United Real Estate Multi Strategy Funds

Transcription

1 United Real Estate Multi Strategy Funds United Global Real Estate Securities Fund United Asia Pacific Real Estate Income Fund Semi Annual Report for the half year ended 31 st December

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3 United Real Estate Multi Strategy Funds MANAGER UOB Asset Management Ltd Registered Address: 80 Raffles Place UOB Plaza Singapore Company Registration No. : Z Tel: DIRECTORS OF UOB ASSET MANAGEMENT Lee Wai Fai Eric Tham Kah Jin Peh Kian Heng Thio Boon Kiat TRUSTEE State Street Trust (SG) Limited 168 Robinson Road #33-01, Capital Tower Singapore CUSTODIAN / ADMINISTRATOR / REGISTRAR State Street Bank and Trust Company, acting through its Singapore Branch 168 Robinson Road #33-01, Capital Tower Singapore AUDITOR PricewaterhouseCoopers LLP 7 Straits View, Marina One East Tower, Level 12 Singapore SUB-MANAGER (UNITED ASIA PACIFIC REAL ESTATE INCOME FUND) Sumitomo Mitsui Asset Management Company, Limited Atago Green Hills Mori Tower 28th Floor Atago Minato-ku Tokyo , Japan -1-

4 United Global Real Estate Securities Fund A) Fund Performance 3 mth Growth 6 mth Growth 1 yr Growth 3 yr Ann Comp Ret 5 yr Ann Comp Ret 10 yr Ann Comp Ret Since Inception 04 May 2005 Ann Comp Ret Fund Performance/ Benchmark Returns United Global Real Estate Securities Fund Benchmark Source: Note: Lipper, a Thomson Reuters Company. The performance returns of the Fund are in Singapore dollars based on a NAV-to-NAV basis with dividends and distributions reinvested, if any. The benchmark of the Fund: S&P Developed Property Index. For the 6 months ended, 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, the Fund was positioned in the United States, in Japan, in Hong Kong, 6.93 in Australia, 6.30 in United Kingdom, 5.19 in Singapore and 7.40 in other regions and in cash. Economic and Market Review Global equities ended the year higher, with Asia ex-japan and Europe markets outperforming while US lagged the broader index. Macroeconomic data in the global markets was broadly positive across most major indices. Leading economic indicators for most major regions moved higher while results were mixed for emerging markets. Purchasing managers indices (PMIs) in most developed regions remained in expansionary mode and ended the review period strongly. Inflation remains benign despite the strong economic activities globally and central bank monetary policies remain dovish globally. Global listed real estate finished the year with a return of 2.63 (S&P Developed Property Index), underperforming global equities which returned Outlook and Fund Strategy In the US, a weakening dollar and recent tax reforms should be tailwinds to corporate profits while the positive market outlook in 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 operating leverage to an upturn in economic activity with profit margins currently at trough levels. The backdrop of increasing geopolitical risks 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 would help to support the market. Despite disappointments on policy and the anaemic economic backdrop, there are some positive developments in corporate governance and corporate performance. A weak Yen also should be beneficial to the exporters and corporate 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. The continuation of rate hike cycle by the US Federal Reserve in coming quarters could trigger fiscal and monetary adjustments globally. This could adversely impact corporate earnings, capital flows and emerging market growth in the period ahead. -2-

5 United Global Real Estate Securities Fund B) Investments at fair value and as a percentage of net asset value ( NAV ) as at under review classified by i) Country Fair Value (S$) of NAV Australia 441, Canada 98, France 157, Germany 56, Hong Kong 639, Japan 673, Singapore 330, Sweden 103, Switzerland 56, United Kingdom 401, United States 3,497, Portfolio of investments 6,456, Other net assets/(liabilities) (83,372) (1.31) Total 6,373, ii) Industry Fair Value (S$) of NAV Real Estate 6,456, Portfolio of investments 6,456, Other net assets/(liabilities) (83,372) (1.31) Total 6,373, iii) Asset Class Fair Value (S$) of NAV Quoted equities 6,456, Other net assets/(liabilities) (83,372) (1.31) Total 6,373, iv) Credit rating of quoted bonds -3-

