+ All Categories
Home > Documents > United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth...

United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth...

Date post: 29-Mar-2018
Category:
Upload: duongdan
View: 222 times
Download: 2 times
Share this document with a friend
64
United Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year ended 31 st December 2017
Transcript
Page 1: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

United Global RecoveryFunds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund

Annual Report

for the financial year ended31st December 2017

Page 2: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year
Page 3: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

MANAGERUOB Asset Management LtdRegistered Address:80 Raffles PlaceUOB PlazaSingapore 048624Company Registration No. : 198600120ZTel: 1800 22 22 228

DIRECTORS OF UOB ASSET MANAGEMENTLee Wai FaiEric Tham Kah JinPeh Kian HengThio Boon Kiat

TRUSTEEState Street Trust (SG) Limited168 Robinson Road#33-01, Capital TowerSingapore 068912

CUSTODIAN / ADMINISTRATOR / REGISTRARState Street Bank and Trust Company, acting through its Singapore Branch168 Robinson Road#33-01, Capital TowerSingapore 068912

AUDITORPricewaterhouseCoopers LLP7 Straits View, Marina OneEast Tower, Level 12Singapore 018936

SUB-MANAGER (UNITED CHINA-INDIA DYNAMIC GROWTH FUND - INDIA PORTFOLIO)UTI International (Singapore) Private Limited3 Raffles Place#08-02 Bharat BuildingSingapore 048617

United Global Recovery Funds(Constituted under a Trust Deed in the Republic of Singapore)

-1-

Page 4: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

A) Fund Performance

Class SGD

Fund Performance/Benchmark Returns

3 mth%

Growth

6 mth%

Growth

1 yr%

Growth

3 yrAnn

CompRet

5 yrAnn

CompRet

10 yrAnn

CompRet

SinceInception

22 February2010Ann

CompRet

United China-IndiaDynamic GrowthFund 7.14 14.60 34.41 11.37 13.79 N/A 7.02

Benchmark 8.39 14.68 31.61 10.15 11.06 N/A 6.10

Source: Lipper, a Thomson Reuters Company.

Note: The performance returns of the Fund are in Singapore Dollar based on a NAV-to-NAV basis, with dividends and distributionsreinvested, if any.The benchmark of the Fund: Since Inception - 30 Aug 15: 50%MSCI China and 50%MSCI India; 31 Aug 15 - Current: 25%SSE 50China A-Share, 25% MSCI China and 50% MSCI India.

Class JPY

Fund Performance/Benchmark Returns

3 mth%

Growth

6 mth%

Growth

1 yr%

Growth

3 yrAnn

CompRet

5 yrAnn

CompRet

10 yrAnn

CompRet

SinceInception

21 December2009Ann

CompRet

United China-IndiaDynamic GrowthFund 9.26 18.99 41.79 32.52 138.52 N/A 132.33

Benchmark 10.29 18.56 37.55 24.38 101.37 N/A 104.17

Source: UOBAM.

Note: The performance returns of the Fund are in Japanese Yen based on a NAV-to-NAV basis, with dividends and distributionsreinvested, if any.The benchmark of the Fund: Since Inception - 30 Aug 15: 50%MSCI China and 50%MSCI India; 31 Aug 15 - Current: 25%SSE 50China A-Share, 25% MSCI China and 50% MSCI India.

For the year ended 2017, the unit price of the Fund (Class SGD) increased 34.41%, on a net asset value basis, compared witha 31.61% increase in the benchmark, comprising 25%MSCIChina, 25%SSE50China AShare and 50%MSCI India. The Fundoutperformed the benchmark by 2.8% over the period.

For the year ended 2017, the NAV of the Fund (Class JPY) rose 41.79%, outperforming the 37.55% rise in the benchmarkcomprising 25% MSCI China, 25% SSE50 China A Share and 50% MSCI India (JPY terms).

In China, the Fund’s performance was lifted by Tencent, Alibaba, Sunny Optical, Kweichow Moutai, Shenzhen Sunway,Midea, Inner Mongolia Yili and TAL Education among many others. Detractors include Kingfa Science and Technology,Hubei Xingfa, China Railway Construction, Guangdong Wen’s Foodstuff Group and Guangshen Railway. The sectorsthat contributed positively were Information Technology and the Consumer sectors, while Industrials, Materials, RealEstate, Financials and Energy detracted from performance.

In India, the overweight position in Financials and Consumer Discretionary and underweight position in InformationTechnology contributed positively. Within Financial Services, Bajaj Finance, Indusind Bank and HDFC Bank were the keypositive contributors. Other major positive contributors came largely from the Consumer sector, including Motherson Sumi,Maruti Suzuki, Page Industries and Endurance Technologies. On the other hand, the overweight position in Health Careand zero weight in energy detracted from performance. Key stock underperformers were Lupin, Divi’s Laboratories, AmaraRaja Batteries, Torrent Pharmaceuticals and Eclerx Services.

United China-India Dynamic Growth Fund(Constituted under a Trust Deed in the Republic of Singapore)

-2-

Page 5: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

A) Fund Performance (continued)

For the first half of the year, the Fund was neutral on both China and India. We changed our asset allocation to be slightlyoverweight on China and slightly underweight on India. Within China, we are overweight the ‘H’ shares vs ‘A’ shares.

As at end December 2017, exposure in Hong Kong and China was 51.74% and 44.80% in India, with the remainder 3.46%in cash. The Fund had the following sector allocation: Information Technology (24.62%), Financials (23.33%), ConsumerDiscretionary (13.59%), Health Care (9.15%), Industrials (7.43%), Consumer Staples (6.97%) and others (11.45%), withthe remainder in cash (3.46%).

Economic and Market Review

China

The China equity markets outperformed global markets over 2017. Emerging Markets (EM) as a whole outperformedDeveloped Markets (DM), as appetite for higher yielding assets increased with improved global economic momentum and aweaker US Dollar. MSCI China had the biggest gains in Asia and the emerging markets.

The rally in China was driven by better than expected economic data and earnings particularly in technology, alongside a solidearnings beat across the board particularly with materials, consumer and insurance. The Chinese government’s supply sidereforms, capacity rationalisation and resilient demand significantly boosted industrial profits, while consumption and servicescontinued to be strong.

China economic indicators were generally strong over the period. Both the official and Caixin PMI have maintained above 50during 2017 despite the authorities tightening monetary conditions to rein in financial leverage. The producer price index (PPI)has accelerated since late 2016 and maintained about 6 to 7%, while the consumer price index (CPI) remained steady below2%. Exports recovered to double digit levels by the end of 2017 with strong global demand after registering negative growth theprevious 2 years.On the flip side, investment spending has slowed down, but that is due to the government’s supply side reformsand pollution control enforcement, which is good in the long run.

China’s 19th Party Congress in October reinforced the government’s commitment to supply side and state owned enterprise(SOE) reforms, environmental protection and rebalancing. They have quickly taken tangible steps on reforms such as graduallyremoving foreign ownership limits in financial services, import tariff reduction on consumer goods, further regulation on assetmanagement business and wealth management products.

The US Federal Reserve (Fed) hiked rates by quarter of a percentage point (25 basis points) in March and June and Decemberand started the process of unwinding quantitative easing. However, the US Dollar has continued to weaken amidst modest USeconomic activity and muted inflation. This has helped Asian currencies and markets. The Renminbi also appreciated againstthe US Dollar and forex reserves gained.

On the geopolitical front, markets brushed off concerns on North Korea’s defiant missile launches, US President Trump’s legalwoes, rising Middle-East tensions and welcomed the election of Pro-EU French President Macron.

Information Technology, Real Estate and Consumer Discretionary sectors drove the bulk of the gains. Defensive sectorssuch as Telecommunication Services and Utilities underperformed, as did Industrials and Energy.

India

Over 2017, the India market rallied strongly on the back of government’s reforms initiatives, stable macroeconomic factors,healthy monsoons and moderating inflation. The equity market witnessed some correction around September on the back ofspike in crude oil prices fuelling concerns regarding inflation subdued gross domestic product (GDP) growth numbers. However,events like upgrade of India’s sovereign rating from Moody’s, a slight revival in growth and success of the ruling party in stateelections towards the end of the year led to a continuation of the positive market sentiment.

2017 GDP came at 7.1% year-on-year (yoy) against 7.5% in 2016. GDP for Q1 of 2017 came in at 5.7%, lowest in four years,reflecting the culmination of two major shocks to the economy, demonetisation and the good and services tax (GST)implementation. However, some recovery was seen in Q2 as GDP growth rate rose to 6.3% tracking strong performance inmanufacturing sector supported by festive demand. Gradual re-monetisation and smoothening out of GST related issues alsoimplied higher demand.

United China-India Dynamic Growth Fund(Constituted under a Trust Deed in the Republic of Singapore)

-3-

Page 6: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

A) Fund Performance (continued)

The indirect tax regime in India has been completely overhauled with the implementation of GST in July 2017. While the GSThas caused some short term disruption, it is expected to be beneficial for the economy over the medium to long term due toformalisation of the economy, better tax compliance and higher consumption.

After plummeting to a low of 1.46% by June 2017, CPI inflation rebounded to 4.88% by end November 2017 as crude oil pricesand other global commodities reversed the trend in the second half of the year. The 7th pay commission related disbursementsare also likely to contribute to rising inflation going ahead. As a result, theReserve Bank of India (RBI) revised the inflation rangefor the second half of 2018 upwards to 4.3-4.7%

There was a sharp rally in the public sector (PSU) Banks in late October 2017 following announcement of the recapitalisationplan of 2.11 trillion rupees for state owned banks. This comes as a big relief as these banks are starved of equity capital. Thismove is an important step for a sustained economic growth revival.

The Reserve Bank of India (RBI) reduced policy rates by 25 basis points (bps) over the year to 6.00%, given weak growthmomentum and benign CPI. However, in December 2017, RBI maintained status quo citing concerns around fiscal uncertainty,rising global commodity prices, higher domestic price pressures, andwider trade deficits. RBI alsomaintained growth projectionfor 2018 at 6.7% citing support from the marginal pick up in credit growth, and improvement in credit flow post bankrecapitalisation. RBI acknowledged reforms and developments that augur well for medium term growth prospects, (i) increasedcapital market issuances deployed for productive growth, (ii) sustained foreign direct investment (FDI) inflows on the back ofimproved ease of doing business and (iii) bankruptcy code and bank recapitalisation.

The Energy and Consumer sectors performed well over the period, while Health Care and Information Technology werelaggards.

Outlook and Fund Strategy

China

For years, China has been facing headwinds from slowing growth and high leverage.

However in the past year, China’s economic recovery looks to have stabilised with the PMI above 50 and the rebound in the PPIaftermany years in negative territory. This has givenmore breathing room for the authorities to refocus on economic rebalancingand financial deleveraging. The recently concluded Party Congress has re-emphasised focus on more balanced and qualitygrowth, supply side reforms to improve efficiency, SOE reforms that include state capital supervision, mixed ownership andmore incentivised management. If the government executes well on reforms, then we can expect China’s rerating momentumto continue.

With less emphasis on absolute GDP growth levels and more stringent controls on leverage and financial risk, we can expectChina’s GDP growth to moderate going forward. China equity markets have historically struggled in this scenario. However, webelieve this time should be different. There has been a structural improvement in industrial enterprise profitability followingsupply side discipline, capacity rationalisation and the resultant PPI reflation. Consequently, cash flows and interest coverageof industrial enterprises have also improved. This should improve system non-performing loans (NPLs) going forward despiteoverall slower growth. Moreover, the structure of the market is changing with higher weights in new economy stocks such astechnology, consumer and healthcare which have strong structural growth drivers and lesser weight in old economy financialsand cyclicals. Hence, the market is less sensitive to a moderation in investment spending and the historical boom-bust cyclesof the past.

We see good investment opportunities across China. The country is seeing improving returns on equity (ROE) and upwardrevisions in corporate earnings for the first time after many years. We favour structural growth areas which benefit directly fromChina’s rebalancing, such as the Consumer sector which is also seeing strong earnings momentum and Health Care whichenjoys strong policy support. We are also overweight on Financials. The large banks are enjoying higher net interest marginsand improvement in NPLs. The insurers are seeing strong premium growth and benefit from higher bond yields. We have pareddown Technology to a neutral position as we believe the sector could see an earnings growth deceleration and challengingbase comparisons next year. Nonetheless, we remain positive on the medium to longer term prospects of Technology. We areunderweight on the defensive sectors including Telecoms and Utilities.

India

Indian equity market saw a healthy rally over 2017. The key drivers for the market’s strong performance were government’sfocus on key reforms, stablemacroeconomic situation, and the expectations of a gradual growth recovery. A sharp fall in interest

United China-India Dynamic Growth Fund(Constituted under a Trust Deed in the Republic of Singapore)

-4-

Page 7: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

A) Fund Performance (continued)

rates post demonetisation also led to a surge in flows into financial assets which also contributed to the market momentum. Asthemomentum has driven the equity market to above average valuations, economic and earnings growth recovery will drive themarket going forward. In the near term, the upcoming Union Budget will be a key event.

The Fund continues to be positive on Financials, Information Technology,Health Care andConsumer Goods sectors, andcautious on capex dependent Industrials, Materials and Energy sectors.

We are bullish on Financial Services as there is huge under penetration of banking and Financial Services in India. Withinthe sector, we have a preference for private sector banks which have superior asset quality and are consistently gaining marketshare. We are positive on the Consumer sector as it remains the most promising sector both in terms of future growth as wellas strong cash flows. Due to the GST rollout, large destocking had impacted the sector, but this is transitory. A good monsoonfor a second consecutive year has aided the revival of rural consumption too. We are like the category leaders who continueto improve their market share on a secular basis. GST implementation is amedium to long term positive for the sector as it helpsthe organised players further gain market share from the unorganised ones. We are positive on the Information Technologysector. The sector de-rated significantly due to a cyclical slowdown and is trading at cheap valuations now. Companies withinthe sector have strong balance sheets and cash flows. Cost deflation on account of rising supply talent is going unnoticed whileconcerns on visa restriction issues have been overdone. Indian companies have been doing pre-emptive on shore investmentsin talent recruitment over the last few years. Over the last year, the rupee appreciation dented revenue and margins acrosscompanies in this sector, however with the recent correction of the rupee, this should start to reverse. We are overweight onHealth Care as the sector’s long term prospects remain strong. Medical spending per capita in India is one of the lowest in theworld and should accelerate with India’s growing middle class. Indian companies are also trying to grow across other emergingmarkets using their low costmanufacturing advantages.Companies have been investing heavily into research and development(R&D) to move to the next level of opportunities in complex generics as well as speciality pharma where competition is limited.

