GrowthPath Portfolios

Transcription

1 GrowthPath Portfolios GrowthPath Today GrowthPath 2020 GrowthPath 2030 GrowthPath 2040 Semi Annual Report for the half year ended 31 st December 2017

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3 GrowthPath Portfolios 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

4 GrowthPath Portfolios A) Fund Performance GrowthPath Today Fund Performance/ Benchmark Returns 3 mth Growth 6 mth Growth 1 yr Growth 3 yr Ann Comp Ret 5 yr Ann Comp Ret Since Inception 02 December 10 yr 2002 Ann Ann Comp Comp Ret Ret GrowthPath Today Benchmark Source: Note: Lipper, a Thomson Reuters Company, Bloomberg 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: Composite Benchmark comprises of MSCI AC WI, Singapore Straits Times Index, Citigroup G7 Govt Bond Index, TR/SGX SFI Govt Bond Index. Actual vary from time to time. GrowthPath 2020 Fund Performance/ Benchmark Returns 3 mth Growth 6 mth Growth 1 yr Growth 3 yr Ann Comp Ret 5 yr Ann Comp Ret Since Inception 02 December 10 yr 2002 Ann Ann Comp Comp Ret Ret GrowthPath Benchmark Source: Note: Lipper, a Thomson Reuters Company, Bloomberg. 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: Composite Benchmark comprises of MSCI AC WI, Singapore Straits Times Index, Citigroup G7 Govt Bond Index, TR/SGX SFI Govt Bond Index. Actual vary from time to time. -2-

5 GrowthPath Portfolios A) Fund Performance (continued) GrowthPath 2030 Fund Performance/ Benchmark Returns 3 mth Growth 6 mth Growth 1 yr Growth 3 yr Ann Comp Ret 5 yr Ann Comp Ret Since Inception 02 December 10 yr 2002 Ann Ann Comp Comp Ret Ret GrowthPath Benchmark Source: Note: Lipper, a Thomson Reuters Company, Bloomberg. 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: Composite Benchmark comprises of MSCI AC WI, Singapore Straits Times Index, Citigroup G7 Govt Bond Index, TR/SGX SFI Govt Bond Index. Actual vary from time to time. GrowthPath 2040 Fund Performance/ Benchmark Returns 3 mth Growth 6 mth Growth 1 yr Growth 3 yr Ann Comp Ret 5 yr Ann Comp Ret Since Inception 02 December 10 yr 2002 Ann Ann Comp Comp Ret Ret GrowthPath Benchmark Source: Note: Lipper, a Thomson Reuters Company, Bloomberg. 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: Composite Benchmark comprises of MSCI AC WI, Singapore Straits Times Index, Citigroup G7 Govt Bond Index, TR/SGX SFI Govt Bond Index. Actual vary from time to time. -3-

