United Choice Portfolios II- United SGD Fund

Transcription

1 United Choice Portfolios II- United SGD Fund Semi ual Report for the half year ended

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3 United Choice Portfolios II MANAGER UOB Asset Management Ltd Registered Address: 80 Raffles Place UOB Plaza Singapore any Registration No. : Z OPERATIONS ADDRESS 80 Raffles Place #06-00, UOB Plaza 2 Singapore Tel: DIRECTORS OF UOB ASSET MANAGEMENT Lee Wai Fai Cheo Chai Hong Goh Yu Min 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 any, acting through its Singapore Branch 168 Robinson Road #33-01, Capital Tower Singapore 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 Shook Lin & Bok LLP 1 Robinson Road #18-00, AIA Tower Singapore

4 United SGD Fund A) Fund Performance Class A (Acc) SGD Fund Performance/ Benchmark urns 3 mth 6 mth 1 yr 3 yr 5 yr Since Inception 10 yr 19 June 1998 United SGD Fund Benchmark Source: Note: Lipper, a Thomson Reuters any. 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: 6-month SIBID rate. Class A (Dist) SGD Fund Performance/ Benchmark urns 3 mth 6 mth 1 yr 3 yr 5 yr 10 yr Since Inception 13 March 2014 United SGD Fund N/A N/A 2.93 Benchmark N/A N/A 0.84 Source: Note: Lipper, a Thomson Reuters any. 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: 6-month SIBID rate. Class A (Acc) USD (Hedged) Fund Performance/ Benchmark urns 3 mth 6 mth 1 yr 3 yr 5 yr 10 yr Since Inception 16 February 2016 United SGD Fund N/A N/A N/A 3.64 Benchmark N/A N/A N/A 2.67 Source: Note: Lipper, a Thomson Reuters any. The performance returns of the Fund are in United State dollars based on a NAV-to-NAV basis with dividends and distributions reinvested, if any. The benchmark of the Fund: 6-month SIBID rate. -2-

5 United SGD Fund A) Fund Performance (continued) Class A (Dist) USD (Hedged) Fund Performance/ Benchmark urns 3 mth 6 mth 1 yr 3 yr 5 yr 10 yr Since Inception 16 February 2016 United SGD Fund N/A N/A N/A 3.41 Benchmark N/A N/A N/A 2.67 Source: Note: Lipper, a Thomson Reuters any. The performance returns of the Fund are in United State dollars based on a NAV-to-NAV basis with dividends and distributions reinvested, if any. The benchmark of the Fund: 6-month SIBID rate. Class B (Acc) SGD Fund Performance/ Benchmark urns 3 mth 6 mth 1 yr 3 yr 5 yr 10 yr Since Inception 28 March 2013 United SGD Fund N/A N/A 3.44 Benchmark N/A N/A 0.69 Source: Note: UOBAM. 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: 6-month SIBID rate. For the half-year ended, the Fund rose 1.82 on a net-asset-value basis, outperforming its benchmark 6-month Singapore Interbank Bid Rate (SIBID) return of The Fund retained two key strategies: (1) investing in fixed rate bonds of up to three years in maturity profile for portfolio yield enhancement; and (2) buying cheaper Eurodollar-denominated bonds while hedging foreign currency risk. The Fund also methodically reduced allocation to China and Hong Kong on the back of potential downgrade of China sovereign by rating agencies. As at, of the Fund was invested in corporate bonds, 3.13 in Bills issued by the Monetary Authority of Singapore (MAS) and balance in cash and others. The Fund had a yield-to-maturity of 2.74 and effective duration of 2.00 years. Economic and Market Review 10-year US Treasury yields ended the first half of at 2.30 from a high of 2.63 in March as Trump s reflation trade faded with his key campaign agenda of healthcare and tax reforms stuck in a political stalemate. Despite mixed US economic data, the US Federal Reserve (Fed) executed its well-telegraphed plan to raise interest rates by 25 basis points (bps) in March and June. -3-

