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United International Growth FundAnnual Report

for the financial year ended 31st December 2011

United International Growth Fund (Constituted under a Trust Deed in the Republic of Singapore)

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MANAGERUOB Asset Management LtdRegistered Address:80 Raffles PlaceUOB PlazaSingapore 048624Company Registration No. : 198600120Z

OPERATIONS ADDRESS80 Raffles Place#06-00, UOB Plaza 2Singapore 048624Tel: 1800 22 22 228

DIRECTORS OF UOB ASSET MANAGEMENTTerence Ong Sea EngYeo Eng CheongThio Boon Kiat

TRUSTEEHSBC Institutional Trust Services (Singapore) Limited21 Collyer Quay#14-01, HSBC BuildingSingapore 049320

AUDITORSPricewaterhouseCoopers LLP8 Cross Street#17-00, PWC BuildingSingapore 048424

SOLICITORS TO THE MANAGERTan Peng Chin LLC30 Raffles Place#11-00, Chevron HouseSingapore 048622 SOLICITORS TO THE TRUSTEEAllen & Gledhill LLPOne Marina Boulevard#28-00Singapore 018989


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A) Fund Performance

FundPerformance/BenchmarkReturns

3 mth

%Growth

6 mth

%Growth

1 yr

% Growth

3 yrAnn

CompRet

5 yrAnn

CompRet

10 yrAnn

CompRet

Since Inception

7 April 1995Ann

CompRet

United International Growth Fund 5.28 -7.92 -10.00 3.36 -7.07 1.06 2.60Benchmark 6.65 -6.51 -6.22 8.15 -5.17 0.62 1.16

Source: Lipper, a Thomson Reuters Company

Note: The performance returns of the Fund are in Singapore dollars based on a NAV-to-NAV basis with net dividends reinvested.The benchmark of the Fund : Apr 95 – Dec 96 : DBS 50 Index; Jan 97 – Dec 97 : MSCI AC Far East; Jan 98 – Present : MSCI AC World.

For the full year ended 31 December 2011, the Fund declined by 10.0%, lagging the benchmark MSCI AC World Free index which fell by 6.2% in Singapore dollar terms.

Asset allocation contributed modestly to performance as the Fund was underweight in Europe and Japan during the period and held cash reserves of 3.7%. Stock selection was the main drag on performance. Exposure to certain cyclical companies in the materials and energy sectors as well as poor performance from certain financial holdings were the principle drags on performance. In addition, the Fund was adversely affected by the weaker performance of a key holding in the pharmaceutical sector. We will discuss this in greater detail shortly.

In absolute and relative terms, 2011 was a disappointing year, with the Fund performing below benchmark and ranked in the middle of the peer group of global equity funds. The Fund lost ground early in the year due mainly to its overweight position in emerging markets and poor selection effects. During the second half of the year, however, the Fund gained ground compared to peers and ended the year in the middle of the peer group.

In performance terms, 2011 marked a sharp reversal from the strong performance of 2010. The MSCI AC World Index fell by 9.4% in US dollar terms. Developed Markets declined by 7.4% and Emerging Markets fell by 20.4%. MSCI EMEA was the worst performing followed by Latin America and Asia (ex. Japan), down 22.6%, 21.9% and 19.2% respectively. The Fund was overweight in both Latin America and Asia (ex. Japan) for the bulk of the period, and this detracted significantly from performance. The best performing region was the US, which was flat in the period. The Fund was moderately overweight in the US during the period. Europe, Canada, Australia and Japan, meanwhile, fell by 13.8%, 14.2%, 14.8% and 16.2% respectively during the period.

Stock selection detracted from performance. Drags on performance were: K+S AG (Germany), Kinross Gold (Canada), Oracle Corp. (US), Schlumberger (US), Northern Trust (US), Teva Parmaceutical (US), Norsk Hydro (Norway), Suez Environment (France), and HSBC Holdings (UK).

Notable contributors to performance include: Visa Inc. (US), Apple Inc (US), American Tower (US), Philip Morris (US), McDonalds Corp. (US), Bank Rakyat Indonesia (Indonesia), IBM (US), HDFC Bank (India) and United Health (US).


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During the period under review, invested levels averaged 96%. And portfolio turnover was slightly elevated, averaging 113.7% during the 12-month period under review. This was in part due to allocation shifts implemented during the period as well as some changes in securities positioning.

As at 31 December 2011, the Fund was positioned as follows:

By Country United States (46.4%), Europe (18.6%), Japan (6.4%), Asia (ex. Japan) (10.1%), Latin America (6.4%), Canada (2.6%), Australia (2.6%), EMEA (3.2%) and Cash/Net Liquidity (3.7%).

By SectorConsumer Discretionary (9.9%), Consumer Staples (13.2%), Energy (10.0%), Financials (17.0%), Healthcare (8.5%), Industrials (9.1%), Information Technology (13.3%), Materials (6.3%), Telecommunication Services (4.3%), Utilities (3.1%), Unit Trust (1.6%) and Cash/Net Liquidity (3.7%).

Market Review

After a very sharp recovery in 2009 where global equities advanced by 27% and a flat performance in 2010, the MSCI AC World Free Index fell by 5.5% in 2011, all in Singapore dollar terms.

Risk indicators rose during the course of 2011, before moderating slightly. The Libor-OIS spread widened to 50 basis points (bps) by end 2011, reflecting funding stress in the European banking system. Meanwhile, the VIX Index rose to above 40% in August having started the year in the 20s. Realized volatility levels followed a similar pattern (see below chart).

S&P 500 – Realized Volatility (%)

0%

20%

40%

Jan-10 Jul-10 Jan-11 Jul-11 Jan-12

Realized Vol Mean-1 stdev +1 stdev

The economic outlook started to diverge appreciably during 2011, with the US economy showing positive momentum, while the outlook for Europe and the Euro zone in particular turning decidedly negative. While the US data reflected a stabilization in the housing market, improved employment trends and gains in the manufacturing sector, Europe suffered from on-going weakness in peripheral Europe, which started to weigh on both business and consumer confidence in core Europe.

Growth expectations for the Euro zone were lowered sharply in the second half of the year, with most economists now looking for a contraction of between 0.5%-1.0% for 2012. Meanwhile, data out of Japan has also tracked below expectations, due to both weak external demand, and a more muted


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boost from reconstruction efforts. At the time of writing, the International Monetary Fund (IMF) has just lowered its official 2012 global growth target to 3.3% (vs. 4% in September), pointing to risks evident in Europe.