6 GrowthPath Portfolios A) Fund Performance (continued) The asset allocations as at 31 December 2017 were as follows: Allocation () GrowthPath Today GrowthPath 2020 GrowthPath 2030 GrowthPath 2040 Singapore Equity Global Equity Singapore Fixed Income Global Fixed Income Cash Total For the period, all GrowthPath portfolios delivered positive returns and GrowthPath Today and GrowthPath 2020 outperformed their benchmarks. The decision to overweight equities, particularly in Asia, was the main driver of the outperformance. Economic and Market Review The Morgan Stanley Capital Index (MSCI) All Country World Free delivered a total return of 8.2 over the six month period while Singapore s FSSTI index returned 7.2. Meanwhile, the MSCI Asia Ex-Japan index posted a 12.0 gain. In the Bond space, the SFI Government Bond index rose 0.6 while the Citigroup G7 Government Bond index dipped 0.6. All returns are measured in Singapore dollar terms. Financial markets entered the second half of 2017 with near unbridled optimism. Geopolitical risks from the Korean Peninsula, Middle East and Europe have gradually subsided. Meanwhile, economic data showed continued momentum and synchronized growth globally, with most purchasing managers indices (PMIs) reaching multi-year highs. Asia ex-japan stood out as an outperformer as China s economy slowed less than market expected, and the country saw a smooth leadership transition within the Central Politburo. European markets weathered hiccups partially due to German s inability to form a coalition government after its parliamentary election, raising concerns of a re-emergence of nationalistic sentiments in the Eurozone. However, the passing of the US tax reform bill in Congress late in the year revived investors sentiment, as lower corporate and personal tax rates are expected to boost corporate profits and consumption. After raising interest rates twice in the first half of the 2017, the US Federal Reserve (Fed) began to shrink its balance sheet in October by gradually reducing the amount it would reinvest as its bond holdings mature, and hiked interest rate one more time in December, fulfilling its promise of three rate hikes for the year. While these would have previously been seen as monetary tightening measures and cause US Treasury (UST) yields to spike, the bond markets took the news in stride as 10-year UST yields remained largely range bound in the second half of This was despite the further fiscal stimulus from the passing of the US tax reform bill. The Fed policy seems to have a greater impact on short term interest rates, with the 2-year UST yield climbing from approx in August to end the year at The Singapore 10-Year Government Securities (SGS) yield moved largely in tandem with the US, until they diverged in October as the Fed began to shrink its balance sheet. SGS yields fell in the last two months even as UST yields climbed, resulting in the difference in performance between Singapore Government Bond and US Government Bond indices. Outlook and Fund Strategy The current cycle is mature by historical standards and at a stage when many market observers are monitoring for signs of a slowdown. As it is into its ninth year, and veering close to the record of 10 years of expansion set in the 1990 s, some investors view this as a cause for concern and reason to cut risk exposure. However, our checklist of indicators are telling us that the cycle has not yet peaked nor about to come to an end. The checklist includes the shape of the yield curve, momentum of leading indicators, recession probability models, excessive credit expansion, financial stress indicators, market indicators such as asset correlations, as well as spreads between investment grade and high yield bonds, with none signaling that recession is imminent. Our view is that because the pace of this recovery cycle has been more modest than usual, we suspect this length of this cycle will extend for a couple of more years. We don t have the evidence of overheating which usually indicates the start of the next downturn. Instead, economic momentum continues to surprise to the upside, with growth being broad-based and synchronised globally. -4-

7 GrowthPath Portfolios A) Fund Performance (continued) We had previously opined that both equities and bonds would perform well in a world of modest growth and low inflation. However, continued confidence in growth with modest increases in inflation probability would tilt the investment environment to favour risk assets that benefit from the continued upcycle, over safe assets. Major commodities, particularly oil, have performed well over the year and we think the outlook remains positive. While we continue to monitor geopolitical risks, we see no near term catalyst that might disrupt the current expansion, and hence no reason to raise our cash levels. With such as backdrop, we will therefore start 2018 with the recommendation to overweight equities and commodities, and to underweight fixed income and cash. -5-

8 GrowthPath Today A) Fund Performance Please refer to page 2 of the Semi Annual Report. B) Investments at fair value and as a percentage of net asset value ( NAV ) as at 31 December 2017 under review classified by i) Country Fair Value (S$) of NAV Singapore 6,435, Portfolio of investments 6,435, Other net assets/(liabilities) 84, Total 6,519, ii) Industry iii) Asset Class Fair Value (S$) of NAV Quoted unit trusts 6,435, Other net assets/(liabilities) 84, Total 6,519, iv) Credit rating of quoted bonds C) Top Ten Holdings 10 largest holdings as at 31 December 2017 Fair Value (S$) unitholders UNITED HIGH GRADE CORPORATE BOND FUND 3,452, UNITED SINGAPORE BOND FUND 1,537, UNITED INTERNATIONAL GROWTH FUND 1,085, UNITED SINGAPORE GROWTH FUND 359, There were only 4 holdings as at 31 December