We have a zero exposure to the Energy sector as we believe refining profits are unsustainably high due to one-off inventorygains. Although the government has deregulated fuel pricing, oil marketing companies have not shown a significantimprovement in their profits. We are cautious on capital intensive Industrials as the sector has run up a lot on expectations ofa turnaround in industrial growth and are now expensive. Notwithstanding that an improvement in economic growth andcapacity utilisation will benefit the Industrials sector as a whole, we hesitate to invest in companies that incur huge capitalexpenditure and suppress return ratios.We are also cautious onMaterials aswe feel this sector is linked to the global economicrevival. The run up in metal prices on account of expectations related to infrastructure spending by the Trump government arecooling off now. We remain underweight on this sector as we believe the risk to return trade-off is unattractive.

Conclusion

While challenges fromChina’s restructuring andmacroeconomic imbalances, and India’s execution persist, we remain positiveon the longer term outlook of both markets. The Fund is now slightly overweight on China versus India, on account of betterearningsmomentum, reducingmacro risks and cheaper valuations, but we believe there are still significant opportunities in bothmarkets. In India, the de-monetisation policy and the GST rollout has temporarily impacted near term growth, but the economyand earnings growth look to have bottomed out now and are recovering. In China, there have been persistent concerns on highleverage, the cooling of the property sector and the pace of structural reforms. However, the past year of economic stability,strong corporate profits growth and a leadership more committed to reforms after the party congress has given investors goodcause for optimism.

In the longer term, we believe that both China and India’s domestic economies are rising in importance. The large and growingmiddle class, high savings rates and low public debt present compelling opportunities. Both countries now have in place newgovernments that are committed to deliver reforms to improve sustainable growth and efficiency. We believe the Fund isstrategically positioned to tap into the growth potential of two of the largest emerging economies in the world.

United China-India Dynamic Growth Fund(Constituted under a Trust Deed in the Republic of Singapore)

-5-

Page 8: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

B) Investments at fair value and as a percentage of net asset value (“NAV”) as at 31 December2017 under review classified by

i) Country

Fair Value(S$)

% of NAV

China 17,535,224 47.16

Hong Kong 1,701,607 4.58

India 16,661,359 44.80

Portfolio of investments 35,898,190 96.54

Other net assets/(liabilities) 1,287,408 3.46

Total 37,185,598 100.00

ii) Industry

Fair Value(S$)

% of NAV

Consumer Discretionary 5,053,008 13.59

Consumer Staples 2,590,950 6.97

Energy 512,196 1.38

Financials 8,675,932 23.33

Health Care 3,403,521 9.15

Industrials 2,762,964 7.43

Information Technology 9,154,292 24.62

Materials 2,573,120 6.92

Real Estate 446,909 1.20

Telecommunication Services 501,280 1.35

Utilities 224,018 0.60

Portfolio of investments 35,898,190 96.54

Other net assets/(liabilities) 1,287,408 3.46

Total 37,185,598 100.00

iii) Asset Class

Fair Value(S$) % of NAV

Quoted equities 35,898,190 96.54

Other net assets/(liabilities) 1,287,408 3.46

Total 37,185,598 100.00

iv) Credit rating of quoted bonds

N/A

United China-India Dynamic Growth Fund(Constituted under a Trust Deed in the Republic of Singapore)

-6-

Page 9: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

C) Top Ten Holdings

10 largest holdings as at 31 December 2017

Fair Value(S$)

Percentage oftotal net assetsattributable tounitholders

%

TENCENT HOLDINGS LTD 1,929,526 5.19

ALIBABA GROUP HOLDING LTD 1,831,962 4.93

BAJAJ FINANCE LTD 1,107,667 2.98

INDUSIND BANK LTD 892,277 2.40

YES BANK LTD 849,228 2.28

HDFC BANK LTD 827,198 2.22

CHINA CONSTRUCTION BANK CORP 793,911 2.14

PING AN INSURANCE GROUP CO OF CHINA 681,449 1.83

INFOSYS LTD 640,274 1.72

INDUSTRIAL & COMMERCIAL BANK OF CHINA 623,675 1.68

10 largest holdings as at 31 December 2016

Fair Value

Percentage oftotal net assetsattributable tounitholders

(S$) %

TENCENT HOLDINGS LTD 1,555,319 5.32

CHINA MOBILE LTD 964,966 3.30

HDFC BANK LTD 912,764 3.12

ALIBABA GROUP HOLDING LTD 824,584 2.82

INDUSIND BANK LTD 792,273 2.71

YES BANK LTD 754,989 2.58

CHINA CONSTRUCTION BANK CORP 723,081 2.47

INFOSYS LTD 685,929 2.35

BAJAJ FINANCE LTD 593,663 2.03

TATA CONSULTANCY SERVICES LTD 535,311 1.83

D) Exposure to derivatives

i) Fair value of derivative contracts and as a percentage of NAV as at 31 December 2017

N/A

ii) There was a net realised loss of SGD 15,848 on derivative contracts during the financial year ended 31 December 2017.

iii) Net gains/(losses) on outstanding derivative contracts marked to market as at 31 December 2017

N/A

United China-India Dynamic Growth Fund(Constituted under a Trust Deed in the Republic of Singapore)

-7-

Page 10: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

E) Amount and percentage of NAV invested in other schemes as at 31 December 2017

N/A

F) Amount and percentage of borrowings to NAV as at 31 December 2017

N/A

G) Amount of redemptions and subscriptions for the financial year ended 31 December 2017

Total amount of redemptions SGD 18,627,014

Total amount of subscriptions SGD 17,721,226

H) The amount and terms of related-party transactions for the financial year ended 31December2017

Please refer to Note 9 of the Notes to the Financial Statements.

I) Expense ratios

Please refer to Note 10 of the Notes to the Financial Statements.

J) Turnover ratios

Please refer to Note 10 of the Notes to the Financial Statements.

K) Any material information that will adversely impact the valuation of the scheme such ascontingent liabilities of open contracts

N/A

L) For schemes which invest more than 30% of their deposited property in another scheme, thefollowing 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 2016

N/A

ii) Expense ratios for the financial year ended 31 December 2017 and 31 December 2016

N/A

iii) Turnover ratios for the financial year ended 31 December 2017 and 31 December 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 aformal arrangement or investment agreement with, the Singapore manager, the above information should be disclosed on theunderlying scheme. In other cases, such information on the underlying scheme should be disclosed only if it is readily availableto the Singapore manager.

United China-India Dynamic Growth Fund(Constituted under a Trust Deed in the Republic of Singapore)

-8-

Page 11: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

M) Soft dollar commissions/arrangements

UOB Asset Management has entered into soft dollars arrangements with selected brokers from whom products andservices are received from third parties. The products and services relate essentially to computer hardware and softwareto 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 andquotation services, all of which are believed to be helpful in the overall discharge of UOB Asset Management’s duties toclients. As such services generally benefit all of UOB Asset Management’s clients in terms of input into the investmentdecision making process, the soft credits utilised are not allocated on a specific client basis. The Manager confirms thattrades 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 theactual payouts received by participants and any significant deviation from thepre-determined payouts

N/A

United China-India Dynamic Growth Fund(Constituted under a Trust Deed in the Republic of Singapore)

-9-

Page 12: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

A) Fund Performance

Fund Performance/Benchmark Returns

3 mth%

Growth

6 mth%

Growth

1 yr%

Growth

3 yrAnn

CompRet

5 yrAnn

CompRet

10 yrAnn

CompRet

SinceInception

24 July 2009Ann

CompRet

United High GradeCorporate BondFund -0.67 0.61 1.15 3.91 4.84 N/A 4.88

Benchmark -0.17 0.67 0.91 3.43 4.20 N/A 3.33

Source: Lipper, a Thomson Reuters Company.

Note: The performance returns of the Fund are in Singapore Dollar based on a NAV-to-NAV basis, with dividends and distributionsreinvested, if any.The benchmark of the Fund: Jul 09 - Dec 14: Merrill Lynch Global Large Cap Corporate Index, 1-10 yrs; Jan 15 – Present: BarclaysGlobal Aggregate Corporate Benchmark Index.

For the twelve months ended 31 December 2017, the Fund returned 9.40% versus the Barclays Global Aggregate Corporatebenchmark returns (in USD) of 9.09%, with excess returns of 0.31%. In SGD terms, the Fund returned 1.15% versus thebenchmark returns of 0.91%, with excess returns of 0.24% during the same period.

For the entire year, the Fund benefited from tightening spreads but lost ground due to the US Dollar (USD) weakening againstthe SGD. Nevertheless, the Fund still outperformed the benchmark due to sector and credit selection.

From an overweight position on Consumer Cyclicals (mainly automotive), the Fund gradually reduced its position to a slightunderweight as valuations became stretched. The Fund also reduced REITs to underweight from neutral, and moved Energyand Basic Industries (mainly Chemicals and Metals) to market weight while maintaining underweight for Health Care,Industrials, Consumer Discretionary, Telecommunication Services and Information Technology. The Fund maintainedits overweight position in Utilities, Financials and Consumer Staples. Some of the sectors that contributed positively areConsumer Staples and Financials. We were correct in our underweight strategy for Health Care, Industrials andInformation Technology which underperformed the benchmark.

In terms of credit selection, the credits that outperformed included Discovery Communications, PetroleosMexicanos (Pemex), RL Finance, Royal Bank of Scotland, Standard Chartered, Banco Santander, Bank of America,UBS, Phoenix Group, Cimarex Energy, Beazley, Marathon Oil, Nationwide, Allergan Funding and Arion Bank.

In terms of geography, the Fund raised its slight underweight position in Europe to neutral while remaining underweight on theUS on relative valuation. At the same time, the Fund maintained its overweight position in the United Kingdom (UK) andincreased Asia to overweight while it increased its underweight on Latin America to neutral.

In terms of currency (FX) allocation, the Fundmaintained its slight overweight to neutral on theUSDollar (USD). The Fund alsogradually reduced its Sterling (GBP) positions to slight underweight from neutral, while it increased its Euro (EUR) fromunderweight to neutral.

During the second half of the year, the Fund maintained an underweight on duration against the benchmark. At end Dec 2017,the Fund had a cash equivalent position of 5.8%, down from 10% during the US elections. This cash position was raised partlyin preparation to meet some redemption.

As at end December 2017, the Fund had the following regional asset allocation: United States (14.18%), China (12.19%),United Kingdom (11.24%), India (9.79%),HongKong (8.83%),Australia (7.45%), Ireland (5.24%) and others (26.10%), theremainder in cash and equivalent (4.98%).

United High Grade Corporate Bond Fund(Constituted under a Trust Deed in the Republic of Singapore)

-10-

Page 13: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

A) Fund Performance (continued)

Economic and Market Review

In November 2017, credit markets experienced some volatility but were followed by a snapback rally into year-end. In US creditmarkets, investment grade (IG), spreadswidened asmuch as 7 basis points (bps) but ended only 3 bpswider; total returns werenegative (-0.14%) as the US treasury curve flattened substantially, pushing front-end yields notably higher but long-end yieldslower, paring down 0.2% of the total return gains for IG year-to-date. In US IG, shorter-duration credit underperformed whilelonger-dated credits remained fairly well-supported. In Asia, the Asian dollar IG index delivered positive returns at 5.2%.

In the Eurozone, after October’s strong rally, EUR IG credit spreads widened in November from 44 bps to 50 bps. Total returnwas -0.2% while the YTD return stood at 2.61%.

At the sector level for US IG, metals & mining outperformed as spreads narrowed by 5 bps against the backdrop of risingcommodity prices. Retail closely followed as spreads tightened on signs of rebounding consumer demand heading into theholiday season. On the other hand, Telecom, Media and Technology (TMT) underperformed as heavy supply and mergersand acquisition (M&A) headlines pushed spreads 5-13 bpswidermonth-on-month. Oil field services and pipelines spreads alsowidened by 8 bps.

In December, IG spreads tightened on a combination of low liquidity and positive news about tax reforms. In US credit markets,total return for IG was 0.84% in USD terms. For the entire year 2017, US IG generated an excess return of over 3%.

Outlook and Fund Strategy

Global growth continued to surprise to the upside in the fourth quarter of 2017. Growth is broad-based, which tilts ourinvestment outlook to be positive for risk assets. We had previously argued that bonds would perform well in a world of modestgrowth and low inflation. While the current nine-year expansion has been unusually long, it has been defined by modest growthand low inflation. However, we see continued confidence in growth with modest increase in inflation going forward.

We carefullymonitor globalmacro trends for signs of unexpected triggers.While there are various globalmacro and geopoliticalrisks to monitor, we currently find the threats of starting a new global recession to be low.

The top risks in 2018 include inflation surprises, a China slowdown and geopolitical tensions. Higher inflation expectationsappear to have panned out in the first two months of 2018. We saw heightened volatility in rates. A plausible explanation for thespike in US treasury yields could be attributed to gains in US employment and higher wage growth. The selloff in financialmarkets was driven by risk aversion and, we believe, is likely to be short lived in nature.

Nevertheless, keeping in mind the rising rate environment, our strategy is to be underweight on duration and stay defensive interms of portfolio positioning as we enter the New Year. Our goal is to limit downside risks as we expect rising market volatilityin rates and currencies. We are overweight on financials given they are beneficiaries of rising rates, and have an underweightposition in pharmaceuticals and technology due to M&A risks. At the same time, we expect performance to come from carry.Both senior/subordinate credit spreads remain stretched but new supply may provide some opportunities. Therefore, we lookto participate in new issues that are attractively priced. We will maintain our active tactical strategy in currency positioning.

In terms of regions, we look to be overweight on Asia on relative valuation; and keep a neutral position in Europe and anunderweight on the US.

Disclaimer:

“As the Fund is in SGD and the benchmark is in US dollar (USD), we had an overlay of currency hedges during the year, butthe effect was largely neutral on the portfolio.Our global exposure to financial derivatives is calculated based on the commitmentapproach. This is done by adding the exposure of each financial derivative (for those with and without netting arrangement) andcash collateral values under certain cases.”

