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 financial period 1 st July to 31 st December 2014

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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 OPERATIONS ADDRESS 80 Raffles Place #06-00, UOB Plaza 2 Singapore Tel: DIRECTORS OF UOB ASSET MANAGEMENT Terence Ong Sea Eng Cheo Chai Hong Thio Boon Kiat TRUSTEE / REGISTRAR HSBC Institutional Trust Services (Singapore) Limited 21 Collyer Quay #10-02, HSBC Building Singapore CUSTODIAN (For Sub-Fund: United Global Real Estate Securities Fund) State Street Bank and Trust Company One Lincoln Street Boston, MA United States of America CUSTODIAN (For Sub-Fund: United Asia Pacific Real Estate Income Fund) The HongKong and Shanghai Banking Corporation Limited 1 Queen s Road Central Hong Kong AUDITORS PricewaterhouseCoopers LLP 8 Cross Street #17-00, PWC Building Singapore SOLICITORS TO THE MANAGER Tan Peng Chin LLC 30 Raffles Place #11-00, Chevron House Singapore SOLICITORS TO THE TRUSTEE Allen & Gledhill LLP One Marina Boulevard #28-00 Singapore

4 United Global Real Estate Securities Fund A) Fund Performance Fund Performance/ Benchmark Returns 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 United Global Real Estate Securities Fund Benchmark Source: Lipper, a Thomson Reuters Company. Note: The performance returns of the Fund are in Singapore dollars based on a NAV-to-NAV basis with net dividends reinvested. The benchmark of the Fund: S&P Developed Property Index. For the six months ended 31 December 2014, the net asset value of the Fund rose 6.5% in Singapore dollar terms, compared to the benchmark S&P Developed Property Index, which increased 8.6% during the same period. The Fund s underperformance was largely a result of asset allocation, namely the Fund s overweight in Japan and underweight in United States, which negatively impacted performance. Security selection, particularly in United States, Hong Kong, and United Kingdom contributed positively to the performance, while that in Japan detracted from performance in the period under review. The contributors to performance included Simon Property Group Ltd, Avalonbay Communities Inc, Macerich Company, UDR INC, Ventas INC and Public Storage. The detractors from performance included American Realty Capital Properties, Mitsui Fudosan Company Ltd and Sumitomo Realty & Development. As at 31 December 2014, the Fund was positioned 47.66% in the United States, 10.42% in Hong Kong, 14.91% in Japan, 7.57% in Australia, 6.94% in United Kingdom, 2.98% in Singapore, 3.88% in France, 3.64% in other regions and 2.00% in cash. Market Review After a generally positive start to the fiscal year, property counters declined sharply towards the end of September 2014 as the US Federal Reserve (Fed) announced an end to its quantitative easing programme by October and raised the possibility of an increase in short-term interest rate by early As higher interest rates affect borrowing costs for Real Estate Investment Trusts (REITs) and property developers, it naturally made these property-related stocks a less attractive investment versus other equity counters. Further exacerbating the decline were sizeable equity issuances by some property companies and REITs in a bid to re-capitalise before the inevitable rate increase. 2

5 United Global Real Estate Securities Fund Fortunately, subsequent supportive comments by US Fed Chairman Janet Yellen helped calm investor jitters. She reiterated her stance on maintaining the lower for longer Fed policy in terms of rates, and reassured investors of the Fed s patience before normalizing its monetary policy. As a result, the majority of the Fund s holdings managed to recoup some of their earlier losses and closed off the period in positive territory. In terms of sector performance, almost all the sectors within the benchmark index recorded gains with the specialized, residential and hospitality REITs performing the best with average gains of 13.0 per cent, 12.9 per cent and 10.5 per cent respectively, as investors remained hungry for high-yielding assets with stable returns. The lone laggard in the benchmark was the real estate development subsector, which registered an average decline of 6.0 per cent for the-six month period. The sector had generally faced challenges as central banks globally placed restrictions on mortgage loans and lending that in turn curbed demand somewhat. As for geographical performances, some notable mentions include Hong Kong and United Kingdom, which experienced a rebound over the past six months and the United States which was boosted by a recovery in economic data such as housing starts. Market Outlook With the US Fed willing to remain patient on rate increases and the ECB embarking on further monetary easing general equity performance should remain largely positive during the first couple of months in Subsequently, we expect the rhetoric on interest rate hikes to re-emerge again sometime in mid-2015, which will negatively affect property-related counters as it has in the past. However, as most of these property-related companies should have already taken advantage of the still-low yield environment to refinance and re-capitalise, we do not expect a similar magnitude of selldown as before. 3