9 GrowthPath Today C) Top Ten Holdings (continued) 10 largest holdings as at 31 December 2016 Fair Value unitholders (S$) UNITED HIGH GRADE CORPORATE BOND FUND 3,999, UNITED SINGAPORE BOND FUND 1,454, UNITED INTERNATIONAL GROWTH FUND 1,086, UNITED SINGAPORE GROWTH FUND 518, ISHARES MSCI WORLD UCITS ETF 27, There were only 5 holdings as at 31 December D) Exposure to derivatives i) Fair value of derivative contracts and as a percentage of NAV as at 31 December 2017 ii) Net gains/(losses) on derivative contracts realised during the financial period from 01 July 2017 to 31 December 2017 iii) Net gains/(losses) on outstanding derivative contracts marked to market as at 31 December 2017 E) Amount and percentage of NAV invested in other schemes as at 31 December 2017 Please refer to the Statements of Portfolio. F) Amount and percentage of borrowings to NAV as at 31 December 2017 G) Amount of redemptions and subscriptions for the financial period from 01 July 2017 to 31 December 2017 Total amount of redemptions SGD 442,351 Total amount of subscriptions SGD 11,160 H) The amount and terms of related-party transactions for the financial period from 01 July 2017 to 31 December 2017 i) As at 31 December 2017, the Sub-Fund maintained current accounts with State Street Bank and Trust Company as follows: Bank balances SGD 81,205-7-

10 GrowthPath Today H) The amount and terms of related-party transactions for the financial period from 01 July 2017 to 31 December 2017 (continued) ii) Investment in Initial Public Offerings managed by UOB Group iii) As at 31 December 2017, there was no brokerage income earned by UOB Kay Hian Pte Ltd. I) Expense ratios $ $ Total operating expenses (before reimbursement) 37,166 25,835 Total operating expenses (after reimbursement) 37,166 (29,668) Average daily net asset value 6,859,188 7,562,080 Weighted average of the Investee Funds expense ratio Expense ratio (before reimbursement) Expense ratio (after reimbursement) Note: The expense ratio has been computed based on the guidelines laid down by the Investment Management Association of Singapore ( IMAS ). This is the sum of the Sub-Fund s expense ratio and the weighted average of the Investee Funds unaudited expense ratios. The unaudited expense ratios of the Investee Funds are obtained from Investee Funds Manager. The calculation of the Sub-Fund s expense ratio at 31 December 2017 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 $ $ Lower of total value of purchases or sales 34,752 44,550 Average daily net assets value 6,663,816 7,347,569 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 -8-

11 GrowthPath Today 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 31 December 2017 and 31 December largest holdings as at 31 December 2017 United High Grade Corporate Bond Fund Fair Value unitholders (S$) UBS AG SUBORDINATED REGS 05/ , PHOENIX GROUP HLDGS 07/ , REPUBLIC OF INDONESIA SR UNSECURED REGS 07/ , SHOUGANG CORP SR UNSECURED REGS 08/ , CGNPC INTERNATIONAL LTD COMPANY GUAR REGS 12/ , JIAXING INV AND DEV SR UNSECURED REGS 01/ , GOLDMAN SACHS GROUP INC SR UNSECURED 09/25 VAR 799, MCC HOLDING HK CORP LTD COMPANY GUAR REGS 05/ , ICICI BANK LTD/DUBAI SR UNSECURED REGS 12/ , GS CALTEX CORP SR UNSECURED REGS 06/ , largest holdings as at 31 December 2016 United High Grade Corporate Bond Fund Fair Value unitholders (S$) EI SUKUK LTD DUE 31/05/ , UPL CORP LTD 3.25 DUE 13/10/ , CONOCOPHILLIPS COMPANY 4.20 DUE 15/03/ , CNRC CAPITAL LTD DUE 07/12/ , NEWELL RUBBERMAID INC 4.20 DUE 01/04/ , IND & COMM BK OF CHINA DUE 21/09/ , DOLLAR GENERAL CORP 4.15 DUE 01/11/ , BEAZLEY RE LTD DUE 04/11/ , STANDARD CHARTERED PLC 4 DUE 12/07/ , SHINHAN BANK DUE 07/12/ ,

12 GrowthPath Today 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 (continued) ii) Expense ratios for the financial period ended 31 December 2017 and 31 December 2016 United High Grade Corporate Bond Fund 31 December December 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 underlying scheme s expense ratio at 31 December 2017 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 underlying scheme does not pay any performance fee. The average net asset value is based on the daily balances. iii) Turnover ratios for the financial period ended 31 December 2017 and 31 December 2016 United High Grade Corporate Bond Fund 31 December December Note: 1 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. 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 -10-