Outlook and Strategy

In the year ahead, risks in Europe associated with the periphery and weak banking systems in Europe represent the greatest challenge for policy makers and investors alike. Europe’s approach of monetizing the debt and providing a liquidity backstop to the financial sector is failing. Beyond debt forgiveness for the periphery and recapitalizing Europe’s banks, implementing social reform policies targeted at enhancing the competitive positioning of peripheral countries is essential. So far, efforts to address weaknesses in countries like Greece have failed to deal with the structural challenge of adopting the Euro currency. The road ahead will inevitably be a bumpy one. And while the final result will have direct bearing on how Europe performs, it will also have global implications.

Turning back to the US, there are some encouraging signs that the manufacturing sector is expanding and creating jobs. The corporate sector, supported in part by a weaker dollar and more competitive wages is again creating jobs. The revitalization of the US manufacturing sector has taken place despite the fact that there has been no progress on corporate tax rate reform. However, we do believe that reforms will again be put on the table for discussion, provided they are revenue neutral. Given that many of the largest US corporations can structure their businesses in a manner to avoid paying US taxes, we believe that significant reductions in statutory rates can be achieved in the long run and that revenue gains will likely arise. The 1986 income tax reform act of Ronald Regan, which effectively broadened the tax net and increased fiscal revenue, is an example of this at work.

With the presidential election scheduled for November, it is unlikely that significant reform efforts will be tabled in the current year. The fact that the US government is operating with a divided congress, it is unlikely that there will be any fiscal boost in the event that the external environment worsens. This adds an element of risk to our forecasts and market consensus, and places an ongoing burden on the Federal Reserve to provide a monetary boost should the need arise. More recent comments from the Fed suggest that it is committed to do just this.

Emerging Markets have faced significant challenges in 2011 related to both inflation and growth. At the time of writing, inflationary pressures are just starting to abate. However, there are still significant risks to growth and to corporate profits into 2012. We will break our EM discussion into several parts as many of the issues are country specific.

No discussion of Emerging Markets can be complete without examining China. Currently, the China outlook is rather mixed. Inflation and limited monetary flexibility became a problem last year. This resulted in financing constraints that adversely impacted the availability of credit. As inflation rates moderated in late 2011, policy measures were adopted to stimulate lending and extend credit into the cash starved SME segment. This has resulted in a resurgence of economic activity into the final quarter of the year. However, off-setting this, and of particular concern, are two factors at play. Firstly, there has been a sharp slowdown in trade activity, both at the export and import level. Secondly, policies targeted at containing overinvestment in real estate are leading to a reversal of real estate prices that could prove potentially problematic. Either way, it is clear that fixed asset investment growth rates will moderate over the medium term. We have refocused our investment strategy towards consumption growth opportunities, particularly those arising from rising consumer purchasing power. We are


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targeting consumer goods and services companies that are positioned to benefit from wage growth among middle & lower income consumers.

India also faced significant setbacks in 2011. Beyond inflation challenges and balance of payments pressures arising from higher energy prices, there were corruption scandals linked to the auction of telecommunications spectrum. Meanwhile, the Reserve Bank of India lifted interest rates to counter inflation. Equities de-rated significantly with the market down by over a third of its initial value. Inflation expectations have subsequently started to ease, and India has started to relax monetary policy. This should set the stage for a gradual recovery in economic growth and corporate profits. We have adopted a similar strategy as in China, focusing on opportunities to get leverage to consumption growth. We are also positioned in Indian financials that are prime beneficiaries of the emerging mortgage and consumer credit markets.

Brazil too faced inflation challenges in 2011. Early in the year, the Brazil Sentral Bank (BSP) responded to concerns over a rapidly appreciating currency and overheating economy by both raising interest rates and introducing an IOF tax to limit portfolio inflows. Over time, this helped to slow the economy and weaken the Real. The result of which was that Brazilian equities performed poorly in 2011. The Brazil market de-rated substantially. At the moment, with inflation moderating and growth picking up, the BSP is in a position to ease further. The outlook for Brazilian equities looks solid.

The Fund has more recently increased its overweight in Emerging Markets (EM), but this increase in allocation is not indiscriminate. We are increasingly concerned about the impact of softer growth in Europe on export oriented sectors in the EM and our strategy of targeting growth in domestic demand has been further reinforced in our strategy. Among the Fund’s Emerging Market positions, China is perhaps the best illustration of this shift in focus. Not only is the Fund continuing to de-emphasize exporters, but it has also avoided property and financials due to concerns about overinvestment and misallocations of capital, preferring to focus on opportunities within the consumer sector.

In the developed world, the good news for investors is that there are increased signs of decoupling. The US is firmly on a recovery path, that should be self-sustainable, despite the slowdown in Europe and Japan. Jobs data in the US continue to improve, and the housing market is stabilizing. And while significant risks still remain, most noteably in Europe, we believe that the US is firmly on a recovery trajectory.

Despite the positive developments in the US, significant tail risks still remain. In Europe, efforts to deal with problems of the periphery are moving painfully slowly. While politicians have repeatedly claimed that the risks are containable and controllable, a lack of consensus and commitment raises questions. Further, in the event of a hard default, it remains unclear how second and third order impacts will play out. Even core Europe could be at risk under this scenario. We continue to be skeptical, and remain defensive in our approach to investing in Europe.

As always, our broader investment approach is rooted in finding high quality growth companies that will perform well across the business cycle. This strategy should perform well against the current backdrop of below potential growth rates, increased competitive pressures, and limited monetary policy flexibility. In an environment that will increasingly favor survival of the fittest, the Fund should start to show differentiated performance with time. Given the current levels of valuation compared with other asset classes and in relation to history, we believe it is an excellent time for investors with a time horizion of 3-5 years to position in equities.


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B) Investments at fair value and as a percentage of NAV as at 31 December 2011 under review classified by

Fair Value % of NAV (S$) i) Country

Australia 3,308,634 2.58 Austria 539,480 0.42 Belgium 796,260 0.62 Brazil 5,574,184 4.35 Canada 3,353,023 2.62 Chile 488,500 0.38 China 1,917,862 1.50 Denmark 821,765 0.64 Finland 554,798 0.43 France 1,150,869 0.90 Germany 3,233,794 2.53 Hong Kong 2,387,934 1.87 India 2,546,962 1.99 Indonesia 3,492,767 2.73 Israel 1,255,987 0.98 Italy 382,939 0.30 Japan 8,161,509 6.37 Mexico 1,302,977 1.02 Netherlands 804,423 0.63 Norway 839,527 0.66 Peru 882,396 0.69 Philippines 456,806 0.36 Poland 485,137 0.38 Portugal 322,426 0.25 Russia 904,076 0.71 South Korea 1,193,098 0.93 Spain 952,170 0.74 Sweden 2,539,015 1.98 Switzerland 1,512,134 1.18 Thailand 974,028 0.76 Turkey 324,060 0.25 United Kingdom 10,463,722 8.17 United States 59,361,722 46.35

Portfolio of investments 123,284,984 96.27 Other net assets 4,774,633 3.73

Total 128,059,617 100.00


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B) Investments at fair value and as a percentage of NAV as at 31 December 2011 under review classified by (continued)

