united global recovery funds · to performance. the fund’s zero position in tata motors and...

United Global RecoveryFundsØ United China-India

Dynamic Growth Fund Ø United High Grade

Corporate Bond Fund

Semi Annual Report

for the half 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

SUB-MANAGER (UNITED CHINA-INDIA DYNAMIC GROWTH FUND - INDIA PORTFOLIO)UTI International (Singapore) Private Limited3 Raffles Place#08-02 Bharat BuildingSingapore 048617

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

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A) Fund Performance

Class SGD

Fund Performance/Benchmark Returns

3 mth%

Growth

6 mth%

Growth

1 yr%

Growth

3 yrAnn

CompRet

5 yrAnn

CompRet

10 yrAnn

CompRet

SinceInception

22 February2010Ann

CompRet

United China-India DynamicGrowth Fund 1.27 -2.34 11.92 6.46 14.23 N/A 6.29Benchmark -0.45 -5.61 8.25 4.02 10.84 N/A 4.83

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: Since Inception - 30 Aug 15: 50% MSCI China and 50% MSCI India; 31 Aug 15 - Current: 25% SSE50 China A Share, 25% MSCI China and 50% MSCI India.

Class JPY


3 mth%

Growth

6 mth%

Growth

1 yr%

Growth

3 yrAnn

CompRet

5 yrAnn

CompRet

10 yrAnn

CompRet

SinceInception

21 December2009Ann

CompRet

United China-India DynamicGrowth Fund 1.72 -5.42 12.54 11.13 112.05 N/A 119.73Benchmark -0.28 -9.03 7.76 1.98 75.88 N/A 84.99

Source: UOBAM.

Note: The performance returns of the Fund are in Japanese Yen based on a NAV-to-NAV basis, with dividends and distributionsreinvested, if any.The benchmark of the Fund: Since Inception - 30 Aug 15: 50% MSCI China and 50% MSCI India; 31 Aug 15 - Current: 25% SSE50 China A Share, 25% MSCI China and 50% MSCI India.

For the six months ended 30 June 2018, the unit price of the Fund (Class SGD) fell 2.34%, on a net assetvalue basis, compared with a drop of 5.61% in the benchmark, comprising 25% SSE 50 China A Share,25% MSCI China and 50% MSCI India. The Fund outperformed the benchmark by +3.27% over theperiod.

For the six months ended 30 June 2018, the NAV of the Fund (Class JPY) fell 5.42%, outperforming the9.03% decline in the benchmark comprising 25% SSE 50 China A Share, 25% MSCI China and 50%MSCI India (JPY terms).

United China-India Dynamic Growth Fund(Constituted under a Trust Deed in the Republic of Singapore)

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A) Fund Performance (continued)

In China, the Fund’s performance was lifted by stocks picks mainly in Consumer Staples, Energy,Health Care and Materials sectors. Key contributors include Kweichou Moutai, Jiangsu YanghengBrewery, China Mengniu, Sinopec, CSPC Pharmaceutical and Jiangsu Hengrui, China ResourcesCement andWanhua Chemical. Detractors were mainly in Consumer Discretionary, Financials andProperty including Guangzhou Auto, China Zhengtong, Huatai Securities, Guotai Junan, ChinaVanke and China Merchants Shekou. The sectors that contributed positively were Consumer Staples,Energy, Health Care and Materials, while Consumer Discretionary, Real Estate and Financialsdetracted from performance.

In India, the Fund’s overweight position on Financials and underweight positions in Materials andEnergy sectors contributed positively. On the other hand, the overweight position in Health Care andunderweight position in Information Technology detracted from performance. Bajaj Finance,Mindtree, Kotak Mahindra Bank, IndusInd Bank and Jubilant Foodworks were the key contributorsto performance. The Fund’s zero position in Tata Motors and Bharti Airtel also contributed positively.Key stock underperformers include Motherson Sumi Systems, Eclerx Services and Ajanta Pharma.Underweight positions in key benchmark stocks that did well, HDFC Ltd, Infosys and HindustanUnilever also negatively impacted performance.

For the period, the Fund was slightly overweight China vs India. Within China, we are overweight the ‘H’shares vs ‘A’ shares.

As at end June 2018, exposures in Hong Kong, Macau and China were 50.36% and 46.80% in India,with the remainder 2.84% in cash. The Fund had the following sector allocation: Financials (25.56%),Information Technology (19.77%), Consumer Discretionary (14.09%), Health Care (10.57%),Materials (8.14%), Consumer Staples (7.06%), Industrials (6.39%) and others (5.58%), with theremainder in cash (2.84%).

Economic and Market Review

China

The China equity markets ended the first half of 2018 mixed. MSCI China ended relatively flat, held up bythe relatively strong performance of US American depositary receipt (ADRs), while SSE50 ‘A’ shareswere down 12% in SGD terms. Altogether, China underperformed most developed markets. Domestic ‘A’shares underperformed overall emerging markets and Asia.

The markets started the year strongly in January as good macroeconomic data, positive earningsrevisions and weaker US dollar drove Asian markets. However the markets started correcting fromFebruary onwards, first led by the flash correction in the US markets and surge in the 10-year USTreasury yield as investors started worrying about tightening measures and the mounting US fiscaldeficit. There were further headwinds for China equities due to concerns over domestic policy andmonetary tightening with the government’s unrelenting drive for financial and economic deleveraging.Headline news of rising bond defaults also rattled the financial sector despite strong evidence ofimproving non-performing loans. In Hong Kong, property developers faced headwinds from rising US


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rates and HIBOR as liquidity tightened despite resilient property price index. Office and retail landlordsfared better. Hong Kong retailers were the bright spot for most of the period as retail sales reboundedstrongly year-to-date in 2018 after 3 years of losses from 2014 to 2016, and stabilising in 2017.

From March onwards, mounting trade tensions between the US and China further took its toll on theGreater China markets, culminating in June when it looked increasingly likely that US-China tradetensions would escalate after talks between both sides broke down. The threatened ban on Chinacommunication equipment manufacturer, ZTE from US suppliers also threatened to disrupt globaltechnology supply chains. The trade tensions overshadowed other positive geo-political events such asthe initiation of peace talks and de-nuclearisation of the Korean Peninsula.

Health Care, Energy, Utilities and Consumer Staples outperformed, while Industrials,Telecommunication Services, Financials and Consumer Discretionary underperformed.

India

MSCI India Index performance declined (-0.66%) in domestic currency terms but lost more in SGD andJPY terms due to the depreciation of the Indian Rupee. The market corrected from February onwards inline with global markets on concerns that US Federal Reserve (Fed) may raise interest rates at a fasterpace than expected and emerging trade war between US and China. Rising crude oil prices also addedpressure to the current account and the Indian Rupee. On the positive side, the economy has normalisedpost imposition of the goods and services tax (GST) with positive signs of growth in last quarter of 2017,which appear to have become stronger in the first quarter of 2018.