United High Grade Corporate Bond Fund(Constituted under a Trust Deed in the Republic of Singapore)

-11-

Page 14: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

B) Investments at fair value and as a percentage of net asset value (“NAV”) as at 31 December2017 under review classified by

i) Country

Fair Value(S$)

% of NAV

Australia 2,213,325 7.45

Brazil 665,694 2.24

Canada 941,098 3.17

China 3,622,907 12.19

France 296,554 1.00

Hong Kong 2,625,402 8.83

India 2,911,258 9.79

Indonesia 842,734 2.84

Ireland 1,558,410 5.24

Mexico 523,011 1.76

Netherlands 654,980 2.20

South Africa 270,883 0.91

South Korea 788,983 2.65

Spain 477,251 1.61

Sweden 554,606 1.87

Switzerland 1,509,263 5.08

United Kingdom 3,341,894 11.24

United States 4,215,287 14.18

Accrued interest receivable on quoted bonds 228,599 0.77

Portfolio of investments 28,242,139 95.02

Other net assets/(liabilities) 1,479,974 4.98

Total 29,722,113 100.00

ii) Industry

Fair Value(S$)

% of NAV

Consumer Discretionary 1,296,465 4.36

Consumer Staples 628,935 2.11

Energy 3,086,007 10.38

Financials 13,273,874 44.66

Government 1,113,617 3.75

Industrials 1,119,827 3.77

Materials 3,966,920 13.35

Real Estate 537,098 1.81

Telecommunication Services 638,643 2.15

Utilities 2,352,154 7.91

United High Grade Corporate Bond Fund(Constituted under a Trust Deed in the Republic of Singapore)

-12-

Page 15: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

B) Investments at fair value and as a percentage of net asset value (“NAV”) as at 31 December2017 under review classified by (continued)

ii) Industry (continued)

Fair Value(S$)

% of NAV

Accrued interest receivable on quoted bonds 228,599 0.77

Portfolio of investments 28,242,139 95.02

Other net assets/(liabilities) 1,479,974 4.98

Total 29,722,113 100.00

iii) Asset Class

Fair Value(S$) % of NAV

Quoted bonds 28,013,540 94.25

Accrued interest receivable on quoted bonds 228,599 0.77

Other net assets/(liabilities) 1,479,974 4.98

Total 29,722,113 100.00

iv) Credit rating of quoted bonds by S & P

Fair Value(S$) % of NAV

A- 1,663,769 5.60

A+ 554,606 1.87

AA- 333,586 1.12

B+ 365,775 1.23

BB 270,883 0.91

BBB 5,609,162 18.87

BBB- 6,385,514 21.48

BBB+ 6,680,958 22.48

Non-rated 6,149,287 20.69

Total 28,013,540 94.25

United High Grade Corporate Bond Fund(Constituted under a Trust Deed in the Republic of Singapore)

-13-

Page 16: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

B) Investments at fair value and as a percentage of net asset value (“NAV”) as at 31 December2017 under review classified by (continued)

v) Credit rating of quoted bonds by Moody’s

Fair Value(S$) % of NAV

A1 847,994 2.85

A3 2,607,156 8.77

Ba1 699,644 2.35

Ba2 365,775 1.23

Ba3 665,694 2.24

Baa1 4,828,109 16.25

Baa2 3,756,458 12.64

Baa3 9,053,328 30.46

Non-rated 5,189,382 17.46

Total 28,013,540 94.25

C) Top Ten Holdings

10 largest holdings as at 31 December 2017

Fair Value(S$)

Percentage oftotal net assetsattributable tounitholders

%

UBS AG SUBORDINATED REGS 05/24 5.125 847,994 2.85

PHOENIX GROUP HLDGS 07/27 5.375 844,271 2.84

REPUBLIC OF INDONESIA SR UNSECURED REGS 07/24 2.15 842,734 2.84

SHOUGANG CORP SR UNSECURED REGS 08/20 1.35 810,591 2.73

CGNPC INTERNATIONAL LTD COMPANY GUAR REGS 12/24 1.625 805,327 2.71

JIAXING INV AND DEV SR UNSECURED REGS 01/21 4.4 802,642 2.70

GOLDMAN SACHS GROUP INC SR UNSECURED 09/25 VAR 799,329 2.69

MCC HOLDING HK CORP LTD COMPANY GUAR REGS 05/20 2.95 796,754 2.68

ICICI BANK LTD/DUBAI SR UNSECURED REGS 12/27 3.8 792,729 2.67

GS CALTEX CORP SR UNSECURED REGS 06/22 3 788,983 2.65

United High Grade Corporate Bond Fund(Constituted under a Trust Deed in the Republic of Singapore)

-14-

Page 17: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

C) Top Ten Holdings (continued)

10 largest holdings as at 31 December 2016

Fair Value

Percentage oftotal net assetsattributable tounitholders

(S$) %

EI SUKUK LTD 3.542% DUE 31/05/2021 874,422 2.55

UPL CORP LTD 3.25% DUE 13/10/2021 846,445 2.47

CONOCOPHILLIPS COMPANY 4.20% DUE 15/03/2021 767,112 2.24

CNRC CAPITAL LTD 1.871% DUE 07/12/2021 762,584 2.22

NEWELL RUBBERMAID INC 4.20% DUE 01/04/2026 752,960 2.20

IND & COMM BK OF CHINA 4.875% DUE 21/09/2025 745,212 2.17

DOLLAR GENERAL CORP 4.15% DUE 01/11/2025 741,948 2.16

BEAZLEY RE LTD 5.875% DUE 04/11/2026 736,078 2.15

STANDARD CHARTERED PLC 4% DUE 12/07/2022 726,413 2.12

SHINHAN BANK 3.875% DUE 07/12/2026 724,351 2.11

D) Exposure to derivatives

i) Fair value of derivative contracts and as a percentage of NAV as at 31 December 2017

N/A

ii) There was a net realised loss of SGD 55,662 on derivative contracts during the financial year ended 31 December 2017.

iii) Net gains/(losses) on outstanding derivative contracts marked to market as at 31 December 2017

N/A

E) Amount and percentage of NAV invested in other schemes as at 31 December 2017

N/A

F) Amount and percentage of borrowings to NAV as at 31 December 2017

N/A

G) Amount of redemptions and subscriptions for the financial year ended 31 December 2017

Total amount of redemptions SGD 38,747,901

Total amount of subscriptions SGD 34,178,834

H) The amount and terms of related-party transactions for the financial year ended 31December2017

Please refer to Note 9 of the Notes to the Financial Statements.

United High Grade Corporate Bond Fund(Constituted under a Trust Deed in the Republic of Singapore)

-15-

Page 18: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

I) Expense ratios

Please refer to Note 10 of the Notes to the Financial Statements.

J) Turnover ratios

Please refer to Note 10 of the Notes to the Financial Statements.

K) Any material information that will adversely impact the valuation of the scheme such ascontingent liabilities of open contracts

N/A

L) For schemes which invest more than 30% of their deposited property in another scheme, thefollowing key information on the second-mentioned scheme (“the underlying scheme”)1should be disclosed as well

i) Top 10 holdings at fair value and as percentage of NAV as at 31 December 2017 and 31 December 2016

N/A

ii) Expense ratios for the financial year ended 31 December 2017 and 31 December 2016

N/A

iii) Turnover ratios for the financial year ended 31 December 2017 and 31 December 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 aformal arrangement or investment agreement with, the Singapore manager, the above information should be disclosed on theunderlying scheme. In other cases, such information on the underlying scheme should be disclosed only if it is readily availableto the Singapore manager.

M) Soft dollar commissions/arrangements

UOB Asset Management has entered into soft dollars arrangements with selected brokers from whom products andservices are received from third parties. The products and services relate essentially to computer hardware and softwareto 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 andquotation services, all of which are believed to be helpful in the overall discharge of UOB Asset Management’s duties toclients. As such services generally benefit all of UOB Asset Management’s clients in terms of input into the investmentdecision making process, the soft credits utilised are not allocated on a specific client basis. The Manager confirms thattrades 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 theactual payouts received by participants and any significant deviation from thepre-determined payouts

N/A

United High Grade Corporate Bond Fund(Constituted under a Trust Deed in the Republic of Singapore)

-16-

Page 19: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

REPORT OF THE TRUSTEE

The Trustee is under a duty to take into custody and hold the assets of the sub-funds of United Global Recovery Funds, namelyUnited China-India Dynamic Growth Fund and United High Grade Corporate Bond Fund (collectively referred to as the“Sub-Funds”) in trust for the unitholders. In accordance with the Securities and Futures Act (Cap. 289), its subsidiary legislationand the Code on Collective Investment Schemes, the Trustee shall monitor the activities of the Manager for compliance withthe limitations imposed on the investment and borrowing powers as set out in the Trust Deed in each annual accounting yearand report thereon to unitholders in an annual report.

To the best knowledge of the Trustee, the Manager has, in all material respects, managed the Sub-Funds during the financialyearcoveredbythesefinancialstatements,setoutonpages21to60, inaccordancewith the limitations imposedonthe investmentand borrowing powers set out in the Trust Deed.

For and on behalf of the TrusteeSTATE STREET TRUST (SG) LIMITED

Authorised signatory29 March 2018

United Global Recovery Funds(Constituted under a Trust Deed in the Republic of Singapore)

-17-

Page 20: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

STATEMENT BY THE MANAGER

In the opinion of UOBAssetManagement Ltd, the accompanying financial statements set out on pages 21 to 60, comprising theStatements of Total Return, Statements of Financial Position, Statements of Movements of Unitholders’ Funds, Statements ofPortfolio and Notes to the Financial Statements are drawn up so as to present fairly, in all material respects, the financialpositions and portfolio holdings of the sub-funds of UnitedGlobal Recovery Funds, namelyUnitedChina-IndiaDynamicGrowthFund and United High Grade Corporate Bond Fund (collectively referred to as the “Sub-Funds”) as at 31 December 2017, andthe financial performance and movements of unitholders’ funds for the year then ended in accordance with therecommendations of Statement of Recommended Accounting Practice 7 “Reporting Framework for Unit Trusts” issued by theInstitute of Singapore Chartered Accountants. At the date of this statement, there are reasonable grounds to believe that theSub-Funds will be able to meet their financial obligations as and when they materialise.

For and on behalf of the ManagerUOB ASSET MANAGEMENT LTD

THIO BOON KIATAuthorised signatory29 March 2018

United Global Recovery Funds(Constituted under a Trust Deed in the Republic of Singapore)

-18-

Page 21: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

INDEPENDENT AUDITOR’S REPORT TO THE UNITHOLDERS OF UNITED GLOBAL RECOVERYFUNDS

Our Opinion

In our opinion, the accompanying financial statements of the sub-funds of United Global Recovery Funds, namely UnitedChina-India Dynamic Growth Fund and United High Grade Corporate Bond Fund (collectively referred to as the “Sub-Funds”),are properly drawn up in accordance with the recommendations of Statement of Recommended Accounting Practice 7“Reporting Framework for Unit Trusts” issued by the Institute of Singapore Chartered Accountants, so as to present fairly, in allmaterial respects, the financial positions and portfolio holdings of the Sub-Funds as at 31 December 2017, and of the financialperformance and movements of unitholders’ funds for the financial year ended on that date.

What we have audited

The financial statements of the Sub-Funds comprise:

• the Statements of Total Return for the financial year ended 31 December 2017;

• the Statements of Financial Position as at 31 December 2017;

• the Statements of Movements of Unitholders’ Funds for the financial year ended 31 December 2017;

• the Statements of Portfolio as at 31 December 2017; and

• the notes to the financial statements, including a summary of significant accounting policies.

Basis for Opinion

We conducted our audit in accordance with Singapore Standards on Auditing (“SSAs”). Our responsibilities under thosestandards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Independence

We are independent of the Sub-Funds in accordance with the Accounting and Corporate Regulatory Authority Code ofProfessional Conduct and Ethics for Public Accountants and Accounting Entities (“ACRA Code”) together with the ethicalrequirements that are relevant to our audit of the financial statements in Singapore, and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the ACRA Code.

Other Information

The Sub-Funds’ Manager (the “Manager”) is responsible for the other information. The other information comprises all sectionsof the annual report but does not include the financial statements and our auditor’s report thereon.

Our opinion on the financial statements does not cover the other information and we do not and will not express any form ofassurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so,consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in theaudit, or otherwise appears to be materially misstated. If, based on the work we have performed on the other information, weconclude that there is a material misstatement of this other information, we are required to report that fact. We have nothingto report in this regard.

Responsibilities of the Manager for the Financial Statements

The Manager is responsible for the preparation and fair presentation of these financial statements in accordance with therecommendations of Statement of Recommended Accounting Practice 7 “Reporting Framework for Unit Trusts” issued by theInstitute of Singapore Chartered Accountants and for such internal control as the Manager determines is necessary to enablethe preparation of financial statements that are free from material misstatement, whether due to fraud or error.

-19-

United Global Recovery Funds(Constituted under a Trust Deed in the Republic of Singapore)

Page 22: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

INDEPENDENT AUDITOR’S REPORT TO THE UNITHOLDERS OF UNITED GLOBAL RECOVERYFUNDS

In preparing the financial statements, the Manager is responsible for assessing the Sub-Funds’ ability to continue as a goingconcern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unlessthe Manager either intends to terminate the Sub-Funds or to cease the Sub-Funds’ operations, or has no realistic alternativebut to do so.

The Manager’s responsibilities include overseeing the Sub-Funds’ financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from materialmisstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assuranceis a high level of assurance, but is not a guarantee that an audit conducted in accordancewith SSAswill always detect amaterialmisstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in theaggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financialstatements.

As part of an audit in accordance with SSAs, we exercise professional judgement and maintain professional scepticismthroughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, designand perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than forone resulting from error, as fraudmay involve collusion, forgery, intentional omissions,misrepresentations, or the overrideof internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriatein the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Sub-Funds’ internalcontrol.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and relateddisclosures made by the Manager.

• Conclude on the appropriateness of theManager’s use of the going concern basis of accounting and, based on the auditevidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubton theSub-Funds’ ability to continue as a going concern. If we conclude that amaterial uncertainty exists, we are requiredto draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures areinadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor’s report. However, future events or conditionsmay cause the Sub-Funds to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, andwhether the financial statements represent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with the Manager regarding, among other matters, the planned scope and timing of the audit and significantaudit findings, including any significant deficiencies in internal control that we identify during our audit.