6 United Global Real Estate Securities Fund C) Top Ten Holdings 10 largest holdings as at Fair Value (S$) Percentage of total net assets attributable to unitholders THE BRITISH LAND CO PLC 401, SCENTRE GROUP 302, LINK REIT 291, KEPPEL REIT 290, THE MACERICH CO 272, GAMING AND LEISURE PROPERTIES INC 271, ALEXANDRIA REAL ESTATE EQUITIES INC 261, WP CAREY INC 257, SUN HUNG KAI PROPERTIES LTD 222, SUN COMMUNITIES INC 210, largest holdings as at 2016 Percentage of total net assets attributable to Fair Value unitholders (S$) CARE CAPITAL PROPERTIES INC 344, OMEGA HEALTHCARE INVESTORS 338, SPIRIT REALTY CAPITAL INC 334, CBL & ASSOCIATES PROPERTIES INC 332, HOST HOTELS & RESORTS INC 332, SIA REIT INC 309, PUBLIC STORAGE 258, VICINITY CENTRES 245, SUN HUNG KAI PROPERTIES LTD 237, PROLOGIS INC 236,

7 United Global Real Estate Securities Fund D) Exposure to derivatives i) Fair value of derivative contracts and as a percentage of NAV as at Contract or underlying principal amount Positive fair value of NAV Negative fair value $ $ $ of NAV Foreign currency contracts 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 to. iii) There was a net unrealised gain of SGD 1 on outstanding derivative contracts marked to market as at. E) Amount and percentage of NAV invested in other schemes as at Please refer to the Statements of Portfolio. F) Amount and percentage of borrowings to NAV as at G) Amount of redemptions and subscriptions for the financial period from 01 July to 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 to i) As at, the Sub-Fund maintained current accounts with State Street Bank and Trust Company as follows: Bank balances SGD 15,908 ii) Investment in Initial Public Offerings managed by UOB Group iii) As at, the brokerage income earned by State Street Bank and Trust Company, Singapore Branch was SGD 17,

8 United Global Real Estate Securities Fund I) Expense ratios 2016 $ $ Total operating expenses 195, ,875 Average daily net asset value 6,704,895 7,859,277 Expense ratio Note: The expense ratio has been computed based on the guidelines laid down by the Investment Management Association of Singapore ( IMAS ). The calculation of the Sub-Fund s expense ratio at was based on total operating expenses 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 at source or arising out of income received. The Sub-Fund does not pay any performance fee. The average net asset value is based on the daily balances. J) Turnover ratios 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 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 underlying investments divided by the average daily net asset value. K) Any material information that will adversely impact the valuation of the scheme such as contingent liabilities of open contracts L) For schemes which invest more than 30 of their deposited property in another scheme, the following 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 and 2016 ii) Expense ratios for the financial period ended and 2016 iii) Turnover ratios for the financial period ended and Where the underlying scheme is managed by a foreign manager which belongs to the same group of companies as, or has a formal arrangement or investment agreement with, the Singapore manager, the above information should be disclosed on the underlying scheme. In other cases, such information on the underlying scheme should be disclosed only if it is readily available to the Singapore manager. -6-

9 United Global Real Estate Securities Fund M) Soft dollar commissions/arrangements UOB Asset Management has entered into soft dollars arrangements with selected brokers from whom products and services are received from third parties. The products and services relate essentially to computer hardware and software to 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 and quotation services, all of which are believed to be helpful in the overall discharge of UOB Asset Management s duties to clients. As such services generally benefit all of UOB Asset Management s clients in terms of input into the investment decision making process, the soft credits utilised are not allocated on a specific client basis. The Manager confirms that trades 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 the actual payouts received by participants and any significant deviation from the pre-determined payouts -7-