Consumer Price Index (CPI) inflation rose to a high of 5.06% in January 2018 (compared to 4.90% inNovember 2017) led by an adverse base effect, a surge in crude oil prices and pick up in core inflation.The trend reversed in April 2018 with CPI moderating to 4.88% reflecting a fall in food index and amarginal decline in fuel index tracking lower liquefied petroleum gas. However, higher petrol and dieselprices and the pickup in services activity momentum resulted in core inflation reaching an almost fouryear high at 5.92% in April 2018.

Gross Domestic Product (GDP) for Q3FY18 (Oct-Dec 2017) came in at 7.2% reflecting expected growthturnaround post a dismal H1. Key trends during Q3 reflect higher net taxes, strong agriculture growth,supportive government spending, and improvement in industrial sector with a revival in manufacturing &construction. The Indian economy posted the highest growth in seven quarters with a growth rate of 7.7%during Q4FY18 (Jan-Mar 2018), a standout among emerging economies. For the fiscal year FY18, India’sgrowth rate works out to 6.7%, down from 7.1% in 2016-17. The government maintained its forecast of7.5% for FY19.

After keeping policy rates constant since August 2017, the Reserve Bank of India (RBI) finally raised theRepo Rate by 25 basis points (bps) to 6.25% in June given rising oil prices, weaker Rupee andstrengthening domestic growth outlook. RBI also raised their CPI forecasts for FY19 closer to 5%. Upsiderisks to inflation remain from cost push factors (food and fuel), fiscal spending ahead of an election year,consumption growth recovery and a vulnerable Rupee. RBI retained its FY19 GDP growth forecast at7.4%.


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In terms of sectors, Consumer Goods and Information Technology performed well. Automobiles,Industrials and Materials lagged.

Outlook and Fund Strategy

China

China’s fundamentals have continued to strengthen in 2018. Economic growth is steady with thePurchasing Manager’s Index (PMI) in positive territory, corporate and industrial profits have continue togrow strongly helped by capacity rationalisation, improving utilisation and firmly positive producer priceinflation. Property sales are steady and corporate earnings continue to be revised up.

However, investors have been spooked by a series of concerns including rising corporate bond defaults,some signs of economic activity since May, the accelerated depreciation of the Renminbi since mid-Juneand last but not least, the escalating US-China trade tensions as President Trump carries through with histhreat to impose trade tariffs and restrict China investments in the US.

On the issue of rising bond defaults, we note that this has been an ongoing trend since the beginning ofthe year as the government continues to rein shadow banking and promote more efficient credit riskpricing. It is part and parcel of China’s financial reform path. While the headline news looks alarming, itshould be noted that the rate of defaults is just 0.7% of the total corporate bond stock at the end of thefirst half of 2018 which is far from any indication of systemic risk. May 2018 activity data came in lowerthan expected; probably reflecting the lagged effects of slower credit creation in the shadow bankingsystem, but this is in the context of strong activity data since the start of the year. Meanwhile, themanufacturing and services PMI are still well above 50. To counter the fall in shadow banking, we expectthe authorities to ease policy in a targeted manner, such as cutting the reserve requirement ratio (a 50basis point cut was announced in June), keeping interbank rates low, and reviving investment projects tosupport growth.

The Renminbi depreciation accelerated in the last week of June, reviving fears of a scenario in August2015, when the market experienced a sharp correction. However, we do note that the Renminbi stillremains one of the strongest currencies year to date in the emerging markets. It has only depreciated 2%vs the US dollar in 2018. Ultimately, the Chinese yuan is still a controlled currency and the Chinese centralbank has pledged to refrain from using it as an instrument in a trade war.

On the US-China trade war, while we assess the growth and earnings impact on the market as muted, along drawn out trade war and escalating retaliation beyond trade is damaging for both countries and allmarket participants. Our base case remains that there should not be a full blown trade war, and thereshould be some negotiated settlement assuming rationality from both sides. Nonetheless, weacknowledge that trade tensions will persist and remain an overhang on the Greater China markets.However we believe much of this has already been priced into the markets. After the recent correction,the MSCI China 1-year forward price to earnings ratio of 11x is trading at close to its 10-year historicalmean and close to the levels at early 2016 when economic and corporate earnings were much weakerthan now. China ‘A’ share valuations are even more distressed at a price to earnings ratio of 10x, tradingbelow the early 2016 levels.


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In spite of the current negative sentiment on the US-China trade tensions and emerging markets ingeneral, we remain positive on China over the longer term given current cheap valuations, improvementin macro-fundamentals, corporate balance sheets and strong earnings. Even if a trade war doesmaterialize, we do not believe it will derail China’s longer term development.

In China, we continue to favour the cheap cyclicals where we believe stock prices have not kept up withthe structural and earnings improvement, such as the Materials sector. Capacity rationalisation andsupply side discipline have considerably raised profitability in the sector. Demand will be furthersupported if China increased fiscal stimulus to support the domestic economy should external growthdeteriorate due to a trade war. We have reduced our weight in Financials and Property to neutral givencurrent concerns about the Renminbi although we still believe their underlying fundamentals andvaluations are attractive. We remain overweight on Health Care which enjoys strong policy support, andare relatively defensive in a scenario of slowing economic growth. We are underweight on TechnologyHardware, which could face supply chain disruption amidst US restrictions in the event of an escalatingtrade war. We prefer Technology Software which is relatively immune to such external threats. We areunderweight Telecoms, Utilities and Consumer Staples which still see lacklustre growth.

India

The major Indian market indices have remained largely stable, but this masks significant pressure withsmall and mid-cap stocks. Valuations have cooled down following the correction in last three months afterthe sharp rally in the market last year 2017. Risk aversion has risen given the potential escalating globaltrade war, rising crude oil prices and the end of monetary easing by the leading economies. As a result,foreign institutional investors have been net sellers over the last few months, not just in India but otheremerging markets as well.

While the market will continue to react to macro news flow in the short term, we believe that earningsgrowth will be the key driver of the market over the medium to longer term.

India has seen muted growth over the last three to four years and there are expectations of a turnaroundin the economy and corporate earnings. The economy has stabilised after the GST impact and isgathering momentum. We remain confident about the long term growth potential in the Indian economyand corporate earnings. The ongoing market correction offers an opportunity to increase exposure inselect high quality sectors and companies.

The Fund continues to be positive on the Financial Services, Information Technology, Health Careand Consumer Goods sector. The Fund is cautious on capital expenditure (capex) dependentIndustrials, Metals and Energy sectors.

We are bullish on Financial Services as there is huge under-penetration in banking and financialservices in India. Within the sector, we have a preference for private sector banks which have superiorasset quality and return on assets and are consistently gaining market share. The Private sector banksmarket share gains should continue as a good part of the banking sector is under Prompt CorrectiveAction (PCA) and would find it difficult to grow. We are positive on the Consumer sector as it remains themost promising sector both in terms of future growth as well as strong cash flows. With the stabilisationof the economy post-GST transition, consumer companies have begun to show good sales growth again.