PricewaterhouseCoopers LLPPublic Accountants and Chartered Accountants

Singapore, 29 March 2018

-20-

United Global Recovery Funds(Constituted under a Trust Deed in the Republic of Singapore)

Page 23: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

STATEMENTS OF TOTAL RETURNFor the financial year ended 31 December 2017

United China-India DynamicGrowth Fund

United High Grade CorporateBond Fund

2017 2016 2017 2016

Note $ $ $ $

Income

Dividends 402,435 456,686 - 3,392

Interest - 12 9,356 160

Total 402,435 456,698 9,356 3,552

Less: Expenses

Management fee 9 412,079 419,141 230,181 331,748

Less: Management fee rebate 9 - - - (2,305)

Trustee fee 9 10,765 12,088 10,047 13,270

Audit fee 16,524 14,689 15,441 13,601

Registrar fee 9 25,119 25,000 24,044 25,000

Valuation fee 9 35,983 36,555 33,770 41,468

Administration fee 9 62,115 63,350 18,778 41,468

Custody fee 9 55,539 26,466 9,983 5,041

Transaction costs 189,151 151,020 609 7,447

Interest expenses 1,490 346 - 574

Other expenses 148,552 31,684 34,279 20,101

Total 957,317 780,339 377,132 497,413

Net income/(losses) (554,882) (323,641) (367,776) (493,861)

Net gains/(losses) on value ofinvestments

Net gains/(losses) on investments 9,508,995 (196,586) 475,311 2,555,513

Net gains/(losses) on financial derivatives (15,848) - (55,662) (142,330)

Net foreign exchange gains/(losses) (29,778) (263,202) (36,894) (85,410)

9,463,369 (459,788) 382,755 2,327,773

Total return/(deficit) for the year beforeincome tax 8,908,487 (783,429) 14,979 1,833,912

Less: Income tax (expense)/refund 3 (24,161) (22,534) 40 (4,636)

Less: Capital gains tax 3 (11,917) (55) - -

Total return/(deficit) for the year 8,872,409 (806,018) 15,019 1,829,276

United Global Recovery Funds(Constituted under a Trust Deed in the Republic of Singapore)

The accompanying notes form an integral part of these financial statements.-21-

Page 24: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

STATEMENTS OF FINANCIAL POSITIONAs at 31 December 2017

United China-India DynamicGrowth Fund

United High Grade CorporateBond Fund

2017 2016 2017 2016

Note $ $ $ $

Assets

Portfolio of investments 35,898,190 27,481,328 28,242,139 32,344,505

Receivables 4 229,252 40,164 288,752 24,394

Cash and bank balances 1,287,287 1,894,108 2,728,345 2,071,855

Financial derivatives at fair value 6 - - - 95,142

Total assets 37,414,729 29,415,600 31,259,236 34,535,896

Liabilities

Purchases awaiting settlement 24,147 - 1,389,858 -

Payables 5 204,984 196,623 147,265 133,233

Financial derivatives at fair value 6 - - - 126,502

Total liabilities 229,131 196,623 1,537,123 259,735

Equity

Net assets attributable to unitholders 7 37,185,598 29,218,977 29,722,113 34,276,161

United Global Recovery Funds(Constituted under a Trust Deed in the Republic of Singapore)

The accompanying notes form an integral part of these financial statements.-22-

Page 25: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

STATEMENTS OF MOVEMENTS OF UNITHOLDERS’ FUNDSFor the financial year ended 31 December 2017

United China-India DynamicGrowth Fund

United High Grade CorporateBond Fund

2017 2016 2017 2016

Note $ $ $ $Net assets attributable to unitholders atthe beginning of the financial year 29,218,977 35,207,058 34,276,161 31,818,901

OperationsChange in net assets attributable tounitholders resulting from operations 8,872,409 (806,018) 15,019 1,829,276

Unitholders’contributions/(withdrawals)

Creation of units 17,721,226 2,883,714 34,178,834 3,552,694

Cancellation of units (18,627,014) (8,065,777) (38,747,901) (2,924,710)

Change in net assets attributable tounitholders resulting from net creation andcancellation of units (905,788) (5,182,063) (4,569,067) 627,984

Total increase/(decrease) in net assetsattributable to unitholders 7,966,621 (5,988,081) (4,554,048) 2,457,260

Net assets attributable to unitholders atthe end of the financial year 7 37,185,598 29,218,977 29,722,113 34,276,161

United Global Recovery Funds(Constituted under a Trust Deed in the Republic of Singapore)

The accompanying notes form an integral part of these financial statements.-23-

Page 26: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

STATEMENTS OF PORTFOLIOAs at 31 December 2017

United China-India Dynamic Growth Fund

Holdings at Fair value at

Percentage oftotal net assetsattributable tounitholders at

31 December2017

31 December2017$

31 December2017%

By Geography - Primary

Quoted Equities

CHINA

AAC TECHNOLOGIES HOLDINGS INC 6,500 154,902 0.42

ALIBABA GROUP HOLDING LTD 7,950 1,831,962 4.93

ANHUI CONCH CEMENT CO LTD 30,000 188,477 0.51

ANXIN TRUST CO LTD 90,000 241,586 0.65

BAIDU INC 1,500 469,497 1.26

BANK OF CHINA LTD 420,000 275,715 0.74

BAOSHAN IRON & STEEL CO LTD 215,000 381,219 1.03

BRILLIANCE CHINA AUTOMOTIVE HOLDINGS LTD 60,000 214,377 0.58

CHANGCHUN FAWAY AUTOMOBILE CO 87,000 294,773 0.79

CHINA CONSTRUCTION BANK CORP 645,000 793,911 2.14

CHINA LIFE INSURANCE CO LTD 41,000 172,074 0.46

CHINA LITERATURE LTD 621 8,849 0.02

CHINA MENGNIU DAIRY CO LTD 60,000 238,481 0.64

CHINA MERCHANTS BANK CO LTD 50,000 265,834 0.71

CHINA PACIFIC INSURANCE GROUP 51,000 327,386 0.88

CHINA PETROLEUM & CHEMICAL CORP 190,000 186,118 0.50

CHINA RAILWAY SIGNAL & COMMUNICATION CO LTD 135,000 141,242 0.38

CHINA RESOURCES CEMENT HOLDING 128,000 112,474 0.30

CIFI HOLDINGS GROUP CO LTD 190,000 152,987 0.41

COUNTRY GARDEN HOLDINGS CO LTD 58,000 147,739 0.40

CRRC CORP LTD 112,000 160,068 0.43

FUYAO GLASS INDUSTRY GROUP CO 68,000 404,696 1.09

GEELY AUTOMOBILE HOLDINGS LTD 33,000 152,884 0.41

GUOTAI JUNAN SECURITIES CO LTD 66,000 250,846 0.67

HUATAI SECURITIES CO LTD 66,000 233,780 0.63

INDUSTRIAL & COMMERCIAL BANK OF CHINA 580,000 623,675 1.68

INNER MONGOLIA YILI INDUSTRIAL GROUP CO LTD 61,000 402,970 1.08

JIANGSU EXPRESSWAY CO LTD 120,000 242,571 0.65

JIANGSU HENGRUI MEDICINE CO LTD 26,371 373,312 1.00

JIANGSU YANGHE BREWERY JOINT-STOCK CO LTD 16,980 400,735 1.08

KWEICHOW MOUTAI CO LTD 3,800 543,931 1.46

LONGI GREEN ENERGY TECHNOLOGY CO LTD 52,000 388,869 1.05

MIDEA GROUP CO LTD 48,000 546,020 1.47

PING AN INSURANCE GROUP CO OF CHINA 49,000 681,449 1.83

United Global Recovery Funds(Constituted under a Trust Deed in the Republic of Singapore)

The accompanying notes form an integral part of these financial statements.-24-

Page 27: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

STATEMENTS OF PORTFOLIOAs at 31 December 2017

United China-India Dynamic Growth Fund

Holdings at Fair value at

Percentage oftotal net assetsattributable tounitholders at

31 December2017

31 December2017$

31 December2017%

By Geography - Primary (continued)

Quoted Equities

CHINA (continued)

QINGDAO HAIER CO LTD 95,971 371,059 1.00

SAIC MOTOR CORP LTD 49,000 322,189 0.87

SANAN OPTOELECTRONICS CO LTD 69,000 359,529 0.97

SHANGHAI INTERNATIONAL PORT GROUP 210,000 286,591 0.77

SHANGHAI PHARMACEUTICALS HOLDING 37,000 133,780 0.36

SHENWU ENVIRONMENTAL TECHNOLOGY CO LTD* 35,400 175,518 0.47

SHENZHEN SUNWAY COMMUNICATION CO LTD 37,924 394,588 1.06

SUNNY OPTICAL TECHNOLOGY GROUP 10,000 170,783 0.46

TENCENT HOLDINGS LTD 27,800 1,929,526 5.19

WANHUA CHEMICAL GROUP CO LTD* 50,480 393,042 1.06

WEIBO CORP 1,370 189,422 0.51

YUNNAN BAIYAO GROUP CO LTD 19,293 403,020 1.08

ZHEJIANG SUPOR COOKWARE CO LTD 48,362 400,768 1.08

TOTAL CHINA 17,535,224 47.16

HONG KONG

CHINA MOBILE LTD 37,000 501,280 1.35

CHINA OVERSEAS LAND & INVESTMENT LTD 34,000 146,183 0.39

CHINA RESOURCES POWER HOLDINGS LTD 90,000 224,018 0.60

CNOOC LTD 170,000 326,078 0.88

CSPC PHARMACEUTICAL GROUP LTD 48,000 129,488 0.35

HAIER ELECTRONICS GROUP CO LTD 70,000 256,089 0.69

SINO BIOPHARMACEUTICAL LTD 50,000 118,471 0.32

TOTAL HONG KONG 1,701,607 4.58

INDIA

AJANTA PHARMA LTD 6,225 194,391 0.52

AMARA RAJA BATTERIES LTD 14,250 250,684 0.67

ASTRAL POLYTECHNIK LTD 22,548 398,762 1.07

AU SMALL FINANCE BANK LTD 8,700 121,463 0.33

BAJAJ FINANCE LTD 30,115 1,107,667 2.98

BERGER PAINTS INDIA LTD 23,700 135,841 0.37

United Global Recovery Funds(Constituted under a Trust Deed in the Republic of Singapore)

The accompanying notes form an integral part of these financial statements.-25-

Page 28: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

STATEMENTS OF PORTFOLIOAs at 31 December 2017

United China-India Dynamic Growth Fund

Holdings at Fair value at

Percentage oftotal net assetsattributable tounitholders at

31 December2017

31 December2017$

31 December2017%

By Geography - Primary (continued)

Quoted Equities

INDIA (continued)

CADILA HEALTHCARE LTD 37,088 336,629 0.90

CERA SANITARYWARE LTD 1,750 136,612 0.37

CITY UNION BANK LTD 26,600 100,138 0.27

DABUR INDIA LTD 21,650 158,519 0.43

DIVI’S LABORATORIES LTD 14,992 344,770 0.93

DR LAL PATHLABS LTD 12,600 232,500 0.62

ECLERX SERVICES LTD 13,085 430,571 1.16

EICHER MOTORS LTD 410 260,460 0.70

EMAMI LTD 8,517 237,210 0.64

ENDURANCE TECHNOLOGIES LTD 9,594 273,854 0.74

ERIS LIFESCIENCES LTD 3,400 56,548 0.15

GRINDWELL NORTON LTD 21,413 245,533 0.66

GRUH FINANCE LTD 32,774 345,370 0.93

HAVELLS INDIA LTD 20,475 241,122 0.65

HDFC BANK LTD 21,100 827,198 2.22

HINDUSTAN ZINC LTD 39,004 252,223 0.68

HOUSING DEVELOPMENT FINANCE CORP 13,250 474,507 1.28

IGARASHI MOTORS INDIA LTD 4,500 80,916 0.22

INDUSIND BANK LTD 25,845 892,277 2.40

INFO EDGE INDIA LTD 13,026 379,264 1.02

INFOSYS LTD 29,346 640,274 1.72

IPCA LABORATORIES LTD 13,309 166,722 0.45

ITC LTD 62,030 341,900 0.92

JUBILANT FOODWORKS LTD 6,725 247,973 0.67

KOTAK MAHINDRA BANK LTD 25,544 540,288 1.45

LUPIN LTD 11,079 205,315 0.55

MARICO LTD 24,196 163,381 0.44

MARUTI SUZUKI INDIA LTD 2,275 463,450 1.25

MINDTREE LTD 27,864 357,279 0.96

MOTHERSON SUMI SYSTEMS LTD 64,056 508,644 1.37

NESTLE INDIA LTD 630 103,823 0.28

PAGE INDUSTRIES LTD 655 350,281 0.94

PI INDUSTRIES LTD 13,430 270,648 0.73

PIDILITE INDUSTRIES LTD 8,708 164,494 0.44

United Global Recovery Funds(Constituted under a Trust Deed in the Republic of Singapore)

The accompanying notes form an integral part of these financial statements.-26-

Page 29: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

STATEMENTS OF PORTFOLIOAs at 31 December 2017

United China-India Dynamic Growth Fund

Holdings at Fair value at

Percentage oftotal net assetsattributable tounitholders at

31 December2017

31 December2017$

31 December2017%

By Geography - Primary (continued)

Quoted Equities

INDIA (continued)

SCHAEFFLER INDIA LTD 1,952 239,621 0.64

SHEELA FOAM LTD 6,168 224,361 0.60

SHREE CEMENT LTD 1,190 450,341 1.21

SUN PHARMACEUTICAL INDUSTRIES LTD 31,115 372,091 1.00

SYMPHONY LTD 8,175 298,983 0.80

TATA CONSULTANCY SERVICES LTD 8,107 458,507 1.23

THERMAX LTD 4,895 125,422 0.34

TITAN CO LTD 14,850 266,820 0.72

TORRENT PHARMACEUTICALS LTD 11,329 336,484 0.90

YES BANK LTD 128,700 849,228 2.28

TOTAL INDIA 16,661,359 44.80

Total Equities 35,898,190 96.54

Portfolio of investments 35,898,190 96.54

Other net assets/(liabilities) 1,287,408 3.46

Net assets attributable to unitholders 37,185,598 100.00

* Included in the Statements of Portfolio are investments in Shenwu Environmental Technology Co Ltd and Wanhua ChemicalGroup Co Ltd, which were suspended from trading.

