427023 Global Multi Asset KS4 - Nikko AM...SEMI-ANNUAL REPORT For the ﬁ nancial period ending 30...

SEMI-ANNUAL REPORTFor the fi nancial period ending 30 June 2020

Nikko AM Global Multi Asset Conservative Fund

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MANAGERSNikko Asset Management Asia Limited

12 Marina View, #18-02 Asia Square Tower 2 Singapore 018961

Company Registration No. 198202562H

DIRECTORSHou Wey Fook

Lim Soon ChongKiyotaka Ryu

Seet Oon Hui EleanorHiroki Tsujimura (appointed with effect from 30 July 2020)

TRUSTEE & REGISTRARBNP Paribas Trust Services Singapore Limited

20 Collyer Quay, #01-01Singapore 049319

AUDITORSPricewaterhouseCoopers LLP7 Straits View, Marina One,

East Tower, Level 12,Singapore 018936

CUSTODIANBNP Paribas Securities Services, operating through its Singapore Branch


This report is also available on our website (www.nikkoam.com.sg)

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808594 Global Multi Asset_BN3.indd 1808594 Global Multi Asset_BN3.indd 1 18/8/20 5:14 PM18/8/20 5:14 PM

Returns (%) 3 Mth 6 Mth 1 Yr 3 Yr 5 Yr 10 Yr Since

Inception

Nikko AM Global Multi Asset Conservative Fund - SGD Class A1 5.67 4.27 6.18 N/A N/A N/A 4.99

Benchmark2 1.02 2.26 4.84 N/A N/A N/A 4.94

Source: Nikko Asset Management Asia Limited, returns as at 30 June 2020. Returns are calculated on a NAV-NAV basis, SGD, and based on the assumption that all dividends and distributions are reinvested, if any. Returns for period in excess of 1 year are annualised. Past performance is not indicative of future performance.


Inception

Nikko AM Global Multi Asset Conservative Fund - SGD Class A1 0.38 -0.95 0.87 N/A N/A N/A 2.27


Source: Nikko Asset Management Asia Limited, returns as at 30 June 2020. Returns are calculated on a NAV-NAV basis, SGD, and based on the assumption that all dividends and distributions are reinvested, if any, and take into account of maximum initial sales charge and a realisation charge, currently nil, as and where applicable. Returns for period in excess of 1 year are annualised. Past performance is not indicative of future performance.

Inception date: 17 July 2018


Inception

Nikko AM Global Multi Asset Conservative Fund - SGD Class B1 5.89 4.60 6.92 4.17 3.37 N/A 3.25

Benchmark2 1.02 2.26 4.84 4.82 4.62 N/A 4.51

Source: Nikko Asset Management Asia Limited, returns as at 30 June 2020. Returns are calculated on a NAV-NAV basis, SGD, and based on the assumption that all dividends and distributions are reinvested, if any. Returns for period in excess of 1 year are annualised. Past performance is not indicative of future performance. There is no initial sales charge and realisation charge for SGD Class B.

Inception date: 1 September 2014

Note:(1) SGD Class A was incepted on 17 July 2018. There is no initial sales charge and realisation

charge for SGD Class B.

(2) The benchmark is 12-month SIBOR + 3% per annum.

PERFORMANCE SUMMARY

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Portfolio Review

Fund gained 4.27% in 1H2020The Nikko AM Global Multi Asset Conservative Fund (SGD Class A) (the “Fund”) returned 4.27% (SGD terms, on a NAV-NAV basis) for the six months ended 30 June 2020, outperforming the benchmark return of 2.26%.

Equities, sovereign bonds, corporate bonds and alternatives all contributed to Fund performance over the period. Within equities, the Fund’s exposure to Asian and US equities led gains, as stockmarkets rebounded towards the end of the period on the back of hope of progress towards a Covid-19 vaccine. Against this, the exposure to Japan equities detracted marginally from performance.

Within sovereign bonds, gains were led by US Treasuries and emerging market (EM) local currency bonds. In the credit space, Asian bonds and Australian investment grade (IG) added to performance, but the exposure to US IG contributed negatively.

Within alternatives, the exposure to gold was the key contributor to performance over the period. The exposure to global infrastructure was also positive, whereas global REITs detracted marginally.

Market Review

The fi rst half of 2020 saw signifi cant volatility across asset classes, driven mainly by developments around the Covid-19 outbreak. The year started with the US and China offi cially signing a “Phase One” trade deal, which spurred positive risk sentiment. However, the Covid-19 outbreak soon caused global production lines to grind to a halt. Global stocks saw some of their biggest daily sell-offs since the 2008 Global Financial Crisis, while the US Treasury (UST) market experienced severe dysfunction, with yields rising amid risk aversion as funds sought to sell the most liquid assets to meet redemptions.

With signifi cant disruptions to global markets, global governments and central banks rolled out massive fi scal support measures and monetary stimulus in unison towards the end of the fi rst quarter, including deep interest rate cuts as well as quantitative easing, in hopes of stabilising markets and supporting their economies. The US Federal Reserve, for instance, implemented two emergency rate cuts of 50 basis points (bps) and 100 bps respectively in March, bringing the Fed funds rate to 0–0.25%. The European Central Bank launched a €750 billion bond purchase scheme, while central banks across Asia cut interest rates and launched stimulus packages as well.

The second quarter saw risk assets staging a strong recovery. Hopes for a pick-up in economic activity and optimism around progress towards developing a Covid-19 vaccine buoyed global equities. The MSCI All Country World Index gained 19.41% in 2Q20, for a year-to-date return of -5.98% in USD terms. Notably, US stocks gained over 20%, closing out their best quarter in 20 years, and erasing all losses from the fi rst quarter. UST yields were anchored at low levels over the second quarter but the yield curve shifted meaningfully lower over the six months to end June, with yields dropping 98 bps to 142 bps across the curve. Overall, 2-year yields ended about 142 bps lower at 0.15%, while 10-year yields dropped 126 bps to end the period at 0.66%.

Within alternatives, futures contracts on West Texas Intermediate (WTI) crude oil fell into negative territory for the fi rst time in history in April, due to a shortage in physical storage amid diminishing demand. While oil prices quickly rebounded to end June at USD 39 per barrel, this represented a year-to-date loss of over 30%. In contrast, gold prices gained over 15% in the fi rst half, buoyed by

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lower interest rates and geopolitical uncertainty. Elsewhere, real estate also saw positive returns over the period, despite signifi cant uncertainty surrounding the closure of businesses due to Covid-19.

Market Outlook & Strategy

Markets are increasingly manic, bullish on macro data that has been surprising to the upside and then bearish on signs of a second wave gathering pace in parts of the US. To be sure, the economic recovery continues with better than hoped for rebounds in employment and retail sales. While economic data is still noisy, longer-term prospects for demand likely still hinge on the evolution of Covid-19.