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Minimum support price increases, a push for the rural sector, announced in the budget 2018 should bodewell for the entire consumer sector. We are maintaining exposure toward category leaders who continueto improve their market share on a secular basis. GST implementation is a medium to long term positivefor the sector as it helps the organised players further gain market share from the unorganised ones. Weare positive on the Information Technology sector. 2018 Worldwide IT spending is projected to totalUSD 3.7 trillion (Source: Gartner Group), 6.2% growth which is highest since 2007, signalling a new cycleof IT growth. Companies within the sector have strong balance sheets and cash flows. Revenuecontribution of digital business for Indian IT companies is expected to accelerate over the next few years.With higher oil prices, rising inflation and fiscal deficit, the Rupee is likely to remain weak which will benefitthe sector. We are overweight on Health Care as the sector’s long term prospects remain strong. Thesector is being currently perceived as a manufacturer of US generics and has been beaten down by aseries of Food and Drug Administration inspection issues, but we believe the market has ignored thestrong growth opportunities in domestic India and emergingmarkets. Moreover, companies including SunPharma and Lupin have been investing heavily into research and development to move to the next levelof opportunities in complex generics as well as speciality pharmawhere competition is limited. The recentdepreciation in the Rupee should also benefit the sector’s revenues and margins.

We are underweight on theEnergy sector. This sector as a whole is highly capital intensive and generateslow returns over the cycle with high volatility in gross refining margins. Although the government hasderegulated fuel pricing, oil companies shall continue to remain under some form of government control.We are also underweight on capital intensive Industrial stocks. We believe the sector has run ahead ofexpectations for a turnaround in industrial growth and is expensive. Notwithstanding that an improvementin economic growth and capacity utilisation will benefit the industrial sector as a whole, we hesitate toinvest in companies that incur huge capital expenditure and suppress return ratios.

We are also cautious on Metals as we feel this sector is largely linked to global economic growth wherewe foresee headwinds going forward. We prefer to invest in domestic demand driven stocks at this point.We remain underweight on this sector as we believe the risk to return trade-off is unattractive.

Conclusion

While challenges from China’s restructuring and macroeconomic imbalances, and India’s executionpersist, we remain positive on the longer term outlook of both markets. While there are near term macrorisks, we believe there are still significant opportunities in both markets. In India, the economy andearnings growth are recovering after temporary headwinds from de-monetisation and the GST rollouttransition. In China, there has been much progress in supply side reforms, rebalancing the economy anddeleveraging amidst stable growth. Corporate profits momentum has also been strong. However, anescalating trade war with the US threatens to hit China’s external growth and undermine supply chains.Nonetheless, we don’t believe it will stop China’s long term progress. The markets’ current cheapvaluations provide good opportunities for longer term investors.

In the longer term, we believe that both China and India’s domestic economies are rising in importance.The large and growing middle class, high savings rates and low public debt present compellingopportunities. Both countries now have in place new governments that are committed to deliver reformsto improve sustainable growth and efficiency. We believe the Fund is strategically positioned to tap intothe growth potential of two of the largest emerging economies in the world.


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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 19,155,982 46.70Hong Kong 1,305,774 3.18India 19,196,392 46.80Macau 196,110 0.48Portfolio of investments 39,854,258 97.16Other net assets/(liabilities) 1,162,909 2.84Total 41,017,167 100.00

ii) Industry

Fair Value(S$)

% of NAV

Consumer Discretionary 5,779,164 14.09Consumer Staples 2,896,028 7.06Energy 433,584 1.06Financials 10,484,511 25.56Health Care 4,337,077 10.57Industrials 2,620,426 6.39Information Technology 8,110,481 19.77Materials 3,338,205 8.14Real Estate 1,609,435 3.92Telecommunication Services 157,476 0.38Utilities 87,871 0.22Portfolio of investments 39,854,258 97.16Other net assets/(liabilities) 1,162,909 2.84Total 41,017,167 100.00


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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 Equities 39,854,258 97.16Other net assets/(liabilities) 1,162,909 2.84Total 41,017,167 100.00

iv) Credit rating of quoted bonds

N/A

C) Top Ten Holdings

10 largest holdings as at 30 June 2018

Fair Value(S$)

Percentage oftotal net assetsattributable tounitholders

%

TENCENT HOLDINGS LTD 2,121,655 5.17ALIBABA GROUP HOLDING LTD 1,796,088 4.38BAJAJ FINANCE LTD 1,527,035 3.72CHINA CONSTRUCTION BANK CORP 1,121,412 2.73INDUSIND BANK LTD 1,097,619 2.68HDFC BANK LTD 1,076,267 2.62YES BANK LTD 966,241 2.36INFOSYS LTD 846,660 2.06INDUSTRIAL & COMMERCIAL BANK OF CHINA 836,545 2.04KOTAK MAHINDRA BANK LTD 765,531 1.87


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C) Top Ten Holdings (continued)


Fair Value


(S$) %

TENCENT HOLDINGS LTD 1,551,169 5.66ALIBABA GROUP HOLDING LTD 1,280,388 4.67BAJAJ FINANCE LTD 968,565 3.53INDUSIND BANK LTD 853,581 3.11YES BANK LTD 808,034 2.95HDFC BANK LTD 680,936 2.48INFOSYS LTD 565,683 2.06CHINA MOBILE LTD 526,051 1.92CHINA CONSTRUCTION BANK CORP 522,859 1.91KOTAK MAHINDRA BANK LTD 493,572 1.80

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 390,405 175 -* 193 -*

* denotes amount less than 0.01%

ii) There was a net realised loss of SGD 18,578 on derivative contracts during the financial period from1 January 2018 to 30 June 2018.

iii) There was a net unrealised loss of SGD 18 on outstanding derivative contracts marked to market asat 30 June 2018.

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

N/A


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

N/A

G) Amount of redemptions and subscriptions for the financial period from 1 January 2018 to30 June 2018

Total amount of redemptions SGD 10,916,028Total amount of subscriptions SGD 15,797,954

H) The amount and terms of related-party transactions for the financial period from 1 January2018 to 30 June 2018

i) As at 30 June 2018, the Sub-Fund maintained current accounts with its related party as follows:

State Street Bank and Trust Company, Singapore BranchCash and bank balances SGD 1,395,922

ii) Investment in Initial Public Offerings managed by UOB Group

N/A

iii) As at 30 June 2018, the brokerage income earned by UOB Kay Hian Pte Ltd was SGD 2,547.


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I) Expense ratios

2018 2017$ $

Class SGDTotal operating expenses 788,675 587,801Average daily net asset value 30,454,117 25,075,046Expense ratio 2.59% 2.34%

Class JPYTotal operating expenses 81,655 74,719Average daily net asset value 5,259,988 4,816,149Expense ratio 1.55% 1.55%

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 30 June 2018 was based on total operatingexpenses divided by the average net asset value respectively for the financial period. 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 Sub-Fund does not pay any performance fee. The average netasset value is based on the daily balances.