13 GrowthPath 2020 A) Fund Performance Please refer to page 2 of the Semi Annual Report. B) Investments at fair value and as a percentage of net asset value ( NAV ) as at 31 December 2017 under review classified by i) Country Fair Value (S$) of NAV Singapore 10,068, Portfolio of investments 10,068, Other net assets/(liabilities) 64, Total 10,132, ii) Industry iii) Asset Class Fair Value (S$) of NAV Quoted unit trusts 10,068, Other net assets/(liabilities) 64, Total 10,132, iv) Credit rating of quoted bonds -11-

14 GrowthPath 2020 C) Top Ten Holdings 10 largest holdings as at 31 December 2017 Fair Value (S$) unitholders UNITED HIGH GRADE CORPORATE BOND FUND 5,083, UNITED INTERNATIONAL GROWTH FUND 2,079, UNITED SINGAPORE BOND FUND 1,623, UNITED SINGAPORE GROWTH FUND 1,099, UNITED ASIA FUND 182, There were only 5 holdings as at 31 December largest holdings as at 31 December 2016 Fair Value unitholders (S$) UNITED HIGH GRADE CORPORATE BOND FUND 5,305, UNITED INTERNATIONAL GROWTH FUND 1,843, UNITED SINGAPORE BOND FUND 1,813, UNITED SINGAPORE GROWTH FUND 1,600, UNITED ASIA FUND 137, There were only 5 holdings as at 31 December D) Exposure to derivatives i) Fair value of derivative contracts and as a percentage of NAV as at 31 December 2017 ii) Net gains/(losses) on derivative contracts realised during the financial period from 01 July 2017 to 31 December 2017 iii) Net gains/(losses) on outstanding derivative contracts marked to market as at 31 December 2017 E) Amount and percentage of NAV invested in other schemes as at 31 December 2017 Please refer to the Statements of Portfolio. -12-

15 GrowthPath 2020 F) Amount and percentage of borrowings to NAV as at 31 December 2017 G) Amount of redemptions and subscriptions for the financial period from 01 July 2017 to 31 December 2017 Total amount of redemptions SGD 840,812 Total amount of subscriptions SGD 179,960 H) The amount and terms of related-party transactions for the financial period from 01 July 2017 to 31 December 2017 i) As at 31 December 2017, the Sub-Fund maintained current accounts with State Street Bank and Trust Company as follows: Bank balances SGD 114,009 ii) Investment in Initial Public Offerings managed by UOB Group iii) As at 31 December 2017, there was no brokerage income earned by UOB Kay Hian Pte Ltd. I) Expense ratios $ $ Total operating expenses (before reimbursement) 84,802 67,486 Total operating expenses (after reimbursement) 84,802 19,986 Average daily net asset value 10,579,919 11,547,408 Weighted average of the Investee Funds expense ratio Expense ratio (before reimbursement) Expense ratio (after reimbursement) Note: The expense ratio has been computed based on the guidelines laid down by the Investment Management Association of Singapore ( IMAS ). This is the sum of the Sub-Fund s expense ratio and the weighted average of the Investee Funds unaudited expense ratios. The unaudited expense ratios of the Investee Funds are obtained from Investee Funds Manager. The calculation of the Sub-Fund s expense ratio at 31 December 2017 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. -13-

16 GrowthPath 2020 J) Turnover ratios $ $ Lower of total value of purchases or sales 517,803 75,483 Average daily net assets value 10,458,071 11,118,086 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 31 December 2017 and 31 December largest holdings as at 31 December 2017 United High Grade Corporate Bond Fund Fair Value unitholders (S$) UBS AG SUBORDINATED REGS 05/ , PHOENIX GROUP HLDGS 07/ , REPUBLIC OF INDONESIA SR UNSECURED REGS 07/ , SHOUGANG CORP SR UNSECURED REGS 08/ , CGNPC INTERNATIONAL LTD COMPANY GUAR REGS 12/ , JIAXING INV AND DEV SR UNSECURED REGS 01/ , GOLDMAN SACHS GROUP INC SR UNSECURED 09/25 VAR 799, MCC HOLDING HK CORP LTD COMPANY GUAR REGS 05/ , ICICI BANK LTD/DUBAI SR UNSECURED REGS 12/ , GS CALTEX CORP SR UNSECURED REGS 06/ ,

