EASTSPRING INVESTMENTS FUNDS

Transcription

1 EASTSPRING INVESTMENTS FUNDS MONTHLY INCOME PLAN SEMI - ANNUAL REPORTS FOR THE HALF YEAR ENDED 30 JUNE 2018 UNAUDITED FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 30 JUNE 2018

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3 EASTSPRING INVESTMENTS FUNDS Manager Auditors Eastspring Investments KPMG LLP (Singapore) Limited 16 Raffles Quay # Marina Boulevard #32-01 Hong Leong Building Marina Bay Financial Centre Tower 2 Singapore Singapore (UEN: H) Directors of the Manager Guy Robert Strapp Michele Mi-Kyung Bang resigned on 8 June 2018 Gwee Siew Ping Virginie M Maisonneuve Julian Christopher Vivian Pull Philip James Stockwell Ooi Boon Peng appointed on 16 April 2018 Solicitors to the Manager Allen & Gledhill LLP One Marina Boulevard #28-00 Singapore Trustee Solicitors to the Trustee HSBC Institutional Trust Services Shook Lin & Bok LLP (Singapore) Limited 1 Robinson Road # Collyer Quay #13-02 AIA Tower HSBC Building Singapore Singapore (UEN R) 1

4 TABLE OF CONTENTS SEMI - ANNUAL REPORT For the half year ended 30 June 2018 Page Eastspring Investments Funds - Monthly Income Plan Manager s / Sub-Manager s Commentary 3 5 Financial Highlights 6 13 Financial Highlights of Underlying Fund Unaudited Financial Statements For the half year ended 30 June

5 EASTSPRING INVESTMENTS FUNDS MONTHLY INCOME PLAN Structure Eastspring Investments Funds - Monthly Income Plan (the Fund ) is established as four classes of units within the Fund: the Class A (annual payout), Class M (monthly payout), Class M (RMB hedged) (monthly payout) and Class IA (annual payout). Class IA is only available to certain distributors and such other investors at the discretion of the Manager. These classes have been established by the Manager for internal classification purposes to enable the different frequency and amount of payouts and do not constitute separate pools of assets. There are separate indicative net asset values in respect of all four Classes of Units. Investment Objective The investment objective of the Eastspring Investments Funds - Monthly Income Plan is to seek to provide investors with regular income and capital growth by investing: (i) 30 to 70 of its assets into the Luxembourg domiciled Eastspring Investments - US High Yield Bond Fund; and (ii) 30 to 70 of its assets into the Luxembourg domiciled Eastspring Investments - Asian Bond Fund. The Fund may in addition, at the Manager s absolute discretion, invest up to 20 of its assets in any other Asia Pacific investments (including real estate investment trusts, dividend yielding equities and any other sub-funds of the Luxembourg domiciled Eastspring Investments, subject to the prior approval of the Monetary Authority of Singapore where necessary). The Manager may use financial derivative instruments for the purposes of efficient portfolio management and/or hedging (including to hedge the foreign currency exposure of the Fund by, for instance, entering into one or more foreign exchange forward contracts and/or cross currency swap transactions). Manager s Commentary Fund Performance For the six month period from the beginning of 2018 to 30 June 2018, on a bid-to-bid basis in SGD, Eastspring Investments Funds - Monthly Income Plan Class A returned -2.06, underperforming the composite benchmark (comprising 50 JP Morgan Asia Credit Index and 50 ICE BofAML US High Yield Constrained Index (SGD hedged)) 1 which returned Eastspring Investments Funds - Monthly Income Plan Class M returned -2.08, underperforming the composite benchmark which returned Eastspring Investments Funds - Monthly Income Plan Class IA returned -1.65, underperforming the composite benchmark which returned Eastspring Investments Funds - Monthly Income Plan Class M (RMB hedged) returned -0.96, underperforming the composite benchmark (comprising 50 JP Morgan Asia Credit Index and 50 ICE BofAML US High Yield Constrained Index (CNH hedged)) 2 which returned