6 United SGD Fund A) Fund Performance (continued) The credit market was supported by strong fund flows into Emerging Markets, reinvestment demands from bond maturities as well as a stabilised interest rate outlook. Asia ex-japan primary issuances were active with a total of US$155m printed or 87 of 2016 full year issuance. Supply was well-absorbed as investors sought carry for returns. Asian credit rating migration was finely balanced among outlook, reviews and ratings changes. China/Hong Kong credits bore the brunt of downgrades after Moody s downgrade of China sovereign rating to A1 from Aa3 on 24th May. Overall downgrade/upgrade ratios were was balanced by credits upgrades lifted by economic improvement. Outlook and Fund Strategy Going into 2H17, we expect one more rate hike before the Fed commences Balance Sheet Reduction (BSR) by year end. The upward pressure on interest rates from the gradual unwinding of the balance sheet is likely to be offset by mixed US economic data and the lack of fiscal policies from the Trump s administration. As such, we are neutral on duration and expect interest rates to be range-bound. Asia ex-japan dollar primary issues are expected to hit fresh records, surpassing highest sales of US$190m in This will be led by Chinese property companies as National Development and Reform Commission (NDRC) approvals come in and floating rate notes sales by financial issuers. The Fund will be participating selectively in these new issues to enhance overall portfolio return. We will continue to maintain our defensive positioning with a preference for quality credits with leading market share, those that are of systemic importance, in defensive sectors and which are professionally managed. We look to move up the credit rating scale and increase geographical diversification to further insulate the portfolio against spurts of volatility. Disclosures As the Fund is in SGD and invests in non-sgd denominated securities, the Fund uses financial derivatives such as FX Forward contracts for hedging purposes. The Fund uses Commitment Approach with Netting Arrangements in determining compliance with the CIS (in respect of clause 8.4 of Appendix 1) to calculate global exposure. This is done by adding the exposure of each financial derivative (for those with and without netting arrangement) and cash collateral values under certain cases. -4-

7 United SGD 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$) of NAV China 440,193, France 18,336, Hong Kong 214,544, Japan 34,721, Korea 27,427, Luxembourg 24,734, Malaysia 67,476, Singapore 218,575, Sweden 44,417, Switzerland 14,063, Thailand 30,887, United Arab Emirates 132,287, United Kingdom 39,012, United States 75,931, Accrued interest receivable on quoted bonds 11,269, Portfolio of investments 1,393,878, Other net assets/(liabilities) 51,272, Total 1,445,150, ii) Industry Fair Value (S$) of NAV Consumer Discretionary 66,847, Consumer Staples 7,456, Energy 42,260, Financials 459,351, Government 44,920, Industrials 269,467, Materials 113,880, Real Estate 258,488, Telecommunication Services 35,229, Utilities 84,706, Accrued interest receivable on quoted bonds 11,269, Portfolio of investments 1,393,878, Other net assets/(liabilities) 51,272, Total 1,445,150,

8 United SGD Fund B) Investments at fair value and as a percentage of net asset value ( NAV ) as at under review classified by (continued) iii) Asset Class Fair Value (S$) of NAV Quoted bonds 1,382,608, Accrued interest receivable on quoted bonds 11,269, Other net assets/(liabilities) 51,272, Total 1,445,150, iv) Credit rating of quoted bonds of S & P Fair Value (S$) of NAV A 34,727, A- 39,082, A+ 32,247, AAA 44,920, BBB 117,497, BBB- 173,564, BBB+ 284,965, Non-rated 655,602, Total 1,382,608, v) Credit rating of quoted bonds by Moody s Fair Value (S$) of NAV A1 46,397, A2 34,636, A3 116,814, Aa1 8,532, Aaa 44,920, Baa1 320,818, Baa2 158,353, Baa3 202,131, Non-rated 450,004, Total 1,382,608,