In contrast to the fi rst wave where testing was inadequate, social distancing was late and hospitals were overwhelmed in places like New York City, this time there is ample testing and at a minimum the elderly are remaining cautiously distant and hospitals so far remain comfortably below full capacity. Full lockdowns are unlikely, but certain activities will be restricted (again), so the return to normal demand will take longer. Importantly on the positive side, several companies are reporting progress on a vaccine, available as early as October, though broad distribution will take time.

So far, the fi scal and monetary response has been ample and policymakers stand ready to do more, which seems likely, but there are other risks on the horizon. For the upcoming US elections in November, polls are shifting quickly, which will undoubtedly add to uncertainty as autumn approaches. The outlook still favours growth, but uncertainty is on the rise making it sensible to hedge downside risk.

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This document is purely for informational purposes only with no consideration given to the specifi c investment objective, fi nancial situation and particular needs of any specifi c person. It should not be relied upon as fi nancial advice. Any securities mentioned herein are for illustration purposes only and should not be construed as a recommendation for investment. You should seek advice from a fi nancial adviser before making any investment. In the event that you choose not to do so, you should consider whether the investment selected is suitable for you. Investments in funds are not deposits in, obligations of, or guaranteed or insured by Nikko Asset Management Asia Limited (“Nikko AM Asia”).

Past performance or any prediction, projection or forecast is not indicative of future performance. The Fund or any underlying fund may use or invest in fi nancial derivative instruments. The value of units and income from them may fall or rise. Investments in the Fund are subject to investment risks, including the possible loss of principal amount invested. You should read the relevant prospectus (including the risk warnings) and product highlights sheet of the Fund, which are available and may be obtained from appointed distributors of Nikko AM Asia or our website (www.nikkoam.com.sg) before deciding whether to invest in the Fund.

The information contained herein may not be copied, reproduced or redistributed without the express consent of Nikko AM Asia. While reasonable care has been taken to ensure the accuracy of the information as at the date of publication, Nikko AM Asia does not give any warranty or representation, either express or implied, and expressly disclaims liability for any errors or omissions. Information may be subject to change without notice. Nikko AM Asia accepts no liability for any loss, indirect or consequential damages, arising from any use of or reliance on this document.

For Hong Kong Investors

The Fund may be offered to professional investors in Hong Kong or to Hong Kong investors via the private placement exemption. Hong Kong investors should note that the contents of this document have not been reviewed by any regulatory authority in Hong Kong and are advised to exercise caution in relation to the offer. If you are in any doubt about any of the contents of this document, you should obtain independent professional advice.

Nikko Asset Management Asia Limited. Registration Number 198202562H

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In their management of the Nikko AM Global Multi Asset Conservative Fund, the Managers currently do not receive or enter into any soft dollar commissions or arrangements.

SOFT DOLLAR COMMISSIONS/ARRANGEMENTS

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NIKKO AM GLOBAL MULTI ASSET CONSERVATIVE FUND (Constituted under a Trust Deed registered in the Republic of Singapore)

STATEMENT OF TOTAL RETURN For the financial period from 01 January 2020 to 30 June 2020 (unaudited) 30 June 2020 30 June 2019 S$ S$ Income Dividends 67,824 49,686 Interest on cash and bank balances 499 2,685 Other Income - 193 68,323 52,564 Less: Expenses Management fee 75,297 78,622 Management fee rebate (8,189) (13,341) Registrar fee 2,008 1,730 Trustee fee 3,606 3,341 Custody fee 2,109 1,377 Audit fee 6,353 6,203 Valuation fee 4,808 4,455 Transaction costs 30,360 13,117 Other expenses 18,133 23,024 134,485 118,528 Net losses (66,162) (65,964) Net gains or losses on value of investments and

financial derivatives Net gains on investments 889,243 1,490,363 Net foreign exchange losses (33,329) (14,618) Net gains/(losses) on financial derivatives 380,864 (18,924) 1,236,778 1,456,821 Total return for the financial period before income tax 1,170,616 1,390,857 Less: Income tax (10,598) (3,143) Total return for the financial period after income tax 1,160,018 1,387,714

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STATEMENT OF FINANCIAL POSITION As at 30 June 2020 (unaudited) 30 June 2020 31 December 2019

S$

S$

ASSETS Portfolio of investments 24,086,214 25,037,601 Sales awaiting settlement 613,599 273,034 Receivables 8,169 7,298 Cash and bank balances 2,685,104 861,312 Margin and collateral accounts 162,310 193,141 Financial derivatives at fair value 93,929 54,860 Total assets 27,649,325 26,427,246 LIABILITIES Payables 49,383 86,836 Margin and collateral withheld 3 - Purchases awaiting settlement - 164,639 Financial derivatives at fair value 58,468 57,765 Total liabilities 107,854 309,240 EQUITY Net assets attributable to unitholders 27,541,471 26,118,006

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STATEMENT OF MOVEMENTS OF UNITHOLDERS' FUNDS For the financial period from 01 January 2020 to 30 June 2020 (unaudited) 30 June 2020 31 December 2019 S$ S$ Net assets attributable to unitholders at the

beginning of the financial period/year 26,118,006 24,801,832 Operations Change in net assets attributable to unitholders resulting

from operations 1,160,018 1,898,552 Unitholders' contributions/(withdrawals) Creation of units 1,004,410 2,008,395 Cancellation of units (740,963) (2,590,773) Change in net assets attributable to unitholders resulting

from net creation and cancellation of units 263,447 (582,378) Total increases in net assets attributable to unitholders 1,423,465 1,316,174 Net assets attributable to unitholders at the end of

the financial period/year 27,541,471 26,118,006

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NIKKO AM GLOBAL MULTI ASSET CONSERVATIVE FUND (Constituted under a Trust Deed registered in the Republic of Singapore) STATEMENT OF PORTFOLIO As at 30 June 2020 (unaudited) By Geography (Primary)