United Global Recovery Funds(Constituted under a Trust Deed in the Republic of Singapore)

The accompanying notes form an integral part of these financial statements.-27-

Page 30: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

STATEMENTS OF PORTFOLIOAs at 31 December 2017

United China-India DynamicGrowth Fund

Percentage oftotal net assetsattributable tounitholders at31 December

2017%

Percentage oftotal net assetsattributable tounitholders at31 December

2016%

By Geography - Primary (Summary)

Quoted Equities

China 47.16 47.67

Hong Kong 4.58 0.65

India 44.80 45.73

Portfolio of investments 96.54 94.05

Other net assets/(liabilities) 3.46 5.95

Net assets attributable to unitholders 100.00 100.00

United Global Recovery Funds(Constituted under a Trust Deed in the Republic of Singapore)

The accompanying notes form an integral part of these financial statements.-28-

Page 31: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

STATEMENTS OF PORTFOLIOAs at 31 December 2017

United China-India Dynamic Growth Fund

Fair value at31 December

2017$

Percentage oftotal net assetsattributable tounitholders at31 December

2017%

Percentage oftotal net assetsattributable tounitholders at31 December

2016%

By Industry - Secondary

Quoted Equities

Consumer Discretionary 5,053,008 13.59 8.59

Consumer Staples 2,590,950 6.97 4.55

Energy 512,196 1.38 1.91

Financials 8,675,932 23.33 24.27

Health Care 3,403,521 9.15 10.87

Industrials 2,762,964 7.43 10.42

Information Technology 9,154,292 24.62 18.99

Materials 2,573,120 6.92 8.66

Real Estate 446,909 1.20 0.83

Telecommunication Services 501,280 1.35 3.68

Utilities 224,018 0.60 1.28

Portfolio of investments 35,898,190 96.54 94.05

Other net assets/(liabilities) 1,287,408 3.46 5.95

Net assets attributable to unitholders 37,185,598 100.00 100.00

United Global Recovery Funds(Constituted under a Trust Deed in the Republic of Singapore)

The accompanying notes form an integral part of these financial statements.-29-

Page 32: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

STATEMENTS OF PORTFOLIOAs at 31 December 2017

United High Grade Corporate Bond Fund

Holdings at Fair value at

Percentage oftotal net assetsattributable tounitholders at

31 December2017

31 December2017$

31 December2017%

By Geography - Primary

Quoted Bonds

AUSTRALIA

AUSGRID FINANCE PTY LTD SR SECURED REGS 10/24 3.75 200,000 210,203 0.71AUST + NZ BANKING GROUP SUBORDINATED REGS 03/244.5 500,000 701,976 2.36COMMONWEALTH BANK AUST SUBORDINATED REGS 12/254.5 450,000 630,586 2.12NEWCASTLE COAL INFRASTRU SR SECURED REGS 09/274.4 500,000 670,560 2.26

TOTAL AUSTRALIA 2,213,325 7.45

BRAZIL

GERDAU TRADE INC COMPANY GUAR REGS 10/27 4.875 500,000 665,694 2.24

CANADA

BANK OF MONTREAL SUBORDINATED 12/32 VAR 400,000 529,150 1.78

ENBRIDGE INC SR UNSECURED 06/27 3.2 400,000 411,948 1.39

TOTAL CANADA 941,098 3.17

CHINABAOXIN AUTO FINANCE I LT COMPANY GUAR REGS 12/99VAR 200,000 264,295 0.89CHINA CONSTRUCT BANK/SG SR UNSECURED REGS 10/202.08 500,000 499,911 1.68HUZHOU CITY INVS DEV SR UNSECURED REGS 12/204.875 400,000 537,098 1.81IND + COMM BK OF CHINA SUBORDINATED REGS 09/254.875 500,000 708,370 2.38

JIAXING INV AND DEV SR UNSECURED REGS 01/21 4.4 600,000 802,642 2.70

SHOUGANG CORP SR UNSECURED REGS 08/20 1.35 500,000 810,591 2.73

TOTAL CHINA 3,622,907 12.19

FRANCE

BPCE SA SUBORDINATED REGS 10/23 5.7 200,000 296,554 1.00

United Global Recovery Funds(Constituted under a Trust Deed in the Republic of Singapore)

The accompanying notes form an integral part of these financial statements.-30-

Page 33: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

STATEMENTS OF PORTFOLIOAs at 31 December 2017

United High Grade Corporate Bond Fund

Holdings at Fair value at

Percentage oftotal net assetsattributable tounitholders at

31 December2017

31 December2017$

31 December2017%

By Geography - Primary (continued)

Quoted Bonds

HONG KONGCGNPC INTERNATIONAL LTD COMPANY GUAR REGS 12/241.625 500,000 805,327 2.71CNAC HK FINBRIDGE CO LTD COMPANY GUAR REGS 07/223.5 400,000 531,332 1.79

CNRC CAPITAL LTD COMPANY GUAR REGS 12/21 1.871 300,000 491,989 1.65MCC HOLDING HK CORP LTD COMPANY GUAR REGS 05/202.95 600,000 796,754 2.68

TOTAL HONG KONG 2,625,402 8.83

INDIA

ICICI BANK LTD/DUBAI SR UNSECURED REGS 12/27 3.8 600,000 792,729 2.67POWER FINANCE CORP LTD SR UNSECURED REGS 12/273.75 600,000 786,725 2.64RELIANCE INDUSTRIES LTD SR UNSECURED REGS 11/273.667 500,000 662,421 2.23RURAL ELECTRIFICATION SR UNSECURED REGS 12/203.068 500,000 669,383 2.25

TOTAL INDIA 2,911,258 9.79

INDONESIAREPUBLIC OF INDONESIA SR UNSECURED REGS 07/242.15 500,000 842,734 2.84

IRELAND

BEAZLEY RE DAC SUBORDINATED REGS 11/26 5.875 500,000 714,139 2.40

PHOENIX GROUP HLDGS 07/27 5.375 600,000 844,271 2.84

TOTAL IRELAND 1,558,410 5.24

MEXICOPETROLEOS MEXICANOS COMPANY GUAR REGS 02/243.75 300,000 523,011 1.76

NETHERLANDS

ENEL FINANCE INTL NV COMPANY GUAR REGS 04/28 3.5 500,000 654,980 2.20

United Global Recovery Funds(Constituted under a Trust Deed in the Republic of Singapore)

The accompanying notes form an integral part of these financial statements.-31-

Page 34: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

STATEMENTS OF PORTFOLIOAs at 31 December 2017

United High Grade Corporate Bond Fund

Holdings at Fair value at

Percentage oftotal net assetsattributable tounitholders at

31 December2017

31 December2017$

31 December2017%

By Geography - Primary (continued)

Quoted Bonds

SOUTH AFRICA

REPUBLIC OF SOUTH AFRICA SR UNSECURED 09/27 4.85 200,000 270,883 0.91

SOUTH KOREA

GS CALTEX CORP SR UNSECURED REGS 06/22 3 600,000 788,983 2.65

SPAIN

BANCO DE SABADELL SA SR UNSECURED 03/23 0.875 300,000 477,251 1.61

SWEDENSKANDINAVISKA ENSKILDA JR SUBORDINA REGS 11/99VAR 400,000 554,606 1.87

SWITZERLAND

UBS AG SUBORDINATED REGS 05/24 5.125 600,000 847,994 2.85UBS GROUP FUNDING SWITZE COMPANY GUAR REGS08/23 VAR 500,000 661,269 2.23

TOTAL SWITZERLAND 1,509,263 5.08

UNITED KINGDOM

BARCLAYS PLC JR SUBORDINA REGS VAR 200,000 365,775 1.23

BAT INTL FINANCE PLC COMPANY GUAR REGS 03/27 1.25 400,000 628,935 2.11NATIONWIDE BLDG SOCIETY SUBORDINATED REGS 07/29VAR 400,000 650,847 2.19

RENTOKIL INITIAL PLC COMPANY GUAR REGS 11/24 0.95 200,000 317,185 1.07

ROYAL BK SCOTLND GRP PLC SR UNSECURED 05/23 VAR 400,000 536,264 1.80STANDARD CHARTERED PLC SUBORDINATED REGS 06/345.125 100,000 204,245 0.69

VODAFONE GROUP PLC SR UNSECURED REGS 11/25 1.125 400,000 638,643 2.15

TOTAL UNITED KINGDOM 3,341,894 11.24

UNITED STATES

AMAZON.COM INC SR UNSECURED REGS 08/24 2.8 250,000 333,586 1.12

BANK OF AMERICA CORP SR UNSECURED 10/25 VAR 500,000 667,273 2.25

United Global Recovery Funds(Constituted under a Trust Deed in the Republic of Singapore)

The accompanying notes form an integral part of these financial statements.-32-

Page 35: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

STATEMENTS OF PORTFOLIOAs at 31 December 2017

United High Grade Corporate Bond Fund

Holdings at Fair value at

Percentage oftotal net assetsattributable tounitholders at

31 December2017

31 December2017$

31 December2017%

By Geography - Primary (continued)

Quoted Bonds

UNITED STATES (continued)BANK OF AMERICA CORP SR UNSECURED REGS 05/27VAR 200,000 335,227 1.13

EXELON CORP JR SUBORDINA 06/22 3.497 500,000 681,644 2.29

GOLDMAN SACHS GROUP INC SR UNSECURED 09/25 VAR 600,000 799,329 2.69

MARATHON OIL CORP SR UNSECURED 07/27 4.4 500,000 699,644 2.35

NEWELL BRANDS INC SR UNSECURED 04/26 4.2 500,000 698,584 2.35

TOTAL UNITED STATES 4,215,287 14.18

Accrued interest receivable on quoted bonds 228,599 0.77

Total Bonds 28,242,139 95.02

Portfolio of investments 28,242,139 95.02

Other net assets/(liabilities) 1,479,974 4.98

Net assets attributable to unitholders 29,722,113 100.00

United Global Recovery Funds(Constituted under a Trust Deed in the Republic of Singapore)

The accompanying notes form an integral part of these financial statements.-33-

Page 36: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

STATEMENTS OF PORTFOLIOAs at 31 December 2017

United High Grade CorporateBond Fund

Percentage oftotal net assetsattributable tounitholders at31 December

2017%

Percentage oftotal net assetsattributable tounitholders at31 December

2016%

By Geography - Primary (Summary)

Quoted Bonds

Australia 7.45 3.04

Brazil 2.24 -

Canada 3.17 5.10

China 12.19 6.98

France 1.00 6.44

Hong Kong 8.83 5.62

Iceland - 0.89

India 9.79 2.47

Indonesia 2.84 -

Ireland 5.24 2.15

Japan - 3.78

Luxembourg - 0.89

Malaysia - 1.18

Mexico 1.76 1.28

Netherlands 2.20 10.78

New Zealand - 0.87

South Africa 0.91 -

South Korea 2.65 2.11

Spain 1.61 -

Sweden 1.87 1.70

Switzerland 5.08 3.50

United Arab Emirates - 2.55

United Kingdom 11.24 5.30

United States 14.18 26.93

Accrued interest receivable on quoted bonds 0.77 0.80

Portfolio of investments 95.02 94.36

Other net assets/(liabilities) 4.98 5.64

Net assets attributable to unitholders 100.00 100.00

United Global Recovery Funds(Constituted under a Trust Deed in the Republic of Singapore)

The accompanying notes form an integral part of these financial statements.-34-

Page 37: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

STATEMENTS OF PORTFOLIOAs at 31 December 2017

United High Grade Corporate Bond Fund

Fair value at31 December

2017$

Percentage oftotal net assetsattributable tounitholders at31 December

2017%

Percentage oftotal net assetsattributable tounitholders at31 December

2016%

By Industry - Secondary

Quoted Bonds

Consumer Discretionary 1,296,465 4.36 8.10

Consumer Staples 628,935 2.11 2.16

Energy 3,086,007 10.38 4.38

Financials 13,273,874 44.66 43.75

Government 1,113,617 3.75 1.28

Health Care - - 8.61

Industrials 1,119,827 3.77 1.17

Information Technology - - 1.49

Materials 3,966,920 13.35 9.75

Real Estate 537,098 1.81 -

Telecommunication Services 638,643 2.15 4.31

Utilities 2,352,154 7.91 8.56

Accrued interest receivable on quoted bonds 228,599 0.77 0.80

Portfolio of investments 28,242,139 95.02 94.36

Other net assets/(liabilities) 1,479,974 4.98 5.64

Net assets attributable to unitholders 29,722,113 100.00 100.00

United Global Recovery Funds(Constituted under a Trust Deed in the Republic of Singapore)

The accompanying notes form an integral part of these financial statements.-35-

Page 38: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

These notes form an integral part of and should be read in conjunction with the accompanying financial statements.

1 General

United Global Recovery Funds (the “Fund”) is a Singapore-registered umbrella fund constituted under a Trust Deed dated30 January 2009 between UOB Asset Management Ltd (the “Manager”) and HSBC Institutional Trust Services (Singapore)Limited (the “Trustee”). The Trust Deed is governed by the laws of the Republic of Singapore.

With effect from 1 April 2017, the Trustee of the Fund has changed from HSBC Institutional Trust Services (Singapore) Limitedto State Street Trust (SG) Limited (the “Trustee”), and the global custodian of the Fund has changed from The Hongkong andShanghai Banking Corporation Limited to State Street Bank and Trust Company, Singapore Branch.

The Fund currently offers two sub-funds, namely United China-India Dynamic Growth Fund and United High Grade CorporateBond Fund (collectively referred to as the “Sub-Funds” and individually referred to as the “Sub-Fund”).

United China-India Dynamic Growth Fund

The investment objective of this Sub-Fund is to achieve medium to long term capital appreciation through investing mainly inthe securities of corporations in, or corporations listed or to be listed on stock exchanges in, or corporations (wherever located)which, in the opinion of the Manager, derive significant revenue or profits from or have significant assets or business interestsin, the People’s Republic of China (“China”) or the Republic of India (“India”).