9 United SGD Fund C) Top Ten Holdings 10 largest holdings as at Fair Value (S$) Percentage of total net assets attributable to unitholders CHINA OVRSEA FIN KY II COMPANY GUAR REGS 11/ ,269, AXIATA SPV2 BHD SR UNSECURED REGS 11/ ,229, BLUESTAR FIN HOLDINGS COMPANY GUAR REGS 12/49 VAR 35,196, MAF GLOBAL SECURITIES COMPANY GUAR REGS 07/ ,899, KEPPEL LAND FINANCIAL SE COMPANY GUAR REGS 12/ ,728, ADCB FINANCE CAYMAN LTD COMPANY GUAR REGS 09/ ,727, CHUGOKU ELECTRIC POWER SR SECURED REGS 03/ ,721, ICBCIL FINANCE CO LTD SR UNSECURED REGS 04/ ,636, PETRONAS CAPITAL LTD COMPANY GUAR REGS 08/ ,247, JANY SUKUK COMPANY GUAR REGS 09/ ,787, largest holdings as at 2016 Percentage of total net assets attributable to Fair Value unitholders (S$) HUARONG FINANCE COMPANY LIMITED 4 DUE 17/07/ ,035, MIDEA INVESTMENT DEVELOPMENT COMPANY LIMITED DUE 03/06/ ,040, BESTGAIN REAL ESTATE LIMITED DUE 13/03/ ,953, CSCEC FINANCE CAYMAN II LIMITED 2.25 DUE 14/06/ ,943, ANSTOCK II LIMITED DUE 24/07/ 26,930, JANY SUKUK COMPANY LIMITED DUE 23/09/ ,851, MAF GLOBAL SECURITIES LIMITED 5.25 DUE 05/07/ ,994, DOUBLE ROSY LIMITED DUE 18/11/ ,961, SIAM COMMERCIAL BANK PUBLIC COMPANY LIMITED/CAYMAN ISLANDS 3.5 DUE 07/04/ ,464, DOOSAN POWER SYSTEM SA 2.5 DUE 03/12/2045 FRN 24,455,

10 United SGD 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 1,453,741,189 20,025, ,182, ii) There was a net realised gain of SGD 35,797,701 on derivative contracts during the financial period from 01 January to. iii) There was a net unrealised gain of SGD 16,843,017 on outstanding derivative contracts marked to market as at. E) Amount and percentage of NAV invested in other schemes as at N/A F) Amount and percentage of borrowings to NAV as at N/A G) Amount of redemptions and subscriptions for the financial period from 01 January to Total amount of redemptions SGD 264,210,755 Total amount of subscriptions SGD 375,091,746 H) The amount and terms of related-party transactions for the financial period from 01 January to i) As at, the Sub-Fund maintained current accounts with State Street Bank and Trust any as follows: Bank balances SGD 28,073,430 ii) Purchase/holdings of UOBAM unit trusts by UOB or its affiliated companies as at Holdings of United SGD Fund Class A (Acc) SGD as at were as follows: Affiliated anies No. of Units Unit Price SGD Market Value SGD a) United Global Portfolios - United Global Dividend Balanced Fund 1,286, ,375,

11 United SGD Fund H) The amount and terms of related-party transactions for the financial period from 01 January to (continued) iii) Investment in Initial Public Offerings managed by UOB Group N/A iv) As at, there was no brokerage income earned by UOB Kay Hian Pte Ltd. I) Expense ratios 2016 $ $ Class A (Acc) SGD Total operating expenses 6,303,304 5,322,174 Average daily net asset value 959,659, ,504,371 Expense ratio Class A (Dist) SGD Total operating expenses 1,076, ,950 Average daily net asset value 164,755,237 91,820,563 Expense ratio Class A (Acc) USD (Hedged) Total operating expenses 98,705 3,990 Average daily net asset value 15,191,849 1,656,130 Expense ratio (annualised) Class A (Dist) USD (Hedged) Total operating expenses 85,781 1,827 Average daily net asset value 13,187, ,455 Expense ratio (annualised) Class B (Acc) SGD Total operating expenses 420, ,966 Average daily net asset value 123,441,879 71,237,832 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. -9-

12 United SGD Fund J) Turnover ratios 2016 $ $ Lower of total value of purchases or sales 1,319,579, ,718,402 Average daily net assets value 1,361,185, ,591,483 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 N/A 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 N/A ii) expense ratios for the financial period ended and 2016 N/A iii) turnover ratios for the financial period ended and 2016 N/A 1 where the underlying scheme is managed by a foreign manager which belongs to the same group of companies as, or has 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. There are no soft dollars, rebates, commissions or other monetary incentives generated by the Sub-Fund. -10-