J) Turnover ratios

2018 2017$ $

Lower of total value of purchases or sales 15,312,503 10,968,197Average daily net assets value 41,344,055 29,598,589

Turnover ratio 37.04% 37.06%

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.

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 period ended 30 June 2018 and 30 June 2017

N/A

iii) Turnover ratios for the financial period 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


3 mth%

Growth

6 mth%

Growth

1 yr%

Growth

3 yrAnn

CompRet

5 yrAnn

CompRet

10 yrAnn

CompRet

SinceInception

24 July 2009Ann

CompRet

United High Grade CorporateBond Fund 1.10 -1.41 -0.81 3.36 4.19 N/A 4.43Benchmark 1.52 -1.21 -0.55 3.40 3.68 N/A 3.06

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: Jul 09 - Dec 14: Merrill Lynch Global Large Cap Corporate Index, 1-10 yrs; Jan 15 – Present: BarclaysGlobal Aggregate Corporate Benchmark Index.

For the six months ended 30 June 2018, the Fund returned a negative 1.41% on a gross basisunderperforming the benchmark Barclays Global Aggregate Corporate Benchmark Index, whichreturned a negative 1.21% during the same period.

The Fund performance was attributed to duration positioning and credit selection; however, performancelost some ground to sector selection. During the first six months of the year, the Fund was overweight onFinancials, Energy and Communications. While Energy and Communications contributed positivelyto Fund performance, financials underperformed. Financials spreads found their own self-reinforcingfeedback loop as falling equity prices and increased investment grade (IG) corporate supply fedincreasingly negative sentiment. Despite supportive fundamentals, financials are somewhat morevulnerable to rate volatility, where 10-year US Treasury (UST) yields rose from 2.4% in January 2018 toa high of 3.13% in May 2018. Overall, the first half of 2018 was fraught with interest rate and geopoliticalconcerns causing exposure to IG corporates and its largest sector (Financials) to be shunned as markettechnicals overwhelmed fundamentals.

The Fund was short on duration at 4.91 years relative to the benchmark duration of 6.5 years, whichcontributed positively to Fund performance as rates rose during the months of February to May.

Credits that outperformed includeAmazon, CVSHealth, Barclays, CNAC, Saudi Government, LeaderGoal, Gerdau, CBQ Finance, and ING GROEP. The credits that underperformed include PhoenixGroup, Power Finance, Enel, Reliance, Newcastle Coal and ICICI Bank.

In terms of currency (FX) allocation, the Fund was underweight on the US Dollar (USD) in the last twomonths before moving to neutral in July 2018; stayed largely neutral on Euro (EUR) and underweight onthe Sterling (GBP).

As at end June 2018, the Fund had the following regional asset allocation:United States (31.50%),AsiaPacific (26.16%), Europe (18.26%), United Kingdom (8.87%), Australia (1.79%), EM ex-Asia(1.65%), others (6.58%) and the remainder in cash and equivalents (5.19%).

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

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Economic and Market Review

USD corporate bonds have struggled in the first half of 2018 as technical forces, geopolitics and tradetensions have dampened appetite for USD credits. At end June 2018, even with solid US economicgrowth, near-record earnings in the US corporate sector posts and the pace of USD corporate bondissuance lagging 2017 volumes, USD investment grade (IG) spreads are 31 basis points (bps) widersince the start of the year.

At end June, the IG index was 7 bps higher with spreads at 129 bps, the widest since January 2017. USDIG delivered a negative year-to-date (YTD) total return of 3.33% but only lost 56 bps of excess returnbecause of the UST rally.

Meanwhile, Euro IG spreads also widened to 112 bps, past French election wides, and close to Brexitlevels in the June 2016 referendum. YTD excess returns stood at -1.3%, while total returns are only -0.4%because of the Bund rally.

Outlook and Fund Strategy

As of mid-2018, investment returns in most asset classes have been lacklustre. Still, the year holds muchpromise with global growth expansion and double-digit corporate earnings growth.

Overall, our assessment is that the risks from trade spats, European politics and other geopolitical issuesare unlikely to undermine growth. Our strategy for fixed income is to remain neutral on duration; to staydefensive and earn the carry.

We expect USD IG issuances to moderate in the second half of 2018, credit fundamentals will remainsolid and valuations have become more attractive. With IG spreads at 129 bps, almost at the same levelas the start of 2017, we expect investors will selectively re-engage but we acknowledge that spreadscould experience more volatility before gaining traction.

Our goal is to limit downside risks in view of ongoing geo-political tensions and rising interest rates. Interms of regions, we look to maintain our overweight position on Asia on relative valuation; maintain anunderweight position in Europe and reduce our very underweight on the US to a slight underweight. Forcurrency exposure, we intend to stay neutral to the benchmark and add value through credit selection.

Disclaimer:

“As the Fund is in SGD and the benchmark is in US dollar (USD), we had an overlay of currency hedgesduring the year, but the effect was largely neutral on the portfolio. Our global exposure to financialderivatives is calculated based on the commitment approach. This is done by adding the exposure ofeach financial derivative (for those with and without netting arrangement) and cash collateral valuesunder certain cases.”


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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

Australia 681,918 1.79Canada 1,008,560 2.65China 4,094,510 10.76France 1,589,439 4.18Germany 476,961 1.25Hong Kong 1,805,821 4.75India 1,297,345 3.41Indonesia 815,977 2.14Ireland 1,415,291 3.72Luxembourg 468,511 1.23Malaysia 675,108 1.77Mexico 626,504 1.65Netherlands 1,529,040 4.02Qatar 681,143 1.79Singapore 472,319 1.24South Korea 793,409 2.09Switzerland 1,470,281 3.86United Arab Emirates 540,748 1.42United Kingdom 3,373,895 8.87United States 11,982,889 31.50Accrued interest receivable on quoted bonds 273,799 0.72Portfolio of investments 36,073,468 94.81Other net assets/(liabilities) 1,973,293 5.19Total 38,046,761 100.00


-16-


ii) Industry

Fair Value(S$)

% of NAV

Consumer Discretionary 3,785,329 9.95Consumer Staples 2,137,354 5.62Energy 5,319,556 13.98Financials 13,576,272 35.68Health Care 1,327,587 3.49Industrials 1,472,165 3.87Information Technology 808,784 2.12Materials 2,651,189 6.97Telecommunication Services 1,182,839 3.11Utilities 3,538,594 9.30Accrued interest receivable on quoted bonds 273,799 0.72Portfolio of investments 36,073,468 94.81Other net assets/(liabilities) 1,973,293 5.19Total 38,046,761 100.00

iii) Asset Class


Quoted Bonds 35,799,669 94.09Accrued interest receivable on quoted bonds 273,799 0.72Other net assets/(liabilities) 1,973,293 5.19Total 38,046,761 100.00