6 United Global Real Estate Securities Fund B) Investments at fair value and as a percentage of NAV as at 31 December 2014 under review classified by i) Country Fair Value (S$) % of NAV Australia 674, Austria 14, Canada 207, France 344, Hong Kong 927, Japan 1,327, Singapore 265, Sweden 102, United Kingdom 618, United States 4,242, Portfolio of investments 8,724, Other net assets 177, Total 8,902, ii) Industry Financials 8,724, Portfolio of investments 8,724, Other net assets 177, Total 8,902, iii) Asset Class Equities 8,724, Other net assets 177, Total 8,902, iv) Credit rating of debt securities 4

7 United Global Real Estate Securities Fund C) Top Ten Holdings The top 10 holdings as at 31 December 2014 and 31 December 2013 Percentage of total net assets attributable to 10 largest holdings at 31 December 2014 Fair Value unitholders (S$) % SUN HUNG KAI PROPERTIES LIMITED 404, JAPAN EXCELLENT INC 361, MITSUI FUDOSAN COMPANY LTD 323, PUBLIC STORAGE 293, SIMON PROPERTY GROUP LTD 265, CROMWELL PROPERTY GROUP 265, CAPITACOMMERCIAL TRUST 265, HAMMERSON PLC 259, CHEUNG KONG HOLDINGS LIMITED 244, STOCKLAND 238, Percentage of total net assets attributable to 10 largest holdings at 31 December 2013 Fair Value unitholders (S$) % LAND SECURITIES GROUP PLC 576, MITSUBISHI ESTATE CO LTD 528, UDR INC 483, CHEUNG KONG HOLDINGS LIMITED 438, VORNADO REALTY TRUST 437, ARTIS REAL ESTATE INVESTMENT TRUST 354, SUN HUNG KAI PROPERTIES LIMITED 336, DAIWAHOUSE RESIDENTIAL INVESTMENT CORP 327, WESTFIELD GROUP 324, PUBLIC STORAGE 323, D) Exposure to derivatives i) fair value of derivative contracts and as a percentage of NAV as at 31 December 2014 ii) net gains/(losses) on derivative contracts realised during the financial period ended 31 December 2014 iii) net gains/(losses) on outstanding derivative contracts marked to market as at 31 December

8 United Global Real Estate Securities Fund E) Amount and percentage of net asset value (NAV) invested in other schemes as at 31 December 2014 Please refer to the Portfolio Statement on page 20 to 22 F) Amount and percentage of borrowings to net asset value (NAV) as at 31 December 2014 G) Amount of redemptions and subscriptions for the period 01 July 2014 to 31 December 2014 Total amount of redemptions SGD 1,335,044 Total amount of subscriptions SGD 732,417 H) The amount and terms of related-party transactions for the period 01 July 2014 to 31 December 2014 i) As at 31 December 2014 the Fund maintained current accounts with the United Overseas Bank Limited as follows: Bank balances SGD 783 ii) Purchase/holdings of UOBAM unit trusts by UOB or its affiliated companies as at 31 December 2014 Holdings of United Global Real Estate Securities Fund as at 31 December 2014 were as follows: Affiliated Companies No. of Units Unit Price Market Value SGD SGD a) UOB Kay Hian Private Limited 33, , iii) Investment in Initial Public Offerings managed by UOB Group. iv) As at 31 December 2014 there was no brokerage income earned by UOB Kay Hian Pte Ltd. 6