10 United Asia Pacific Real Estate Income Fund A) Fund Performance Class SGD Acc 3 mth Growth 6 mth Growth 1 yr Growth 3 yr Ann Comp Ret 5 yr Ann Comp Ret Since Inception 10 yr 17 June 2013 Ann Ann Comp Comp Ret Ret Fund Performance/ Benchmark Returns United Asia Pacific Real Estate Income Fund Benchmark Source: Note: Lipper, a Thomson Reuters Company. The performance returns of the Fund are in Singapore dollars based on a NAV-to-NAV basis with dividends and distributions reinvested, 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 yr Ann Comp Ret 5 yr Ann Comp Ret Since Inception 10 yr 17 June 2013 Ann Ann Comp Comp Ret Ret Fund Performance/ Benchmark Returns United Asia Pacific Real Estate Income Fund Benchmark Source: Note: Lipper, a Thomson Reuters Company. The performance returns of the Fund are in Singapore dollars based on a NAV-to-NAV basis with dividends and distributions reinvested, if any. The benchmark of the Fund: S&P Asia Pacific REITs Index. -8-

11 United Asia Pacific Real Estate Income Fund A) Fund Performance (continued) Class USD Dist 3 mth Growth 6 mth Growth 1 yr Growth 3 yr Ann Comp Ret 5 yr Ann Comp Ret Since Inception 25 November 10 yr 2014 Ann Ann Comp Comp Ret Ret Fund Performance/ Benchmark Returns United Asia Pacific Real Estate Income Fund Benchmark Source: Note: Lipper, a Thomson Reuters Company. The performance returns of the Fund are in United States dollars based on a NAV-to-NAV basis with dividends and distributions reinvested, if any. The benchmark of the Fund: S&P Asia Pacific REITs Index. Class SGD Acc For the six months ended, the Fund rose by 3.64, compared with a 4.89 gain in the benchmark S&P Asia Pacific REITs Index, in Singapore dollar terms. Class SGD Dist For the six months ended, the Fund rose by 3.69, compared with a 4.89 gain in the benchmark S&P Asia Pacific REITs Index, in Singapore dollar terms. Class USD Dist For the six months ended, the Fund rose by 6.80, compared with a 8.07 gain in the benchmark S&P Asia 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 of the year and negative stock selection in this market. This was offset by an overweight position in Singapore REITs which outperformed during the period under review. Positive stock selection in Japan contributed to performance. Contributors to performance include Capitaland Commercial Trust (Singapore), Goodman Group (Australia) and MCUBS Midcity Investment Corp (Japan). The key detractors from performance were Aeon REIT Investment Corp (Japan), Fukuoka REIT (Japan) and Lippo Malls Indonesia Retail (Singapore). During the period under review, the Fund reduced its exposure to Singapore as valuations turned less attractive after a strong performance. The Fund raised its weight to Australia and Hong Kong. As at, the Fund was positioned in Japan, in Australia, in Singapore, 9.07 in Hong Kong with the remainder 0.39 in cash. Economic and Market Review Asia Pacific REITs rose even as it underperformed the broad equity markets. The equity markets in Asia Pacific registered stellar gains supported by a Goldilocks Nirvana - that is stable growth and benign inflation as global economic data continued to improve. Investors continued to adopt a risk-on approach, shrugging off geopolitical tensions from North Korea to the Middle East. -9-

12 United Asia Pacific Real Estate Income Fund A) Fund Performance (continued) As expected, the US Federal Reserve (Fed) raised interest rates twice in 2H, reflecting confidence in the US economy. The Fed 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 to reduce monetary stimulus. The best performing Asia Pacific REIT market for the period under review was Singapore. Attractive dividend yields and strong Singapore currency attracted fund flows to the S-REITs. Grade A office rents have turned positive while improved economy backdrop and diminishing supply supported positive outlook in the industrials and hospitality sector. Singapore REITs were active 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 end of the year was fuelled by merger & acquisition activity. This has boosted investors sentiment as demand in the physical property market remained strong. Meanwhile, the Reserve Bank of Australia held its official cash rate steady at a record low of 1.5 Hong Kong REITs also outperformed. Successful asset monetisation at steep valuations has led to re-rating of Hong Kong REITs. Retail sales continued to accelerate underpinned by higher tourist arrivals and positive consumer sentiments. Grade A office rentals remained steady despite new supply in the decentralised area, supported by strong demand from the mainland Chinese firms. Japan REITs underperformed due to outflows from domestic mutual fund market. Domestic mutual funds turned net-sellers of J-REITs as investors switched out of the dividend funds. Meanwhile, share buy-back and merger and acquisition activities since November 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 aggressive tightening policies given benign inflation. REITs in the region offer attractive headline dividend yields and yield spreads over the 10-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 leasing markets and asset value in this region. Rising income from both organic and inorganic growth should support distribution per unit (DPU) amid a rising interest rate environment. The REITs are not highly leveraged with large proportion of debt on fixed rates and hence we see limited impact from higher interest costs. We focus on REITs that can deliver above average growth from rental increases as well as those active in asset acquisitions, asset enhancement 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 Given limited growth in the home market, S-REITs will continue their overseas acquisitions. We prefer REITS that are well positioned 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 monetisation opportunities for the REITs. Retail sales have recovered and hence retail rentals have started to improve. Meanwhile, rents in Grade A office in the central business district should stay strong given lack of supply and strong demand from the mainland Chinese 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 historical average after underperforming in the past 1 year. The property leasing market is expected to be solid in 2018 underpinned by a strong economy. In Australia, we are cautious on the residential market as the prices have peaked and activities are set to moderate. Retail leasing market will continue to be under pressure given weak income growth and digital disruption. We like the logistics sector given rising e-commerce acitivities. Meanwhile, office rentals in the key cities will be supported by lack of new supply in the near term. -10-