The Sub-Fund offers the following classes of units for subscription:

• Class SGD (available for subscription in the Singapore Dollar and the United States Dollar at the applicable rate ofexchange from the Singapore Dollar)

• Class JPY (available for subscription in the Japanese Yen and offered only to collective investment schemes establishedin Japan)

The classes differ in terms of their currency denomination, management fee, valuation fee, administration fee, subscription feeand minimum subscription amount.

United High Grade Corporate Bond Fund

The investment objective of this Sub-Fund is to maximise returns over the long term through investments in a portfolio whichconsists mainly of investment grade corporate bonds issued globally.

Subscriptions and redemptions of the units of the Sub-Fund are denominated in the Singapore Dollar and the United StatesDollar. Investors may subscribe in the United States Dollar at the applicable rate of exchange from the Singapore Dollar.

2 Significant accounting policies

(a) Basis of preparation

The financial statements have been prepared under the historical cost convention, as modified by the revaluation of financialassets held at fair value through profit or loss, and in accordance with the recommendations of Statement of RecommendedAccounting Practice 7 “Reporting Framework for Unit Trusts” issued by the Institute of Singapore Chartered Accountants.

The Sub-Funds have adopted the following Singapore Financial Reporting Standards (“FRS”) and related amendments inaccordance with the recommendations of the RAP 7 issued in March 2017 for annual periods beginning on or after 1 July 2016:

United Global Recovery Funds(Constituted under a Trust Deed in the Republic of Singapore)

NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 December 2017

-36-

Page 39: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

2 Significant accounting policies (continued)

(a) Basis of preparation (continued)

(i) Consolidation and disclosure of interests in other entities

FRS 110 “Consolidated financial statements”FRS 112 “Disclosure of interests in other entities”Amendments to FRS 110, FRS 112 and FRS 27 “Investment entities”

FRS 110 and the amendments define an investment entity and introduce an exception from the consolidation requirements forinvestments entities.

FRS 112 and the amendments require entities to disclose significant judgements and assumptions made in determiningwhether the entity controls, jointly controls, significantly influences or has some interests in other entities. Entities are alsorequired to provide disclosure around certain “structured entities”. The amendments to FRS 112 introduce new disclosurerequirements related to investment entities.

(ii) Offsetting financial assets and liabilities disclosures

Amendments to FRS 32 “Financial instruments: Presentation - Offsetting financial assets and financial liabilities”Amendments to FRS 107 “Disclosures - Offsetting financial assets and financial liabilities”

The amendments to FRS 32 provide clarification on the offsetting criteria in FRS 32 and address inconsistencies in theirapplication.

The amendments to FRS 107 require additional disclosures to enable users of the financial statements to evaluate the effector the potential effects of netting arrangements, including rights of set-off associated with an entity’s recognised financialassets and recognised financial liabilities, on the entity’s financial position.

The adoption of these new or amended FRS impacted the Sub-Funds’ level of disclosures in certain of the above noted areas,but did not result in substantial changes to the accounting policies of the Sub-Funds and had nomaterial effect on the amountsreported for the current or prior years.

(b) Recognition of income

Dividend income is recognised when the right to receive payment is established. Interest income is recognised on a timeproportion basis using the effective interest method.

(c) Investments

Investments are classified as financial assets at fair value through profit or loss.

(i) Initial recognition

Purchases of investments are recognised on the trade date. Investments are recorded at fair value on initial recognition.

(ii) Subsequent measurement

Investments are subsequently carried at fair value. Net changes in fair value on investments are included in the Statements ofTotal Return in the year in which they arise.

(iii) Derecognition

Investments are derecognised on the trade date of disposal. The resultant realised gains and losses on the sale of investmentsare computed on the basis of the difference between the weighted average cost and selling price gross of transaction costs,and are taken up in the Statements of Total Return.

United Global Recovery Funds(Constituted under a Trust Deed in the Republic of Singapore)

NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 December 2017

-37-

Page 40: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

2 Significant accounting policies (continued)

(d) Basis of valuation of investments

The fair value of financial assets and liabilities traded in active markets is based on quoted market prices at the close of tradingon the financial year end date. The quoted market price used for investments held by the Sub-Funds are the last traded marketprice for both financial assets and financial liabilities where the last traded price falls within the bid-ask spread. In circumstanceswhere the last traded price is not within the bid-ask spread, the Manager will determine the point within the bid-ask spread thatis most representative of fair value.

The fair value of financial assets and liabilities traded in active markets is based on market mid prices for the quoted debtsecurities on the financial year end date. Accrued interest or discount or premium on debt securities at financial year end dateis included in the fair value of debt securities. Interest income on debt securities is presented within “Net gains/losses oninvestments” on the Statements of Total Return.

(e) Foreign currency translation

(i) Functional and presentation currency

The Sub-Funds’ investors are mainly from Singapore with the subscriptions and redemptions of the units denominated in theSingapore Dollar, the Japanese Yen and the United States Dollar.

The performance of the Sub-Funds is measured and reported to the investors in the Singapore Dollar. The Manager considersthe Singapore Dollar as the currency of the primary economic environment in which the Sub-Funds operate. The financialstatements are presented in the Singapore Dollar, which is the Sub-Funds’ functional and presentation currency.

(ii) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of thetransactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation atyear-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statementsof Total Return. Translation differences on non-monetary financial assets and liabilities are also recognised in the Statementsof Total Return within “Net gains/losses on investments”.

(f) Expenses charged to the Sub-Funds

All direct expenses relating to the Sub-Funds are charged directly to the Statements of Total Return against the values of therespective Sub-Funds. In addition, certain expenses shared by all unit trusts managed by the Manager are allocated to eachSub-Fund based on the respective Sub-Fund’s net asset value.

(g) Management fee rebates

The management fees charged on investments in underlying funds managed by the Manager are rebated to the Sub-Funds.

(h) Financial derivatives

Financial derivatives including forwards and swapsmay be entered into for the purposes efficient portfoliomanagement, tacticalasset allocation or specific hedging of financial assets held as determined by theManager and in accordance with the provisionof the Trust Deed and the Code on Collective Investment Schemes.

Financial derivatives outstanding on the financial year end date are valued at the forward rate or at the current market pricesusing the �mark-to-market� method, as applicable, and the resultant gains and losses are taken up in the Statements of TotalReturn.

United Global Recovery Funds(Constituted under a Trust Deed in the Republic of Singapore)

NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 December 2017

-38-

Page 41: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

2 Significant accounting policies (continued)

(i) Distributions

The Manager has the absolute discretion to determine whether a distribution is to be made. In such an event, an appropriateamount will be transferred to a distribution account, to be paid out on the distribution date. The amount shall not be treated aspart of the property of the Sub-Funds. Distributions are accrued for at the financial year end date if the necessary approvalshave been obtained and a legal or constructive obligation has been created.

(j) Offsetting financial instruments

Financial assets and liabilities are offset and the net amount reported in the Statements of Financial Position when there is alegally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or realise the assetand settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must beenforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Sub-Funds or thecounterparty.

3 Income tax

United China-India DynamicGrowth Fund

United High Grade CorporateBond Fund

2017 2016 2017 2016

$ $ $ $

Singapore income tax - - 423 -

Overseas income tax/(refund) 24,161 22,534 (463) 4,636

Total income tax/(refund) 24,161 22,534 (40) 4,636

Capital gains tax 11,917 55 - -

The Sub-Funds were granted the status of Designated Unit Trust (“DUT”) in Singapore. The Trustee of the Sub-Funds ensuresthat the Sub-Funds fulfill their reporting obligations under the DUT Scheme.

Under the DUT Scheme, subject to certain conditions and reporting obligations being met, certain income of the DUT Fund isnot taxable in accordance with Sections 35(12) and 35(12A) of the Income Tax Act. Such income includes:

(i) gains or profits derived from Singapore or elsewhere from the disposal of securities;

(ii) interest (other than interest for which tax has been deducted under Section 45 of the Income Tax Act);

(iii) dividends derived from outside Singapore and received in Singapore;

(iv) gains or profits derived from foreign exchange transactions, transactions in futures contracts, transactions in interest rateor currency forwards, swaps or option contracts and transactions in forwards, swaps or option contracts relating to anysecurities or financial index;

(v) discount, prepayment fee, redemption premium and break cost from qualifying debt securities issued during theprescribed period; and

(vi) distributions from foreign unit trusts derived from outside Singapore and received in Singapore.

The overseas income tax represents tax withheld on foreign sourced income. Capital gains tax represent tax on capital gainssourced from India.

United Global Recovery Funds(Constituted under a Trust Deed in the Republic of Singapore)

NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 December 2017

-39-

Page 42: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

3 Income tax (continued)

The Sub-Funds are required to recognise a tax liability when it is probable that the tax laws of foreign countries require a taxliability to be assessed on the sub-funds’ gains on investments sourced from such foreign countries, assuming the relevanttaxing authorities have full knowledge of all the facts and circumstances. The tax liability is then measured at the amountexpected to be paid to the relevant taxation authorities using the tax laws and rates that have been enacted or substantivelyenacted by the end of the reporting period. There is sometimes uncertainty about the way enacted tax law is applied to offshoreinvestment funds. This creates uncertainty about whether or not a tax liability will ultimately be paid by theSub-Funds. Thereforewhenmeasuring any uncertain tax liabilities management considers all of the relevant facts and circumstances available at thetime which could influence the likelihood of payment, including any formal or informal practices of the relevant tax authorities.

As at 31 December 2017 and 2016, the Sub-Funds have uncertain tax exposure with respect to gains on investment of whichthe tax liability is estimated to be nil. While this represents the Manager’s best estimate, the estimated value could differsignificantly from the amount ultimately payable.

4 Receivables

United China-India DynamicGrowth Fund

United High Grade CorporateBond Fund

2017 2016 2017 2016

$ $ $ $

Amounts receivable for creation of units 202,300 595 266,459 -

Other receivables 26,952 39,569 22,293 24,394

229,252 40,164 288,752 24,394

5 Payables

United China-India DynamicGrowth Fund

United High Grade CorporateBond Fund

2017 2016 2017 2016

$ $ $ $

Amount payable for cancellation of units 34,973 39,091 55,006 -

Amount due to the Manager 123,075 128,353 64,998 108,077

Amount due to Trustee 2,860 2,993 2,459 3,458

Tax payables - - 134 -

Other creditors and accrued expenses 44,076 26,186 24,668 21,698

204,984 196,623 147,265 133,233

United Global Recovery Funds(Constituted under a Trust Deed in the Republic of Singapore)

NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 December 2017

-40-

Page 43: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

6 Fair value of financial derivatives

Financial derivatives contracts comprise forward foreign exchange contracts for the sale and purchase of foreign currencies.The contract or underlying principal amounts of these financial derivatives and their corresponding gross positive or negativefair values at the financial year end date are analysed below.

United High Grade Corporate Bond Fund

2017 2016Contract orunderlyingprincipalamount

Positivefair value

Negativefair value

Contract orunderlyingprincipalamount

Positivefair value

Negativefair value

$ $ $ $ $ $

Foreign currency contracts - - - 8,541,480 95,142 126,502

7 Units in issue

During the financial year ended 31 December 2017 and 2016, the numbers of units issued, redeemed and outstanding wereas follows:

United China-India Dynamic Growth Fund

Class SGD Class JPY

2017 2016 2017 2016

Units at the beginning of the financial year 19,350,509 22,831,662 229,043 275,483

Units created 11,322,497 2,256,820 - -

Units cancelled (12,074,083) (5,737,973) (34,737) (46,440)

Units at the end of the financial year 18,598,923 19,350,509 194,306 229,043

*Included above are units denominated in USD 484,160 - - -

$ $ $ $

Net assets attributable to unitholders(SGD equivalent) 31,830,778 24,581,964 5,354,820 4,637,013

Net assets value per unit (SGD equivalent) 1.711 1.270 27.558 20.245

Net assets attributable to unitholders(Class Currency) 31,830,778 24,581,964 451,388,350 374,359,771

Net asset value per unit (Class Currency) 1.711 1.270 2,323.080 1,634.451

United Global Recovery Funds(Constituted under a Trust Deed in the Republic of Singapore)

NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 December 2017

-41-

Page 44: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

7 Units in issue (continued)

A reconciliation of the net assets attributable to unitholders per unit per the financial statements and the net assets attributableto unitholders per unit for issuing/redeeming units at the financial year end date is prepared below:

United China-India Dynamic Growth Fund

Class SGD Class JPY

2017 2016 2017 2016

$ $ $ $

Net assets attributable to unitholders per financialstatements per unit 1.711 1.270 27.558 20.245Effect of adjustment from last traded price tobid-ask spread - 0.003 - 0.050Effect of movement in the NAV between the lastdealing date and the end of the reporting period* - - 0.003 -Net assets attributable to unitholders forissuing/redeeming per unit 1.711 1.273 27.561 20.295

Net assets attributable to unitholders forissuing/redeeming per unit (Class Currency) 1.711 1.273 2,323.267 1,638.451

* The net asset value for the purpose of processing unit subscription and redemption was established in accordance with the

methodology indicated in the Sub-Funds’ Prospectus. This item reflects the movement in net asset value between such date and the

end of the financial year.

United High Grade CorporateBond Fund

2017 2016

Units at the beginning of the financial year 23,218,006 22,766,147

Units created 22,914,044 2,482,329

Units cancelled (26,224,013) (2,030,470)

Units at the end of the financial year* 19,908,037 23,218,006

*Included above are units denominated in USD 5,175,026 -

$ $

Net assets attributable to unitholders 29,722,113 34,276,161

Net assets value per unit 1.493 1.476

For United High Grade Corporate Bond Fund, there is no difference between the net assets attributable to unitholders per unitper financial statements and the net assets attributable to unitholders per unit for issuing/redeeming of units.

United Global Recovery Funds(Constituted under a Trust Deed in the Republic of Singapore)

NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 December 2017

-42-

Page 45: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

8 Financial risk management

The Sub-Funds’ activities expose them to a variety of market risks (including currency risk, interest rate risk and price risk),credit risk and liquidity risk. The Sub-Funds’ overall risk management programme seeks to minimise potential adverse effectson theSub-Funds’ financial performance. TheSub-Fundsmay use financial futures contracts, financial options contracts and/orforeign currency contracts subject to the terms of the Trust Deed to moderate certain risk exposures. Specific guidelines onexposures to individual securities and certain industries are in place for the Sub-Funds at any time as part of the overall financialrisk management to reduce the Sub-Funds’ risk exposures.