9 United Global Real Estate Securities Fund I) Expense ratios United Global Real Estate Securities Fund 31 December 31 December Expense ratio 1 (including preliminary expenses) 2.40% 2.14% Expense ratio 1 (excluding preliminary expenses) 2.40% 2.14% 1 The expense ratios have been computed based on the guidelines laid down by the Investment Management Association of Singapore ( IMAS ). The calculation of the Sub-Funds expense ratios at 31 December 2014 was based on total operating expenses divided by the average net asset value respectively for the year. The total operating expenses do not include (where applicable) brokerage and other transaction costs, performance fee, interest expense, distribution paid out to unitholders, foreign exchange gains/losses, front or back end loads arising from the purchase or sale of other funds and tax deducted at source or arising out of income received. The Sub-Funds do not pay any performance fee. The average net asset value is based on the daily balances. Total operating expenses and average net asset value are as below: United Global Real Estate Securities Fund 31 December 31 December Total operating expenses (including preliminary expenses) $218,650 $256,527 Total operating expenses (excluding preliminary expenses) $218,650 $256,527 Average net asset value $9,126,535 $11,978,301 J) Turnover ratios United Global Real Estate Securities Fund 31 December 31 December Turnover ratio % 50.09% 2 The portfolio turnover ratios are 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 total value of purchases or sales of the underlying investments divided by the average daily net asset value respectively as below: United Global Real Estate Securities Fund 31 December 31 December Total value of sales or purchases of the underlying investments $15,314,296 $5,585,348 Average daily net asset value $8,762,681 $11,151,058 7

10 United Global Real Estate Securities Fund 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 market value and as percentage of NAV as at 31 December 2014 and 31 December 2013 ii) expense ratios for the financial period ended 31 December 2014 and 31 December 2013 iii) turnover ratios for the financial period ended 31 December 2014 and 31 December 2013 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 predetermined payouts 1 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. 8

11 United Asia Pacific Real Estate Income Fund A) Fund Performance Class SGD ACC Fund Performance/ Benchmark Returns 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 17 June 2013 Ann Comp Ret United Asia Pacific Real Estate Income Fund Benchmark Source: Lipper, a Thomson Reuters Company. Note: The performance returns of the Fund are in Singapore dollars based on a NAV-to-NAV basis with net dividends reinvested. The benchmark of the Fund: S&P Asia Pacific REITs Index. Class SGD DIST Fund Performance/ Benchmark Returns 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 17 June 2013 Ann Comp Ret United Asia Pacific Real Estate Income Fund Benchmark Source: Lipper, a Thomson Reuters Company. Note: The performance returns of the Fund are in Singapore dollars based on a NAV-to-NAV basis with net dividends reinvested. The benchmark of the Fund: S&P Asia Pacific REITs Index. Class USD Acc Sub-class was fully redeemed on 28 October 2014, hence no performance figure for the period under review. Class USD Dist Sub-class was incepted on 25 November 2014, hence no performance figure for the period under review. 9

12 United Asia Pacific Real Estate Income Fund Class SGD Acc For the six months ended 31 December 2014, the Fund rose by 7.80%, compared with a 6.91% increase in the benchmark S&P Asia Pacific REITs Index, in Singapore dollar terms. Class SGD Dist For the six months ended 31 December 2014, the Fund rose by 7.83%, compared with a 6.91% increase in the benchmark S&P Asia Pacific REITs Index, in Singapore dollar terms. The Fund outperformed the benchmark due mainly to its overweight position in Japan REITs and underweight in Singapore REITs. The Fund did not benefit from the outperformance in Hong Kong REITS where the Fund was underweight. Hong Kong REITs did well despite high valuations due to asset recycling and strong rental reversions. Singapore REITs underperformed their peers in Japan and Hong Kong markets, despite offering the widest yield spread over its 10-year sovereign bond. The Fund was helped by positive stock selection in Japan and Singapore. The contributors to performance included Daiwa Office Investment Corp (Japan), Ichigo Real Estate Investment Corp (Japan) and Suntec REIT (Singapore). The key detractors from performance were Japan Retail Fund Investment (Japan) and Mirvac Group (Australia). As at 31 December 2014, the Fund was positioned 37.80% in Australia, 41.53% in Japan, 4.29% in Hong Kong, 11.75% in Singapore with the remainder (4.63%) in cash. Economic and Market Review Asia Pacific equity markets gained in the six-month period under review, performing on par with global equity markets, where emerging markets underperformed developed markets. The Asia Pacific real estate investment trusts (REITs) market outperformed the broader market as high yield investments retained favour in a low interest rate environment, but lagged the global REITs market. Markets moved steadily higher towards mid-year as global economic data improved. A sharp sell-off occurred in September with the US dollar strengthening on expectations of the US Federal Reserve s (Fed s) first rate hike, which sent most Asian currencies weaker. There were significant central bank actions in the last quarter of The US Fed ended quantitative easing as scheduled, while Japan surprised markets by further easing monetary policy, and raising allocation to equities and foreign assets for its government pension fund. China unexpectedly cut interest rates in a bid to ease the interest burden on the corporate sector and revive its economy. Oil prices declined substantially in the second half of 2014, on increased production by Saudi Arabia and weaker global demand. This caused a collapse of the Russian rouble and a sell-off in emerging market currencies at the end of the year. Other net oil-exporting markets such as Malaysia were also hit by the oil price weakness, though most other oil-consuming markets benefitted. 10