Holdings at 30 June 2020

Fair value at 30 June 2020

Percentage of total net assets attributable to unitholders at 30 June 2020

S$ % Quoted Equities BRITAIN Compass Group Public Listed Company 3,348 64,173 0.23 Johnson Matthey Public Listed Company 1,171 42,347 0.16 LivaNova Public Listed Company 833 55,931 0.20 Prudential Public Listed Company 3,692 77,544 0.28 Rentokil Initial Public Listed Company 4,799 42,154 0.15 Unilever Public Listed Company 988 74,167 0.27 Weir Group Public Listed Company 1,885 34,555 0.13 Total BRITAIN 390,871 1.42 CANADA Brookfield Infrastructure Corporation 294 18,678 0.07 Brookfield Infrastructure Partners LP 3,157 181,056 0.65 Total CANADA 199,734 0.72 FRANCE Schneider Electric SE 474 73,437 0.27 Total FRANCE 73,437 0.27 GERMANY HelloFresh SE 853 63,378 0.23 Total GERMANY 63,378 0.23 IRELAND Accenture Public Listed Company 355 106,249 0.39 Kerry Group Public Listed Company 518 89,360 0.32 Kingspan Group Public Listed Company 661 59,397 0.22 Total IRELAND 255,006 0.93 ISRAEL SolarEdge Technologies Incorporated 286 55,371 0.20 Total ISRAEL 55,371 0.20 JAPAN Aeon Financial Service Company Limited 800 12,155 0.04 AS One Corporation 100 15,233 0.05 Daikin Industries Limited 100 22,416 0.08 Electric Power Development Company Limited 600 15,866 0.05 Fujifilm Holdings Corporation 300 17,883 0.06 Hitachi Limited 300 13,201 0.05 Honda Motor Company Limited 700 24,942 0.09 Komatsu Limited 600 17,096 0.06 Mitsubishi Corporation 700 20,547 0.07 Mitsubishi Electric Corporation 1,000 18,097 0.07 Mitsubishi UFJ Financial Group Incorporated 4,800 26,168 0.10 Mitsui Fudosan Company Limited 600 14,815 0.05 Murata Manufacturing Company Limited 200 16,334 0.06 Nexon Company Limited 400 12,605 0.05 Nippon Densetsu Kogyo Company Limited 600 18,489 0.07 Nippon Telegraph & Telephone Corporation 900 29,275 0.11 Nitori Holdings Company Limited 100 27,317 0.10 NTT Docomo Incorporated 500 18,633 0.07 Pan Pacific International Holdings Corporation 400 12,253 0.04

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NIKKO AM GLOBAL MULTI ASSET CONSERVATIVE FUND (Constituted under a Trust Deed registered in the Republic of Singapore) STATEMENT OF PORTFOLIO As at 30 June 2020 (unaudited) By Geography (Primary) (continued)




S$ % Quoted Equities (continued) JAPAN (continued) Pilot Corporation 300 12,705 0.05 Recruit Holdings Company Limited 500 23,806 0.09 Rohm Company Limited 100 9,233 0.03 Santen Pharmaceutical Company Limited 700 17,949 0.07 Seven & I Holdings Company Limited 400 18,207 0.07 Shionogi & Company Limited 200 17,457 0.06 Softbank Group Corporation 300 21,142 0.08 Sony Corporation 300 28,645 0.10 Sumitomo Mitsui Financial Group Incorporated 600 23,524 0.09 Sumitomo Warehouse Company Limited 1,000 16,733 0.06 TDK Corporation 100 13,810 0.05 Terumo Corporation 400 21,108 0.08 THK Company Limited 500 17,224 0.06 Toagosei Company Limited 1,300 17,718 0.06 Tokio Marine Holdings Incorporated 300 18,225 0.07 Toyo Suisan Kaisha Limited 200 15,595 0.06 Toyota Motor Corporation 500 43,719 0.16 Trend Micro Incorporation 200 15,569 0.05 Tsumura & Company 400 14,586 0.05 West Japan Railway Company 200 15,636 0.06 Z Holdings Corporation 2,300 15,644 0.06 Total JAPAN 751,560 2.73 NETHERLANDS Koninklijke Philips NV 1,544 100,446 0.36 Total NETHERLANDS 100,446 0.36 SWEDEN Hexagon AB 989 80,561 0.29 Total SWEDEN 80,561 0.29 UNITED STATES OF AMERICA Adobe Incorporated 178 108,096 0.39 Amazon.com Incorporated 48 184,552 0.67 Anthem Incorporated 258 94,537 0.34 Bio-Techne Corporation 265 97,624 0.35 Burford Capital Limited 2,412 19,333 0.07 Coca-Cola Company 1,083 67,429 0.25 Danaher Corporation 222 54,764 0.20 Dolby Laboratories Incorporated 922 84,724 0.31 Gentex Corporation 1,318 47,383 0.17 Laboratory Corporation of America Holdings 455 105,438 0.38 LHC Group Incorporated 597 145,182 0.53 Microsoft Corporation 695 197,315 0.72 Palomar Holdings Incorporated 698 83,508 0.30 Progressive Corporation 1,018 113,698 0.41 SVB Financial Group 289 86,895 0.32 TJX Cos Incorporation 1,278 90,142 0.33 Transunion 926 112,440 0.41 Verisk Analytics Incorporated 225 53,423 0.19

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S$ % Quoted Equities (continued)

UNITED STATES OF AMERICA (continued) Woodward Incorporated 600 64,861 0.24 Total UNITED STATES OF AMERICA 1,811,344 6.58 Total Quoted Equities 3,781,708 13.73 Quoted Fixed Income Securities AUSTRALIA Optus Finance Pty Limited 3.24% due 29/09/2022 250,000 256,064 0.94 Queensland Treasury Corporation 3.25% due 21/07/2028 510,000 570,831 2.07 Western Australian Treasury Corporation 3.25% due

20/07/2028 510,000 571,482 2.07 Total AUSTRALIA 1,398,377 5.08 BRITISH VIRGIN ISLANDS China Huadian Overseas Development 2018 Limited

3.375% due 31/12/2060 200,000 281,800 1.02 CNOOC Finance 2012 Limited 3.875% due 02/05/2022 200,000 291,827 1.06 Huarong Finance 2019 Company Limited 1.4845% due

24/02/2023 200,000 268,123 0.98 Total BRITISH VIRGIN ISLANDS 841,750 3.06 CANADA Canadian Government Bond 2.25% due 01/06/2029 420,000 496,508 1.80 Total CANADA 496,508 1.80 CAYMAN ISLANDS Sun Hung Kai Properties Capital Market Limited 3.25%

due 20/05/2021 250,000 254,241 0.92 Total CAYMAN ISLANDS 254,241 0.92 CHINA China Government Bond 3.03% due 24/06/2024 1,000,000 201,511 0.73 China Government Bond 3.3% due 04/07/2023 500,000 101,324 0.37 China Government Bond 3.31% due 30/11/2025 500,000 102,148 0.37 China Government Bond 3.39% due 21/05/2025 3,500,000 717,598 2.61 China Government Bond 4.5% due 22/05/2034 500,000 111,516 0.40 China Construction Bank Corporation 2.08% due

26/10/2020 250,000 250,438 0.91 China Construction Bank Corporation 2.643% due

21/09/2020 250,000 250,546 0.91 Total CHINA 1,735,081 6.30 INDONESIA Indonesia Treasury Bond 6.5% due 15/06/2025 6,350,000,000 619,442 2.25 Total INDONESIA 619,442 2.25 MALAYSIA Danga Capital Berhad 3.725% due 11/08/2020 250,000 251,094 0.91 Total MALAYSIA 251,094 0.91

