629,527 5,987,892

Turnover ratio 86.83% 49.51%

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

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

N/A

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

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

N/A

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

N/A

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

N/A

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

M) Soft dollar commissions/arrangements

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

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

N/A


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

United Global Real EstateSecurities Fund

United Asia Pacific Real EstateIncome Fund

31 December 31 December 31 December 31 December

2017 2016 2017 2016

$ $ $ $

Income

Dividends 130,156 172,103 138,831 123,055

Interest 18 2 41 4

Total 130,174 172,105 138,872 123,059

Less: Expenses

Management fee 42,378 50,014 50,135 45,269

Trustee fee 2,546 2,521 2,546 2,521

Audit fee 11,394 8,764 11,278 8,715

Registrar fee 7,582 7,531 7,582 7,531

Valuation fee 4,075 4,809 4,178 3,772

Custody fee 7,084 4,990 6,350 1,718

Transaction costs 13,038 13,576 8,676 15,295

Interest expenses - - - 10

Other expenses 16,182 4,997 8,898 4,635

Total 104,279 97,202 99,643 89,466

Net income/(losses) 25,895 74,903 39,229 33,593

Net gains/(losses) on value of investments

Net gains/(losses) on investments 264,539 96,693 213,321 (58,489)

Net gains/(losses) on financial derivatives (3,413) - (952) -

Net foreign exchange gains/(losses) (2,379) 25,724 (3,605) (37,812)

258,747 122,417 208,764 (96,301)

Total return/(deficit) for the period beforeincome tax 284,642 197,320 247,993 (62,708)

Less: Income tax (30,334) (49,377) (15,945) (21,566)

Total return/(deficit) for the period 254,308 147,943 232,048 (84,274)


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



31 December 30 June 31 December 30 June

2017 2017 2017 2017

$ $ $ $

Assets

Portfolio of investments 6,456,651 6,494,875 6,577,301 6,487,303

Sales awaiting settlement - - 160,056 212,083

Receivables 28,159 35,478 55,520 65,510

Cash and bank balances 15,908 28,347 55,823 498,825

Financial derivatives at fair value 2 - - -

Total assets 6,500,720 6,558,700 6,848,700 7,263,721

Liabilities

Purchases awaiting settlement - - 162,414 515,063

Payables 64,928 59,013 58,421 71,656

Distribution payable 62,512 64,960 24,775 25,187

Financial derivatives at fair value 1 - - -

Total liabilities 127,441 123,973 245,610 611,906

Equity

Net assets attributable to unitholders 6,373,279 6,434,727 6,603,090 6,651,815


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



31 December 30 June 31 December 30 June

2017 2017 2017 2017

$ $ $ $Net assets attributable to unitholders at thebeginning of the financial period/year 6,434,727 8,158,440 6,651,815 4,688,615

OperationsChange in net assets attributable to unitholdersresulting from operations 254,308 (305,412) 232,048 (123,866)

Unitholders’ contributions/(withdrawals)

Creation of units 307,868 609,886 165,176 4,199,455

Cancellation of units (496,517) (1,735,734) (296,684) (1,861,227)

Change in net assets attributable to unitholdersresulting from net creation and cancellation ofunits (188,649) (1,125,848) (131,508) 2,338,228

Distributions (127,107) (292,453) (149,265) (251,162)

Total increase/(decrease) in net assetsattributable to unitholders (61,448) (1,723,713) (48,725) 1,963,200

Net assets attributable to unitholders at theend of the financial period/year 6,373,279 6,434,727 6,603,090 6,651,815