13 United SGD Fund 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 N/A -11-

14 United Choice Portfolios II STATEMENT OF TOTAL RETURN For the half year ended (Un-audited) United SGD Fund 2016 $ $ Income Interest 11, Other income 38,988 - Total 50, Less: Expenses Management fee 3,952,556 2,843,713 Audit fee 11,191 11,824 Registrar fee 29,074 29,917 Valuation fee 5,331 5,469 Custody fee 78, ,834 Interest expenses Other expenses - 183,897 Total 4,077,151 3,189,654 Net income/(losses) (4,027,026) (3,189,643) Net gains/(losses) on value of investments and financial derivatives Net gains/(losses) on investments (24,545,994) (5,688,785) Net gains/(losses) on financial derivatives 52,640,718 34,515,701 Net foreign exchange gains/(losses) (1,500,938) (930,815) 26,593,786 27,896,101 Total return/(deficit) for the period 22,566,760 24,706,

15 United Choice Portfolios II STATEMENT OF FINANCIAL POSITION As at (Un-audited) United SGD Fund 31 December 2016 $ $ Assets Portfolio of investments 1,393,878,089 1,313,904,686 Receivables 14,030,308 18,058,976 Cash and bank balances 28,073,430 18,124,503 Fixed deposits - 12,000,000 Financial derivatives at fair value 20,025, ,831 Total assets 1,456,007,316 1,362,783,996 Liabilities Payables 6,606,498 5,288,433 Distribution payable 1,067,675 1,061,954 Financial derivatives at fair value 3,182,472 42,735,741 Total liabilities 10,856,645 49,086,128 Equity Net assets attributable to unitholders 1,445,150,671 1,313,697,

16 United Choice Portfolios II STATEMENT OF MOVEMENTS OF UNITHOLDERS FUNDS For the half year ended (Un-audited) United SGD Fund 31 December 2016 $ $ Net assets attributable to unitholders at the beginning of the financial period/year 1,313,697, ,322,925 Operations Change in net assets attributable to unitholders resulting from operations 22,566,760 33,842,217 Unitholders contribution/(withdrawal) Creation of units 375,091, ,183,931 Cancellation of units (264,210,755) (410,828,840) Change in net assets attributable to unitholders resulting from net creation and cancellation of units 110,880, ,355,091 Distributions (1,994,948) (2,822,365) Total increase/(decrease) in net assets attributable to unitholders 131,452, ,374,943 Net assets attributable to unitholders at the end of the financial period/year 1,445,150,671 1,313,697,

17 United Choice Portfolios II STATEMENT OF PORTFOLIO As at (Un-audited) Holdings at United SGD Fund Fair value at $ Percentage of total net assets attributable to unitholders at By Geography - Primary Quoted Bonds CHINA BLUESTAR FIN HOLDINGS COMPANY GUAR REGS 12/49 VAR 25,000,000 35,196, CCCI TREASURE LTD COMPANY GUAR REGS 12/49 VAR 20,000,000 27,808, CDBL FUNDING 1 COMPANY GUAR REGS 12/ ,300,000 12,943, CHALCO HK INVESTMENT COMPANY GUAR REGS 10/49 VAR 7,200,000 10,382, CHINA CONSTRUCTION BANK SUBORDINATED REGS 05/25 VAR 20,000,000 28,064, CHINA OVRSEA FIN KY II COMPANY GUAR REGS 11/ ,000,000 37,269, CHINALCO FINANCE HLDGS SR UNSECURED REGS 12/ ,090,000 14,149, DIANJIAN HAIXING LTD COMPANY GUAR REGS 10/49 VAR 20,000,000 28,137, DONGXING VOYAGE CO LTD COMPANY GUAR REGS 09/ ,000,000 24,408, DOUBLE CHARM LTD SR UNSECURED REGS 08/ ,000,000 20,679, ENN ENERGY HOLDINGS LTD SR UNSECURED REGS 10/ ,000,000 8,327, EXPRESS BVI 2015 LTD COMPANY GUAR REGS 06/ ,000,000 20,722, FRANSHION BRILLIANT LTD COMPANY GUAR REGS 03/ ,000,000 28,846, HUARONG FINANCE CO LTD COMPANY GUAR REGS 07/ ,000,000 25,270, SINO OCEAN LD TRS FIN II COMPANY GUAR REGS 02/ ,900,000 22,514, SINOCHEM OVERSEAS CAPITA COMPANY GUAR REGS 11/ ,000,000 27,631, TALENT YIELD EURO LTD COMPANY GUAR REGS 05/ ,780,000 23,463, WUHAN METRO SR UNSECURED REGS 11/ ,000,000 25,913, ZHAOHAI INVESTMENT BVI COMPANY GUAR REGS 07/ ,400,000 18,463, TOTAL CHINA 440,193, FRANCE CNP ASSURANCES SUBORDINATED REGS 07/49 VAR 12,400,000 18,336,