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S$ % Quoted Fixed Income Securities (continued)

MEXICO Mexican Bonos 8.5% due 31/05/2029 6,500,000 465,456 1.69 Total MEXICO 465,456 1.69 SINGAPORE Ascendas Real Estate Investment Trust 2.47% due

10/08/2023 250,000 253,392 0.92 Ascendas Real Estate Investment Trust 3.14% due

02/03/2025 250,000 259,051 0.94 Capitaland Treasury Limited 3.8% due 28/08/2024 250,000 265,752 0.97 CMT MTN Private Limited 3.2% due 21/08/2025 250,000 258,804 0.94 DBS Group Holdings Limited 2.78% due 11/01/2021 250,000 251,999 0.92 Great Eastern Life Assurance Company Limited 4.6% due

19/01/2026 250,000 253,425 0.92 Housing & Development Board 2.675% due 22/01/2029 250,000 280,242 1.02 Land Transport Authority of Singapore 2.73% due

18/09/2020 250,000 251,136 0.91 Mapletree Commercial Trust Treasury Company Private

Limited 3.05% due 22/11/2029 250,000 253,420 0.92 Public Utilities Board 3.52% due 26/10/2020 250,000 252,589 0.92 RCS Trust 3.2% due 14/03/2025 250,000 256,052 0.93 Singapore Airlines Limited 3.03% due 28/03/2024 250,000 251,007 0.91 Singapore Government Bond 2% due 01/07/2020 100,000 100,000 0.36 Singapore Press Holdings Limited 3.2% due 22/01/2030 250,000 248,803 0.90 Singapore Technologies Telemedia Private Limited 4.05%

due 02/12/2025 250,000 267,288 0.97 Singtel Group Treasury Private Limited 2.72% due

03/09/2021 250,000 253,604 0.92 United Overseas Bank Limited 3.5% due 27/02/2029 250,000 261,840 0.95 Total SINGAPORE 4,218,404 15.32 SUPRANATIONAL Asian Development Bank 6.45% due 08/08/2021 13,500,000 254,136 0.92 International Finance Corporation 6.3% due 25/11/2024 13,900,000 263,759 0.96 Total SUPRANATIONAL 517,895 1.88 UNITED STATES OF AMERICA United States Treasury Note/Bond 1.5% due 15/02/2030 310,000 467,587 1.69 United States Treasury Note/Bond 2.625% due 15/02/2029 340,000 555,905 2.02 Total UNITED STATES OF AMERICA 1,023,492 3.71 Accrued interest receivable on quoted fixed income

securities 90,365 0.33 Total Quoted Fixed Income Securities 11,912,105 43.25

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S$ % Quoted Investment Funds

BRITAIN HICL Infrastructure Public Listed Company 70,178 209,030 0.76 Total BRITAIN 209,030 0.76 GUERNSEY International Public Partnerships Limited 72,304 209,380 0.76 Total GUERNSEY 209,380 0.76 HONG KONG SAR Premia CSI Caixin China New Economy ETF 123,000 217,741 0.79 Total HONG KONG SAR 217,741 0.79 IRELAND iShares EUR Corporation Bond Large Cap UCITS ETF 2,419 522,850 1.90 iShares Physical Gold ETC 37,975 1,848,104 6.71 Total IRELAND 2,370,954 8.61 JAPAN iShares Core Japan REIT ETF 3,091 68,548 0.25 Total JAPAN 68,548 0.25 JERSEY 3i Infrastructure Public Listed Company 40,857 205,995 0.75 Total JERSEY 205,995 0.75 LUXEMBOURG Nikko AM Global Umbrella Fund - Nikko AM Asia ex

Japan Fund 52,565 1,190,159 4.32 Total LUXEMBOURG 1,190,159 4.32 SINGAPORE Nikko AM ASEAN Equity Fund 305,839 326,330 1.18 Nikko AM Shenton Thrift Fund 167,767 333,185 1.21 NikkoAM-StraitsTrading Asia ex Japan REIT ETF 90,110 99,121 0.36 Total SINGAPORE 758,636 2.75 UNITED STATES OF AMERICA iShares Broad USD Investment Grade Corporate Bond ETF 19,588 1,651,052 5.99 iShares Core US REIT ETF 1,995 121,010 0.44 iShares MSCI Singapore ETF 30 786 - Vaneck Vectors Russia ETF 6,595 190,907 0.70 Vanguard Intermediate-Term Corporate Bond ETF 8,544 1,134,003 4.12 Total UNITED STATES OF AMERICA 3,097,758 11.25 Total Quoted Investment Funds 8,328,201 30.24

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S$ % Quoted Real Estate Investment Trusts

UNITED STATES OF AMERICA American Tower Corporation 178 64,200 0.23 Total UNITED STATES OF AMERICA 64,200 0.23 Total Quoted Real Estate Investment Trusts 64,200 0.23 Portfolio of investments 24,086,214 87.45 Other net assets 3,455,257 12.55 Net assets attributable to unitholders 27,541,471 100.00

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NIKKO AM GLOBAL MULTI ASSET CONSERVATIVE FUND (Constituted under a Trust Deed registered in the Republic of Singapore) STATEMENT OF PORTFOLIO As at 30 June 2020 (unaudited) By Geography (Summary)

Percentage of

total net assets attributable to unitholders at

30 June 2020

Percentage of total net assets attributable to unitholders at 31 December

2019 % %

Quoted Equities Britain 1.42 2.90 Canada 0.72 0.88 France 0.27 - Germany 0.23 - Ireland 0.93 0.29 Israel 0.20 - Italy - 0.35 Japan 2.73 3.84 Netherlands 0.36 0.58 Sweden 0.29 0.43 United States of America 6.58 5.16 Total Quoted Equities 13.73 14.43 Quoted Fixed Income Securities Australia 5.08 11.87 British Virgin Islands 3.06 3.14 Canada 1.80 - Cayman Islands 0.92 0.97 China 6.30 5.17 France - 3.24 Indonesia 2.25 2.37 Malaysia 0.91 0.97 Mexico 1.69 1.98 Peru - 1.94 Singapore 15.32 18.90 Supranational 1.88 - United States of America 3.71 2.24 Accrued interest receivables on quoted fixed income securities 0.33 0.41 Total Quoted Fixed Income Securities 43.25 53.20 Quoted Investment Funds Britain 0.76 0.71 Guernsey 0.76 0.71 Hong Kong SAR 0.79 1.46 Ireland 8.61 7.66 Japan 0.25 - Jersey 0.75 0.75 Luxembourg 4.32 6.35 Singapore 2.75 3.53 United States of America 11.25 6.89 Total Quoted Investment Funds 30.24 28.06