Fair Value % of NAV (S$)

ii) Industry

Consumer Discretionary 12,730,770 9.94 Consumer Staples 16,919,547 13.20 Energy 12,783,177 9.99 Financials 21,723,004 16.97 Healthcare 10,858,810 8.47 Industrials 11,703,318 9.14 Information Technology 17,048,889 13.31 Materials 8,086,585 6.32 Telecommunication Services 5,478,628 4.29 Unit Trust 1,971,686 1.54 Utilities 3,980,570 3.10


Total 128,059,617 100.00

iii) Asset Class

Equities 123,284,984 96.27 Other net assets 4,774,633 3.73

Total 128,059,617 100.00

iv) Credit rating of debt securities

N/A


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C) Top Ten Holdings

The top 10 holdings as at 31 December 2011 and 31 December 2010

10 largest holdings at 31 December 2011 Percentage of total net assets attributable to Fair Value unitholders (S$) %

OCCIDENTAL PETROLEUM CORPORATION 3,523,763 2.75APPLE INC 2,888,217 2.25VISA INC - CLASS A SHARES 2,633,237 2.06MICROSOFT CORPORATION 2,288,950 1.79CISCO SYSTEMS INC 2,109,909 1.65MILLICOM INTERNATIONAL CELLULAR SA-SDR 2,086,654 1.63MCDONALDS 2,080,034 1.62DOMINION RESOURCES INC 2,064,396 1.61SCHLUMBERGER 2,036,907 1.59PHILIP MORRIS INTERNATIONAL INC 2,034,703 1.59

10 largest holdings at 31 December 2010 Percentage of total net assets attributable to Fair Value unitholders (S$) %

EMERSON ELECTRIC CO 4,467,495 2.67OCCIDENTAL PETROLEUM CORPORATION 3,393,117 2.03APPLE COMPUTER INC 3,304,392 1.97US BANCORP 3,040,393 1.82AMERISOURCEBERGEN CORP 2,972,241 1.78THERMO FISHER SCIENTIFIC INC 2,907,676 1.74VISA INC - CLASS A SHARES 2,794,969 1.67WALT DISNEY CO 2,786,284 1.66SCHLUMBERGER 2,781,160 1.66COMCAST CORPORATION - CLASS A 2,731,275 1.63


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D) Exposure to derivatives

i) fair value of derivative contracts and as a percentage of NAV as at 31 December 2011

N/A

ii) net gains/(losses) on derivative contracts realised for the financial year ended 31 December 2011

N/A

iii) net gains/(losses) on outstanding derivative contracts marked to market as at 31 December 2011

N/A

E) Amount and percentage of net asset value (NAV) invested in other schemes as at 31 December 2011

Percentage of total net assets attributable Fair value to unitholders

(S$) %

SPDR GOLD TRUST 1,971,686 1.54

F) Amount and percentage of borrowings to net asset value (NAV) as at 31 December 2011

N/A

G) Amount of redemptions and subscriptions for the financial year ended 31 December 2011

Total amount of redemptions SGD 35,275,249 Total amount of subscriptions SGD 11,075,821

H) The amount and terms of related-party transactions for the financial year ended 31 December 2011

i) As at 31 December 2011 the Fund maintained current accounts with the United Overseas Bank Limited as follows :

Bank balances SGD 94,564


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H) The amount and terms of related-party transactions for the financial year ended 31 December 2011 (continued)

ii) Purchase/holdings of UOBAM unit trusts by UOB or its affiliated companies as at 31 December 2011

Holdings of United International Growth Fund as at 31 December 2011 were as follows:-

Affiliated Companies No. of Units Unit Price Market Value SGD SGD

a) UNION Offshore Insurance Fund 969,722.99 1.476 1,431,311.13

b) United Overseas Insurance - 255,138.87 1.476 376,584.97 Overseas Insurance Fund

c) United Overseas Insurance - 2,600,469.59 1.476 3,838,293.11 Singapore Insurance Fund

d) United Overseas Insurance - 1,463,995.18 1.476 2,160,856.89 Shareholders’ Fund

e) UOB Smart International Growth Fund 737,195.88 1.476 1,088,101.12

iii) Investment in Initial Public Offerings managed by UOB Group.

N/A

iv) As at 31 December 2011 there was no brokerage income earned by UOB Kay Hian Pte Ltd.

I) Expense ratios

31 December 2011 1.34%31 December 2010 1.37%

Note: The expense ratio is computed in accordance with the IMAS guidelines on disclosure of expense ratios dated 25 May 2005. Brokerage and other transaction costs, interest expense, foreign exchange gains/losses, tax deducted at source or arising on income received and dividends paid to unitholders are not included in the expense ratio. The Fund does not pay any performance fees.

J) Turnover ratios

31 December 2011 108.74%31 December 2010 108.58%

Note : The turnover ratio is calculated in accordance with the formula stated in the “Code on Collective Investment Schemes”.

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

N/A


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

i) top 10 holdings at fair value and as percentage of NAV as at 31 December 2011 and 31 December 2010

N/A

ii) expense ratios for the financial year ended 31 December 2011 and 31 December 2010. A footnote should state where applicable) that the expense ratio does not include brokerage and other transaction costs, performance fee, foreign exchange gains/losses, front or back end loads arising from or arising out of income received.

N/A

iii) turnover ratios for the financial year ended 31 December 2011 and 31 December 2010

N/A

M) Soft dollar commissions/arrangements

UOB Asset Management has entered into soft dollars arrangements with selected brokers from whom products and services are received from third parties. The products and services relate essentially to computer hardware and software to the extent that they are used to support the investment decision making process, research and advisory services, economic and political analyses, portfolio analyses including performance measurements, market analyses, data and quotation services, all of which are believed to be helpful in the overall discharge of UOB Asset Management’s duties to clients. As such services generally benefit all of UOB Asset Management’s clients in terms of input into the investment decision making process, the soft credits utilised are not allocated on a specific client basis. The Manager confirms that trades were executed on the best available terms and there was no churning of trades.

1 where the underlying scheme is managed by a foreign manager which belongs to the same group of companies as, or has a formal arrangement or investment agreement with, the Singapore manager, the above information should be disclosed on the underlying scheme. In other cases, such information on the underlying scheme should be disclosed only if it is readily available to the Singapore manager.


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REPORT OF THE TRUSTEE

The Trustee is under a duty to take into custody and to hold the assets of United International Growth Fund (the “Fund”) in trust for the unitholders. In accordance with the Securities and Futures Act (Cap. 289), its subsidiary legislation and the Code on Collective Investment Schemes (collectively referred to as the “laws and regulations”), the Trustee shall monitor the activities of the Manager for compliance with the limitations imposed on the investment and borrowing powers as set out in the Trust Deed in each annual accounting year and report thereon to unitholders in an annual report which shall contain the matters prescribed by the laws and regulations as well as the recommendations of Statement of Recommended Accounting Practice 7 “Reporting Framework for Unit Trusts” issued by the Institute of Certified Public Accountants of Singapore and the Trust Deed.