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

United Global Real Estate Securities Fund

Holdings at Fair value at

Percentage oftotal net assetsattributable tounitholders at

31 December2017

31 December2017$

31 December2017%

By Geography - Primary

Quoted Equities

AUSTRALIA

GROWTHPOINT PROPERTIES AUSTRALIA 39,069 139,256 2.19

SCENTRE GROUP 69,005 302,219 4.74

TOTAL AUSTRALIA 441,475 6.93

CANADA

RIOCAN REAL ESTATE INVESTMENT TRUST 3,800 98,733 1.55

FRANCE

ICADE 50 6,574 0.10

KLEPIERRE 1,234 72,606 1.14

UNIBAIL-RODAMCO SE 232 78,183 1.23

TOTAL FRANCE 157,363 2.47

GERMANY

VONOVIA SE 846 56,192 0.88

HONG KONG

LINK REIT 23,500 291,062 4.57

SINO LAND CO LTD 36,000 85,176 1.33

SUN HUNG KAI PROPERTIES LTD 10,000 222,924 3.50

THE WHARF HOLDINGS LTD 3,000 13,847 0.22

WHARF REAL ESTATE INVESTMENT CO LTD 3,000 26,669 0.42

TOTAL HONG KONG 639,678 10.04

JAPAN

DAITO TRUST CONSTRUCTION CO LTD 300 81,768 1.28

DAIWA HOUSE INDUSTRY CO LTD 4,100 210,463 3.30

MITSUBISHI ESTATE CO LTD 6,000 139,512 2.19

MITSUI FUDOSAN CO LTD 2,200 65,901 1.04

SUMITOMO REALTY & DEVELOPMENT CO LTD 4,000 175,719 2.76

TOTAL JAPAN 673,363 10.57


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31 December2017

31 December2017$

31 December2017%

By Geography - Primary (continued)

Quoted Equities

SINGAPORE

CAPITALAND LTD 11,300 39,889 0.63

KEPPEL REIT 230,900 290,934 4.56

TOTAL SINGAPORE 330,823 5.19

SWEDEN

KUNGSLEDEN AB 10,624 103,179 1.62

SWITZERLAND

SWISS PRIME SITE AG 457 56,405 0.88

UNITED KINGDOM

THE BRITISH LAND CO PLC 32,133 401,696 6.30

UNITED STATES

ALEXANDRIA REAL ESTATE EQUITIES INC 1,500 261,781 4.11

APARTMENT INVESTMENT & MANAGEMENT 800 46,731 0.73

APPLE HOSPITALITY REIT INC 5,900 154,620 2.43

AVALONBAY COMMUNITIES INC 100 23,843 0.37

BOSTON PROPERTIES INC 600 104,263 1.64

CUBESMART 3,700 143,000 2.24

DUKE REALTY CORP 3,700 134,545 2.11

EQUITY RESIDENTIAL 1,000 85,222 1.34

GAMING AND LEISURE PROPERTIES INC 5,500 271,957 4.27

HCP INC 1,900 66,221 1.04

HOST HOTELS & RESORTS INC 5,700 151,207 2.37

MID-AMERICA APARTMENT COMMUNITIES INC 1,000 134,388 2.11

PROLOGIS INC 400 34,485 0.54

PUBLIC STORAGE 600 167,585 2.63

REALTY INCOME CORP 2,500 190,504 2.99

REGENCY CENTERS CORP 2,200 203,395 3.19

SENIOR HOUSING PROPERTIES TRUST 7,600 194,500 3.05

SIMON PROPERTY GROUP INC 900 206,562 3.24

SL GREEN REALTY CORP 500 67,441 1.06


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31 December2017

31 December2017$

31 December2017%


Quoted Equities

UNITED STATES (continued)

SUN COMMUNITIES INC 1,700 210,785 3.31

THE MACERICH CO 3,100 272,102 4.27

VENTAS INC 900 72,178 1.13

WELLTOWER INC 500 42,611 0.67

WP CAREY INC 2,800 257,818 4.04

TOTAL UNITED STATES 3,497,744 54.88

Total Equities 6,456,651 101.31



Net assets attributable to unitholders 6,373,279 100.00


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Percentage oftotal net assetsattributable tounitholders at31 December

2017%

Percentage oftotal net assetsattributable tounitholders at30 June2017%

By Geography - Primary (Summary)

Quoted Equities

Australia 6.93 6.70

Austria - 0.38

Canada 1.55 1.80

France 2.47 4.03

Germany 0.88 1.36

Hong Kong 10.04 7.96

Japan 10.57 12.28

Singapore 5.19 4.74

Sweden 1.62 -

Switzerland 0.88 -

United Kingdom 6.30 5.00

United States 54.88 56.68

Portfolio of investments 101.31 100.93

Other net assets/(liabilities) (1.31) (0.93)

Net assets attributable to unitholders 100.00 100.00


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Fair value at31 December

2017$


2017%


By Industry - Secondary

Quoted Equities

Materials - - 0.52

Real Estate 6,456,651 101.31 100.41

Portfolio of investments 6,456,651 101.31 100.93

Other net assets/(liabilities) (83,372) (1.31) (0.93)