6 EASTSPRING INVESTMENTS FUNDS MONTHLY INCOME PLAN Market Background 3 The period under review began strongly for most stockmarkets; many reached record highs before falling sharply, seemingly on concern about US inflation. Volatility continued in the second quarter with politics on many investors minds there were elections in Italy, Russia and Turkey. Meanwhile, in the UK, uncertainty over Brexit continued. Investors were also preoccupied by weaker economic data out of Europe and Japan and, most significantly, escalating tension between the US and several of its trading partners following the imposition of trade tariffs. Despite a recovery in stockmarkets in the second quarter, share prices generally ended the six months lower, including in Japan, Asia and many emerging markets. Conversely, the US stockmarket rose and returns for non-us based investors were further enhanced by the strength of the dollar. In terms of sectors, shares in energy companies rose on the back of a higher oil price and technology shares were also firm, with many of the sector s leading companies reporting solid results. On the other hand, financials were weak, as were defensive sectors, with the exception of healthcare. Returns from fixed income assets were generally mildly negative for the period as a whole. Rising inflation expectations and the prospect of higher rates defined investor sentiment during the early stages of the period, triggered by a jump in US wage growth. The US Federal Reserve (the Fed ) subsequently raised rates by a quarter point in both March and June, with two further increases expected in In this environment, fixed income assets generally declined for the period as a whole, although there were several bouts of riskoff sentiment where investors favoured US Treasuries and high quality credit over equities, notably in March and May. Factors Affecting Performance The Fund underperformed its composite benchmark during the period, with stock selection within both the underlying Eastspring Investments - US High Yield Bond Fund and Eastspring Investments - Asian Bond Fund detracting from relative performance. Singapore equity also sold off during the period, although the underlying Singapore high dividend equity portfolio outperformed the broad market. In addition, the Manager had hedged the Fund s Singapore equity market exposure ahead of the sell off which benefited returns. Key Changes to the Portfolio The Fund s equity exposure was reduced over the period with the Manager hedging market exposure but remaining exposed to the dividend income stream. 4

7 EASTSPRING INVESTMENTS FUNDS MONTHLY INCOME PLAN Outlook The rise in implied volatility across asset classes may be reflecting the shift from goldilocks macro conditions of extremely accommodative policy and financial conditions to a period of increased monetary policy uncertainty and rising trade war and protectionism risks. We have reduced equities exposure given the more uncertain macroeconomic outlook in the near term, although we remain exposed to its dividend income stream. Our central scenario remains one of benign inflation, combined with moderate economic and earnings growth. Central banks reluctance to take away the punch bowl, should prevent them from hiking aggressively, so long as wage inflation pressures remain muted. The manager continues to prefer Singapore high dividend equity over the medium term due to the high dividend yields and diversification from USD interest rate risk. We have taken medium-term positions in good quality companies, with sustainable dividends, and business models, which still offer attractive valuation and yields. Notes: (1) The benchmark was formerly known as 50 JP Morgan Asia Credit Index & 50 BofA Merrill Lynch US High Yield Constrained Index (SGD hedged)) (2) The benchmark was formerly known as 50 JP Morgan Asia Credit Index & 50 BofA Merrill Lynch US High Yield Constrained Index (CNH hedged)) (3) Source: Bloomberg, 30 June