18 United Choice Portfolios II STATEMENT OF PORTFOLIO As at (Un-audited) Holdings at United SGD Fund Fair value at $ Percentage of total net assets attributable to unitholders at By Geography - Primary (continued) Quoted Bonds HONG KONG ANHUI TRANSPORTATION HK SR UNSECURED REGS 06/ ,064,000 22,141, BAO TRANS ENTERPRISE SR UNSECURED REGS 12/ ,387,000 11,737, CRCC YUPENG LTD COMPANY GUAR REGS 02/49 VAR 19,000,000 26,652, DOUBLE ROSY LTD COMPANY GUAR REGS 11/ ,000,000 25,122, HK BAORONG DEVELOPMENT SR UNSECURED REGS 12/ ,000,000 20,776, ICBCIL FINANCE CO LTD SR UNSECURED REGS 04/ ,000,000 34,636, MCC HOLDING HK CORP LTD COMPANY GUAR REGS 05/ ,000,000 27,692, SHANHAI HONG KONG INT IN COMPANY GUAR REGS 04/ ,320,000 17,105, VANKE REAL ESTATE HK SR UNSECURED REGS 12/ ,650,000 7,968, YUEXIU REIT MTN CO 5/18 FIXED ,000,000 20,711, TOTAL HONG KONG 214,544, JAPAN CHUGOKU ELECTRIC POWER SR SECURED REGS 03/ ,000,000 34,721, KOREA HYUNDAI CAPITAL SERVICES SR UNSECURED REGS 09/ ,000,000 27,427, LUXEMBOURG DOOSAN POWER SYSTEM SA GOVT GUARANT REGS 12/45 VAR 18,000,000 24,734, MALAYSIA AXIATA SPV2 BHD SR UNSECURED REGS 11/ ,000,000 35,229, PETRONAS CAPITAL LTD COMPANY GUAR REGS 08/ ,000,000 32,247, TOTAL MALAYSIA 67,476,

19 United Choice Portfolios II STATEMENT OF PORTFOLIO As at (Un-audited) Holdings at United SGD Fund Fair value at $ Percentage of total net assets attributable to unitholders at By Geography - Primary (continued) Quoted Bonds SINGAPORE AACI REIT MTN PTE LTD COMPANY GUAR 05/ ,000,000 5,087, BREADTALK GROUP LIMITED SR UNSECURED REGS 04/ ,250,000 7,456, CENTURION CORP LTD SR UNSECURED REGS 07/ ,500,000 5,446, CITIC ENVIROTECH LTD SR UNSECURED REGS 04/ ,500,000 12,506, COSL SINGAPORE CAPITAL COMPANY GUAR REGS 07/ ,150,000 10,012, EZION HOLDINGS LTD SR UNSECURED REGS 08/ ,750,000 8,532, FCOT TREASURY PTE LTD COMPANY GUAR REGS 02/ ,000,000 10,060, HALCYON AGRI CORP LTD SR UNSECURED REGS 07/19 VAR 10,000,000 9,999, KEPPEL LAND FINANCIAL SE COMPANY GUAR REGS 12/ ,000,000 34,728, MAPLETREE TREASURY SVCS COMPANY GUAR REGS 01/ ,000,000 20,351, MAS BILL BILLS 09/ ,000,000 19,968, MAS BILL BILLS 09/ ,000,000 24,952, RH INTL SINGAPORE CORP COMPANY GUAR REGS 05/ ,000,000 18,192, SABANA SUKUK PTE LTD SR UNSECURED REGS 03/18 4 4,250,000 4,237, SOILBUILD BUSINESS SPACE SR UNSECURED REGS 05/ ,500,000 9,574, UOL TREASURY SERVICES COMPANY GUAR REGS 04/ ,500,000 17,468, TOTAL SINGAPORE 218,575, SWEDEN SKANDINAVISKA ENSKILDA JR SUBORDINA REGS 11/49 VAR 16,500,000 23,356, SWEDBANK AB JR SUBORDINA REGS 12/49 VAR 15,000,000 21,060, TOTAL SWEDEN 44,417, SWITZERLAND UBS AG SUBORDINATED REGS 05/23 VAR 10,000,000 14,063,