Net assets attributable to unitholders 6,373,279 100.00 100.00


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United Asia Pacific Real Estate Income Fund



31 December2017

31 December2017$

31 December2017%

By Geography - Primary

Quoted Equities

AUSTRALIA

DEXUS 29,600 301,664 4.57

GOODMAN GROUP 37,000 325,642 4.93

MIRVAC GROUP 99,000 243,181 3.68

SCENTRE GROUP 83,000 363,512 5.51

STOCKLAND 35,000 163,898 2.48

THE GPT GROUP 35,000 186,946 2.83

VICINITY CENTRES 79,000 224,607 3.40

WESTFIELD CORP 20,750 205,831 3.12

TOTAL AUSTRALIA 2,015,281 30.52

HONG KONG

CHAMPION REIT 150,000 146,935 2.23

LINK REIT 24,000 297,255 4.50

PROSPERITY REIT 140,000 79,938 1.21

YUEXIU REAL ESTATE INVESTMENT TRUST 85,000 74,399 1.13

TOTAL HONG KONG 598,527 9.07

JAPAN

ACTIVIA PROPERTIES INC 40 223,979 3.39

DAIWA OFFICE INVESTMENT CORP 36 253,685 3.84

GLOBAL ONE REAL ESTATE INVESTMENT CORP 24 113,745 1.72

HEALTH CARE & MEDICAL INVESTMENT CORP 140 178,376 2.70

HOSHINO RESORTS REIT INC 24 155,741 2.36

ICHIGO OFFICE REIT INVESTMENT CORP 262 240,262 3.64

INDUSTRIAL & INFRASTRUCTURE FUND 13 74,644 1.13

INVESCO OFFICE J-REIT INC 156 202,649 3.07

INVINCIBLE INVESTMENT CORP 290 164,965 2.50

JAPAN RENTAL HOUSING INVESTMENT 257 250,617 3.80

LASALLE LOGIPORT REIT 114 155,933 2.36

MITSUBISHI ESTATE LOGISTICS RE 63 204,560 3.10

NIPPON ACCOMMODATIONS FUND INC 43 237,207 3.59


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31 December2017

31 December2017$

31 December2017%


Quoted Equities

JAPAN (continued)

NOMURA REAL ESTATE MASTER FUND 88 146,051 2.21

TOTAL JAPAN 2,602,414 39.41

SINGAPORE

ASCENDAS REAL ESTATE INVESTMENT TRUST 76,000 206,720 3.13

CAPITALAND COMMERCIAL TRUST 72,000 138,960 2.10

CAPITALAND MALL TRUST 20,000 42,600 0.64

CAPITALAND RETAIL CHINA TRUST 55,000 89,100 1.35

CDL HOSPITALITY TRUSTS 45,600 77,064 1.17

FORTUNE REAL ESTATE INVESTMENT TRUST 72,000 118,902 1.80

FRASERS CENTREPOINT TRUST 32,000 71,680 1.08

FRASERS COMMERCIAL TRUST 30,000 44,700 0.68

FRASERS LOGISTICS & INDUSTRIAL TRUST 95,000 110,200 1.67

KEPPEL DC REIT 60,000 85,800 1.30

KEPPEL REIT 40,000 50,400 0.76

MANULIFE US REAL ESTATE INVESTMENT TRUST 85,000 102,803 1.56

MAPLETREE COMMERCIAL TRUST 33,000 53,460 0.81

MAPLETREE INDUSTRIAL TRUST 28,000 56,840 0.86

OUE HOSPITALITY TRUST 76,000 64,600 0.98

SPH REIT 45,000 47,250 0.72

TOTAL SINGAPORE 1,361,079 20.61

Total Equities 6,577,301 99.61



Net assets attributable to unitholders 6,603,090 100.00


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2017%


By Geography - Primary (Summary)

Quoted Equities

Australia 30.52 28.15

Hong Kong 9.07 8.08

Japan 39.41 39.09

Singapore 20.61 22.21

Portfolio of investments 99.61 97.53

Other net assets/(liabilities) 0.39 2.47

Net assets attributable to unitholders 100.00 100.00


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Fair value at31 December

2017$


2017%


By Industry - Secondary

Quoted Equities

Real Estate 6,577,301 99.61 97.53

Portfolio of investments 6,577,301 99.61 97.53

Other net assets/(liabilities) 25,789 0.39 2.47

Net assets attributable to unitholders 6,603,090 100.00 100.00


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