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NIKKO AM GLOBAL MULTI ASSET CONSERVATIVE FUND (Constituted under a Trust Deed registered in the Republic of Singapore) STATEMENT OF PORTFOLIO As at 30 June 2020 (unaudited) By Geography (Summary) (continued)

Percentage of

total net assets attributable to unitholders at

30 June 2020


2019 % %

Quoted Real Estate Investment Trusts United States of America 0.23 0.17 Total Quoted Real Estate Investment Trusts 0.23 0.17 Portfolio of investments 87.45 95.86 Other net assets 12.55 4.14 Net assets attributable to unitholders 100.00 100.00

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NIKKO AM GLOBAL MULTI ASSET CONSERVATIVE FUND (Constituted under a Trust Deed registered in the Republic of Singapore) STATEMENT OF PORTFOLIO As at 30 June 2020 (unaudited)

By Industry (Secondary)

Fair value at 30 June

2020

Percentage of total net assets attributable to unitholders at

30 June 2020


2019 S$

%

%

Airlines 251,007 0.91 0.98 Auto Manufacturers 68,661 0.25 0.35 Banks 1,163,565 4.23 9.22 Beverages 67,429 0.25 0.35 Building Materials 81,813 0.30 0.15 Chemicals 60,065 0.22 0.64 Closed-end Funds 624,405 2.27 0.75 Commercial Services 231,823 0.84 1.99 Commodity Fund 786 - 4.64 Computers 106,249 0.39 0.29 Cosmetics/Personal Care 74,167 0.27 0.79 Debt Fund 2,500,232 9.08 8.70 Distribution/Wholesale 20,547 0.07 0.12 Diversified Financial Services 301,133 1.09 0.09 Electric 196,922 0.72 1.92 Electrical Component & Equipment 73,437 0.27 - Electronics 142,388 0.52 0.46 Energy-Alternate Sources 55,371 0.20 - Engineering and Construction 18,489 0.07 0.09 Entertainment - - 0.07 Equity Fund 5,202,778 18.89 12.54 Food 186,540 0.68 0.42 Food Service 64,173 0.23 0.51 Gas - - 0.39 Healthcare-Products 345,106 1.25 1.61 Healthcare-Services 345,157 1.25 0.82 Home Builders - - 0.10 Home Furnishings 113,369 0.41 0.38 Household Products/Wares 12,705 0.05 0.06 Insurance 546,400 1.98 1.99 Internet 215,765 0.78 0.45 Investment Companies 554,089 2.01 2.39 Machinery-Construction & Mining 82,949 0.30 0.29 Machinery-Diversified 97,785 0.36 0.80 Media 248,803 0.90 - Multi-National 517,895 1.88 - Office/Business Equipment 17,883 0.06 - Oil and Gas 291,827 1.06 2.10 Pharmaceuticals 49,992 0.18 0.30 Real Estate 534,808 1.94 7.09 Real Estate Investment Trusts (REITS) 1,344,919 4.88 0.17 Regional(state/province) 1,142,313 4.15 5.36 Retail 129,712 0.47 0.32 Semiconductors 9,233 0.03 0.47 Software 318,016 1.15 0.85 Sovereign 4,974,056 18.06 20.07 Storage/Warehousing 16,733 0.06 0.06

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NIKKO AM GLOBAL MULTI ASSET CONSERVATIVE FUND (Constituted under a Trust Deed registered in the Republic of Singapore) STATEMENT OF PORTFOLIO As at 30 June 2020 (unaudited)

By Industry (Secondary) (continued)


2020


30 June 2020


2019 S$

%

%

Telecommunications 578,718 2.10 4.17 Transportation 15,636 0.06 0.14 Accrued interest receivables on quoted fixed

income securities

90,365

0.33

0.41 Portfolio of investments 24,086,214 87.45 95.86 Other net assets 3,455,257 12.55 4.14 Net assets attributable to unitholders 27,541,471 100.00 100.00

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NIKKO AM GLOBAL MULTI ASSET CONSERVATIVE FUND (Constituted under a Trust Deed registered in the Republic of Singapore) REPORT TO UNITHOLDERS For the financial period from 01 January 2020 to 30 June 2020 (unaudited)

The following contains additional information relating to the Fund. 1. Distribution of investments

Please refer to the Statement of Portfolio on pages 10 to 19.

2. Credit rating of debt securities


2020 S$

Percentage of total net assets

attributable to unitholders at 30 June 2020

% AAA* 2,921,862 10.61 AA+ 1,142,313 4.15 A+ 799,493 2.90 A 504,150 1.83 A- 512,116 1.86 BBB+ 465,456 1.69 A1u 829,114 3.01 A2 543,640 1.97 A2 *- 258,804 0.94 A3 512,443 1.86 Baa1 268,123 0.97 Not rated 3,064,226 11.13 Accrued interest receivables on quoted fixed income

securities 90,365 0.33 Total 11,912,105 43.25

* The balance includes securities that are issued by government agencies of government that have an AAA rating as rated by Standard & Poor’s.

3. Top 10 holdings 10 Largest holdings at 30 June 2020

Fair value S$


attributable to unitholders

% iShares Physical Gold ETC 1,848,104 6.71

iShares Broad USD Investment Grade Corporate Bond

ETF 1,651,052 5.99

Nikko AM Global Umbrella Fund - Nikko AM Asia ex Japan

Fund 1,190,159 4.32 Vanguard Intermediate-Term Corporate Bond ETF 1,134,003 4.12 China Government Bond 3.39% due 21/05/2025 717,598 2.61 Indonesia Treasury Bond 6.5% due 15/06/2025 619,442 2.25

Western Australian Treasury Corporation 3.25% due

20/07/2028 571,482 2.07 Queensland Treasury Corporation 3.25% due 21/07/2028 570,831 2.07 United States Treasury Note/Bond 2.625% due 15/02/2029 555,905 2.02 iShares EUR Corporation Bond Large Cap UCITS ETF 522,850 1.90

20


NIKKO AM GLOBAL MULTI ASSET CONSERVATIVE FUND (Constituted under a Trust Deed registered in the Republic of Singapore) REPORT TO UNITHOLDERS For the financial period from 01 January 2020 to 30 June 2020 (unaudited) 3. Top 10 holdings (continued)

10 Largest holdings at 30 June 2019

Fair value S$



% Nikko AM Shenton Short Term Bond Fund 2,225,226 9.02

Nikko AM Global Umbrella Fund - Nikko AM Asia ex Japan

Fund 1,583,673 6.42 Canadian Government Bond 2.25% due 01/06/2029 1,495,841 6.06 iShares Physical Gold ETC 1,158,498 4.69 Nikko AM Shenton Thrift Fund 1,041,991 4.22