The Sub-Funds’ assets principally consist of financial instruments such as equity investments, fixed interest investments,moneymarket investments and cash. They are held in accordancewith the published investment policies of theSub-Funds. Theallocation of assets between the various types of investments is determined by the Manager to achieve their investmentobjectives.

(a) Market risk

Market risk is the risk of loss arising from uncertainty concerning movements in market prices and rates, including observablevariables such as interest rates, credit spreads, exchange rates, and others that may be only indirectly observable such asvolatilities and correlations. Market risk includes such factors as changes in economic environment, consumption pattern andinvestor’s expectation etc. which may have significant impact on the value of the investments. The Sub-Funds’ investments aresubstantially dependent on changes in market prices and are monitored by the Manager on a regular basis so as to assesschanges in fundamentals and valuation. Although the Manager makes reasonable efforts in the choice of investments, eventsbeyond reasonable control of the Manager could affect the prices of the underlying investments and hence the asset value ofthe Sub-Funds. Guidelines are set to reduce the Sub-Funds’ risk exposures to market volatility such as diversifying the portfolioby investing across various geographies, alternatively, the Sub-Funds may be hedged using derivative strategies.

(i) Foreign exchange risk

The Sub-Funds have monetary financial assets and liabilities denominated in currencies other than the Singapore Dollar andit may be affected favourably or unfavourably by exchange rate regulations or changes in the exchange rates between theSingapore Dollar and such other currencies. The Manager may at his discretion, implement a currency management strategyeither to reduce currency volatility or to hedge the currency exposures of the Sub-Funds.

The tables below summarise the Sub-Funds’ exposures to foreign currencies at the end of the financial year.

United China-India Dynamic Growth Fund

As at 31 December 2017HKD INR SGD CNH Others Total$ $ $ $ $ $

Assets

Portfolio of investments 8,934,337 16,661,359 - 7,811,613 2,490,881 35,898,190

Receivables - - 229,252 - - 229,252

Cash and bank balances - 394,784 860,211 511 31,781 1,287,287

Total Assets 8,934,337 17,056,143 1,089,463 7,812,124 2,522,662 37,414,729

Liabilities

Purchases awaiting settlement 24,147 - - - - 24,147

Payables - - 204,984 - - 204,984

Total Liabilities 24,147 - 204,984 - - 229,131

Net currency exposure 8,910,190 17,056,143 884,479 7,812,124 2,522,662

United Global Recovery Funds(Constituted under a Trust Deed in the Republic of Singapore)

NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 December 2017

-43-

Page 46: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

8 Financial risk management (continued)

(a) Market risk (continued)

(i) Foreign exchange risk (continued)

United China-India Dynamic Growth Fund

As at 31 December 2016HKD INR SGD CNH Others Total$ $ $ $ $ $

Assets

Portfolio of investments 7,651,683 13,363,584 190,400 4,926,629 1,349,032 27,481,328

Receivables - - 40,164 - - 40,164

Cash and bank balances 47,048 277,052 1,500,381 742 68,885 1,894,108

Total Assets 7,698,731 13,640,636 1,730,945 4,927,371 1,417,917 29,415,600

Liabilities

Payables - - 191,386 - 5,237 196,623

Total Liabilities - - 191,386 - 5,237 196,623

Net currency exposure 7,698,731 13,640,636 1,539,559 4,927,371 1,412,680

United High Grade Corporate Bond Fund

As at 31 December 2017EUR USD GBP SGD Others Total$ $ $ $ $ $

Assets

Portfolio of investments 6,568,361 19,971,224 576,328 501,820 624,406 28,242,139

Receivables - - - 288,754 (2) 288,752

Cash and bank balances 481,656 1,231,236 362,872 306,751 345,830 2,728,345

Total Assets 7,050,017 21,202,460 939,200 1,097,325 970,234 31,259,236

Liabilities

Purchases awaiting settlement 319,285 1,070,573 - - - 1,389,858

Payables - - - 147,131 134 147,265

Total Liabilities 319,285 1,070,573 - 147,131 134 1,537,123

Net currency exposure 6,730,732 20,131,887 939,200 950,194 970,100

United Global Recovery Funds(Constituted under a Trust Deed in the Republic of Singapore)

NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 December 2017

-44-

Page 47: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

8 Financial risk management (continued)

(a) Market risk (continued)

(i) Foreign exchange risk (continued)

United High Grade Corporate Bond Fund

As at 31 December 2016EUR USD GBP SGD Others Total$ $ $ $ $ $

Assets

Portfolio of investments 5,522,376 25,174,351 1,098,967 - 548,811 32,344,505

Receivables - - - 24,394 - 24,394

Cash and bank balances 860,024 352,505 205,831 29,299 624,196 2,071,855

Total Assets 6,382,400 25,526,856 1,304,798 53,693 1,173,007 34,440,754

Liabilities

Payables - 1,787 - 131,446 - 133,233

Total Liabilities - 1,787 - 131,446 - 133,233

Net AssetsForeign currency contracts(notional value) - 218 - (31,578) -

Net currency exposure 6,382,400 25,525,287 1,304,798 (109,331) 1,173,007

United China-India Dynamic Growth Fund

Investments, which is a significant item in the Statements of Financial Position, is exposed to currency risk and other price risk.Other price risk sensitivity analysis includes the impact of currency risk on non-monetary investments. The Sub-Fund’s netfinancial assets comprise significantly non-monetary investments, hence currency risk sensitivity analysis has not beenpresented on the remaining financial assets.

United High Grade Corporate Bond Fund

Investments, which is the significant item in the Statements of Financial Position is exposed to currency risk and interest raterisk. Currency risk sensitivity analysis is prepared and disclosed only for monetary assets and liabilities. The table belowsummarises the sensitivity of the Sub-Fund’s monetary assets and liabilities to changes in foreign exchange movements at31 December 2017 and 2016. The analysis is based on the assumptions that the functional currency increased / decreased tothe relevant foreign exchange rates as disclosed below. This represents the Manager’s best estimate of a reasonable possibleshift in the foreign exchange rates, having regard to historical volatility of those rates.

Currency

2017Net impact tonet assets

attributable tounitholders

2016Net impact tonet assets

attributable tounitholders

$ % $ %

EUR 471,151 7 446,768 7

USD 1,207,913 6 1,276,264 5

GBP 93,920 10 117,432 9

United Global Recovery Funds(Constituted under a Trust Deed in the Republic of Singapore)

NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 December 2017

-45-

Page 48: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

8 Financial risk management (continued)

(a) Market risk (continued)

(ii) Price risk

Price risk is the risk of potential adverse changes to the value of financial investments because of changes inmarket conditionsand volatility in security prices.

The table below summarises the impact of increases/decreases from theSub-Fund’s investments in equities on theSub-Fund’snet assets attributable to unitholders at 31 December 2017 and 2016. The analysis is based on the assumption that the indexcomponents within the benchmark increased/decreased by a reasonable possible shift, with all other variables held constantand that the prices of the Sub-Fund’s investments moved according to the historical correlation with the index.

Benchmark component

2017Net impact tonet assets

attributable tounitholders

2016Net impact tonet assets

attributable tounitholders

$ % $ %

United China-India Dynamic Growth Fund25% SSE 50 China A Share, 25% MSCI Chinaand 50% MSCI India 6,389,878 20 4,869,431 20

(iii) Interest rate risk

Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates.

United China-India Dynamic Growth Fund

Investment funds that invest in equity securities may be subject to interest rate risk as any interest rate change may affect theequity risk premium though at varying degrees. Tomanage this risk, theManager analyses how interest rate changesmay affectdifferent industries and securities and then seeks to adjust the Sub-Fund’s portfolio investments accordingly. However, theeffects of changes in interest rates on the Sub-Fund’s portfolio may not be quantified as the relationship between the interestrates and the value of equity securities is indirect.

Other than cash and bank balances which are at short term market interest rates, and therefore are subject to insignificantinterest rate risk, the Sub-Fund’s financial assets and liabilities are largely non-interest bearing.

Hence, no sensitivity analysis has been presented separately.

United High Grade Corporate Bond Fund

Interest rate risk arises from the effects of fluctuations in the prevailing levels of market interest rates on the fair value of financialassets and liabilities and future cash flow. UnitedHighGradeCorporate BondFund holds interest bearing securities that exposethe Sub-Fund to fair value interest rate risk. The Sub-Fund holds securities of varying maturities and interest rate sensitivities.Movement in market interest rates will affect the valuation of the Sub-Fund’s securities by varying degrees. The Sub-Fund’spolicy requires theManager tomanage this risk bymeasuring themismatch of the interest rate sensitivity gap of financial assetsand liabilities and calculating the average duration of the portfolio of fixed interest securities. The average effective duration ofthe Sub-Fund’s portfolio is a measure of the sensitivity of the fair value of the Sub-Fund’s fixed interest securities to changesin market interest rates.

United Global Recovery Funds(Constituted under a Trust Deed in the Republic of Singapore)

NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 December 2017

-46-

Page 49: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

8 Financial risk management (continued)

(a) Market risk (continued)

(iii) Interest rate risk (continued)

The table below summarises United High Grade Corporate Bond Fund’s exposure to interest rate risks. They include theSub-Fund’s assets and trading liabilities at fair value, categorised by the earlier of contractual re-pricing or maturity dates. Allvariable rate financial instruments are reset within a month.

United High Grade Corporate Bond FundVariablerates

Fixedrate

Non-interestbearing Total

$ $ $ $

As at 31 December 2017Assets

Portfolio of investments 5,364,035 22,649,505 228,599 28,242,139

Receivables - - 288,752 288,752

Cash and bank balances 2,728,345 - - 2,728,345

Total Assets 8,092,380 22,649,505 517,351 31,259,236

Liabilities

Purchases awaiting settlement - - 1,389,858 1,389,858

Payables - - 147,265 147,265

Total Liabilities - - 1,537,123 1,537,123

Variablerates

Fixedrate

Non-interestbearing Total

$ $ $ $As at 31 December 2016Assets

Portfolio of investments 4,640,884 27,432,563 271,058 32,344,505

Receivables - - 24,394 24,394

Cash and bank balances 2,071,855 - - 2,071,855

Financial derivatives at fair value - - 95,142 95,142

Total Assets 6,712,739 27,432,563 390,594 34,535,896

Liabilities

Payables - - 133,233 133,233

Financial derivatives at fair value - - 126,502 126,502

Total Liabilities - - 259,735 259,735

United Global Recovery Funds(Constituted under a Trust Deed in the Republic of Singapore)

NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 December 2017

-47-

Page 50: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

8 Financial risk management (continued)

(a) Market risk (continued)

(iii) Interest rate risk (continued)

As at 31 December 2017 and 2016, should interest rates have lowered or risen by the respective basis points (“bps”) asdisclosed below with all other variables remaining constant, the increase or decrease in net assets attributable to unitholdersfor the year would be as follows:

2017 2016Net impact tonet assets

attributable tounitholders

Net impact tonet assets

attributable tounitholders

$ bps $ bps

United High Grade Corporate Bond Fund 628,524 50 763,997 50

The Sub-Funds have direct exposure to interest rate changes on the valuation and cash flows of its interest bearing assets andliabilities. However, it may also be indirectly affected by the impact of changes on the earnings of certain companies in whichthe Sub-Funds invest and impact on the valuation of certain over-the-counter derivative products that use market interest ratesas an input. Therefore, the above sensitivity analysis may not fully indicate the total effect on the Sub-Funds’ net assetsattributable to unitholders of future movements in interest rates.

(b) Liquidity risk

The Sub-Funds are exposed to daily cash redemptions and disbursements for the settlements of purchases. The Managertherefore ensures that the Sub-Funds maintain sufficient cash and cash equivalents and that they are able to obtain cash fromthe sale of investments held to meet its liquidity requirements. Reasonable efforts will be taken to invest in securities which aretraded in a relatively active market and which can be readily disposed of.

The Sub-Funds’ investments in listed securities are considered to be readily realisable as they are listed on established regionalstock exchanges.

United Global Recovery Funds(Constituted under a Trust Deed in the Republic of Singapore)

NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 December 2017

-48-

Page 51: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

8 Financial risk management (continued)

(b) Liquidity risk (continued)

The tables below analyse the Sub-Funds’ financial liabilities and net settled derivative financial liabilities into relevant maturitygroupings based on the remaining period at the financial year end to the contractual maturity date. The amounts in the tablesare the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances, as the impact ofdiscounting is not significant.

United China-India Dynamic Growth FundLess than 3months

3 months to1 year

Over1 year

$ $ $

As at 31 December 2017

Purchases awaiting settlement 24,147 - -

Payables 204,984 - -

Less than 3months

3 months to1 year

Over1 year

$ $ $

As at 31 December 2016

Payables 196,623 - -

United High Grade Corporate Bond FundLess than 3months

3 months to1 year

Over1 year

$ $ $

As at 31 December 2017

Purchases awaiting settlement 1,389,858 - -

Payables 147,265 - -

Less than 3months

3 months to1 year

Over1 year

$ $ $

As at 31 December 2016

Payables 133,233 - -

Financial derivatives at fair value

Foreign currency contracts 126,502 - -

United Global Recovery Funds(Constituted under a Trust Deed in the Republic of Singapore)

NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 December 2017

-49-

Page 52: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

8 Financial risk management (continued)

(c) Credit risk

Credit risk is the risk that counterparty will fail to perform contractual obligations, either in whole or in part, under a contract.

Concentrations of credit risk are minimised primarily by:

• ensuring counterparties, together with the respective credit limits, are approved,

• ensuring that transactions are undertaken with a large number of counterparties, and

• ensuring that the majority of transactions are undertaken on recognised exchanges.

As such, the Sub-Funds do not have a concentration of credit risk that arises from an exposure to a single counterparty.Furthermore, the Sub-Funds do not have a material exposure to group of counterparties which are expected to be affectedsimilarly by changes in economic or other conditions.

United High Grade Corporate Bond Fund invests in financial assets, which have an investment grade as rated by Moody’s. Thecredit ratings are reviewed regularly.

The table below analyses the Sub-Fund’s investments by credit ratings expressed as a percentage of net assets attributableto unitholders.