13 United Asia Pacific Real Estate Income Fund A) Fund Performance (continued) The Asia Pacific REIT market still presents an attractive investment proposition from a total return perspective, with a combination of stable dividend yield supported by predictable cash flow and upside potential for capital values. REITs offer investors liquidity and pure exposure to commercial real estate, which had typically been only been available through direct investment to large, long-term institutional investors. Hence we believe Asia Pacific REITs should feature as a key investment component in investors diversified portfolios. -11-

14 United Asia Pacific Real Estate Income Fund B) Investments at fair value and as a percentage of net asset value ( NAV ) as at under review classified by i) Country Fair Value (S$) of NAV Australia 2,015, Hong Kong 598, Japan 2,602, Singapore 1,361, Portfolio of investments 6,577, Other net assets/(liabilities) 25, Total 6,603, ii) Industry Fair Value (S$) of NAV Real Estate 6,577, Portfolio of investments 6,577, Other net assets/(liabilities) 25, Total 6,603, iii) Asset Class Fair Value (S$) of NAV Quoted equities 6,577, Other net assets/(liabilities) 25, Total 6,603, iv) Credit rating of quoted bonds -12-

15 United Asia Pacific Real Estate Income Fund C) Top Ten Holdings 10 largest holdings as at Fair Value (S$) Percentage of total net assets attributable to unitholders SCENTRE GROUP 363, GOODMAN GROUP 325, DEXUS 301, LINK REIT 297, DAIWA OFFICE INVESTMENT CORP 253, JAPAN RENTAL HOUSING INVESTMENT 250, MIRVAC GROUP 243, ICHIGO OFFICE REIT INVESTMENT CORP 240, NIPPON ACCOMMODATIONS FUND INC 237, VICINITY CENTRES 224, largest holdings as at 2016 Percentage of total net assets attributable to Fair Value unitholders (S$) SCENTRE GROUP 359, ACTIVIA PROPERTIES INC 327, STOCKLAND 291, GOODMAN GROUP 275, NOMURA REAL ESTATE MASTER FUND INC 258, DEXUS PROPERTY GROUP 251, ASCENDAS REAL ESTATE INVESTMENT TRUST 249, VICINITY CENTRES 247, KENEDIX REALTY INVESTMENT CO 208, WESTFIELD CORP 203, D) Exposure to derivatives i) Fair value of derivative contracts and as a percentage of NAV as at ii) There was a net realised loss of SGD 952 on derivative contracts during the financial period from 01 July to. iii) Net gains/(losses) on outstanding derivative contracts marked to market as at -13-

16 United Asia Pacific Real Estate Income Fund E) Amount and percentage of NAV invested in other schemes as at Please refer to the Statements of Portfolio. F) Amount and percentage of borrowings to NAV as at G) Amount of redemptions and subscriptions for the financial period from 01 July to 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 to i) As at, the Sub-Fund maintained current accounts with State Street Bank and Trust Company as follows: Bank balances SGD 55,823 ii) Investment in Initial Public Offerings managed by UOB Group iii) As at, there was no brokerage income earned by UOB Kay Hian Pte Ltd. I) Expense ratios 2016 $ $ Total operating expenses 189, ,829 Average daily net asset value 6,170,041 5,484,660 Expense ratio Note: The expense ratio has been computed based on the guidelines laid down by the Investment Management Association of Singapore ( IMAS ). The calculation of the Sub-Fund s expense ratio at was based on total operating expenses 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 at source or arising out of income received. The Sub-Fund does not pay any performance fee. The average net asset value is based on the daily balances. -14-