French Republic Government Bond O.A.T 0.5% due

25/05/2029 873,761 3.54 United States Treasury Note 2.625% due 15/02/2029 799,076 3.24 iShares EUR Corporation Bond Large Cap UCITS ETF 622,932 2.52 NikkoAM-StraitsTrading Asia ex Japan REIT ETF 581,100 2.35 Queensland Treasury Corporation 3.25% due 21/07/2028 501,221 2.03 4. Exposure to financial derivatives


S$



30 June 2020 %

Unrealised gains/(losse

s) S$

Realised gains/(losses)

S$ Forward foreign

exchange contracts 16,503 0.06 16,503 (68,432) Futures contracts - - - 233,573 Option contracts 18,958 0.07 (12,257) 211,478 Rights - - - 196

5. Global exposure to financial derivatives

The global exposure to financial derivatives is computed using the commitment approach which is calculated as the sum of: a. the absolute value of the exposure of each individual financial derivative not involved in

netting or hedging arrangements; b. the absolute value of the net exposure of each individual financial derivative after netting

or hedging arrangements; and c. the sum of the values of cash collateral received pursuant to:

i. the reduction of exposure to counterparties of OTC financial derivatives; and ii. EPM techniques relating to securities lending and repurchase transactions, and that are

reinvested.

21


NIKKO AM GLOBAL MULTI ASSET CONSERVATIVE FUND (Constituted under a Trust Deed registered in the Republic of Singapore) REPORT TO UNITHOLDERS For the financial period from 01 January 2020 to 30 June 2020 (unaudited) 6. Collateral

30 June 2020 31 December 2019 S$ S$ Margin account 162,310 193,141 Margin account overdraft (3) -

Margin account represent deposits/(overdraft) in respect of open exchange-traded options contracts held with BNP Paribas Securities Services, operating through its Singapore Branch.

7. Securities lending or repurchase transactions

Nil.

8. Investment in unit trusts, mutual funds and collective investment schemes


9. Borrowings

Nil.

10. Amount of units created and cancelled for the financial period ended 30 June 2020

S$ Units created 1,004,410 Units cancelled (740,963)

11. Turnover ratio 30 June

2020 30 June

2019 Lower of total value of purchases or sales S$ 13,291,614 11,763,800 Average daily net asset value S$ 26,787,507 24,957,857 Total turnover ratio1 % 49.62 47.13 1 The portfolio turnover ratio is calculated in accordance with the formula stated in the Code on Collective Investment

Schemes. The calculation of the portfolio turnover ratio was based on the lower of the total value of purchases or sales of the underlying investments, divided by the average daily net asset value.

22


NIKKO AM GLOBAL MULTI ASSET CONSERVATIVE FUND (Constituted under a Trust Deed registered in the Republic of Singapore) REPORT TO UNITHOLDERS For the financial period from 01 January 2020 to 30 June 2020 (unaudited) 12. Expense ratio

30 June 2020

30 June 2019

SGD Class A Total operating expenses S$ 127,576 141,873 Average daily net asset value S$ 10,609,961 12,353,348 Total expense ratio2

(including Underlying Fund's expense ratio) % 1.27 1.35 Weighted average of the Underlying Fund's

unaudited expense ratio % 0.07 0.15 30 June

2020 30 June

2019 SGD Class B Total operating expenses S$ 71,362 71,600 Average daily net asset value S$ 15,457,947 13,396,557 Total expense ratio2

(including Underlying Fund's expense ratio) % 0.53 0.68 Weighted average of the Underlying Fund's

unaudited expense ratio % 0.07 0.15 2 The expense ratio has been computed based on the guidelines laid down by the Investment Management

Association of Singapore ("IMAS"). This is the sum of the Fund's expense ratio and the weighted average of the underlying Fund's unaudited expense ratio. The calculation of the expense ratio at financial year end was based on total operating expenses divided by the average net asset value for the 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 Fund does not pay any performance fee. The average net asset value is based on the daily balances.

13. Related party transactions

The Manager of the Fund is Nikko Asset Management Asia Limited, a subsidiary of Nikko Asset Management International Limited. The Trustee of the Fund is BNP Paribas Trust Services Singapore Limited (the "Trustee"). Management fee is payable to the Manager. Trustee fee and registrar fee are payable to the Trustee. Custody fee and valuation fee are payable to a related company of the Trustee, BNP Paribas Securities Services operating through its Singapore Branch. In addition to related party information shown elsewhere in the financial statements (including the Statement of Portfolio), the following significant transactions took place during the financial period between the Fund and a related party at terms agreed between the parties and within the provisions of the Deeds: 30 June

2020 31 December

2019 S$ S$ Bank balances held with related party of the Trustee 2,685,104 861,312 Margin account held with related party of the Trustee 162,310 193,141 Margin overdraft with related party of the Trustee (3) -

23


NIKKO AM GLOBAL MULTI ASSET CONSERVATIVE FUND (Constituted under a Trust Deed registered in the Republic of Singapore) REPORT TO UNITHOLDERS For the financial period from 01 January 2020 to 30 June 2020 (unaudited)

14. Any other material information that will adversely impact the valuation of the fund

Nil.

24


blank.indd 1blank.indd 1 18/8/20 5:06 PM18/8/20 5:06 PM

12 Marina View, #18-02 Asia Square Tower 2, Singapore 018961Intermediaries Hotline: 1800 535 8025 / 65 6535 8025Website: www.nikkoam.com.sg

Company registration number 198202562H


ANNUAL REPORT






Seet Oon Hui EleanorYu-Ming Wang (resigned with effect from 24 January 2020)








1


Inception

Nikko AM Global Multi Asset Conservative Fund - SGD Class A1 0.96 1.83 7.43 N/A N/A N/A 3.74


Source: Nikko Asset Management Asia Limited, returns as at 31 December 2019. Returns are calculated on a NAV-NAV basis, SGD, and based on the assumption that all dividends and distributions are reinvested, if any. Returns for period in excess of 1 year are annualised. Past performance is not indicative of future performance.


Inception

Nikko AM Global Multi Asset Conservative Fund - SGD Class A1 -4.09 -3.26 2.06 N/A N/A N/A 0.15


Source: Nikko Asset Management Asia Limited, returns as at 31 December 2019. Returns are calculated on a NAV-NAV basis, SGD, and based on the assumption that all dividends and distributions are reinvested, if any, and take into account of maximum initial sales charge and a realisation charge, currently nil, as and where applicable. Returns for period in excess of 1 year are annualised. Past performance is not indicative of future performance.