United High Grade Corporate Bond Fund

Debt securities

2017 2016Fixed RateSecurities

Floating Ratesecurities

Fixed RateSecurities

Floating Ratesecurities

A1 3% - 2% -

A2 - - 1% 3%

A3 3% 6% 14% 2%

Ba1 2% - 3% -

Ba2 - 1% - -

Ba3 2% - - -

Baa1 12% 4% 6% 2%

Baa2 11% 2% 25% 2%

Baa3 26% 4% 16% 3%

Non-rated 16% 1% 12% 2%

All transactions in listed securities are settled/paid upon delivery using approved brokers. The risk of default is consideredminimal, as delivery of securities is only made once the broker has received payment. Payment is made on a purchase oncethe securities have been received by the broker. The trade will fail if either party fails to meet its obligation.

United Global Recovery Funds(Constituted under a Trust Deed in the Republic of Singapore)

NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 December 2017

-50-

Page 53: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

8 Financial risk management (continued)

(c) Credit risk (continued)

Credit risk also arises from cash and cash equivalents and derivative positions held with financial institutions. The tables belowsummarise the credit rating of banks and custodians in which the Sub-Funds’ assets are held as at 31 December 2017 and2016.

The credit ratings are based on the Viability ratings published by Fitch.

United China-India Dynamic Growth FundCredit ratingas at 31December2017

Credit ratingas at 31December2016

Bank and custodian

State Street Bank and Trust Company aa- n/a

The Hongkong and Shanghai Banking Corporation Limited n/a aa-

Bank

United Overseas Bank Limited n/a aa-

United High Grade Corporate Bond FundCredit ratingas at 31December2017

Credit ratingas at 31December2016

Bank and custodian

State Street Bank and Trust Company aa- n/a

The Hongkong and Shanghai Banking Corporation Limited n/a aa-

Custodian

United Overseas Bank Limited n/a aa-

Counterparties of forward foreign exchange contracts

State Street Bank and Trust Company n/a aa-

The maximum exposure to credit risk at the financial year end date is the carrying amount of the portfolio of investments and cash and bank

balances as presented in Statements of Financial Position.

(d) Capital management

The Sub-Funds’ capital is represented by the net assets attributable to unitholders. The Sub-Funds strive to invest thesubscriptions of redeemable participating units in investments that meet the Sub-Funds’ investment objectives whilemaintaining sufficient liquidity to meet unitholder redemptions.

United Global Recovery Funds(Constituted under a Trust Deed in the Republic of Singapore)

NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 December 2017

-51-

Page 54: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

8 Financial risk management (continued)

(e) Fair value estimation

The Sub-Funds classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs usedin making the measurements. The fair value hierarchy has the following levels:

• Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1).

• Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that is,as prices) or indirectly (that is, derived from prices) (Level 2).

• Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (Level 3).

The following tables analyse within the fair value hierarchy, the Sub-Funds’ financial assets and liabilities (by class) measuredat fair value at 31 December 2017 and 2016:

United China-India Dynamic Growth FundLevel 1 Level 2 Level 3 Total$ $ $ $

As at 31 December 2017Assets

Portfolio of investments

- Quoted equities 35,329,630 - 568,560 35,898,190

Total 35,329,630 - 568,560 35,898,190

Level 1 Level 2 Level 3 Total

$ $ $ $As at 31 December 2016Assets

Portfolio of investments

- Quoted equities 27,481,328 - - 27,481,328

Total 27,481,328 - - 27,481,328

United Global Recovery Funds(Constituted under a Trust Deed in the Republic of Singapore)

NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 December 2017

-52-

Page 55: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

8 Financial risk management (continued)

(e) Fair value estimation (continued)

United High Grade Corporate Bond FundLevel 1 Level 2 Level 3 Total$ $ $ $

As at 31 December 2017Assets

Portfolio of investments

- Quoted bonds - 28,242,139 - 28,242,139

Total - 28,242,139 - 28,242,139

Level 1 Level 2 Level 3 Total

$ $ $ $As at 31 December 2016Assets

Portfolio of investments

- Quoted bonds - 32,344,505 - 32,344,505

Financial derivatives at fair value - 95,142 - 95,142

Total - 32,439,647 - 32,439,647

Liabilities

Financial derivatives at fair value - 126,502 - 126,502

Total - 126,502 - 126,502

Investment whose values are based on quoted market prices in active markets and therefore classified within Level 1, includeinvestment funds. The Sub-Funds do not adjust the quoted price for these instruments.

Financial instruments that trade in markets that are not considered to be active but are valued based on quoted market prices,dealer quotations or alternative pricing sources supported by observable inputs are classified within Level 2.

Except for cash and bank balances which are classified as Level 1, the Sub-Funds’ assets and liabilities not measured at fairvalue at 31 December 2017 and 2016 have been classified as Level 2. The carrying amounts of these assets and liabilitiesapproximate their fair values as at the financial year end date.

Financial instruments that are suspended and not tradable as at year end are classified within Level 3. There were no suchbalances for United High Grade Corporate Bond Fund. For United China-India Dynamic Growth Fund, in 2017, these comprisethe shares of Shenwu Environmental Technology Co Ltd (“Shenwu Environmental”) and Wanhua Chemical Group Co Ltd(“Wanhua Chemical”). The shares of Shenwu Environmental were suspended from trading on the Shenzhen Stock Exchangeon 17 July 2017 and the shares of Wanhua Chemical were suspended from trading on the Shanghai Stock Exchange on5 December 2017 respectively, due to significant assets reorganisation and restructuring.

The Manager’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the financialyear.

United Global Recovery Funds(Constituted under a Trust Deed in the Republic of Singapore)

NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 December 2017

-53-

Page 56: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

8 Financial risk management (continued)

(e) Fair value estimation (continued)

The following table presents the transfers between levels in the fair value hierarchy for the year:

United China-India Dynamic Growth Fund

2017 2016

Level 1 Level 2 Level 3 Level 1 Level 2 Level 3

$ $ $ $ $ $

Transfers between levels 1 and 3

Quoted equities (568,560) - 568,560 - - -

Valuation processes

Portfolio reviews are undertaken regularly by the Manager to identify securities that potentially may not be actively traded orhave stale security pricing. This process identifies securities which possibly could be regarded as being level 3 securities.Further analysis, should it be required, is undertaken to determine the accounting significance of the identification. For certainsecurity types, in selecting the most appropriate valuation model, the Manager performs back testing and considers actualmarket transactions. Changes in allocation to or from level 3 are analysed at the end of each financial year.

The following table presents the movement in Level 3 investments for the year:

United China-India DynamicGrowth Fund

2017 2016

$ $

Opening balance - 248,026

Purchases - 163,641

Sales - -

Transfer in/(out) from level 1 to level 3 568,560 (353,821)

Gains and losses recognised in Statements of Total Return - (57,846)

Closing balance 568,560 -

For these level 3 investments, quantitative unobservable inputs are not developed by the Manager when measuring fair value.There is no significant unobservable inputs used and thus no quantitative analysis would be presented.

DescriptionFair value

$Valuationtechnique

As at 31 December 2017

Quoted equities 568,560 Last transacted price

United Global Recovery Funds(Constituted under a Trust Deed in the Republic of Singapore)

NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 December 2017

-54-

Page 57: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

8 Financial risk management (continued)

(e) Fair value estimation (continued)

The investments in the above table relate to shares which were suspended from trading. Shenwu Environmental resumedtrading on 17 January 2018 and the entire holding was subsequently sold on 22 January 2018. Wanhua Chemical continue tobe suspended at the date of authorisation of the financial statements. Manager has determined the fair value of these level 3investments using the last traded price since suspension, having considered the duration of suspension, illiquidity and otherspecific factors of the investments.

(f) Offsetting financial assets and financial liabilities

Financial assets and liabilities are offset and the net amount reported in the Statements of Financial Position when there is alegally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the assetand settle the liability simultaneously. The gross and net positions of financial assets and liabilities that have been offset in theStatements of Financial Position are disclosed in the first three columns of the tables below.

United High Grade Corporate Bond Fund

Financial assets Effects of offsetting on the Statements ofFinancial Position

Related amount not offset

Grossamounts offinancialassets

Grossamounts

set off in theStatements

ofFinancialPosition

Net amountof

financialassets

presented inthe

Statementsof

FinancialPosition

Financialinstruments

Collateralpledged/received Net amount

$ $ $ $ $ $

31 December 2017Derivative financialinstruments - - - - - -

Total - - - - - -

31 December 2016Derivative financialinstruments 95,142 - 95,142 (95,142) - -

Total 95,142 - 95,142 (95,142) - -

United Global Recovery Funds(Constituted under a Trust Deed in the Republic of Singapore)

NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 December 2017

-55-

Page 58: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

8 Financial risk management (continued)

(f) Offsetting financial assets and financial liabilities (continued)

United High Grade Corporate Bond Fund

Financial liabilities Effects of offsetting on the Statements ofFinancial Position

Related amounts not offset

Grossamounts offinancialliabilities

Grossamounts

set off in theStatements

ofFinancialPosition

Net amountof

financialliabilities

presented inthe

Statementsof

FinancialPosition

Financialinstruments

Collateralpledged/received Net amount

$ $ $ $ $ $

31 December 2017Derivative financialinstruments - - - - - -

Total - - - - - -

31 December 2016Derivative financialinstruments 126,502 - 126,502 (95,142) - 31,360

Total 126,502 - 126,502 (95,142) - 31,360

9 Related party transactions

(a) The Manager and the Trustee of the Sub-Funds are UOB Asset Management Ltd and State Street Trust (SG) Limitedrespectively. State Street Trust (SG) Limited replaced HSBC Institutional Trust Services (Singapore) Limited as the Trustee witheffect from 1April 2017. TheManager is a subsidiary of UnitedOverseas Bank Limitedwhile the Trustee is a subsidiary of StateStreet Bank and Trust Company.

Management fee, administration fee and valuation fee are paid to the Manager for the financial year. Management fee rebateswere received from the Manager in respect of Investee Funds that are managed by the Manager. Trustee fee and registrar feewere paid to the Retired Trustee for the period from 1 January 2017 to 31 March 2017. With effect from 1 April 2017, trusteefee and registrar fee are paid to the Trustee and State Street Bank and Trust Company, Singapore Branch respectively.

Custody fee was paid to The Hongkong and Shanghai Banking Corporation Limited, a related party of the Retired Trustee, forthe period from 1 January 2017 to 31 March 2017 and is paid to State Street Bank and Trust Company, Singapore Branch witheffect from 1 April 2017.

These fees paid or payable by the Sub-Funds shown in the Statements of Total Return and in the respective Notes to theFinancial Statements are on terms set out in the Trust Deed. All other related party transactions are shown elsewhere in thefinancial statements.

United Global Recovery Funds(Constituted under a Trust Deed in the Republic of Singapore)

NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 December 2017

-56-

Page 59: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

9 Related party transactions (continued)

(b) As at the end of the financial year, the Sub-Funds maintained the following accounts with their related parties:

United China-India DynamicGrowth Fund

United High Grade CorporateBond Fund

2017 2016 2017 2016

$ $ $ $

State Street Bank and Trust Company,Singapore Branch

Cash and bank balances 1,287,287 - 2,728,345 -

United Overseas Bank Limited

Cash and bank balances - 22,384 - 3,575

The Hongkong and Shanghai BankingCorporation Limited

Cash and bank balances - 1,871,724 - 2,068,280

(c) The following transactions took place during the financial year between the Sub-Funds and related parties at terms agreedbetween the parties:

United China-India DynamicGrowth Fund

United High Grade CorporateBond Fund

2017 2016 2017 2016

$ $ $ $

State Street Bank and Trust Company,Singapore Branch

Bank charges 1,809 - 1,814 -

United Overseas Bank Limited

Bank charges 50 50 50 50

The Hongkong and Shanghai BankingCorporation Limited

Bank charges 177 1,075 50 27

Interest income - 12 47 160

Interest expense 349 346 - 574

United Global Recovery Funds(Constituted under a Trust Deed in the Republic of Singapore)

NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 December 2017

-57-

Page 60: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

9 Related party transactions (continued)

(d) UOB Kay Hian Pte Ltd is an affiliated company of United Overseas Bank Limited.

During the financial year, the Sub-Fund has brokerage fee paid or payable to UOB Kay Hian Pte Ltd as follows:

United China-India DynamicGrowth Fund

2017 2016

$ $

Brokerage charges - 87

United Global Recovery Funds(Constituted under a Trust Deed in the Republic of Singapore)

NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 December 2017

-58-

Page 61: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

10 Financial ratios

United China-India DynamicGrowth Fund

2017 2016$ $

Class SGDTotal operating expenses 681,860 556,059Average daily net asset value 24,886,610 25,247,048Expense ratio1 2.74% 2.20%

Class JPYTotal operating expenses 84,816 72,914Average daily net asset value 4,930,986 4,861,421Expense ratio1 1.72% 1.50%

Lower of total value of purchases or sales 26,140,548 10,344,275Average daily net assets value 29,817,596 30,108,469

Turnover ratio2 87.67% 34.36%

1 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 financial year end was based on total operating expenses divided by the

average net asset value respectively for the financial year. 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 Sub-Fund does not pay any performance fee. The average net asset value is based on the daily balances.2 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 ratiowas based on the lower of the total value of purchases or sales of the underlying investments

divided by the average daily net asset value.

United Global Recovery Funds(Constituted under a Trust Deed in the Republic of Singapore)

NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 December 2017

-59-

Page 62: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

10 Financial ratios (continued)

United High Grade CorporateBond Fund

2017 2016$ $

Total operating expenses 376,523 489,392Average daily net asset value 27,051,049 33,089,531Expense ratio1 1.39% 1.48%

Lower of total value of purchases or sales 126,476,280 121,968,423Average daily net assets value 27,051,049 33,089,531

Turnover ratio2 467.55% 368.60%

1 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 financial year end was based on total operating expenses divided by the

average net asset value respectively for the financial year. 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 Sub-Fund does not pay any performance fee. The average net asset value is based on the daily balances.2 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 ratiowas based on the lower of the total value of purchases or sales of the underlying investments

divided by the average daily net asset value.

United Global Recovery Funds(Constituted under a Trust Deed in the Republic of Singapore)

NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 December 2017

-60-

Page 63: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year
Page 64: United Global Recovery Funds - UOB Group.Com Global Recovery Funds United China-India Dynamic Growth Fund United High Grade Corporate Bond Fund Annual Report for the financial year

Recommended