To the best knowledge of the Trustee, the Manager has, in all material respects, managed the Fund during the financial year covered by these financial statements, set out on pages 15 to 39 comprising the Statement of Total Return, Balance Sheet, Portfolio Statement and Notes to the Financial Statements, in accordance with the limitations imposed on the investment and borrowing powers set out in the Trust Deed, laws and regulations and otherwise in accordance with the provisions of the Trust Deed.

For and on behalf of the TrusteeHSBC INSTITUTIONAL TRUST SERVICES (SINGAPORE) LIMITED

Authorised signatory

19 March 2012


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STATEMENT BY THE MANAGER

In the opinion of the directors of UOB Asset Management Ltd, the accompanying financial statements set out on pages 15 to 39, comprising the Statement of Total Return, Balance Sheet, Portfolio Statement and Notes to the Financial Statements are drawn up so as to present fairly, in all material respects, the financial position of the Fund as at 31 December 2011 and the total deficit for the year then ended in accordance with the recommendations of Statement of Recommended Accounting Practice 7 “Reporting Framework for Unit Trusts” issued by the Institute of Certified Public Accountants of Singapore. At the date of this statement, there are reasonable grounds to believe that the Fund will be able to meet its financial obligations as and when they materialise.

For and on behalf of the ManagerUOB ASSET MANAGEMENT LTD

THIO BOON KIAT Authorised signatory

19 March 2012


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INDEPENDENT AUDITORS’ REPORT TO THE UNITHOLDERS OF UNITED INTERNATIONAL GROWTH FUND(Constituted under a Trust Deed in the Republic of Singapore)

We have audited the accompanying financial statements of United International Growth Fund (the “Fund”) set out on pages 15 to 39, which comprise the Balance Sheet and Portfolio Statement as at 31 December 2011, the Statement of Total Return for the year then ended, and a summary of significant accounting policies and other explanatory information.

Manager’s Responsibility for the Financial Statements

The Fund’s Manager (the “Manager”) is responsible for the preparation and fair presentation of these financial statements in accordance with the recommendations of Statement of Recommended Accounting Practice 7 “Reporting Framework for Unit Trusts” issued by the Institute of Certified Public Accountants of Singapore, and for such internal control as the Manager determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Singapore Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Manager, as well as evaluating the overall presentation of the financial statements.

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

Opinion

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as at 31 December 2011 and the total deficit for the year then ended in accordance with the recommendations of Statement of Recommended Accounting Practice 7 “Reporting Framework for Unit Trusts” issued by the Institute of Certified Public Accountants of Singapore.

PricewaterhouseCoopers LLPPublic Accountants and Certified Public Accountants

Singapore, 19 March 2012


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STATEMENT OF TOTAL RETURNFor the financial year ended 31 December 2011

2011 2010 Note $ $

IncomeDividends 3,264,528 3,244,327Interest 953 727

3,265,481 3,245,054

Less: ExpensesManagement fee 10 1,471,889 1,550,795Trustee fee 10 58,876 62,032Audit fee 16,700 15,200Registrar fee 10 15,000 15,000Valuation fee 10 183,986 193,849Custody fee 102,400 98,301Interest expenses 81 2,394Other expenses 153,536 185,529

2,002,468 2,123,100

Net income 1,263,013 1,121,954

Net gains or losses on value of investmentsNet realised loss on investments (3,640,615) (2,746,651)Net change in fair value on investments (11,804,464) 4,302,324Net foreign exchange loss (358,000) (217,819)

Net (loss)/gain on value of investments (15,803,079) 1,337,854

Total (deficit)/return for the year before tax (14,540,066) 2,459,808Less : Income tax 3 (559,626) (573,381)Less : Capital gain tax 3 (38,241) (171,969)

Total (deficit)/return for the year (15,137,933) 1,714,458

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


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BALANCE SHEETAs at 31 December 2011

2011 2010 Note $ $

ASSETSPortfolio of investments 123,284,984 154,267,166 Receivables 4 156,461 206,264 Cash and bank balances 5 5,239,151 25,264,318

Total Assets 128,680,596 179,737,748

LIABILITIES Payables 6 620,979 803,005 Purchases awaiting settlement - 11,537,765 Net assets attributable to unitholders 7 128,059,617 167,396,978

Total Liabilities 128,680,596 179,737,748



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PORTFOLIO STATEMENT As at 31 December 2011

Percentage of total net assets attributable Holdings at Fair value at to unitholders at 31 December 31 December 31 December 2011 2011 2011 $ %By Geography - PrimaryQuoted Equities

AUSTRALIA AQUARIUS PLATINUM LTD 87,500 270,945 0.21 AUSTRALIA AND NEW ZEALAND BANK 48,000 1,309,971 1.02 BHP BILLITON LIMITED 26,000 1,189,640 0.93 JB HI-FI LIMITED 17,500 262,642 0.20 NEWCREST MINING 7,000 275,436 0.22

TOTAL AUSTRALIA 3,308,634 2.58

AUSTRIA ANDRITZ AG 5,000 539,480 0.42

BELGIUM ANHEUSER-BUSCH INBEV 10,000 796,260 0.62

BRAZILBANCO BRADESCO - ADR 27,000 583,959 0.46 CCR SA 36,000 305,315 0.24 CIA ENERGETICA DE MINAS GERAIS 14,000 322,138 0.25 CIA HERING 20,000 451,299 0.35 CIELO SA 15,000 501,872 0.39 COMPANHIA DE BEBIDAS DAS AMERICAS-ADR 13,000 607,844 0.47 ITAU UNIBANCO HOLDING SA - ADR 32,000 769,276 0.60 LOJAS RENNER S.A. 6,000 201,917 0.16 MARCOPOLO SA -PREF 60,000 294,887 0.23 OGX PETROLEO E GAS PARTICIPACOES SA 20,000 189,084 0.15 PETROLEO BRASILEIRO SA - ADR 20,000 644,435 0.50 VALE SA - PREF SHARE-ADR 26,300 702,158 0.55

TOTAL BRAZIL 5,574,184 4.35



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Percentage of total net assets attributable Holdings at Fair value at to unitholders at 31 December 31 December 31 December 2011 2011 2011 $ %By Geography - Primary (continued)Quoted Equities