8 EASTSPRING INVESTMENTS FUNDS MONTHLY INCOME PLAN Fund Performance (As at 30 June 2018) Fund/Benchmark Eastspring Investments Funds - Monthly Income Plan - Class A Eastspring Investments Funds - Monthly Income Plan - Class M 50 JP Morgan Asia Credit Index & 50 ICE BofAML USD High Yield Constrained Index - SGD hedged^ 3 months 6 months 1 year 3 years 5 years 10 years Since inception + (average annual compounded return) Fund/Benchmark Eastspring Investments Funds - Monthly Income Plan - Class M (RMB hedged) 50 JP Morgan Asia Credit Index & 50 ICE BofAML USD High Yield Constrained Index - CNH hedged 3 months 6 months 1 year 3 years 5 years 10 years Since inception # (average annual compounded return) N.A N.A N.A N.A 7.6 Fund/Benchmark Eastspring Investments Funds - Monthly Income Plan - Class IA 50 JP Morgan Asia Credit Index & 50 ICE BofAML USD High Yield Constrained Index - SGD hedged^ 3 months 6 months 1 year Source: Eastspring Investments (Singapore) Limited. 3 years 5 years 10 years Since inception + (average annual compounded return) N.A N.A. N.A N.A N.A N.A 0.5 6

9 EASTSPRING INVESTMENTS FUNDS MONTHLY INCOME PLAN ^With effect from 1 June 2012, the benchmark for the Fund was changed from the 12 month SGD Fixed Deposit Rate to 50 JP Morgan Asia Credit Index and 50 BofA Merrill Lynch US High Yield Constrained Index SGD hedged to better reflect the investment focus and risk of the Fund. The two series are chain-linked to derive the longer period benchmark returns. The ICE BofAML US High Yield Constrained Index which comprises 50 of the current benchmark was formerly known as BofA Merrill Lynch US High Yield Constrained Index. The return for Eastspring Investments Funds - Monthly Income Plan - Class A, Class IA and Class M are calculated in S$ and the return for Eastspring Investments Funds - Monthly Income Plan - Class M (RMB hedged) is calculated in CNH, on a bid-to-bid basis with net income reinvested. Eastspring Investments Funds - Monthly Income Plan Class A has distribution payout of 5 cents per Class A Unit (i.e. 5 computed based on the initial issue price of S$1.00) on 9 Feb 18. Eastspring Investments Funds - Monthly Income Plan Class IA has distribution payout of 5 cents per Class IA Unit (i.e. 5 computed based on the initial issue price of S$1.00) on 9 Feb 18. Eastspring Investments Funds - Monthly Income Plan Class M has distribution payout of 0.4 cents per Class M Unit (i.e. 0.4 computed based on the initial issue price of S$1.00) on 10 Jan 18, 9 Mar 18, 10 Apr 18, 10 May 18 and 11 Jun 18. Class M has distribution payout of 0.6 cents per Class M Unit (i.e. 0.6 computed based on the initial issue price of S$1.00) on 9 Feb 18. Eastspring Investments Funds - Monthly Income Plan Class M (RMB hedged) has distribution payout of CNH4 cents per Class M (RMB hedged) Unit (i.e. 0.4 computed based on the initial issue price of CNH10) on 10 Jan 18, 9 Mar 18, 10 Apr 18, 10 May 18 and 11 Jun 18. Class M (RMB hedged) has distribution payout of CNH6 cents per Class M (RMB hedged) Unit (i.e. 0.6 computed based on the initial issue price of CNH10) on 9 Feb Class A: 1 February 2005 Class IA: 25 May 2017 Class M: 1 February 2005 # 2 September 2013 Past performance is not necessarily indicative of the future performance of the Eastspring Investments Funds Monthly Income Plan. 7