13 United Asia Pacific Real Estate Income Fund REITs globally, including Asia Pacific REITs, performed well as long term expectations for interest rates remained low and yield spreads remained attractive. The best-performing Asia Pacific REIT markets for the period under review were Hong Kong and Japan. Singapore and Australia underperformed but still posted positive returns. Outlook and Fund Strategy The Asia Pacific region is broadly expected to see improving growth as the tailwinds from lower energy prices is expected to ease inflation pressures. An expected increase in US rates in 2015 may create some uncertainty on markets especially in dividend plays including REITs. However we believe that the normalisation of rates is taking place in tandem with a sustainable recovery in global growth which should bode well for growth in the Asia Pacific region. In Japan, Prime Minister Shinzo Abe has received political support and a stronger mandate in pushing ahead with structural reform. The Bank of Japan is likely to keep monetary conditions loose in a bid to stimulate growth and inflation. The Government Pension Investment Fund of Japan has also announced its intention to raise its allocation to J-REITs. Some of these pro-growth measures have led to a recovery in the physical property market, especially in Tokyo central office where vacancy rates are declining and rents are rising. Boosted by supportive measures and rising real estate prices, we expect more capital market activities in the J-REITs sector including acquisitions, divestments and public offerings. J-REITs offer over 250 basis points (bps) spread over the risk-free rate with room for further compression. We are overweight in J-REITs, in particular the office sub-sector. Macroeconomic conditions in Australia are more mixed, as lower commodity prices pose a risk to GDP growth. Against this backdrop, we expect monetary policy to remain accommodative while the regulator takes a moderate approach to addressing concerns on the overheating housing market through the use of macro prudential measures. With stability in the physical property market, A-REITs will be encouraged to increase property acquisitions, which will underpin growth in distribution per unit (DPU). As the earnings outlook remains resilient, the A-REITs sector is expected to remain defensive as dividend yields are attractive. A-REITs offer a tighter yield spread of 150bps over the risk-free rate. We are neutral A-REITs, favouring specialty retail and residential over office. In Singapore, the Monetary Authority of Singapore s (MAS) proposals to refine the regulatory framework for S-REITs would help to improve valuations in the long-term. We believe these proposed measures to strengthen the corporate governance of S-REITs and to enhance the disclosure on REIT income support and operating expenses would help to improve investors perceptions and confidence in the sector. S-REITs offer yield spread of 300bps over the risk-free rate, which is the largest yield spread in the region. We remain positive on SREITs, preferring retail and office to industrial. We underweight the Hong Kong REIT sector as yield spreads are less attractive. We believe that the Asia Pacific REIT market still presents an attractive investment proposition from a total return perspective, with a combination of stable dividend yield and upside potential for asset valuations. Investors have increased allocations to long-dated assets including real estate as institutional investors such as pension funds seek to match the duration of their liabilities with their assets. We believe that this is a structural trend and Asia Pacific REITs should feature as a key investment component in investors diversified portfolios. While rising interest rates could lead to cap rate expansion and pose a drag on asset values, we expect rental growth to be able to offset most of this impact. Corporate balance sheets have also improved post the global financial crisis and many REITs have taken steps to manage their refinancing needs in anticipation of higher interest rates. Hence any impact on valuations and earnings should be manageable if rates rise in a gradual and orderly manner. 11