-17-


iv) Credit rating of quoted bonds by S & P


A- 4,382,504 11.52A+ 474,093 1.25AA- 855,151 2.25BBB 9,581,026 25.18BBB- 5,031,782 13.22BBB+ 8,764,199 23.03Non-rated 6,710,914 17.64Total 35,799,669 94.09

v) Credit rating of quoted bonds by Moody’s


A1 1,689,655 4.44A2 547,303 1.44A3 6,061,067 15.93Ba1 685,399 1.80Baa1 6,616,386 17.39Baa2 6,306,403 16.57Baa3 8,128,946 21.37Non-rated 5,764,510 15.15Total 35,799,669 94.09


-18-

C) Top Ten Holdings


Fair Value(S$)


%

HYUNDAI CAPITAL AMERICA SR UNSECURED REGS07/21 VAR 1,091,793 2.87AMAZON.COM INC SR UNSECURED 08/24 2.8 855,151 2.25CNP ASSURANCES SUBORDINATED REGS 07/49VAR 837,734 2.20UBS AG SUBORDINATED REGS 05/24 5.125 817,392 2.15FEDERAL INTERNATIONAL FINANCE SRUNSECURED REGS 05/21 4.125 815,977 2.14BAIDU INC SR UNSECURED 03/28 4.375 808,784 2.13WALGREENS BOOTS ALLIANCE INC SRUNSECURED 11/24 3.8 807,580 2.12SHOUGANG GROUP CO LTD SR UNSECURED REGS08/20 1.35 801,511 2.11GS CALTEX CORP SR UNSECURED REGS 06/22 3 793,409 2.09GOLDMAN SACHS GROUP INC/THE SRUNSECURED 09/25 VAR 777,453 2.04


-19-

C) Top Ten Holdings (continued)


Fair Value


(S$) %

UBS AG SUBORDINATED REGS 05/24 5.125 1,166,254 4.44PHOENIX GROUP HLDGS 07/27 5.375 1,105,016 4.20ENEL FINANCE INTL NV COMPANY GUAR REGS 05/273.625 819,819 3.12THREE GORGES FNCE II COMPANY GUAR REGS 06/241.3 783,174 2.98IND + COMM BK OF CHINA SUBORDINATED REGS 09/254.875 734,969 2.79NEWELL BRANDS INC SR UNSECURED 04/26 4.2 731,746 2.78DOLLAR GENERAL CORP SR UNSECURED 11/25 4.15 727,862 2.77AUST + NZ BANKING GROUP SUBORDINATED REGS03/24 4.5 720,174 2.74BEAZLEY RE DAC SUBORDINATED REGS 11/26 5.875 709,277 2.70EXELON CORP JR SUBORDINA 06/22 3.497 704,100 2.68

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 4,002,645 - - 87,030 0.23

ii) There was a net realised loss of SGD 19,802 on derivative contracts during the financial period from1 January 2018 to 30 June 2018.

iii) There was a net unrealised loss of SGD 87,030 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


-20-

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

N/A

G) Amount of redemptions and subscriptions for the financial period from 1 January 2018 to30 June 2018

Total amount of redemptions SGD 5,674,153Total amount of subscriptions SGD 14,445,936

H) The amount and terms of related-party transactions for the financial period from 1 January2018 to 30 June 2018

i) As at 30 June 2018, the Sub-Fund maintained current accounts with its related party as follows:

State Street Bank and Trust Company, Singapore BranchCash and bank balances SGD 3,198,040

ii) Investment in Initial Public Offerings managed by UOB Group

N/A

iii) As at 30 June 2018, there was no brokerage income earned by UOB Kay Hian Pte Ltd.

I) Expense ratios

2018 2017$ $

Total operating expenses 450,131 412,753Average daily net asset value 34,002,546 28,758,421Expense ratio 1.32% 1.44%

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 30 June 2018 was based on total operatingexpenses divided by the average net asset value respectively for the financial period. 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 Sub-Fund does not pay any performance fee. The average netasset value is based on the daily balances.


-21-

J) Turnover ratios

2018 2017$ $

Lower of total value of purchases or sales 51,123,735 55,492,901Average daily net assets value 37,521,627 23,506,512

Turnover ratio 136.25% 236.07%

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.

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 30 June 2018 and 30 June 2017

N/A

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

N/A

iii) Turnover ratios for the financial period 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’s


-22-

M) Soft dollar commissions/arrangements (continued)

clients 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


-23-

STATEMENTS OF TOTAL RETURN

For the half year ended 30 June 2018 (Un-audited)

United China-IndiaDynamic Growth Fund

United High GradeCorporate Bond Fund

30 June 30 June 30 June 30 June2018 2017 2018 2017$ $ $ $

IncomeDividends 355,457 245,039 - -Interest 33 - - 10,651Total 355,490 245,039 - 10,651

Less: ExpensesManagement fee 288,913 203,813 148,855 106,800Trustee fee 7,371 5,513 6,658 4,448Audit fee 7,830 7,269 7,289 6,725Registrar fee 12,432 12,482 12,432 11,424Valuation fee 24,969 17,769 23,259 14,492Administration fee 44,581 30,830 9,303 11,067Custody fee 39,168 19,521 7,662 3,818Transaction costs 116,205 159,400 - 2,300Interest expenses - 349 - -Other expenses 44,014 68,427 27,034 9,677Total 585,483 525,373 242,492 170,751

Net income/(losses) (229,993) (280,334) (242,492) (160,100)

Net gains/(losses) on value of investmentsand financial derivativesNet gains/(losses) on investments (562,552) 5,301,835 (126,140) (13,602)Net gains/(losses) on financial derivatives (18,596) 4,831 (106,832) (24,517)Net foreign exchange gains/(losses) (49,297) (135,542) 28,705 (52,015)

(630,445) 5,171,124 (204,267) (90,134)

Total return/(deficit) for the period beforeincome tax (860,438) 4,890,790 (446,759) (250,234)Less: Income tax (25,014) (14,026) (376) -Less: Capital gains tax (164,905) (1) - -Total return/(deficit) for the period (1,050,357) 4,876,763 (447,135) (250,234)


-24-

STATEMENTS OF FINANCIAL POSITION

As at 30 June 2018 (Un-audited)



30 June 31 December 30 June 31 December2018 2017 2018 2017$ $ $ $

AssetsPortfolio of investments 39,854,258 35,898,190 36,073,468 28,242,139Sales awaiting settlement 272,812 - 540,747 -Receivables 73,666 229,252 289,051 288,752Cash and bank balances 1,395,922 1,287,287 3,198,040 2,728,345Financial derivatives at fair value 175 - - -Total assets 41,596,833 37,414,729 40,101,306 31,259,236

LiabilitiesPurchases awaiting settlement 184,395 24,147 1,853,358 1,389,858Payables 395,078 204,984 114,157 147,265Financial derivatives at fair value 193 - 87,030 -Total liabilities 579,666 229,131 2,054,545 1,537,123