10 EASTSPRING INVESTMENTS FUNDS MONTHLY INCOME PLAN (As at 30 June 2018) Exposure to Derivatives Fair Value at 30 Jun 2018 Percentage of total net assets attributable to unitholders at 30 Jun 2018 Net Unrealised Gains/ (Losses) Net Realised Gains/ (Losses) Types of Derivatives SGD SGD SGD Forward Foreign Exchange Contracts (24,206,288) (2.24) (24,206,288) 1,070,097 Global exposure Global derivative exposure is computed using the commitment approach which is calculated as the sum of: a) the absolute value of the exposure of each individual financial derivative not involved in netting or hedging arrangements; b) the absolute value of the net exposure of each individual financial derivative after netting or hedging arrangements; and c) The sum of the values of cash collateral received pursuant to : (i) the reduction of exposure to counterparties of OTC financial derivatives; and (ii) EPM techniques relating to securities lending and repurchase transactions, and that are reinvested. Collateral The fund is paying the following cash collateral as at as at 30 June 2018: SGD The Hong Kong and Shanghai Banking Corporation SGD 1,000 1,000 The Hong Kong and Shanghai Banking Corporation USD The Hong Kong and Shanghai Banking Corporation (USD 490,000) (668,115) The Hong Kong and Shanghai Banking Corporation USD 5,700,000 7,771,950 Citibank USD 2,440,000 3,326,940 UBS Group AG USD 7,700,000 10,498,950 Westpac Banking Corporation USD 2,900,000 3,954,150 24,885,461 8

11 EASTSPRING INVESTMENTS FUNDS MONTHLY INCOME PLAN (As at 30 June 2018) Securities Lending or Repurchase Transactions Nil for the period ended 30 June Investment in other unit trusts, mutual funds and collective investment schemes The Eastspring Investments Funds - Monthly Income Plan invests SGD428,186,057 and SGD528,584,813 euivalent to and 49 of its net asset value attributable to unitholders, in Eastspring Investments - Asian Bond Fund and Eastspring Investments - US High Yield Bond Fund respectively. (Refer to the Statement of Portfolio in the Financial Statements for investment in other schemes including but not limited to REITs and ETFs). Borrowings Nil. Related Party Transactions The Eastspring Investments Funds - Monthly Income Plan invests SGD428,186,057 and SGD528,584,813 equivalent to and 49 of its net asset value attributable to unitholders, in Eastspring Investments - Asian Bond Fund and Eastspring Investments - US High Yield Bond Fund respectively. Some directors of the Eastspring Investments, (Luxembourg) S.A., the Management Company of the Eastspring Investments, are also directors of Eastspring Investments (Singapore) Limited. In the normal course of the business of the Fund, trustee fees, valuation fees and management fees have been paid or are payable to the Trustee and Manager respectively as stated in the Statement of Total Return. The Fund has also carried out transactions which include bank services with the holding company of the Trustee in the normal course of business. Other than related party information shown elsewhere in the financial statements, the Fund maintains bank accounts with Hongkong and Shanghai Banking Corporation Limited, a related corporation of Trustee amounting to S$10,382,435 (31 Dec 2017: S$34,928,449). Transactions with related parties were at terms agreed between the parties and within the provisions of the Trust Deed. Total Subscriptions and Redemptions for the period ended 30 June 2018 SGD Subscriptions 67,737,657 Redemptions 166,876,101 9

12 EASTSPRING INVESTMENTS FUNDS MONTHLY INCOME PLAN (As at 30 June 2018) Annualised Expense Ratio** Class A Class IA Class M Class M (RMB hedged) As at 30 June As at 30 June **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 Fund s expense ratio and the weighted average of the underlying funds unaudited expense ratio. The calculation of the expense ratio at 30 June 2018 was based on total operating expenses divided by the average net asset value for the period. The total operating expenses do not include (where applicable) brokerage and other transactions 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 Fund does not pay any performance fee. The average net asset value is based on the daily balances. The unaudited expense ratio of the underlying funds are obtained from Underlying Funds Manager. 10