CANADA AGNICO-EAGLE MINES 8,800 413,614 0.32 BANK OF NOVA SCOTIA 10,500 678,569 0.53 BANKERS PETROLEUM LTD 70,000 393,102 0.31 BOMBARDIER INC - B 33,000 169,771 0.13 CANADIAN NATURAL RESOURCES LIMITED 14,000 677,454 0.53 RESEARCH IN MOTION LIMITED 10,500 197,353 0.15 ROYAL BANK OF CANADA 9,600 634,708 0.50 TIM HORTONS INC 3,000 188,452 0.15

TOTAL CANADA 3,353,023 2.62

CHILEQUIMICA Y MINERA DE CHILE SA - ADR 7,000 488,500 0.38

CHINA SHENZHEN EXPRESSWAY COMPANY 1,250,000 682,417 0.53 TINGYI (CAYMAN ISLANDS) HOLDINGS CORP 150,000 591,010 0.46 WANT WANT CHINA HOLDINGS LIMITED 500,000 644,435 0.51

TOTAL CHINA 1,917,862 1.50

DENMARK COLOPLAST A/S 2,000 373,684 0.29 NOVO NORDISK A/S - B 3,000 448,081 0.35

TOTAL DENMARK 821,765 0.64

FINLAND FORTUM OYJ 20,000 554,798 0.43

FRANCEEUTELSAT COMMUNICATIONS 12,000 608,998 0.48 L’OREAL PARIS 4,000 541,871 0.42

TOTAL FRANCE 1,150,869 0.90



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GERMANYBAYER AG 6,000 496,642 0.39 E. ON AG 15,000 418,623 0.33 FRESENIUS SE & CO KGAA 6,000 722,416 0.56 K+S AG 10,000 587,285 0.46 SAP AG 7,000 482,149 0.38 SOFTWARE AG 11,000 526,679 0.41

TOTAL GERMANY 3,233,794 2.53

HONG KONGPOWER ASSETS HOLDINGS LTD 40,000 382,654 0.30 SJM HOLDINGS LIMITED 375,000 788,849 0.62 WYNN MACAU LTD 374,800 1,216,431 0.95

TOTAL HONG KONG 2,387,934 1.87

INDIAAXIS BANK LIMITED 17,000 334,558 0.26 BHARTI AIRTEL LIMITED 33,000 276,293 0.22 HDFC BANK LIMITED 20,000 681,519 0.53 HOUSING DEVELOPMENT FINANCE CORP 42,000 664,782 0.52 ITC LTD 120,000 589,810 0.46

TOTAL INDIA 2,546,962 1.99

INDONESIABANK RAKYAT INDONESIA 1,500,000 1,447,872 1.13 PT BANK DANAMON 1,500,000 879,448 0.69 PT BANK MANDIRI 700,000 670,668 0.52 PT TAMBANG BATUBARA BUKIT ASAM TBK 200,000 494,779 0.39

TOTAL INDONESIA 3,492,767 2.73



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ISRAEL TEVA PHARMACEUTICAL INDUSTRIES LTD-ADR 24,000 1,255,987 0.98

ITALY SAIPEM S.P.A. 7,000 382,939 0.30

JAPANABC-MART INC 10,000 491,594 0.38 ASICS CORPORATION 18,000 262,701 0.20 CANON INC 7,000 401,095 0.31 F.C.C. COMPANY LIMITED 12,000 315,483 0.25 HITACHI 45,000 305,624 0.24 KOMATSU LTD 19,300 584,163 0.46 MITSUI & COMPANY LIMITED 30,000 604,171 0.47 NIDEC CORPORATION 5,000 561,196 0.44 NIPPON STEEL 88,000 283,261 0.22 NISSAN MOTOR CO LTD 25,000 290,710 0.23 SAWAI PHARMACEUTICAL CO LTD 3,500 470,697 0.37 SOFTBANK CORP 11,000 419,330 0.33 SONY FINANCIAL HOLDINGS INC 16,000 305,237 0.24 SUNDRUG COMPANY LIMITED 22,000 864,613 0.67 SURUGA BANK LIMITED 35,000 406,404 0.32 TDK CORPORATION 5,000 286,918 0.22 THE BANK OF YOKOHAMA 74,000 452,698 0.35 TOKYO GAS CO. LIMITED 40,000 237,961 0.18 TOSHIBA COPPN 50,000 263,745 0.21 UBE INDUSTRIES LIMITED 100,000 353,908 0.28

TOTAL JAPAN 8,161,509 6.37

MEXICOAMERICA MOVIL- ADR SERIES L 12,000 351,652 0.28 GENOMMA LAB INTERNATIONAL SA 200,000 499,878 0.39 GRUPO FINANCIERO BANORTE SAB DE C V 115,000 451,447 0.35

TOTAL MEXICO 1,302,977 1.02



21



NETHERLANDS UNILEVER NV - CVA 18,000 804,423 0.63

NORWAY NORSK HYDRO ASA 140,000 839,527 0.66

PERU COMPANIA DE MINAS BUENAVENTURA ADR 5,200 258,241 0.20 CREDICORP LIMITED 4,400 624,155 0.49

TOTAL PERU 882,396 0.69

PHILIPPINESALLIANCE GLOBAL GROUP INC 1,500,000 456,806 0.36

POLANDPOWSZECHNA KASA OSZCZEDNOSCI BANK POLSK 40,000 485,137 0.38

PORTUGALJERONIMO MARTINS SGPS SA 15,000 322,426 0.25

RUSSIA GAZPROM OAO-SPON ADR 30,000 415,486 0.33 MAGNIT OJSC - SPON GDR REGS 7,000 189,518 0.15 ROSNEFT OIL COMPANY - GDR 35,000 299,072 0.23

TOTAL RUSSIA 904,076 0.71

SOUTH KOREA HYUNDAI HEAVY INDUSTRIES 5,000 745,686 0.58 SHIHAN FINANCIAL GROUP 10,000 447,412 0.35

TOTAL SOUTH KOREA 1,193,098 0.93



22



SPAIN BANCO BILBAO VIZCAYA ARGENTARIA S.A 85,000 952,170 0.74

SWEDEN MILLICOM INTERNATIONAL CELLULAR SA-SDR 16,000 2,086,654 1.63 SKF AB - B 10,000 275,207 0.21 TELE2 AB - B SHARES 7,000 177,154 0.14

TOTAL SWEDEN 2,539,015 1.98

SWITZERLANDNESTLE SA 8,000 598,475 0.47 NOVARTIS AG BEARER SHARES 9,000 670,165 0.52 THE SWATCH GROUP AG-B 500 243,494 0.19

TOTAL SWITZERLAND 1,512,134 1.18

THAILANDKASIKORNBANK PUBLIC COMPANY LIMITED 100,000 503,453 0.39 THE SIAM COMMERCIAL BANK PUBLIC COMPANY LIMITED 100,000 470,575 0.37