Inception

Nikko AM Global Multi Asset Conservative Fund - SGD Class B1 1.14 2.22 8.27 3.17 2.75 N/A 2.69

Benchmark2 1.24 2.53 5.12 4.79 4.56 N/A 4.50

Source: Nikko Asset Management Asia Limited, returns as at 31 December 2019. Returns are calculated on a NAV-NAV basis, SGD, and based on the assumption that all dividends and distributions are reinvested, if any. Returns for period in excess of 1 year are annualised. Past performance is not indicative of future performance. There is no initial sales charge and realisation charge for SGD Class B.


Note:(1) SGD Class A was incepted on 17 July 2018. There is no initial sales charge and realisation charge

for SGD Class B.


PERFORMANCE SUMMARY

2

Portfolio Review

Fund gained 7.43% in 2019The Nikko AM Global Multi Asset Conservative Fund (SGD Class A) (the “Fund”) returned 7.43% (SGD terms, on a NAV-NAV basis) for the year ended 31 December 2019, outperforming the benchmark return of 5.12%.

Equities, sovereign bonds, corporate bonds and alternatives all contributed to Fund performance over the year. Towards the year-end, an anticipated “Phase One” trade deal between the US and China, and continued central bank stimulus, sparked a rally in global stocks. Within the Fund, our exposure to Asian and US equities led gains. US stocks closed the year near all-time highs, with the S&P 500 surging by over 30% in 2019. In Asia, South Korean and Taiwanese stocks were buoyed by robust gains in technology shares.

The exposure to sovereign bonds also contributed to performance, with notable strength in Australian sovereign bonds and US Treasuries. Within the credit space, Asian credit was the standout performer, followed by Australian and US investment grade bonds.

Within alternatives, the exposure to gold, global infrastructure and global REITs all contributed positively to Fund returns. Gold ended over 18% higher in 2019, while global REITs gained over 22%. Conversely, downside protection detracted marginally from performance over the year.

Market Review

2019 was a volatile year, with headlines dominated by the protracted trade conflict between the US and China. Although the year started with optimism that a compromise would be reached, a flare-up in May ended with both countries hiking tariffs on each other’s imports. In December, an eventual US-China trade truce that halted fresh US tariffs on Chinese goods, and the anticipated signing of a “Phase One” trade deal, sparked a year-end rally in global stocks. The continued backdrop of central bank stimulus also lifted market sentiment. US stocks closed the year near all-time highs, with the S&P 500 gaining over 30% in 2019.

The increasingly dovish tilt of major central banks supported global bonds and risk assets over the year. After having raised its benchmark rate four times in 2018, the US Federal Reserve reversed course and delivered three rate cuts of 25 basis points (bps) each over the second half of 2019. The European Central Bank lowered its deposit rate by 10bps and launched a new bond-buying programme. Elsewhere, the People’s Bank of China (PBOC) also reduced its one-year benchmark lending rate and cut its reserve requirement ratio. There was a sizable drop in UST yields over the year, prompted mainly by the US Fed’s policy shift. Overall, 10-year UST yields ended the period at 1.92%, about 70 bps lower compared to a year ago.

In currencies, the USD weakened against most of its global counterparts towards the year-end, largely on the back of easing tensions with China. This provided a boost to commodity prices over the second half. Gold ended over 7% higher in 2H19 and has gained more than 18% over the year. Oil prices also rose: WTI crude prices ended the year up almost 35%. REITs had a more muted second half, but remained one of the best-performing alternatives with a gain of over 22% in 2019.


The growth outlook remains positive over the long term on the premise that the ongoing coronavirus outbreak will ultimately be contained without a major long term impact on global demand. However, in the short term, strong efforts to contain the virus in China will disrupt global supply chains, crimping production across Asia and, to some extent, around the world.

3

The extent of the impact will depend on how long it takes before there is relative clarity on the magnitude of the outbreak. On one hand, the coronavirus is spreading quickly, faster than the Severe Acute Respiratory Syndrome outbreak in 2003, but notably the mortality rate is relatively low and the number of cases outside of China is small. The incubation rate is long, around ten days (as advised), so the number of cases is likely to accelerate in the coming weeks before the success of the containment efforts are fully realised.

In the meantime, it makes sense to protect the downside until efforts to contain the virus are realised, as evidenced by a levelling off of new cases. While subsequent market data will appear grim, we expect a V-shape recovery where lost demand is mostly regained, which markets should price in very quickly.

4

This document is purely for informational purposes only with no consideration given to the specific investment objective, financial situation and particular needs of any specific person. It should not be relied upon as financial advice. Any securities mentioned herein are for illustration purposes only and should not be construed as a recommendation for investment. You should seek advice from a financial adviser before making any investment. In the event that you choose not to do so, you should consider whether the investment selected is suitable for you. Investments in funds are not deposits in, obligations of, or guaranteed or insured by Nikko Asset Management Asia Limited (“Nikko AM Asia”).

Past performance or any prediction, projection or forecast is not indicative of future performance. The Fund or any underlying fund may use or invest in financial derivative instruments. The value of units and income from them may fall or rise. Investments in the Fund are subject to investment risks, including the possible loss of principal amount invested. You should read the relevant prospectus (including the risk warnings) and product highlights sheet of the Fund, which are available and may be obtained from appointed distributors of Nikko AM Asia or our website (www.nikkoam.com.sg) before deciding whether to invest in the Fund.

The information contained herein may not be copied, reproduced or redistributed without the express consent of Nikko AM Asia. While reasonable care has been taken to ensure the accuracy of the information as at the date of publication, Nikko AM Asia does not give any warranty or representation, either express or implied, and expressly disclaims liability for any errors or omissions. Information may be subject to change without notice. Nikko AM Asia accepts no liability for any loss, indirect or consequential damages, arising from any use of or reliance on this document.


The Fund may be offered to professional investors in Hong Kong or to Hong Kong investors via the private placement exemption. Hong Kong investors should note that the contents of this document have not been reviewed by any regulatory authority in Hong Kong and are advised to exercise caution in relation to the offer. If you are in any doubt about any of the contents of this document, you should obtain independent professional advice.


5



6

NIKKO AM GLOBAL MULTI ASSET CONSERVATIVE FUND

6

REPORT OF THE TRUSTEE

The Trustee is under a duty to take into custody and hold the assets of Nikko AM Global Multi Asset Conservative 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, 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.

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 12 to 4 5, in accordance with the limitations imposed on the investment and borrowing powers set out in the Trust Deed.