13 EASTSPRING INVESTMENTS FUNDS MONTHLY INCOME PLAN (As at 30 June 2018) Financial period from 01/07/ /06/2018 Financial period from 01/07/ /06/2017 S$ S$ Total operating expenses - Class A 2,312,872 2,040,758 - Class IA 2, Class M 14,261,151 14,971,280 - Class M (RMB Hedged) 80,034 93,810 Average net asset value - Class A 170,331, ,634,316 - Class IA 371,644 22,014 - Class M 1,050,013,268 1,112,665,902 - Class M (RMB Hedged) 5,574,888 6,621,414 Weighted average of the underlying funds unaudited expense ratio Turnover Ratio 2.85 (2017: 7.38) 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 total value of purchases of the underlying investments of S$33,359,076 (2017: sales of S$95,047,014) divided by the average daily net asset value of S$1,171,411,769 (2017:S$1,287,262,557). Soft Dollar Commission Nil. Any other material information that will adversely impact the valuation of the Fund Nil. Pre-determined payouts The Fund does not offer pre-determined payouts. 11

14 EASTSPRING INVESTMENTS FUNDS MONTHLY INCOME PLAN Top 10 Holdings (As at 30 June 2018) Market Value of Net SGD Assets*** Eastspring Investments - US High Yield Bond Fund Class D 528,584, Eastspring Investments - Asian Bond Fund Class D 428,186, United Overseas Bank Limited 10,962, DBS Group Holdings Limited 10,653, Oversea-Chinese Banking Corporation 9,974, Singapore Telecommunications Limited 8,921, Singapore Technologies Engineering Limited 4,831, Mapletree Commercial Trust 4,110, Capitaland Retail China Trust 3,914, Parkway Life Real Estate Investment Trust 3,818, Top 10 Holdings (As at 30 June 2017) Market Value of Net SGD Assets*** Eastspring Investments: - US High Yield Bond Fund Class D 575,735, Asian Bond Fund Class D 568,211, Singapore Telecommunications Limited 10,264, DBS Group Holdings Limited 9,630, United Overseas Bank Limited 8,890, Oversea-Chinese Banking Corporation 8,327, Venture Corporation Limited 5,780, Singapore Technologies Engineering Limited 5,772, Mapletree Commercial Trust 5,224, Frasers Centrepoint Limited 5,201, *** Any differences in the percentage of the Net Asset figures are the result of rounding. 12

15 EASTSPRING INVESTMENTS FUNDS MONTHLY INCOME PLAN Schedule of Investments (As at 30 June 2018) Market Value of Net SGD Assets*** Country Hong Kong 2,189, Indonesia 2,204, Luxembourg 956,770, Singapore 98,368, Industry Banks 31,589, Educational services 696, Electronics 2,558, Engineering 4,831, Financial 2,596, Food 2,287, Investment funds 957,280, Real estate 3,565, Real estate investment trusts 36,539, Retail 165, Telecom services 11,530, Transport 3,114, Transport - Air 2,778, Asset Class Equities 65,713, Investment Funds 993,819, Other net assets 19,181, *** Any differences in the percentage of the Net Asset figures are the result of rounding. 13

16 EASTSPRING INVESTMENTS - ASIAN BOND FUND Top 10 Holdings (As at 30 June 2018) Market Value USD of Net Assets*** India Govt Bond /12/ ,469, China Cin /04/ ,107, Cnooc Fin 3 09/05/ ,382, Woori Bank Var 29/12/ ,742, Bank of C 5 13/11/ ,842, Mayoe 7 23/10/ ,600, Reliance /01/ ,584, China Ever /06/ ,137, State Grid /05/ ,002, Sinopec /09/ ,280, Top 10 Holdings (As at 30 June 2017) Market Value USD of Net Assets*** Proven Ho /05/ ,581, TVB Finan /10/ ,303, Cnooc Fin 3 09/05/ ,794, Bank of C 5 13/11/ ,992, China Cin /04/ ,625, Global Lo /06/ ,382, Woori Bank Var 29/12/ ,559, Dai-Ichi Var 29/12/ ,936, Reliance /01/ ,580, Indonesia /01/ ,172, *** Any differences in the percentage of the Net Asset figures are the result of rounding. Annualised Expense Ratio * 0.05 (2017: 0.05) * The expense ratio does not include, (where applicable) brokerage and other transaction costs, performance fee, foreign exchange gains/losses, front or backend loads arising from the purchase or sale of other schemes and tax deducted at source or arising out of income received. Turnover Ratio (2017: 12.96) 14