TOTAL THAILAND 974,028 0.76

TURKEY TURKIYE GARANTI BANKASI A.S. 80,000 324,060 0.25



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UNITED KINGDOMABERDEEN ASSET MANAGEMENT PLC 150,000 635,973 0.50 ADMIRAL GROUP PLC 37,000 635,248 0.50 BG GROUP PLC 55,000 1,525,600 1.19 BRITISH AMERICAN TOBACCO PLC 15,000 923,582 0.72 GLAXO SMITHKLINE 27,000 800,347 0.62 HSBC HOLDINGS PLC 110,000 1,088,479 0.85 PEARSON PLC 30,000 730,885 0.57 RANDGOLD RESOURCES LIMITED 5,000 663,479 0.52 ROTORK PLC 21,000 815,460 0.64 TESCO PLC 100,000 813,002 0.63 TULLOW OIL PLC 36,000 1,012,721 0.79 WEIR GROUP PLC 20,000 818,946 0.64

TOTAL UNITED KINGDOM 10,463,722 8.17

UNITED STATESAGCO CORPORATION 21,000 1,169,786 0.91 AMERICAN TOWER CORPORATION 25,000 1,946,596 1.52 ANADARKO PETROLEUM CORPORATION 12,000 1,187,835 0.93 APPLE INC 5,500 2,888,217 2.25 BARRICK GOLD CORPORATION 30,000 1,760,591 1.37 CATERPILLAR INC 9,000 1,057,289 0.83 CISCO SYSTEMS INC 90,000 2,109,909 1.65 COCA COLA. 20,000 1,814,532 1.42 COLGATE-PALMOLIVE COMPANY 15,000 1,796,184 1.40 CUMMINS INC 10,000 1,141,311 0.89 DAVITA INC 8,000 786,704 0.61 DIRECTV - CLASS A 20,000 1,108,895 0.87 DOMINION RESOURCES INC 30,000 2,064,396 1.61 DOVER CORPORATION 12,000 903,402 0.71 GENERAL ELECTRIC COMPANY 57,000 1,323,711 1.03 GILEAD SCIENCES INC 20,000 1,061,438 0.83 HUMANA INC 8,000 908,900 0.71

Balance Carried Forward 25,029,696 19.54



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UNITED STATESBalance Brought Forward 25,029,696 19.54INTERNATIONAL BUSINESS MACHINE 8,000 1,907,424 1.49 MASTERCARD INC - A 1,000 483,521 0.38 MCDONALDS 16,000 2,080,034 1.62 MEAD JOHNSON NUTRITION CO 18,000 1,603,904 1.25 MICROSOFT CORPORATION 68,000 2,288,950 1.79 NEWELL RUBBERMAID INC 40,000 836,599 0.65 NII HOLDINGS INC 8,000 220,949 0.17 NORTHERN TRUST CORPORATION 30,700 1,578,752 1.23 OCCIDENTAL PETROLEUM CORPORATION 29,000 3,523,763 2.75 OMNICOM GROUP INC 12,000 693,189 0.54 PHILIP MORRIS INTERNATIONAL INC 20,000 2,034,703 1.59 PRICELINE.COM INC 2,000 1,212,912 0.95 PROCTER & GAMBLE CO 16,000 1,382,955 1.08 QUALCOMM INC 25,000 1,772,196 1.38 SCHLUMBERGER 23,000 2,036,907 1.59 STATE STREET CORPORATION 32,000 1,672,160 1.31 THERMO FISHER SCIENTIFIC INC 18,000 1,049,586 0.82 UNITEDHEALTH GROUP 20,000 1,314,285 1.03 US BANCORP 58,000 2,034,314 1.59 VISA INC - CLASS A SHARES 20,000 2,633,237 2.06

TOTAL UNITED STATES 57,390,036 44.81

TOTAL QUOTED EQUITIES 121,313,298 94.73

Unit Trust

UNITED STATESSPDR GOLD TRUST 10,000 1,971,686 1.54

TOTAL UNIT TRUST 1,971,686 1.54


Net assets attributable to unitholders 128,059,617 100.00



25


Percentage of Percentage of total net assets total net assets attributable to attributable to unitholders at unitholders at 31 December 31 December 2011 2010 % %By Geography – Primary (Summary)Quoted Equities/Unit Trust

Australia 2.58 1.83 Austria 0.42 0.42 Belgium 0.62 0.48 Brazil 4.35 4.38 Canada 2.62 4.32 Chile 0.38 0.54 China 1.50 2.16 Denmark 0.64 - Finland 0.43 0.53 France 0.90 2.28 Germany 2.53 1.86 Hong Kong 1.87 1.44 India 1.99 2.11 Indonesia 2.73 2.12 Israel 0.98 1.40 Italy 0.30 0.38 Japan 6.37 6.37 Mexico 1.02 0.83 Netherlands 0.63 - Norway 0.66 - Peru 0.69 0.50 Philippines 0.36 - Poland 0.38 0.75 Portugal 0.25 0.39 Russia 0.71 1.17 South Africa - 0.21 South Korea 0.93 1.39 Spain 0.74 2.35 Sweden 1.98 0.76 Switzerland 1.18 3.39 Thailand 0.76 0.82 Turkey 0.25 - United Kingdom 8.17 6.85 United States 46.35 40.13

Portfolio of investments 96.27 92.16 Other net assets 3.73 7.84

Net assets attributable to unitholders 100.00 100.00



26

PORTFOLIO STATEMENTAs at 31 December 2011

Percentage of Percentage of total net assets total net assets attributable to attributable to Fair value at unitholders at unitholders at 31 December 31 December 31 December 2011 2011 2010 $ % %By Industry - SecondaryQuoted Equities/Unit Trust

Consumer Discretionary 12,730,770 9.94 12.93 Consumer Staples 16,919,547 13.20 8.70 Energy 12,783,177 9.99 9.78 Financials 21,723,004 16.97 17.17 Healthcare 10,858,810 8.47 8.03 Industrials 11,703,318 9.14 10.44 Information Technology 17,048,889 13.31 12.84 Materials 8,086,585 6.32 7.43 Telecommunication Services 5,478,628 4.29 3.00 Unit Trust 1,971,686 1.54 - Utilities 3,980,570 3.10 1.84

Portfolio of investments 123,284,984 96.27 92.16 Other net assets 4,774,633 3.73 7.84

Net assets attributable to unitholders 128,059,617 100.00 100.00



27

NOTES TO THE FINANCIAL STATEMENTSFor the financial year ended 31 December 2011

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

1. General

United International Growth Fund (the “Fund”) is a Singapore registered trust fund constituted by a Trust Deed dated 21 February 1995 between UOB Asset Management Ltd (the “Manager”) and HSBC Institutional Trust Services (Singapore) Limited (the “Trustee”). The Deed is governed by the laws of the Republic of Singapore.

The primary activity of the Fund is to invest in shares in global emerging and developed markets, identified by the Manager as having good prospects for growth.