14 United Asia Pacific Real Estate Income Fund B) Investments at fair value and as a percentage of NAV as at 31 December 2014 under review classified by i) Country Fair Value (S$) % of NAV Australia 1,022, Hong Kong 116, Japan 1,123, Singapore 317, Portfolio of investments 2,578, Other net assets 125, Total 2,704, ii) Industry Diversified REITs 1,017, Industrial REITs 215, Office REITs 300, Residential REITs 222, Retail REITs 759, Specialized REITs 62, Portfolio of investments 2,578, Other net assets 125, Total 2,704, iii) Asset Class Equities 2,578, Other net assets 125, Total 2,704, iv) Credit rating of debt securities 12

15 United Asia Pacific Real Estate Income Fund C) Top Ten Holdings The top 10 holdings as at 31 December 2014 and 31 December 2013 Percentage of total net assets attributable to 10 largest holdings at 31 December 2014 Fair Value unitholders (S$) % SCENTRE GROUP 201, WESTFIELD CORP 166, GOODMAN GROUP 154, KENEDIX REALTY INVESTMENT CO 149, ACTIVIA PROPERTIES INC 138, STOCKLAND 125, HULIC REIT INC 124, THE LINK REIT 116, ORIX JREIT INC 113, ICHIGO REAL ESTATE INVESTMENT CORP 112, Percentage of total net assets attributable to 10 largest holdings at 31 December 2013 Fair Value unitholders (S$) % THE LINK REIT 526, WESTFIELD GROUP 501, GOODMAN GROUP 496, MIRVAC GROUP 468, JAPAN HOTEL REIT INVESTMENT 446, DEXUS PROPERTY GROUP 433, NIPPON BUILDING FUND 411, AEON REIT INVESTMENT CORP 380, JAPAN REAL ESTATE INVESTMENT CORPN 338, FEDERATION CENTRES 274, D) Exposure to derivatives i) fair value of derivative contracts and as a percentage of NAV as at 31 December 2014 ii) net gains/(losses) on derivative contracts realised during the financial period ended 31 December 2014 iii) net gains/(losses) on outstanding derivative contracts marked to market as at 31 December

16 United Asia Pacific Real Estate Income Fund E) Amount and percentage of net asset value (NAV) invested in other schemes as at 31 December 2014 Please refer to the Portfolio Statement on page 25 to 26 F) Amount and percentage of borrowings to net asset value (NAV) as at 31 December 2014 G) Amount of redemptions and subscriptions for the period 01 July 2014 to 31 December 2014 Total amount of redemptions SGD 2,931,625 Total amount of subscriptions SGD 392,252 H) The amount and terms of related-party transactions for the period 01 July 2014 to 31 December 2014 i) As at 31 December 2014 the Fund maintained current accounts with the United Overseas Bank Limited as follows: Bank balances SGD 1,882 ii) Purchase/holdings of UOBAM unit trusts by UOB or its affiliated companies as at 31 December 2014 iii) Investment in Initial Public Offerings managed by UOB Group. iv) As at 31 December 2014 there was no brokerage income earned by UOB Kay Hian Pte Ltd. I) Expense ratios United Asia Pacific Real Estate Income Fund For the financial period from 20 February 2013 (date of constitution) 31 December 31 December Expense ratio 1 (including preliminary expenses) 2.61% 1.67% Expense ratio 1 (excluding preliminary expenses) 2.61% 1.28% 14