20 United Choice Portfolios II STATEMENT OF PORTFOLIO As at (Un-audited) Holdings at United SGD Fund Fair value at $ Percentage of total net assets attributable to unitholders at By Geography - Primary (continued) Quoted Bonds THAILAND SIAM COMMERCIAL BANK CAY SR UNSECURED REGS 04/ ,000,000 30,887, UNITED ARAB EMIRATES ADCB FINANCE CAYMAN LTD COMPANY GUAR REGS 09/ ,000,000 34,727, BOS FUNDING LTD COMPANY GUAR REGS 06/ ,000,000 20,658, CBD CAYMAN COMPANY GUAR REGS 11/ ,000,000 21,327, DIB SUKUK LTD SR UNSECURED REGS 06/ ,000,000 20,673, MAF GLOBAL SECURITIES COMPANY GUAR REGS 07/ ,000,000 34,899, TOTAL UNITED ARAB EMIRATES 132,287, UNITED KINGDOM PRUDENTIAL PLC JR SUBORDINA REGS 01/ ,000,000 11,450, STANDARD CHARTERED PLC SUBORDINATED REGS 07/22 VAR 20,000,000 27,561, TOTAL UNITED KINGDOM 39,012, UNITED STATES GENERAL MOTORS FINL CO COMPANY GUAR 07/ ,957,000 29,420, INCITEC PIVOT FIN LLC COMPANY GUAR REGS 12/ ,000,000 14,722, JANY SUKUK COMPANY GUAR REGS 09/ ,000,000 31,787, TOTAL UNITED STATES 75,931, Accrued interest receivable on quoted bonds 11,269, Total Bonds 1,393,878, Portfolio of investments 1,393,878, Other net assets/(liabilities) 51,272, Net assets attributable to unitholders 1,445,150,

21 United Choice Portfolios II STATEMENT OF PORTFOLIO As at (Un-audited) By Geography - Primary (Summary) Quoted Bonds Percentage of total net assets attributable to unitholders at United SGD Fund Percentage of total net assets attributable to unitholders at 31 December 2016 Australia China France Hong Kong Japan Korea Luxembourg Malaysia Netherlands Qatar Singapore Sweden Switzerland Thailand Taiwan United Arab Emirates United Kingdom United States Accrued interest receivable on quoted bonds Portfolio of investments Other net assets/(liabilities) 3.55 (0.02) Net assets attributable to unitholders

22 United Choice Portfolios II STATEMENT OF PORTFOLIO As at (Un-audited) Fair value at $ United SGD Fund Percentage of total net assets attributable to unitholders at Percentage of total net assets attributable to unitholders at 31 December 2016 By Industry - Secondary Quoted Bonds Consumer Discretionary 66,847, Consumer Staples 7,456, Energy 42,260, Financials 459,351, Government 44,920, Government Agency Health Care Industrials 269,467, Information Technology Materials 113,880, Real Estate 258,488, Telecommunication Services 35,229, Utilities 84,706, Accrued interest receivable on quoted bonds 11,269, Portfolio of investments 1,393,878, Other net assets/(liabilities) 51,272, (0.02) Net assets attributable to unitholders 1,445,150,

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