2. Significant accounting policies

(a) Basis of accounting

The financial statements have been prepared under the historical cost convention, modified by the revaluation of financial assets at fair value through profit or loss, and in accordance with the Statement of Recommended Accounting Practice 7 “Reporting Framework for Unit Trusts” (“RAP 7”) issued by the Institute of Certified Public Accountants of Singapore. The financial statements are expressed in Singapore dollars.

(b) Recognition of income

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

(c) Investments Investments are classified as financial assets at fair value through profit or loss. (i) Initial recognition Purchase of investments are recognised on trade date. Investments are recorded at fair

value on initial recognition.

(ii) Subsequent measurement

Investments are subsequently carried at fair value. Net change in fair value on investments are included in the Statement of Total Return in the year in which they arise.


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2. Significant accounting policies (continued)

(c) Investments (continued)

(iii) Derecognition

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

(d) Basis of valuation of investments The fair value of financial instruments traded in active markets is based on quoted market

prices at the balance sheet date. The quoted market price for these investments held by the Fund is the current market quoted bid price.

(e) Foreign currency translation

(i) Functional and presentation currency

The Fund’s investors are mainly from Singapore with the subscriptions and redemptions of the units denominated in Singapore dollars and United States dollars.

The performance of the Fund is measured and reported to the investors in Singapore dollars. The Manager considers the Singapore dollars as the currency of the primary economic environment in which the Fund operates. The financial statements are presented in Singapore dollars, which is the Fund’s 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 the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Total Return. Translation differences on non-monetary financial assets and liabilities are also recognised in the Statement of Total Return within the fair value net gain or loss.

(f) Financial derivatives

Financial derivatives including forwards and swaps are entered into for the purpose of efficient portfolio management, tactical asset allocation or specific hedging of financial assets held as determined by the Manager and in accordance with the provisions of the Trust Deed.


29


2. Significant accounting policies (continued)

(f) Financial derivatives (continued)

Financial derivatives outstanding at the balance sheet date are valued at forward rates or at current market prices using the “mark-to-market” method, as applicable, and the resultant gains and losses are taken up in the Statement of Total Return.

(g) Expenses charged to the Fund

All direct expenses relating to the Fund are charged directly to the Statement of Total Return. In addition, certain expenses shared by all unit trusts managed by the Manager are allocated to each Fund based on the respective Fund’s net asset value.

3. Income tax and capital gain tax 2011 2010 $ $

Overseas income tax 559,626 573,381

Capital gain tax 38,241 171,969

The Fund was granted the status of a Designated Unit Trust and, therefore, the following income is exempt from tax in accordance with Section 35(12) of the Income Tax Act (Cap 134):

(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 Singapore Income Tax Act); and

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

The overseas income tax represents tax deducted at source on dividends derived from outside Singapore.


30


4. Receivables

2011 2010 $ $

Amounts receivable for creation of units 5,808 31,451 Dividends receivable 150,642 174,606 Other receivable 11 207

156,461 206,264

5. Cash and bank balances

2011 2010 $ $

Cash at bank 5,239,151 10,264,318 Fixed deposit with a financial institution - 15,000,000

5,239,151 25,264,318

The weighted average effective interest rate of the fixed deposits with a financial institution as at 31 December 2011 is Nil % per annum (2010: 0.1833% per annum), with an average maturity date of Nil days (2010: 5 days) from the balance sheet date.

6. Payables

2011 2010 $ $

Amounts payable for cancellation of units 225,438 327,432 Amount due to Manager 362,990 441,042 Amount due to Trustee 12,891 15,661 Other creditors and accrued expenses 19,660 18,870

620,979 803,005


31


7. Net assets attributable to unitholders

2011 2010 $ $

At the beginning of the financial year 167,396,978 167,026,995

Operations Change in net assets attributable to unitholders resulting from operations (15,137,933) 1,714,458

Unitholders’ contributions/(withdrawals) Creation of units 11,075,821 22,932,949 Cancellation of units (35,275,249) (24,277,424)

Change in net assets attributable to unitholders resulting from net creation and cancellation of units (24,199,428) (1,344,475)

Total (decrease)/increase in net assets attributable to unitholders (39,337,361) 369,983

At the end of the financial year 128,059,617 167,396,978

Units in issue (Note 8) 86,786,575 102,092,903

$ $

Net assets attributable to unitholders per unit 1.48 1.64

8. Units in issue

2011 2010

Units at the beginning of the year 102,092,903 103,154,541 Units created 7,349,708 14,086,213 Units cancelled (22,656,036) (15,147,851)

Units at the end of the year 86,786,575 102,092,903


32


9. Financial risk management

The Fund’s activities expose it to a variety of financial risk (including currency risk, interest rate risk and price risk), credit risk and liquidity risk. The Fund’s overall risk management programme seeks to minimise potential adverse effects on the Fund’s financial performance. The Fund may use financial futures contracts, financial options contracts and/or currency forward contracts subject to the terms of the Prospectus to moderate certain risk exposures. Specific guidelines on exposures to individual securities and certain industries are in place for the Fund at any time as part of the overall financial risk management to reduce the Fund’s risk exposures.

The Fund’s assets principally consist of financial instruments such as equity investments and cash. They are held in accordance with the published investment policies of the Fund. The allocation of assets between the various types of investments is determined by the Manager to achieve their investment objectives.

(a) Market risk Market risk is the risk of loss arising from uncertainty concerning movements in market

prices and rates, including observable variables such as interest rates, credit spreads, exchange rates, and others that may be only indirectly observable such as volatilities and correlations. Market risk includes such factors as changes in economic environment, consumption pattern and investor’s expectation etc. which may have significant impact on the value of the investments. The Fund’s investments are substantially dependent on changes in market prices. The Fund’s investments are monitored by the Manager on a regular basis so as to assess changes in fundamentals and valuation. Although the Manager makes reasonable efforts in the choice of investments, events beyond reasonable control of the Manager could affect the prices of the underlying investments and hence the asset value of the Fund. Guidelines are set to reduce the Fund’s risk exposures to market volatility such as diversifying the portfolio by investing across various geographies, alternatively, the Fund may be hedged using derivative strategies.


33


9. Financial risk management (continued)

(a) Market risk (continued)

(i) Foreign exchange risk

The Fund has securities denominated in currencies other than the Singapore dollars and it may be affected favourably or unfavourably by exchange rate regulations or changes in the exchange rates between the Singapore dollar and such other currencies. The Manager may at his discretion, implement a currency management strategy either to reduce currency volatility or to hedge the currency exposures of the Fund.

The table below summarises the on-balance sheet exposure to currency risks for the Fund.