17 EASTSPRING INVESTMENTS - US HIGH YIELD BOND FUND Top 10 Holdings (As at 30 June 2018) Market Value USD of Net Assets*** HCA Inc /02/ ,640, Bnymellon Usd Liquidity Fund 22,843, Valeant P /04/ ,523, Sprint /11/ ,280, Eqt Midstream /07/ ,959, Amc Entertainment /05/ ,504, Scientific G 10 01/12/ ,383, Ep Energy LlC 8 15/02/ ,190, Altice /05/ ,012, United Rentals /01/2028 9,844, Top 10 Holdings (As at 30 June 2017) Market Value USD of Net Assets*** BNY Mellon Universal USD Liquidity Class B 67,521, HCA Inc /02/ ,935, Nustar Logistic 25 Pfd 13,936, Sprint Capital /05/ ,484, Cemex Sab /01/ ,466, Enquest P 7 15/04/ ,128, Valeant P /07/ ,950, Dynegy In 8 15/01/ ,475, Stena AB 7 01/02/ ,231, First Dat 7 01/12/ ,109, *** Any differences in the percentage of the Net Asset figures are the result of rounding. Annualised Expense Ratio * 0.05 (2017: 0.05) * The expense ratio does not include, (where applicable) brokerage and other transaction costs, performance fee, foreign exchange gains/losses, front or backend loads arising from the purchase or sale of other schemes and tax deducted at source or arising out of income received. Turnover Ratio (2017: 46.91) 15

18 UNAUDITED FINANCIAL STATEMENTS For the half year ended 30 June 2018 Page Statement of Total Return 17 Statement of Financial Position 18 Statement of Movements of Unitholders Funds 19 Statement of Portfolio

19 EASTSPRING INVESTMENTS FUNDS Statement of Total Return For the half year ended 30 June 2018 Eastspring Investments Funds Monthly Income Plan Financial period from 01/01/2018 to 30/06/2018 Financial period from 01/01/2017 to 30/06/2017 S$ S$ Income Dividend 2,679,409 2,627,945 Interest 14, ,982 2,694,381 2,868,927 Less: Expenses Audit fees 9,571 9,233 Custody fees 18,231 17,303 Management fees 7,302,522 8,023,836 Registration fees 37,041 37,927 Transaction costs 52,906 34,155 Trustee fees 233, ,774 Valuation fees 175, ,580 Others 328,119 72,352 8,157,424 8,644,160 Net losses (5,463,043) (5,775,233) Net gains or losses on value of investments and financial derivatives Net (losses)/gains on investments (2,732,852) 5,921,244 Net (losses)/gains on forward foreign exchange contracts (23,136,191) 56,638,600 Net foreign exchange gains/(losses) 828,230 (3,342,437) Net (losses)/gains on value of investments and financial derivatives (18,075,441) 59,217,407 Total (deficit)/return for the period income tax (23,538,484) 53,442,174 Less: Income tax (141,476) (144,962) Total (deficit)/return for the period after income tax (23,679,960) 53,297,212 17

20 EASTSPRING INVESTMENTS FUNDS Statement of Financial Position As at 30 June 2018 Eastspring Investments Funds Monthly Income Plan 30/06/ /12/2017 S$ S$ Assets Portfolio of Investments 1,059,533,321 1,202,899,808 Receivables 1,366,927 3,203,729 Sales awaiting settlement 13,090,588 - Cash collateral 25,553,576 2,336 Cash and bank balances 15,113,346 34,928,449 Financial derivatives at fair value 1,938,061 38,504,783 Total assets 1,116,595,819 1,279,539,105 Liabilities Payables 11,068,639 7,579,817 Cash collateral 668,115 31,767,564 Financial derivatives at fair value 26,144, ,267 Total liabilities 37,881,103 39,534,648 Equity Net assets attributable to unitholders 1,078,714,716 1,240,004,457 18