17 GrowthPath 2020 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 (continued) i) Top 10 holdings at fair value and as percentage of NAV as at 31 December 2017 and 31 December 2016 (continued) 10 largest holdings as at 31 December 2016 United High Grade Corporate Bond Fund Fair Value unitholders (S$) EI SUKUK LTD DUE 31/05/ , UPL CORP LTD 3.25 DUE 13/10/ , CONOCOPHILLIPS COMPANY 4.20 DUE 15/03/ , CNRC CAPITAL LTD DUE 07/12/ , NEWELL RUBBERMAID INC 4.20 DUE 01/04/ , IND & COMM BK OF CHINA DUE 21/09/ , DOLLAR GENERAL CORP 4.15 DUE 01/11/ , BEAZLEY RE LTD DUE 04/11/ , STANDARD CHARTERED PLC 4 DUE 12/07/ , SHINHAN BANK DUE 07/12/ , ii) Expense ratios for the financial period ended 31 December 2017 and 31 December 2016 United High Grade Corporate Bond Fund 31 December December 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 underlying scheme s expense ratio at 31 December 2017 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 underlying scheme does not pay any performance fee. The average net asset value is based on the daily balances. -15-

18 GrowthPath 2020 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 (continued) iii) Turnover ratios for the financial period ended 31 December 2017 and 31 December 2016 United High Grade Corporate Bond Fund 31 December December Note: 1 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. 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 -16-

19 GrowthPath 2030 A) Fund Performance Please refer to page 3 of the Semi Annual Report. B) Investments at fair value and as a percentage of net asset value ( NAV ) as at 31 December 2017 under review classified by i) Country Fair Value (S$) of NAV Ireland 60, Singapore 5,819, Portfolio of investments 5,879, Other net assets/(liabilities) 96, Total 5,975, ii) Industry iii) Asset Class Fair Value (S$) of NAV Quoted unit trusts 5,879, Other net assets/(liabilities) 96, Total 5,975, iv) Credit rating of quoted bonds -17-

20 GrowthPath 2030 C) Top Ten Holdings 10 largest holdings as at 31 December 2017 Fair Value (S$) unitholders UNITED INTERNATIONAL GROWTH FUND 2,687, UNITED HIGH GRADE CORPORATE BOND FUND 1,190, UNITED SINGAPORE GROWTH FUND 1,090, UNITED ASIA FUND 436, UNITED SINGAPORE BOND FUND 414, ISHARES MSCI WORLD UCITS ETF 60, There were only 6 holdings as at 31 December largest holdings as at 31 December 2016 Fair Value unitholders (S$) UNITED INTERNATIONAL GROWTH FUND 3,336, UNITED SINGAPORE GROWTH FUND 1,414, UNITED ASIA FUND 328, UNITED HIGH GRADE CORPORATE BOND FUND 179, ISHARES MSCI WORLD UCITS ETF 165, UNITED SINGAPORE BOND FUND 102, There were only 6 holdings as at 31 December D) Exposure to derivatives i) Fair value of derivative contracts and as a percentage of NAV as at 31 December 2017 ii) Net gains/(losses) on derivative contracts realised during the financial period from 01 July 2017 to 31 December 2017 iii) Net gains/(losses) on outstanding derivative contracts marked to market as at 31 December 2017 E) Amount and percentage of NAV invested in other schemes as at 31 December 2017 Please refer to the Statements of Portfolio. -18-