17 United Asia Pacific Real Estate Income Fund J) Turnover ratios 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 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 underlying investments divided by the average daily net asset value. K) Any material information that will adversely impact the valuation of the scheme such as contingent liabilities of open contracts L) For schemes which invest more than 30 of their deposited property in another scheme, the following 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 and 2016 ii) Expense ratios for the financial period ended and 2016 iii) Turnover ratios for the financial period ended and Where the underlying scheme is managed by a foreign manager which belongs to the same group of companies as, or has a formal arrangement or investment agreement with, the Singapore manager, the above information should be disclosed on the underlying scheme. In other cases, such information on the underlying scheme should be disclosed only if it is readily available to the Singapore manager. M) Soft dollar commissions/arrangements UOB Asset Management has entered into soft dollars arrangements with selected brokers from whom products and services are received from third parties. The products and services relate essentially to computer hardware and software to 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 and quotation services, all of which are believed to be helpful in the overall discharge of UOB Asset Management s duties to clients. As such services generally benefit all of UOB Asset Management s clients in terms of input into the investment decision making process, the soft credits utilised are not allocated on a specific client basis. The Manager confirms that trades 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 the actual payouts received by participants and any significant deviation from the pre-determined payouts -15-

18 United Real Estate Multi Strategy Funds STATEMENTS OF TOTAL RETURN For the half year ended (Un-audited) United Global Real Estate Securities Fund United Asia Pacific Real Estate Income Fund $ $ $ $ Income Dividends 130, , , ,055 Interest Total 130, , , ,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 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, ,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, , ,764 (96,301) Total return/(deficit) for the period before income tax 284, , ,993 (62,708) Less: Income tax (30,334) (49,377) (15,945) (21,566) Total return/(deficit) for the period 254, , ,048 (84,274) -16-

19 United Real Estate Multi Strategy Funds STATEMENTS OF FINANCIAL POSITION As at (Un-audited) United Global Real Estate Securities Fund United Asia Pacific Real Estate Income Fund 30 June 30 June $ $ $ $ Assets Portfolio of investments 6,456,651 6,494,875 6,577,301 6,487,303 Sales awaiting settlement , ,083 Receivables 28,159 35,478 55,520 65,510 Cash and bank balances 15,908 28,347 55, ,825 Financial derivatives at fair value Total assets 6,500,720 6,558,700 6,848,700 7,263,721 Liabilities Purchases awaiting settlement , ,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 Total liabilities 127, , , ,906 Equity Net assets attributable to unitholders 6,373,279 6,434,727 6,603,090 6,651,

20 United Real Estate Multi Strategy Funds STATEMENTS OF MOVEMENTS OF UNITHOLDERS FUNDS For the half year ended (Un-audited) United Global Real Estate Securities Fund United Asia Pacific Real Estate Income Fund 30 June 30 June $ $ $ $ Net assets attributable to unitholders at the beginning of the financial period/year 6,434,727 8,158,440 6,651,815 4,688,615 Operations Change in net assets attributable to unitholders resulting from operations 254,308 (305,412) 232,048 (123,866) Unitholders contributions/(withdrawals) Creation of units 307, , ,176 4,199,455 Cancellation of units (496,517) (1,735,734) (296,684) (1,861,227) Change in net assets attributable to unitholders resulting from net creation and cancellation of units (188,649) (1,125,848) (131,508) 2,338,228 Distributions (127,107) (292,453) (149,265) (251,162) Total increase/(decrease) in net assets attributable to unitholders (61,448) (1,723,713) (48,725) 1,963,200 Net assets attributable to unitholders at the end of the financial period/year 6,373,279 6,434,727 6,603,090 6,651,