21 EASTSPRING INVESTMENTS FUNDS Statement of Movements of Unitholders Funds For the half year ended 30 June 2018 Eastspring Investments Funds Monthly Income Plan 30/06/ /12/2017 S$ S$ Net assets attributable to unitholders at the beginning of financial period/year 1,240,004,457 1,261,553,538 Operations Changes in net assets attributable to unitholders resulting from operations (23,679,960) 82,547,232 Unitholders contributions/(withdrawals) Creation of units 67,737, ,510,557 Cancellation of units (166,876,101) (267,677,592) Change in net assets attributable to unitholders resulting from net creation and cancellation of units (99,138,444) (35,167,035) Distributions (38,471,337) (68,929,278) Total decrease in net assets attributable to unitholders (161,289,741) (21,549,081) Net assets attributable to unitholders at the end of financial period/year 1,078,714,716 1,240,004,457 19

22 EASTSPRING INVESTMENTS FUNDS Statement of Portfolio As at 30 June 2018 By Geography* - Primary Eastspring Investments Funds Monthly Income Plan Percentage of total net assets attributable Holdings Fair value to unitholders 30/06/ /06/ /06/2018 (units) (S$) () Quoted underlying investment funds Luxembourg Eastspring Investments: Asian Bond Fund Class D 14,055, ,186, US High Yield Bond Fund Class D 19,243, ,584, ,770, Quoted investment funds Indonesia First Real Estate Investment Trust 1,657,530 2,204, Singapore Ascendas Real Estate Investment Trust 1,310,600 3,459, Capitaland Commercial Trust 2,121,660 3,521, CapitaLand Mall Trust 1,169,200 2,420, Capitaland Retail China Trust 2,575,216 3,914, Frasers Centrepoint Trust 1,551,100 3,427, Frasers Commercial Trust 1,587,494 2,190, Keppel Infrastructure Trust 980, , Keppel REIT 764, , Mapletree Commercial Trust 2,617,900 4,110, Mapletree Industrial Trust 1,868,807 3,606, Mapletree Logistics Trust 809, , NetLink NBN Trust 2,739,500 2,027, Parkway Life Real Estate Investment Trust 1,403,900 3,818, ,844, * Geography classification is based on the country of incorporation of the entities/issuers of equity securities. 20

23 EASTSPRING INVESTMENTS FUNDS Statement of Portfolio As at 30 June 2018 By Geography* - Primary (cont d) Eastspring Investments Funds Monthly Income Plan Percentage of total net assets attributable Holdings Fair value to unitholders 30/06/ /06/ /06/2018 (units) (S$) () Quoted shares Hong Kong China Mobile Limited 43, , HKT Trust and HKT Limited 958,120 1,668, ,189, Singapore ComfortDelgro Corporation Limited 1,325,500 3,114, DBS Group Holdings Limited 400,343 10,653, Frasers Centrepoint Limited 2,160,700 3,565, Metro Holdings Limited 144, , Oversea-Chinese Banking Corporation 856,889 9,974, Overseas Education Limited 1,988, , SATS Limited 555,700 2,778, Sheng Siong Group Limited 2,158,300 2,287, Singapore Exchange Limited 362,100 2,596, Singapore Technologies Engineering Limited 1,468,600 4,831, Singapore Telecommunications Limited 2,896,500 8,921, StarHub Limited 253, , United Overseas Bank Limited 409,642 10,962, Venture Corporation Limited 143,400 2,558, ,524, * Geography classification is based on the country of incorporation of the entities/issuers of equity securities. 21