21 GrowthPath 2030 F) Amount and percentage of borrowings to NAV as at 31 December 2017 G) Amount of redemptions and subscriptions for the financial period from 01 July 2017 to 31 December 2017 Total amount of redemptions SGD 331,416 Total amount of subscriptions SGD 198,078 H) The amount and terms of related-party transactions for the financial period from 01 July 2017 to 31 December 2017 i) As at 31 December 2017, the Sub-Fund maintained current accounts with State Street Bank and Trust Company as follows: Bank balances SGD 89,688 ii) Investment in Initial Public Offerings managed by UOB Group iii) As at 31 December 2017, there was no brokerage income earned by UOB Kay Hian Pte Ltd. I) Expense ratios $ $ Total operating expenses (before reimbursement) 57,204 54,906 Total operating expenses (after reimbursement) 57,204 15,606 Average daily net asset value 5,844,351 5,872,188 Weighted average of the Investee Funds expense ratio Expense ratio (before reimbursement) Expense ratio (after reimbursement) Note: The expense ratio has been computed based on the guidelines laid down by the Investment Management Association of Singapore ( IMAS ). This is the sum of the Sub-Fund s expense ratio and the weighted average of the Investee Funds unaudited expense ratios. The unaudited expense ratios of the Investee Funds are obtained from Investee Funds Manager. The calculation of the Sub-Fund s expense ratio at 31 December 2017 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. -19-

22 GrowthPath 2030 J) Turnover ratios $ $ Lower of total value of purchases or sales 1,344, ,376 Average daily net assets value 5,912,536 5,806,408 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 31 December 2017 and 31 December largest holdings as at 31 December 2017 United International Growth Fund Fair Value unitholders (S$) MICROSOFT CORP 3,658, ALPHABET INC 2,604, UNITEDHEALTH GROUP INC 2,386, HESS CORP 2,214, HONEYWELL INTERNATIONAL INC 2,151, RAYTHEON CO 1,882, EVOLUTION MINING LTD 1,875, WELLS FARGO & CO 1,735, ASSA ABLOY AB 1,646, BANCO BILBAO VIZCAYA ARGENTARIA SA 1,637,

23 GrowthPath 2030 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 (continued) i) Top 10 holdings at fair value and as percentage of NAV as at 31 December 2017 and 31 December 2016 (continued) 10 largest holdings as at 31 December 2016 United International Growth Fund Fair Value unitholders (S$) MICROSOFT 8,851, ALPHABET INC-CL A 6,869, MERCK 5,953, CELGENE CORPORATION 5,618, SAMSUNG ELECTRONICS 5,388, DOLLAR GENERAL CORPORATION 5,243, WELLS FARGO & COMPANY 5,095, NXP SEMICONDUCTORS NV 4,998, PNC FINANCIAL SERVICES 4,984, US BANCORP 4,920, ii) Expense ratios for the financial period ended 31 December 2017 and 31 December 2016 United International Growth Fund 31 December December 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 underlying scheme s expense ratio at 31 December 2017 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 underlying scheme does not pay any performance fee. The average net asset value is based on the daily balances. -21-

24 GrowthPath 2030 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 (continued) iii) Turnover ratios for the financial period ended 31 December 2017 and 31 December 2016 United International Growth Fund 31 December December Note: 1 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. 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 -22-

25 GrowthPath 2040 A) Fund Performance Please refer to page 3 of the Semi Annual Report. B) Investments at fair value and as a percentage of net asset value ( NAV ) as at 31 December 2017 under review classified by i) Country Fair Value (S$) of NAV Ireland 249, Singapore 19,746, Portfolio of investments 19,996, Other net assets/(liabilities) 109, Total 20,106, ii) Industry iii) Asset Class Fair Value (S$) of NAV Quoted unit trusts 19,996, Other net assets/(liabilities) 109, Total 20,106, iv) Credit rating of quoted bonds -23-

26 GrowthPath 2040 C) Top Ten Holdings 10 largest holdings as at 31 December 2017 Fair Value (S$) unitholders UNITED INTERNATIONAL GROWTH FUND 10,966, UNITED SINGAPORE GROWTH FUND 4,146, UNITED HIGH GRADE CORPORATE BOND FUND 2,094, UNITED ASIA FUND 1,824, UNITED SINGAPORE BOND FUND 715, ISHARES MSCI WORLD UCITS ETF 249, There were only 6 holdings as at 31 December largest holdings as at 31 December 2016 Fair Value unitholders (S$) UNITED INTERNATIONAL GROWTH FUND 13,322, UNITED SINGAPORE GROWTH FUND 5,139, UNITED ASIA FUND 1,374, ISHARES MSCI WORLD UCITS ETF 224, UNITED SINGAPORE BOND FUND 97 - * There were only 5 holdings as at 31 December * denotes an amount of less than 0.01 D) Exposure to derivatives i) Fair value of derivative contracts and as a percentage of NAV as at 31 December 2017 ii) Net gains/(losses) on derivative contracts realised during the financial period from 01 July 2017 to 31 December 2017 iii) Net gains/(losses) on outstanding derivative contracts marked to market as at 31 December 2017 E) Amount and percentage of NAV invested in other schemes as at 31 December 2017 Please refer to the Statements of Portfolio. -24-