21 United Real Estate Multi Strategy Funds STATEMENTS OF PORTFOLIO As at (Un-audited) By Geography - Primary Quoted Equities United Global Real Estate Securities Fund Percentage of total net assets attributable to Holdings at Fair value at unitholders at $ AUSTRALIA GROWTHPOINT PROPERTIES AUSTRALIA 39, , SCENTRE GROUP 69, , TOTAL AUSTRALIA 441, CANADA RIOCAN REAL ESTATE INVESTMENT TRUST 3,800 98, FRANCE ICADE 50 6, KLEPIERRE 1,234 72, UNIBAIL-RODAMCO SE , TOTAL FRANCE 157, GERMANY VONOVIA SE , HONG KONG LINK REIT 23, , SINO LAND CO LTD 36,000 85, SUN HUNG KAI PROPERTIES LTD 10, , THE WHARF HOLDINGS LTD 3,000 13, WHARF REAL ESTATE INVESTMENT CO LTD 3,000 26, TOTAL HONG KONG 639, JAPAN DAITO TRUST CONSTRUCTION CO LTD , DAIWA HOUSE INDUSTRY CO LTD 4, , MITSUBISHI ESTATE CO LTD 6, , MITSUI FUDOSAN CO LTD 2,200 65, SUMITOMO REALTY & DEVELOPMENT CO LTD 4, , TOTAL JAPAN 673,

22 United Real Estate Multi Strategy Funds STATEMENTS OF PORTFOLIO As at (Un-audited) By Geography - Primary (continued) Quoted Equities United Global Real Estate Securities Fund Percentage of total net assets attributable to Holdings at Fair value at unitholders at $ SINGAPORE CAPITALAND LTD 11,300 39, KEPPEL REIT 230, , TOTAL SINGAPORE 330, SWEDEN KUNGSLEDEN AB 10, , SWITZERLAND SWISS PRIME SITE AG , UNITED KINGDOM THE BRITISH LAND CO PLC 32, , UNITED STATES ALEXANDRIA REAL ESTATE EQUITIES INC 1, , APARTMENT INVESTMENT & MANAGEMENT , APPLE HOSPITALITY REIT INC 5, , AVALONBAY COMMUNITIES INC , BOSTON PROPERTIES INC , CUBESMART 3, , DUKE REALTY CORP 3, , EQUITY RESIDENTIAL 1,000 85, GAMING AND LEISURE PROPERTIES INC 5, , HCP INC 1,900 66, HOST HOTELS & RESORTS INC 5, , MID-AMERICA APARTMENT COMMUNITIES INC 1, , PROLOGIS INC , PUBLIC STORAGE , REALTY INCOME CORP 2, , REGENCY CENTERS CORP 2, , SENIOR HOUSING PROPERTIES TRUST 7, , SIMON PROPERTY GROUP INC , SL GREEN REALTY CORP ,

23 United Real Estate Multi Strategy Funds STATEMENTS OF PORTFOLIO As at (Un-audited) By Geography - Primary (continued) Quoted Equities United Global Real Estate Securities Fund Percentage of total net assets attributable to Holdings at Fair value at unitholders at $ UNITED STATES (continued) SUN COMMUNITIES INC 1, , THE MACERICH CO 3, , VENTAS INC , WELLTOWER INC , WP CAREY INC 2, , TOTAL UNITED STATES 3,497, Total Equities 6,456, Portfolio of investments 6,456, Other net assets/(liabilities) (83,372) (1.31) Net assets attributable to unitholders 6,373,

24 United Real Estate Multi Strategy Funds STATEMENTS OF PORTFOLIO As at (Un-audited) By Geography - Primary (Summary) Quoted Equities United Global Real Estate Securities Fund Percentage of total net assets attributable to unitholders at Percentage of total net assets attributable to unitholders at 30 June Australia Austria Canada France Germany Hong Kong Japan Singapore Sweden Switzerland United Kingdom United States Portfolio of investments Other net assets/(liabilities) (1.31) (0.93) Net assets attributable to unitholders

25 United Real Estate Multi Strategy Funds STATEMENTS OF PORTFOLIO As at (Un-audited) By Industry - Secondary Quoted Equities United Global Real Estate Securities Fund Percentage of total net assets attributable to unitholders at Fair value at $ Percentage of total net assets attributable to unitholders at 30 June Materials Real Estate 6,456, Portfolio of investments 6,456, Other net assets/(liabilities) (83,372) (1.31) (0.93) Net assets attributable to unitholders 6,373,