24 EASTSPRING INVESTMENTS FUNDS Statement of Portfolio As at 30 June 2018 By Geography* - Primary (cont d) Eastspring Investments Funds Monthly Income Plan Percentage of total net assets attributable Holdings Fair value to unitholders 30/06/ /06/ /06/2018 (units) (S$) () Portfolio of investments 1,059,533, Other net assets 19,181, Net assets attributable to unitholders 1,078,714, * Geography classification is based on the country of incorporation of the entities/issuers of equity securities. 22

25 EASTSPRING INVESTMENTS FUNDS Statement of Portfolio As at 30 June 2018 By Geography* (summary) - Primary Eastspring Investments Funds Monthly Income Plan Percentage of total net assets attributable to unitholders 30/06/ /12/2017 () () Hong Kong Indonesia Luxembourg Singapore Portfolio of investments Other net assets Net assets attributable to unitholders * Geography classification is based on the country of incorporation of the entities/issuers of equity securities. 23

26 EASTSPRING INVESTMENTS FUNDS Statement of Portfolio As at 30 June 2018 By Industry Secondary Eastspring Investments Funds Monthly Income Plan Percentage of total net assets attributable to Fair value unitholders 30/06/ /06/ /12/2017 (S$) () () Banks 31,589, Educational services 696, Electronics 2,558, Engineering 4,831, Financial 2,596, Food 2,287, Investment funds 957,280, Real estate 3,565, Real estate investment trusts 36,539, Retail 165, Telecom services 11,530, Transport 3,114, Transport - Air 2,778, Portfolio of investments 1,059,533, Other net assets 19,181, Net assets attributable to unitholders 1,078,714,

27 IMPORTANT INFORMATION This document is solely for information and may not be published, circulated, reproduced or distributed in whole or part to any other person without the prior written consent of Eastspring Investments (Singapore) Limited ( Eastspring Singapore ) (Company Reg No H). This document is not an offer, solicitation of an offer, or a recommendation to transact in the investment units in the Fund. The information contained herein does not have any regards to the specific investment objectives, financial situation or particular needs of any person. A prospectus in relation to the Fund is available and a copy of the prospectus may be obtained from Eastspring Singapore and its distribution partners. Investors should read the prospectus and seek professional advice before making any investment decision. In the event that investor chooses not to seek advice, he should consider carefully whether the Fund in question is suitable for him. The value of units in the Fund and the income accruing to the units, if any, may fall or rise. Past performance of the Fund/Manager is not necessarily indicative of the future performance. Any prediction, projection or forecast on the economy, securities markets or the economic trends of the markets targeted by the Fund is not necessarily indicative of the future performance of the fund(s). An investment in the Fund is subject to investment risks, including the possible loss of the principal amount invested. Whilst Eastspring Singapore has taken all reasonable care to ensure that the information contained in this document is not untrue or misleading at the time of publication, Eastspring Singapore cannot guarantee its accuracy or completeness. Any opinion or estimate contained in this document is subject to change without notice. The name of the fund Eastspring Investments Funds - Monthly Income Plan should not be taken as implying that monthly or regular distributions in respect of units will be made. The fund(s) / underlying fund(s) may use derivative instruments for efficient portfolio management and hedging purposes. Distributions are not guaranteed and may fluctuate. Past distributions are not necessarily indicative of future trends, which may be lower. Distribution payouts and its frequency are determined by the Manager, Eastspring Singapore, and can be made out of (a) income; or (b) net capital gains; or (c) capital of the Fund or a combination of (a) and/or (b) and/or (c). The payment of distributions should not be confused with the Fund s performance, rate of return or yield. Any payment of distributions by the Fund may result in an immediate decrease in the net asset value per unit. The preceding paragraph is only applicable if the Fund intends to pay dividends / distributions. Eastspring Singapore is an ultimately wholly-owned subsidiary of Prudential plc of the United Kingdom. Eastspring Singapore and Prudential plc are not affiliated in any manner with Prudential Financial, Inc., a company whose principal place of business is in the United States of America. 25

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