27 GrowthPath 2040 F) Amount and percentage of borrowings to NAV as at 31 December 2017 G) Amount of redemptions and subscriptions for the financial period from 01 July 2017 to 31 December 2017 Total amount of redemptions SGD 1,797,629 Total amount of subscriptions SGD 329,895 H) The amount and terms of related-party transactions for the financial period from 01 July 2017 to 31 December 2017 i) As at 31 December 2017, the Sub-Fund maintained current accounts with State Street Bank and Trust Company as follows: Bank balances SGD 77,083 ii) Investment in Initial Public Offerings managed by UOB Group iii) As at 31 December 2017, there was no brokerage income earned by UOB Kay Hian Pte Ltd. I) Expense ratios $ $ Total operating expenses (before reimbursement) 122,980 89,135 Total operating expenses (after reimbursement) 122,980 35,335 Average daily net asset value 20,534,823 20,256,860 Weighted average of the Investee Funds expense ratio Expense ratio (before reimbursement) Expense ratio (after reimbursement) Note: The expense ratio has been computed based on the guidelines laid down by the Investment Management Association of Singapore ( IMAS ). This is the sum of the Sub-Fund s expense ratio and the weighted average of the Investee Funds unaudited expense ratios. The unaudited expense ratios of the Investee Funds are obtained from Investee Funds Manager. The calculation of the Sub-Fund s expense ratio at 31 December 2017 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. -25-

28 GrowthPath 2040 J) Turnover ratios $ $ Lower of total value of purchases or sales 2,960, ,078 Average daily net assets value 20,371,980 20,100,601 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 31 December 2017 and 31 December largest holdings as at 31 December 2017 United International Growth Fund Fair Value unitholders (S$) MICROSOFT CORP 3,658, ALPHABET INC 2,604, UNITEDHEALTH GROUP INC 2,386, HESS CORP 2,214, HONEYWELL INTERNATIONAL INC 2,151, RAYTHEON CO 1,882, EVOLUTION MINING LTD 1,875, WELLS FARGO & CO 1,735, ASSA ABLOY AB 1,646, BANCO BILBAO VIZCAYA ARGENTARIA SA 1,637,

29 GrowthPath 2040 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 (continued) i) Top 10 holdings at fair value and as percentage of NAV as at 31 December 2017 and 31 December 2016 (continued) 10 largest holdings as at 31 December 2016 United International Growth Fund Fair Value unitholders (S$) MICROSOFT 8,851, ALPHABET INC-CL A 6,869, MERCK 5,953, CELGENE CORPORATION 5,618, SAMSUNG ELECTRONICS 5,388, DOLLAR GENERAL CORPORATION 5,243, WELLS FARGO & COMPANY 5,095, NXP SEMICONDUCTORS NV 4,998, PNC FINANCIAL SERVICES 4,984, US BANCORP 4,920, ii) Expense ratios for the financial period ended 31 December 2017 and 31 December 2016 United International Growth Fund 31 December December 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 underlying scheme s expense ratio at 31 December 2017 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 underlying scheme does not pay any performance fee. The average net asset value is based on the daily balances. -27-

30 GrowthPath 2040 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 (continued) iii) Turnover ratios for the financial period ended 31 December 2017 and 31 December 2016 United International Growth Fund 31 December December Note: 1 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. 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 -28-