As at 31 Decemeber 2011

SGD USD EUR Others Total $ $ $ $ $AssetsPortfolio of investments - 67,233,524 8,737,159 47,314,301 123,284,984 Receivables 4,964 100,703 - 50,794 156,461 Cash and bank balances 3,564,677 1,162,448 444,500 67,526 5,239,151

Total Assets 3,569,641 68,496,675 9,181,659 47,432,621 128,680,596

LiabilitiesPayables 620,786 193 - - 620,979 Net assets attributable to unitholders 128,059,617 - - - 128,059,617

Total Liabilities 128,680,403 193 - - 128,680,596

Net currency exposure (125,110,762) 68,496,482 9,181,659 47,432,621


34




(i) Foreign exchange risk (continued)

As at 31 December 2010

SGD USD EUR Others Total $ $ $ $ $AssetsPortfolio of investments - 80,591,860 14,568,064 59,107,242 154,267,166 Receivables 31,658 101,262 - 73,344 206,264 Cash and bank balances 23,928,194 1,053,055 208,403 74,666 25,264,318

Total Assets 23,959,852 81,746,177 14,776,467 59,255,252 179,737,748

Liabilities Payables 803,005 - - - 803,005 Purchase awaiting settlement - 11,537,765 - - 11,537,765 Net assets attributable to unitholders 167,396,978 - - - 167,396,978

Total Liabilities 168,199,983 11,537,765 - - 179,737,748

Net currency exposure (144,240,131) 70,208,412 14,776,467 59,255,252

Investments, which is the significant item in the balance sheet is exposed to currency

risk and other price risk. The other price risk sensitivity analysis includes the impact of currency risk on non-monetary investments. The Fund’s net financial assets comprise significantly non-monetary investments hence currency risk sensitivity analysis has not been performed on the remaining financial assets.


35




(ii) Price risk

Price risk is the risk of potential adverse changes to the value of financial investments because of changes in market conditions and volatility in security prices.

The table below summarises the impact of increases/decreases from the Fund’s

underlying investments in equities on the Fund’s net assets attributable to unitholders at 31 December 2011 and 2010. The analysis is based on the assumption that the index components within the benchmark increased/decreased by a reasonable possible shift, with all other variables held constant and that the fair value of the Fund’s investments moved according to the historical correlation with the index.

2011 2010Benchmark component Net impact

to net assets attributable to

unitholders

Net impact to net assets

attributable to unitholders

$ % $ %

MSCI AC World 24,410,427 20 29,619,296 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.

Other than cash balances, the Fund’s financial assets and liabilities are largely non-interest bearing. Hence, the Fund is not subjected to significant risk due to fluctuations in the prevailing levels of market interest rates.


36



(b) Liquidity risk

The Fund is exposed to daily cash redemptions and disbursements for the settlements of purchases. The Manager therefore ensures that the Fund maintains sufficient cash and cash equivalents and that it is able to obtain cash from the sale of investments held to meet its liquidity requirements. Reasonable efforts will be taken to invest in securities which are traded in a relatively active market and which can be readily disposed of.

The Fund’s investments in listed securities are considered to be readily realisable as they are listed on established regional stock exchanges.

The table below analyses the Fund’s financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date. The amounts in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances, as the impact of discounting is not significant.

As at 31 December 2011Less than3 months

3 months to 1 year

1-5years

Above 5 years

$ $ $ $

Payables 620,979 - - -Net assets attributable to

unitholders 128,059,617 - - -

As at 31 December 2010Less than3 months

3 months to 1 year

1-5years

Above 5 years

$ $ $ $

Payables 803,005 - - -Purchases awaiting settlement 11,537,765 - - -Net assets attributable to

unitholders 167,396,978 - - -


37



(c) Credit risk

The Fund takes on exposure to credit risk, which is the risk that a counterparty will be unable to pay amounts in full when due. The Fund’s credit risk is concentrated on amounts or securities receivable on the sale and purchase of investments respectively. In order to mitigate exposure to credit risk, all transactions in listed securities are settled/paid for upon delivery and transacted with approved counterparties using an approved list of brokers that are regularly assessed and updated by the Manager.

The table below summarises the credit rating of banks and custodians in which the Fund’s assets are held as at 31 December 2011 and 2010.

The credit ratings are based on the Bank Financial Strength ratings published by the rating agency.

As at 31 December 2011 Credit Source of rating credit rating

Bank State Street Bank & Trust Co. B Moody’s United Overseas Bank Limited B Moody’s

Custodian State Street Bank & Trust Co. B Moody’s

As at 31 December 2010 Credit Source of rating credit rating

Bank State Street Bank & Trust Co. B Moody’s United Overseas Bank Limited B Moody’s Overseas Chinese Banking Corporation B Moody’s

Custodian State Street Bank & Trust Co. B Moody’s

The maximum exposure to credit risk at the reporting date is the carrying amount of the financial assets.


38



(d) Capital management

The Fund’s capital is represented by the net assets attributable to unitholders. The Fund strives to invest the subscriptions of redeemable participating units in investments that meet the Fund’s investment objectives while maintaining sufficient liquidity to meet unitholder redemptions.

10. Related party transactions

(a) The Manager and the Trustee of the Fund are UOB Asset Management Ltd and HSBC Institutional Trust Services (Singapore) Limited respectively. UOB Asset Management Ltd is a subsidiary of United Overseas Bank Limited and HSBC Institutional Trust Services (Singapore) Limited is a subsidiary of HSBC Holdings Plc.

Management and valuation fees are paid to the Manager, while trustee fee is paid to the

Trustee and the registrar fee is paid to HSBC Institutional Trust Services (Singapore) Limited, a subsidiary of HSBC Holdings Plc. These fees paid or payable by the Fund are shown in the Statement of Total Return and in the respective Notes to the Financial Statements, and are on terms set out in the Trust Deed. All other related party transactions are shown elsewhere in the financial statements.

(b) As at the end of the financial year, the Fund maintained the following accounts with the related party:

2011 2010 $ $

United Overseas Bank Limited Bank balances 94,564 33,281

(c) The following transactions took place during the financial year between the Fund and United Overseas Bank limited at terms agreed between the parties:

2011 2010 $ $

Interest expense - 20 Bank charges 60 -


39


11. Financial ratios

2011 2010

Expense ratio 1 1.34% 1.37% Turnover ratio 2 108.74% 108.58%

12. Comparatives

For the financial year ended 31 December 2010, an amount of $51 has been reclassified from “Registrar fees” to “Other expenses” in the Statement of Total Return. There is no impact to the net assets attributable to unitholders by this reclassification.

1 The expense ratio is computed in accordance with the IMAS guidelines on disclosure of expenses ratios dated 25 May 2005. Brokerage and other transaction costs, interest expense, foreign exchange gains/losses, tax deducted at source or arising on income received and dividends paid to unitholders are not included in the expense ratio. The Fund does not pay any performance fees.

2 The turnover ratio is calculated in accordance with the formula stated in the “Code on Collective Investment Schemes”.


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