26 United Real Estate Multi Strategy Funds STATEMENTS OF PORTFOLIO As at (Un-audited) By Geography - Primary Quoted Equities United Asia Pacific Real Estate Income Fund Percentage of total net assets attributable to Holdings at Fair value at unitholders at $ AUSTRALIA DEXUS 29, , GOODMAN GROUP 37, , MIRVAC GROUP 99, , SCENTRE GROUP 83, , STOCKLAND 35, , THE GPT GROUP 35, , VICINITY CENTRES 79, , WESTFIELD CORP 20, , TOTAL AUSTRALIA 2,015, HONG KONG CHAMPION REIT 150, , LINK REIT 24, , PROSPERITY REIT 140,000 79, YUEXIU REAL ESTATE INVESTMENT TRUST 85,000 74, TOTAL HONG KONG 598, JAPAN ACTIVIA PROPERTIES INC , DAIWA OFFICE INVESTMENT CORP , GLOBAL ONE REAL ESTATE INVESTMENT CORP , HEALTH CARE & MEDICAL INVESTMENT CORP , HOSHINO RESORTS REIT INC , ICHIGO OFFICE REIT INVESTMENT CORP , INDUSTRIAL & INFRASTRUCTURE FUND 13 74, INVESCO OFFICE J-REIT INC , INVINCIBLE INVESTMENT CORP , JAPAN RENTAL HOUSING INVESTMENT , LASALLE LOGIPORT REIT , MITSUBISHI ESTATE LOGISTICS RE , NIPPON ACCOMMODATIONS FUND INC ,

27 United Real Estate Multi Strategy Funds STATEMENTS OF PORTFOLIO As at (Un-audited) By Geography - Primary (continued) Quoted Equities United Asia Pacific Real Estate Income Fund Percentage of total net assets attributable to Holdings at Fair value at unitholders at $ JAPAN (continued) NOMURA REAL ESTATE MASTER FUND , TOTAL JAPAN 2,602, SINGAPORE ASCENDAS REAL ESTATE INVESTMENT TRUST 76, , CAPITALAND COMMERCIAL TRUST 72, , CAPITALAND MALL TRUST 20,000 42, CAPITALAND RETAIL CHINA TRUST 55,000 89, CDL HOSPITALITY TRUSTS 45,600 77, FORTUNE REAL ESTATE INVESTMENT TRUST 72, , FRASERS CENTREPOINT TRUST 32,000 71, FRASERS COMMERCIAL TRUST 30,000 44, FRASERS LOGISTICS & INDUSTRIAL TRUST 95, , KEPPEL DC REIT 60,000 85, KEPPEL REIT 40,000 50, MANULIFE US REAL ESTATE INVESTMENT TRUST 85, , MAPLETREE COMMERCIAL TRUST 33,000 53, MAPLETREE INDUSTRIAL TRUST 28,000 56, OUE HOSPITALITY TRUST 76,000 64, SPH REIT 45,000 47, TOTAL SINGAPORE 1,361, Total Equities 6,577, Portfolio of investments 6,577, Other net assets/(liabilities) 25, Net assets attributable to unitholders 6,603,

28 United Real Estate Multi Strategy Funds STATEMENTS OF PORTFOLIO As at (Un-audited) By Geography - Primary (Summary) Quoted Equities United Asia Pacific Real Estate Income Fund Percentage of Percentage of total net assets total net assets attributable to attributable to unitholders at unitholders at 30 June Australia Hong Kong Japan Singapore Portfolio of investments Other net assets/(liabilities) Net assets attributable to unitholders

29 United Real Estate Multi Strategy Funds STATEMENTS OF PORTFOLIO As at (Un-audited) By Industry - Secondary Quoted Equities United Asia Pacific Real Estate Income Fund Fair value at $ Percentage of total net assets attributable to unitholders at Percentage of total net assets attributable to unitholders at 30 June Real Estate 6,577, Portfolio of investments 6,577, Other net assets/(liabilities) 25, Net assets attributable to unitholders 6,603,

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