17 United Asia Pacific Real Estate Income Fund I) Expense ratios (continued) 1 The expense ratios have been computed based on the guidelines laid down by the Investment Management Association of Singapore ( IMAS ). The calculation of the Sub-Funds expense ratios at 31 December 2014 was based on total operating expenses divided by the average net asset value respectively for the year. The total operating expenses do not include (where applicable) brokerage and other transaction costs, performance fee, interest expense, distribution paid out to unitholders, foreign exchange gains/losses, front or back end loads arising from the purchase or sale of other funds and tax deducted at source or arising out of income received. The Sub-Funds do not pay any performance fee. The average net asset value is based on the daily balances. Total operating expenses and average net asset value are as below: United Asia Pacific Real Estate Income Fund For the financial period from 20 February 2013 (date of constitution) to 31 December 31 December Total operating expenses (including preliminary expenses) $151,589 $188,603 Total operating expenses (excluding preliminary expenses) $151,589 $139,476 Average net asset value $5,798,410 $12,610,791 J) Turnover ratios United Asia Pacific Real Estate Income Fund For the financial period from 20 February 2013 (date of constitution) 31 December 31 December Turnover ratio % % 2 The portfolio turnover ratios are 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 total value of purchases or sales of the underlying investments divided by the average daily net asset value respectively as below: United Asia Pacific Real Estate Income Fund For the financial period from 20 February 2013 (date of constitution) to 31 December 31 December Total value of sales or purchases of the underlying investments $1,581,785 $13,194,048 Average daily net asset value $3,362,659 $12,610,791 15

18 United Asia Pacific Real Estate Income Fund 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 market value and as percentage of NAV as at 31 December 2014 and 31 December 2013 ii) expense ratios for the financial period ended 31 December 2014 and 31 December 2013 iii) turnover ratios for the financial period ended 31 December 2014 and 31 December 2013 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 predetermined payouts 1 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. 16

19 United Real Estate Multi Strategy Funds STATEMENTS OF TOTAL RETURN For the half year ended 31 December 2014 (Un-audited) United Global Real Estate Securities Fund United Asia Pacific Real Estate Income Fund For the financial period from 20 February 2013 (date of constitution) to 31 December 31 December 31 December 31 December $ $ $ $ Income Dividends 171, ,430 66, ,940 Interest , ,431 66, ,958 Less: Expenses Management fee 57,420 73,076 25, ,532 Trustee fee 2,521 2,249 2,521 2,734 Audit fee 8,620 8,316 8,571 8,880 Registrar fee 7,531 7,027 7,531 8,544 Valuation fee 5,521 7,027 2,090 8,544 Custody fee 5,420 8, ,035 Interest expenses Preliminary expenses ,127 Transaction cost 35,009 15,545 19,752 77,782 Other expenses 9,609 16,375 10,013 7, , ,831 75, ,385 Net income/(loss) 39,770 62,600 (9,523) 66,573 Net gains or losses on value of investments Net gains/(losses) on investments 550,830 (89,764) 170, ,867 Net foreign exchange gains/(losses) 11,578 18,016 65,273 (739,607) 562,408 (71,748) 236,256 (343,740) Total return/(deficit) for the period before income tax 602,178 (9,148) 226,733 (277,167) Less: Income tax (33,052) (40,497) (3,774) (62,338) Total return/(deficit) for the period 569,126 (49,645) 222,959 (339,505) 17

20 United Real Estate Multi Strategy Funds STATEMENTS OF FINANCIAL POSITION As at 31 December 2014 (Un-audited) United Global Real Estate United Asia Pacific Securities Fund Real Estate Income Fund 31 December 30 June 31 December 30 June $ $ $ $ ASSETS Portfolio of investments 8,724,304 9,234,640 2,578,998 5,132,897 Receivables 62,851 51,077 33,953 48,266 Sales awaiting settlement ,134 Cash and bank balances 281,752 85, ,648 85,729 Total Assets 9,068,907 9,371,522 2,756,599 5,951,026 LIABILITIES Payables 78,849 86,951 26, ,560 Purchases awaiting settlement ,069 Proposed distribution payable 87,953 87,109 25,634 48,210 Bank overdraft - 86, Total Liabilities 166, ,150 52, ,839 EQUITY Net assets attributable to unitholders 8,902,105 9,111,372 2,704,313 5,070,187 18