EquityNet assets attributable to unitholders 41,017,167 37,185,598 38,046,761 29,722,113


-25-

STATEMENTS OF MOVEMENTS OF UNITHOLDERS’ FUNDS

For the half year ended 30 June 2018 (Un-audited)



30 June 31 December 30 June 31 December2018 2017 2018 2017$ $ $ $

Net assets attributable to unitholders atthe beginning of the financial period/year 37,185,598 29,218,977 29,722,113 34,276,161

OperationsChange in net assets attributable tounitholders resulting from operations (1,050,357) 8,872,409 (447,135) 15,019

Unitholders’ contributions/(withdrawals)Creation of units 15,797,954 17,721,226 14,445,936 34,178,834Cancellation of units (10,916,028) (18,627,014) (5,674,153) (38,747,901)

Change in net assets attributable tounitholders resulting from net creation andcancellation of units 4,881,926 (905,788) 8,771,783 (4,569,067)

Total increase/(decrease) in net assetsattributable to unitholders 3,831,569 7,966,621 8,324,648 (4,554,048)

Net assets attributable to unitholders atthe end of the financial period/year 41,017,167 37,185,598 38,046,761 29,722,113


-26-

STATEMENTS OF PORTFOLIO


United China-India Dynamic Growth Fund

Holdings at Fair value at

Percentage oftotal net assetsattributable tounitholders at

30 June2018

30 June2018$

30 June2018%

By Geography - Primary

Quoted Equities

CHINAAAC TECHNOLOGIES HOLDINGS INC 5,000 96,022 0.23ALIBABA GROUP HOLDING LTD 7,100 1,796,088 4.38ANGANG STEEL CO LTD 180,000 221,484 0.54ANHUI CONCH CEMENT CO LTD 30,000 234,623 0.57BAIC MOTOR CORP LTD 105,000 136,864 0.33BAIDU INC 1,100 364,464 0.89BANK OF CHINA LTD 360,000 243,383 0.59BAOSHAN IRON & STEEL CO LTD 245,000 392,783 0.96CHANGCHUN FAWAY AUTOMOBILE CO 85,954 216,343 0.53CHINA CONSTRUCTION BANK CORP 890,000 1,121,412 2.73CHINA LONGYUAN POWER GROUP CORP 80,000 87,871 0.22CHINA MERCHANTS BANK CO LTD 53,000 266,662 0.65CHINA MERCHANTS SHEKOU INDUSTRIALZONE HOLDINGS CO LTD 93,981 368,455 0.90CHINA NATIONAL BUILDING MATERIAL COLTD 154,000 207,960 0.51CHINA PETROLEUM & CHEMICAL CORP 240,000 292,393 0.71CHINA RESOURCES CEMENT HOLDING 314,000 433,844 1.06CHINA RESOURCES LAND LTD 44,000 202,263 0.49CHINA VANKE CO LTD 82,964 420,024 1.02COUNTRY GARDEN HOLDINGS CO LTD 77,000 184,675 0.45COUNTRY GARDEN SERVICES HOLDINGSCO LTD 10,919 19,091 0.05FUYAO GLASS INDUSTRY GROUP CO 65,000 343,926 0.84GUOTAI JUNAN SECURITIES CO LTD 87,908 266,671 0.65HUATAI SECURITIES CO LTD 88,000 271,115 0.66INDUSTRIAL & COMMERCIAL BANK OFCHINA 820,000 836,545 2.04


-27-






30 June2018

30 June2018$

30 June2018%

By Geography - Primary (continued)Quoted Equities

CHINA (continued)INNER MONGOLIA YILI INDUSTRIALGROUP CO LTD 97,000 556,962 1.36JIANGSU EXPRESSWAY CO LTD 159,941 298,879 0.73JIANGSU HENGRUI MEDICINE CO LTD 36,882 575,048 1.40JIANGSU YANGHE BREWERYJOINT-STOCK CO LTD 21,980 595,296 1.45KWEICHOW MOUTAI CO LTD 4,300 647,304 1.58KWG PROPERTY HOLDING LTD 75,000 128,521 0.31LONGI GREEN ENERGY TECHNOLOGY COLTD 70,000 240,438 0.59MIDEA GROUP CO LTD 58,000 623,325 1.52PING AN INSURANCE GROUP CO OFCHINA 52,000 652,496 1.59QINGDAO HAIER CO LTD 124,971 495,353 1.21SANAN OPTOELECTRONICS CO LTD 80,000 316,441 0.77SHANGHAI INTERNATIONAL PORT GROUP 240,000 294,379 0.72SHANGHAI PHARMACEUTICALS HOLDING 45,000 169,320 0.41TENCENT HOLDINGS LTD 31,000 2,121,655 5.17WANHUA CHEMICAL GROUP CO LTD* 60,480 565,338 1.38WEIBO CORP 2,900 350,970 0.86YICHANG HEC CHANGJIANGPHARMACEUTICAL CO LTD 48,000 332,852 0.81YUNNAN BAIYAO GROUP CO LTD 26,093 574,374 1.40ZHEJIANG SUPOR COOKWARE CO LTD 55,862 592,070 1.44

TOTAL CHINA 19,155,982 46.70


-28-






30 June2018

30 June2018$

30 June2018%


HONG KONGCHINA MOBILE LTD 13,000 157,476 0.38CHINA OVERSEAS LAND & INVESTMENTLTD 68,000 305,497 0.75CNOOC LTD 60,000 141,191 0.34CSPC PHARMACEUTICAL GROUP LTD 58,000 238,899 0.58HAIER ELECTRONICS GROUP CO LTD 64,000 298,649 0.73HONG KONG EXCHANGES & CLEARINGLTD 4,000 164,062 0.40

TOTAL HONG KONG 1,305,774 3.18

INDIAAJANTA PHARMA LTD 7,725 151,074 0.37AMARA RAJA BATTERIES LTD 17,900 258,672 0.63ASTRAL POLYTECHNIK LTD 23,998 478,080 1.16AU SMALL FINANCE BANK LTD 10,450 136,372 0.33BAJAJ FINANCE LTD 33,415 1,527,035 3.72BERGER PAINTS INDIA LTD 30,450 170,280 0.41CADILA HEALTHCARE LTD 40,874 306,986 0.75CERA SANITARYWARE LTD 2,130 117,819 0.29CITY UNION BANK LTD 39,600 145,556 0.35DABUR INDIA LTD 20,350 158,530 0.39DIVI’S LABORATORIES LTD 15,617 322,787 0.79DR LAL PATHLABS LTD 17,950 342,108 0.83ECLERX SERVICES LTD 15,212 393,580 0.96EICHER MOTORS LTD 510 290,175 0.71EMAMI LTD 18,634 196,225 0.48