31 GrowthPath Portfolios STATEMENTS OF TOTAL RETURN For the half year ended 31 December 2017 (Un-audited) GrowthPath Today GrowthPath December 31 December 31 December 31 December $ $ $ $ Income Dividends 9,992 6,990 33,135 20,994 Interest Total 9,992 6,993 33,135 20,995 Less: Expenses Management fee 26,882 29,645 50,085 53,268 Less: Management fee rebate (26,424) (32,870) (43,675) (51,175) Trustee fee 2,547 2,519 2,727 2,243 Audit fee 4,008 3,304 6,545 4,504 Registrar fee - - 7,582 7,009 Valuation fee - - 5,272 5,607 Custody fee 1, ,244 - Other expenses 11,714 9,170 16,167 8,009 Total 20,086 11,774 46,947 29,465 Net income/(losses) (10,094) (4,781) (13,812) (8,470) Net gains/(losses) on value of investments Net gains/(losses) on investments 150, , , ,804 Net foreign exchange gains/(losses) (45) , , , ,830 Total return/(deficit) for the period 140, , , ,

32 GrowthPath Portfolios STATEMENTS OF TOTAL RETURN For the half year ended 31 December 2017 (Un-audited) GrowthPath 2030 GrowthPath December 31 December 31 December 31 December $ $ $ $ Income Dividends 29,947 19, ,798 69,026 Interest Total 29,949 19, ,799 69,028 Less: Expenses Management fee 28,308 27,819 97,553 96,289 Less: Management fee rebate (27,392) (27,957) (99,881) (102,033) Trustee fee 2,545 2,521 3,080 4,054 Audit fee 3,946 2,334 13,930 8,044 Registrar fee 7,582 7,531 12,637 12,552 Valuation fee 2,980 2,928 10,269 10,136 Custody fee 3, , Interest expenses Other expenses 12,582 8,572 41,676 9,981 Total 34,178 23,783 81,994 39,081 Net income/(losses) (4,229) (4,046) 26,805 29,947 Net gains/(losses) on value of investments Net gains/(losses) on investments 313, ,783 1,259,773 1,940,293 Net foreign exchange gains/(losses) (108) 135 (27) , ,918 1,259,746 1,940,520 Total return/(deficit) for the period 308, ,872 1,286,551 1,970,

33 GrowthPath Portfolios STATEMENTS OF FINANCIAL POSITION As at 31 December 2017 (Un-audited) GrowthPath Today GrowthPath December 30 June 31 December 30 June $ $ $ $ Assets Portfolio of investments 6,435,704 6,775,894 10,068,908 10,424,493 Receivables 21,122 13,727 41,180 22,207 Cash and bank balances 81,205 38, , ,025 Total assets 6,538,031 6,828,183 10,224,097 10,555,725 Liabilities Payables 18,178 17,544 91,164 39,904 Total liabilities 18,178 17,544 91,164 39,904 Equity Net assets unitholders 6,519,853 6,810,639 10,132,933 10,515,

34 GrowthPath Portfolios STATEMENTS OF FINANCIAL POSITION As at 31 December 2017 (Un-audited) GrowthPath 2030 GrowthPath December 30 June 31 December 30 June $ $ $ $ Assets Portfolio of investments 5,879,501 5,761,240 19,996,704 20,261,373 Receivables 30,602 14, ,383 58,838 Cash and bank balances 89,688 47,574 77,083 51,213 Total assets 5,999,791 5,823,437 20,197,170 20,371,424 Liabilities Payables 24,240 23,317 90,653 83,724 Total liabilities 24,240 23,317 90,653 83,724 Equity Net assets unitholders 5,975,551 5,800,120 20,106,517 20,287,

35 GrowthPath Portfolios STATEMENTS OF MOVEMENTS OF UNITHOLDERS FUNDS For the half year ended 31 December 2017 (Un-audited) GrowthPath Today GrowthPath December 30 June 31 December 30 June $ $ $ $ Net assets unitholders at the beginning of the financial period/year 6,810,639 7,779,400 10,515,821 11,563,775 Operations Change in net assets unitholders resulting from operations 140, , , ,185 Unitholders contributions/(withdrawals) Creation of units 11,160 53, , ,865 Cancellation of units (442,351) (1,534,393) (840,812) (2,070,004) Change in net assets unitholders resulting from net creation and cancellation of units (431,191) (1,480,932) (660,852) (1,961,139) Total increase/(decrease) in net assets unitholders (290,786) (968,761) (382,888) (1,047,954) Net assets unitholders at the end of the financial period/year 6,519,853 6,810,639 10,132,933 10,515,