21 United Real Estate Multi Strategy Funds STATEMENTS OF MOVEMENTS OF UNITHOLDERS FUNDS For the half year ended 31 December 2014 (Un-audited) United Global Real Estate Securities Fund United Asia Pacific Real Estate Income Fund For the financial period from 20 February 2013 (date of constitution) to 31 December 30 June 31 December 30 June $ $ $ $ Net assets attributable to unitholders at the beginning of the financial period/year 9,111,372 11,476,591 5,070,187 - Operations Change in net assets attributable to unitholders resulting from operations 569, , , ,240 Unitholders contributions/(withdrawals) Creation of units 732,417 1,101, ,252 14,262,300 Cancellation of units (1,335,044) (3,879,346) (2,931,625) (9,489,574) Change in net assets attributable to unitholders resulting from net creation and cancellation of units (602,627) (2,777,781) (2,539,373) 4,772,726 Distribution (175,766) (398,024) (49,460) (225,779) Total (decrease)/increase in net assets attributable to unitholders (209,267) (2,365,219) (2,365,874) 5,070,187 Net assets attributable to unitholders at the end of financial period/year 8,902,105 9,111,372 2,704,313 5,070,187 19

22 United Global Real Estate Securities Fund STATEMENTS OF PORTFOLIO As at 31 December 2014 (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 31 December 31 December 31 December $ % AUSTRALIA CROMWELL PROPERTY GROUP 237, , MIRVAC GROUP 88, , STOCKLAND 53, , TOTAL AUSTRALIA 674, AUSTRIA BUWOG AG , CANADA DREAM OFFICE REAL ESTATE INVESTMENT TRUST 7, , FRANCE KLEPIERRE 3, , UNIBAIL - RODAMCO SE , TOTAL FRANCE 344, HONG KONG CHEUNG KONG HOLDINGS LIMITED 11, , HONGKONG LAND HOLDINGS LIMITED 9,000 80, SUN HUNG KAI PROPERTIES LIMITED 20, , SUN HUNG KAI PROPERTIES LIMITED WARRANT DUE 22/04/2016 2,000 6, THE LINK REIT 23, , TOTAL HONG KONG 927,

23 United Global Real Estate Securities Fund STATEMENTS OF PORTFOLIO As at 31 December 2014 (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 31 December 31 December 31 December $ % JAPAN DAIWA HOUSE INDUSTRY CO LTD 7, , JAPAN EXCELLENT INC , MITSUBISHI ESTATE CO LTD 7, , MITSUI FUDOSAN COMPANY LTD 9, , NIPPON BUILDING FUND INC , SUMITOMO REALTY & DEVELOPMENT 3, , TOTAL JAPAN 1,327, SINGAPORE CAPITACOMMERCIAL TRUST 151, , SWEDEN KLOVERN AB - B SHARES 79, , UNITED KINGDOM BRITISH LAND CO PLC 11, , HAMMERSON PLC 20, , PRIMARY HEALTH PROPERTIES PLC 2,220 16, UNITE GROUP PLC 16, , TOTAL UNITED KINGDOM 618,

24 United Global Real Estate Securities Fund STATEMENTS OF PORTFOLIO As at 31 December 2014 (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 31 December 31 December 31 December $ % UNITED STATES AMERICAN REALTY CAPITAL PROPERTIES 6,800 81, AVALONBAY COMMUNITIES INC , BIOMED REALTY TRUST INC 4, , CBL & ASSOCIATES PROPERTIES INC 3,600 92, CHAMBERS STREET PROPERTIES 11, , DCT INDUSTRIAL TRUST INC 1,400 66, DUKE REALTY CORPORATION 1,300 34, EPR PROPERTIES , EQUITY RESIDENTIAL 1, , FEDERAL REALTY INVESTMENT TRUST , GENERAL GROWTH PROPERTIES 4, , HCP INC 3, , HEALTH CARE REIT INC 1, , HOME PROPERTIES INC 1, , HOSPITALITY PROPERTIES TRUST 3, , IRON MOUNTAIN INCORPORATED 2, , MACERICH COMPANY 1, , OMEGA HEALTHCARE INVESTORS 1,300 67, PIEDMONT OFFICE REALTY TRUST 4, , PROLOGIS INC 2, , PUBLIC STORAGE 1, , REALTY INCOME CORPORATION 3, , RLJ LODGING TRUST 2, , SIMON PROPERTY GROUP LTD 1, , SL GREEN REALTY CORPORATION , SUNSTONE HOTEL INVESTORS INC 9, , UDR INC 3, , VENTAS INC 2, , VORNADO REALTY TRUST , WHITESTONE REIT 5, , TOTAL UNITED STATES 4,242, Portfolio of investments 8,724, Other net assets 177, Net assets attributable to unitholders 8,902,