-29-






30 June2018

30 June2018$

30 June2018%


INDIA (continued)ENDURANCE TECHNOLOGIES LTD 11,494 285,741 0.70ERIS LIFESCIENCES LTD 6,550 89,296 0.22GRINDWELL NORTON LTD 22,513 229,479 0.56GRUH FINANCE LTD 67,148 406,434 0.99HAVELLS INDIA LTD 26,975 291,683 0.71HDFC BANK LTD 25,650 1,076,267 2.62HINDUSTAN ZINC LTD 44,054 240,656 0.59HOUSING DEVELOPMENT FINANCE CORP 14,250 541,110 1.32IGARASHI MOTORS INDIA LTD 6,300 86,114 0.21INDUSIND BANK LTD 28,545 1,097,619 2.68INFO EDGE INDIA LTD 15,876 374,821 0.91INFOSYS LTD 32,546 846,660 2.06IPCA LABORATORIES LTD 15,209 211,748 0.52ITC LTD 69,030 365,692 0.89JUBILANT FOODWORKS LTD 7,075 195,209 0.48JUBILANT FOODWORKS LTD 7,075 195,209 0.48KOTAK MAHINDRA BANK LTD 28,644 765,531 1.87LUPIN LTD 12,229 219,954 0.54MARICO LTD 30,646 202,266 0.49MARUTI SUZUKI INDIA LTD 2,645 464,557 1.13MINDTREE LTD 29,814 585,548 1.43MOTHERSON SUMI SYSTEMS LTD 77,656 439,979 1.07NESTLE INDIA LTD 890 173,753 0.42PAGE INDUSTRIES LTD 770 426,214 1.04PI INDUSTRIES LTD 15,830 237,233 0.58PIDILITE INDUSTRIES LTD 9,630 203,814 0.50SCHAEFFLER INDIA LTD 1,952 215,737 0.53


-30-






30 June2018

30 June2018$

30 June2018%


INDIA (continued)SHEELA FOAM LTD 7,068 208,632 0.51SHREE CEMENT LTD 1,400 430,190 1.05SUN PHARMACEUTICAL INDUSTRIES LTD 31,915 358,215 0.87SYMPHONY LTD 9,925 280,284 0.68SYNGENE INTERNATIONAL LTD 8,750 106,212 0.26TATA CONSULTANCY SERVICES LTD 16,964 623,794 1.52THERMAX LTD 6,095 126,432 0.31TITAN CO LTD 16,850 294,585 0.72TORRENT PHARMACEUTICALS LTD 12,129 338,204 0.81YES BANK LTD 142,950 966,241 2.36

TOTAL INDIA 19,196,392 46.80

MACAUMGM CHINA HOLDINGS LTD 62,000 196,110 0.48

Total Equities 39,854,258 97.16

Portfolio of investments 39,854,258 97.16Other net assets/(liabilities) 1,162,909 2.84Net assets attributable to unitholders 41,017,167 100.00


-31-



United China-India DynamicGrowth Fund

Percentage oftotal net assetsattributable tounitholders at30 June2018%

Percentage oftotal net assetsattributable tounitholders at31 December

2017%

By Geography - Primary (Summary)Quoted Equities

China 46.70 47.16Hong Kong 3.18 4.58India 46.80 44.80Macau 0.48 -Portfolio of investments 97.16 96.54Other net assets/(liabilities) 2.84 3.46Net assets attributable to unitholders 100.00 100.00


-32-




Fair value at30 June2018$



2017%

By Industry - SecondaryQuoted Equities

Consumer Discretionary 5,779,164 14.09 13.59Consumer Staples 2,896,028 7.06 6.97Energy 433,584 1.06 1.38Financials 10,484,511 25.56 23.33Health Care 4,337,077 10.57 9.15Industrials 2,620,426 6.39 7.43Information Technology 8,110,481 19.77 24.62Materials 3,338,205 8.14 6.92Real Estate 1,609,435 3.92 1.20Telecommunication Services 157,476 0.38 1.35Utilities 87,871 0.22 0.60Portfolio of investments 39,854,258 97.16 96.54Other net assets/(liabilities) 1,162,909 2.84 3.46Net assets attributable to unitholders 41,017,167 100.00 100.00


-33-



United High Grade Corporate Bond Fund



30 June2018

30 June2018$

30 June2018%

By Geography - Primary

Quoted Bonds

AUSTRALIAAUSTRALIA & NEW ZEALAND BANKINSUBORDINATED REGS 03/24 4.5 500,000 681,918 1.79

CANADABANK OF MONTREAL SUBORDINATED12/32 VAR 400,000 505,891 1.33BELL CANADA INC COMPANY GUAR 02/242.7 500,000 502,669 1.32

TOTAL CANADA 1,008,560 2.65

CHINAAZURE ORBIT IV INTERNATIONAL FCOMPANY GUAR REGS 01/28 4 600,000 772,533 2.02BAIDU INC SR UNSECURED 03/28 4.375 600,000 808,784 2.13HORSE GALLOP FINANCE LTD COMPANYGUAR REGS 06/21 VAR 400,000 547,303 1.44INDUSTRIAL & COMMERCIAL BANK OSUBORDINATED REGS 09/25 4.875 500,000 690,286 1.81SHOUGANG GROUP CO LTD SRUNSECURED REGS 08/20 1.35 500,000 801,511 2.11STATE GRID OVERSEAS INVESTMENTCOMPANY GUAR REGS 05/25 1.375 300,000 474,093 1.25

TOTAL CHINA 4,094,510 10.76

FRANCEBPCE SA SR UNSECURED REGS 03/261.375 300,000 466,202 1.23


-34-






30 June2018

30 June2018$

30 June2018%

By Geography - Primary (continued)Quoted Bonds

FRANCE (continued)BPCE SA SUBORDINATED REGS 10/23 5.7 200,000 285,503 0.75CNP ASSURANCES SUBORDINATED REGS07/49 VAR 600,000 837,734 2.20

TOTAL FRANCE 1,589,439 4.18

GERMANYHOCHTIEF AG SR UNSECURED REGS07/25 1.75 300,000 476,961 1.25

HONG KONGCGNPC INTERNATIONAL LTD COMPANYGUAR REGS 12/24 1.625 400,000 640,270 1.68CNAC HK FINBRIDGE CO LTD COMPANYGUAR REGS 06/22 1.75 400,000 638,653 1.68CNAC HK FINBRIDGE CO LTD COMPANYGUAR REGS 07/22 3.5 400,000 526,898 1.39

TOTAL HONG KONG 1,805,821 4.75

INDIARELIANCE INDUSTRIES LTD SRUNSECURED REGS 11/27 3.667 500,000 628,634 1.65RURAL ELECTRIFICATION CORP LTD SRUNSECURED REGS 12/20 3.068 500,000 668,711 1.76

TOTAL INDIA 1,297,345 3.41


-35-






30 June2018

30 June2018$

30 June2018%


INDONESIAFEDERAL INTERNATIONAL FINANCE SRUNSECURED REGS 05/21 4.125 600,000 815,977 2.14

IRELANDBEAZLEY INSURANCE DACSUBORDINATED REGS 11/26 5.875 500,000 678,341 1.78PHOENIX GROUP HOLDINGSSUBORDINATED REGS 07/27 5.375 600,000 736,950 1.94