25 United Global Real Estate Securities Fund STATEMENTS OF PORTFOLIO As at 31 December 2014 (Un-audited) By Geography - Primary (Summary) Quoted Equities United Global Real Estate Securities Fund Percentage of Percentage of total net assets total net assets attributable to attributable to unitholders at unitholders at 31 December 30 June % % Australia Austria Canada France Hong Kong Japan Netherlands Singapore Sweden United Kingdom United States Portfolio of investments Other net assets/(liabilities) 2.00 (1.35) Net assets attributable to unitholders

26 United Global Real Estate Securities Fund STATEMENTS OF PORTFOLIO As at 31 December 2014 (Un-audited) By Industry - Secondary Quoted Equities United Global Real Estate Securities Fund Percentage of Percentage of total net assets total net assets attributable to attributable to Fair value at unitholders at unitholders at 31 December 31 December 30 June $ % % Financials 8,724, Portfolio of investments 8,724, Other net assets/(liabilities) 177, (1.35) Net assets attributable to unitholders 8,902,

27 United Asia Pacific Real Estate Income Fund STATEMENTS OF PORTFOLIO As at 31 December 2014 (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 31 December 31 December 31 December $ % AUSTRALIA CHARTER HALL GROUP 7,000 34, CHARTER HALL RETAIL 6,000 26, DEXUS PROPERTY GROUP 10,666 80, FEDERATION CENTRES 36, , GOODMAN GROUP 25, , GROWTHPOINT PROPERTIES AUSTRALIA LIMITED 5,027 14, INVESTA OFFICE FUND 4,000 15, MIRVAC GROUP 47,000 90, SCENTRE GROUP 53, , STOCKLAND 28, , WESTFIELD CORP 17, , TOTAL AUSTRALIA 1,022, HONG KONG THE LINK REIT 14, , JAPAN ACTIVIA PROPERTIES INC , AEON REIT INVESTMENT CORP 8 15, COMFORIA RESIDENTIAL REIT INC 18 52, HULIC REIT INC , ICHIGO REAL ESTATE INVESTMENT CORP , INDUSTRIAL & INFRASTRUCTURE FUND INVESTMENT 10 61, JAPAN HOTEL REIT INVESTMENT CORPORATION 74 62, KENEDIX REALTY INVESTMENT CO , NIPPON ACCOMMODATIONS FUND 11 57, NIPPON BUILDING FUND 12 80, NOMURA REAL ESTATE MASTER FUND INC 44 75, ORIX JREIT INC , PREMIER INVESTMENT CORPORATION 8 52, SEKISUI HOUSE REIT INC 17 26, TOTAL JAPAN 1,123,

28 United Asia Pacific Real Estate Income Fund STATEMENTS OF PORTFOLIO As at 31 December 2014 (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 31 December 31 December 31 December $ % SINGAPORE CAPITACOMMERCIAL TRUST 52,000 91, CAPITAMALL TRUST 30,000 61, MAPLETREE COMMERCIAL TRUST 43,000 60, MAPLETREE GREATER CHINA COMM TRUST 40,000 38, SUNTEC REIT 34,000 66, TOTAL SINGAPORE 317, Portfolio of investments 2,578, Other net assets 125, Net assets attributable to unitholders 2,704,

29 United Asia Pacific Real Estate Income Fund STATEMENTS OF PORTFOLIO As at 31 December 2014 (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 31 December 30 June % % Australia Hong Kong Japan Singapore Portfolio of investments Other net assets/(liabilities) 4.63 (1.24) Net assets attributable to unitholders

30 United Asia Pacific Real Estate Income Fund STATEMENTS OF PORTFOLIO As at 31 December 2014 (Un-audited) By Industry - Secondary Quoted Equities United Asia Pacific Real Estate Income Fund Percentage of Percentage of total net assets total net assets attributable to attributable to Fair value at unitholders at unitholders at 31 December 31 December 30 June $ % % Diversified REITs 1,017, Industrial REITs 215, Office REITs 300, Residential REITs 222, Retail REITs 759, Specialized REITs 62, Portfolio of investments 2,578, Other net assets/(liabilities) 125, (1.24) Net assets attributable to unitholders 2,704,

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