TOTAL IRELAND 1,415,291 3.72

LUXEMBOURGALLERGAN FUNDING SCS COMPANYGUAR 06/24 1.25 300,000 468,511 1.23

MALAYSIAPETRONAS GLOBAL SUKUK LTD SRUNSECURED REGS 03/20 2.707 500,000 675,108 1.77

MEXICOPETROLEOS MEXICANOS COMPANYGUAR REGS 11/25 3.625 400,000 626,504 1.65

NETHERLANDSBAYER CAPITAL CORP BV COMPANYGUAR REGS 06/26 1.5 200,000 320,029 0.84EDP FINANCE BV SR UNSECURED REGS01/26 1.625 300,000 472,405 1.24


-36-






30 June2018

30 June2018$

30 June2018%


NETHERLANDS (continued)ENEL FINANCE INTERNATIONAL NVCOMPANY GUAR REGS 04/28 3.5 600,000 736,606 1.94

TOTAL NETHERLANDS 1,529,040 4.02

QATARCBQ FINANCE LTD COMPANY GUAR REGS05/23 5 500,000 681,143 1.79

SINGAPOREDBS GROUP HOLDINGS LTDSUBORDINATED REGS 04/28 VAR 300,000 472,319 1.24

SOUTH KOREAGS CALTEX CORP SR UNSECURED REGS06/22 3 600,000 793,409 2.09

SWITZERLANDUBS AG SUBORDINATED REGS 05/24 5.125 600,000 817,392 2.15UBS GROUP FUNDING SWITZERLANDCOMPANY GUAR REGS 08/23 VAR 500,000 652,889 1.71

TOTAL SWITZERLAND 1,470,281 3.86

UNITED ARAB EMIRATESABU DHABI NATIONAL ENERGY CO P SRUNSECURED REGS 04/25 4.375 400,000 540,748 1.42


-37-






30 June2018

30 June2018$

30 June2018%


UNITED KINGDOMBP CAPITAL MARKETS PLC COMPANYGUAR REGS 07/26 2.274 300,000 540,454 1.42NATIONWIDE BUILDING SOCIETYSUBORDINATED REGS 07/29 VAR 400,000 626,203 1.65RENTOKIL INITIAL PLC COMPANY GUARREGS 11/24 0.95 200,000 315,271 0.83ROYAL BANK OF SCOTLAND GROUP P SRUNSECURED 05/23 VAR 400,000 528,805 1.39ROYAL BK SCOTLND GRP PLC 06/24 1 500,000 682,992 1.79VODAFONE GROUP PLC SR UNSECURED05/25 4.125 500,000 680,170 1.79

TOTAL UNITED KINGDOM 3,373,895 8.87

UNITED STATESAMAZON.COM INC SR UNSECURED 08/242.8 650,000 855,151 2.25AMCOR FINANCE USA INC COMPANYGUAR REGS 05/28 4.5 500,000 684,127 1.80BANK OF AMERICA CORP SRUNSECURED 10/25 VAR 500,000 649,727 1.71CVS HEALTH CORP SR UNSECURED 03/284.3 400,000 539,047 1.42DISCOVERY COMMUNICATIONS LLCCOMPANY GUAR 03/27 1.9 400,000 626,820 1.65EBAY INC SR UNSECURED 01/23 2.75 400,000 525,997 1.38ENERGY TRANSFER PARTNERSCOMPANY GUAR 06/28 4.95 500,000 680,956 1.79EXELON CORP JR SUBORDINA 06/22 3.497 500,000 674,472 1.77


-38-






30 June2018

30 June2018$

30 June2018%


UNITED STATES (continued)GENERAL MOTORS FINANCIAL CO INCOMPANY GUAR 04/21 VAR 500,000 685,568 1.81GOLDMAN SACHS GROUP INC/THE SRUNSECURED 09/25 VAR 600,000 777,453 2.04HYUNDAI CAPITAL AMERICA SRUNSECURED REGS 07/21 VAR 800,000 1,091,793 2.87KRAFT HEINZ FOODS CO COMPANY GUARREGS 05/28 2.25 400,000 644,177 1.69L3 TECHNOLOGIES INC COMPANY GUAR06/28 4.4 500,000 679,933 1.79MAPLE ESCROW SUBSIDIARY INCCOMPANY GUAR REGS 05/28 4.597 500,000 685,597 1.80MARATHON OIL CORP SR UNSECURED07/27 4.4 500,000 685,399 1.80ONEOK INC COMPANY GUAR 07/28 4.55 500,000 689,092 1.81WALGREENS BOOTS ALLIANCE INC SRUNSECURED 11/24 3.8 600,000 807,580 2.12

TOTAL UNITED STATES 11,982,889 31.50

Accrued interest receivable on quotedbonds 273,799 0.72

Total Bonds 36,073,468 94.81

Portfolio of investments 36,073,468 94.81Other net assets/(liabilities) 1,973,293 5.19Net assets attributable to unitholders 38,046,761 100.00


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United High Grade CorporateBond Fund



2017%

By Geography - Primary (Summary)Quoted Bonds

Australia 1.79 7.45Brazil - 2.24Canada 2.65 3.17China 10.76 12.19France 4.18 1.00Germany 1.25 -Hong Kong 4.75 8.83India 3.41 9.79Indonesia 2.14 2.84Ireland 3.72 5.24Luxembourg 1.23 -Malaysia 1.77 -Mexico 1.65 1.76Netherlands 4.02 2.20Qatar 1.79 -Singapore 1.24 -South Africa - 0.91South Korea 2.09 2.65Spain - 1.61Sweden - 1.87Switzerland 3.86 5.08United Arab Emirates 1.42 -United Kingdom 8.87 11.24United States 31.50 14.18Accrued interest receivable on quoted bonds 0.72 0.77Portfolio of investments 94.81 95.02Other net assets/(liabilities) 5.19 4.98Net assets attributable to unitholders 100.00 100.00


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Fair value at30 June2018$



2017%

By Industry - SecondaryQuoted Bonds

Consumer Discretionary 3,785,329 9.95 4.36Consumer Staples 2,137,354 5.62 2.11Energy 5,319,556 13.98 10.38Financials 13,576,272 35.68 44.66Government - - 3.75Health Care 1,327,587 3.49 -Industrials 1,472,165 3.87 3.77Information Technology 808,784 2.12 -Materials 2,651,189 6.97 13.35Real Estate - - 1.81Telecommunication Services 1,182,839 3.11 2.15Utilities 3,538,594 9.30 7.91Accrued interest receivable on quoted bonds 273,799 0.72 0.77Portfolio of investments 36,073,468 94.81 95.02Other net assets/(liabilities) 1,973,293 5.19 4.98Net assets attributable to unitholders 38,046,761 100.00 100.00


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