For and on behalf of the TrusteeBNP Paribas Trust Services Singapore Limited

Authorised signatory27 March 2020

7


7

STATEMENT BY THE MANAGER

In the opinion of Nikko Asset Management Asia Limited, the accompanying financial statements set out on pages 1 to 4 , comprising the Statement of Total Return, Statement of Financial Position, Statement of Movements of Unitholders’ Funds, Statement of Portfolio and Notes to the Financial Statements are drawn up so as to present fairly, in all material respects, the financial position and the portfolio holdings of Nikko AM Global Multi Asset Conservative Fund (the “Fund”) as at 31 December 2019, and the financial performance and movements in unitholders’ funds 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 Singapore Chartered Accountants. 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 ManagerNikko Asset Management Asia Limited

Authorised signatory27 March 2020

8

8

INDEPENDENT AUDITOR’S REPORT TO THE UNITHOLDERS OF NIKKO AM GLOBAL MULTI ASSET CONSERVATIVE FUND

In our opinion, the accompanying financial statements of Nikko AM Global Multi Asset Conservative Fund (the “Fund”) 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 all material respects, the financial position and portfolio holdings of the Fund as at 31 December 2019, and of the financial performance and movements of unitholders’ funds for the financial year ended on that date.

The financial statements of the Fund comprise:the Statement of Total Return for the financial year ended 31 December 2019;the Statement of Financial Position as at 31 December 2019;the Statement of Movements of Unitholders’ Funds for the financial year ended 31 December 2019;the Statement of Portfolio as at 31 December 2019; andthe notes to the financial statements, including a summary of significant accounting policies.

We conducted our audit in accordance with Singapore Standards on Auditing (“SSAs”). Our responsibilities under those standards 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.

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

The Fund’s Manager (the “Manager”) is responsible for the other information. The other information comprises all sections of 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 express any form of assurance 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 the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

9

9

INDEPENDENT AUDITOR’S REPORTTO THE UNITHOLDERS OF NIKKO AM GLOBAL MULTI ASSET CONSERVATIVE FUND

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 the recommendations of Statement of Recommended Accounting Practice 7 “Reporting Framework for Unit Trusts” issued by the Institute of Singapore Chartered Accountants 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.

In preparing the financial statements, the Manager is responsible for assessing the Fund’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Manager either intends to terminate the Fund or to cease the Fund’s operations, or has no realistic alternative but to do so.

The Manager's responsibilities include overseeing the Fund's 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 material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

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

Obtain an understanding of internal control relevant to the audit 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 Fund’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Manager.

Conclude on the appropriateness of the Manager’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Fund’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Fund to cease to continue as a going concern.

10

10

INDEPENDENT AUDITOR’S REPORTTO THE UNITHOLDERS OF NIKKO AM GLOBAL MULTI ASSET CONSERVATIVE FUND

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

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

PricewaterhouseCoopers LLPPublic Accountants and Chartered AccountantsSingapore, 27 March 2020

11


11

STATEMENT OF TOTAL RETURN

Note 2019 2018S$ S$

IncomeDividends 133,505 164,636Interest on cash and bank balances 5,133 3,946Other Income 238 -

138,876 168,582

Less: ExpensesManagement fee 155,946 114,677Management fee rebate (24,374) (20,264)Registrar fee 3,732 2,724Trustee fee 6,795 6,677Custody fee 2,660 2,484Audit fee 12,000 11,984Valuation fee 9,060 8,922Transaction costs 24,594 21,276Other expenses 35,022 38,283

225,435 186,763

Net losses (86,559) (18,181)

Net gains or losses on value of investments and financial derivatives

Net gains/(losses) on investments 2,096,927 (1,007,193)Net foreign exchange losses (33,748) (9,149)Net (losses)/gains on financial derivatives (60,691) 191,192

2,002,488 (825,150)

Total return/(deficit) for the financial year before income tax 1,915,929 (843,331)

Less: Income tax 3 (17,377) (15,018)Total return/(deficit) for the financial year after

income tax 1,898,552 (858,349)

12

NIKKO AM GLOBAL MULTI ASSET CONSERVATIVE FUND(Constituted under a Trust Deed registered in the Republic of Singapore)

The accompanying notes form an integral part of these financial statements

STATEMENT OF FINANCIAL POSITIONAs at 31 December 2019

2019S$

ASSETS25,037,601

273,0347,298

861,312193,141

54,860Total assets 26,427,246

LIABILITIES86,836

-164,639

57,765Total liabilities 309,240

EQUITY26,118,006

13


STATEMENT OF MOVEMENTS OF UNITHOLDERS' FUNDS

2019S$

Net assets attributable to unitholders at the beginning of the financial year 24,801,832

Operations

1,898,552

Unitholders' contributions/(withdrawals)

2,008,395(2,590,773)

(582,378)

1,316,174

Net assets attributable to unitholders at the end of the financial year 26,118,006

14


STATEMENT OF PORTFOLIO As at 31 December 2019

By Geography (Primary)

Holdings at31 December

2019

Fair value at31 December

2019

Percentage of total net assets attributable to unitholders at31 December

2019S$ %


14

Quoted Equities

BRITAINCompass Group Public Listed Company 3,956 133,182 0.51Johnson Matthey Public Listed Company 1,760 93,925 0.36LivaNova Public Listed Company 611 61,971 0.24Prudential Public Listed Company 5,617 144,977 0.55Rentokil Initial Public Listed Company 10,719 86,493 0.33Unilever Public Listed Company 2,084 161,497 0.62Weir Group Public Listed Company 2,845 76,497 0.29Total BRITAIN 758,542 2.90

CANADABrookfield Infrastructure Partners LP 3,427 230,219 0.88Total CANADA 230,219 0.88

IRELANDAccenture Public Listed Company 267 75,573 0.29Total IRELAND 75,573 0.29

ITALYDavide Campari-Milano Spa 7,424 91,212 0.35Total ITALY 91,212 0.35

JAPANAeon Financial Service Company Limited 1,000 21,368 0.08AS One Corporation 200 25,266 0.10Daikin Industries Limited 200 38,232 0.15Denka Company Limited 600 24,276 0.09Electric Power Development Company Limited 700 22,926 0.09Hitachi Limited 400 22,895 0.09Honda Motor Company Limited 900 34,509 0.13Komatsu Limited 800 26,152 0.10Mitsubishi Corporation 900 32,293 0.12Mitsubishi Electric Corporation 1,500 27,811 0.11Mitsubishi UFJ Financial Group Incorporated 5,500 40,368 0.15Mitsui Fudosan Company Limited 800 26,448 0.10Nexon Company Limited 600 10,764 0.04Nippon Densetsu Kogyo Company Limited 800 22,390 0.09Nippon Telegraph & Telephone Corporation 1,200 40,935 0.16Nitori Holdings Company Limited 100 21,312 0.08Olympus Corporation 600 12,539 0.05Pilot Corporation 300 16,407 0.06Recruit Holdings Company Limited 600 30,430 0.12Rohm Company Limited 200 21,727 0.08Santen Pharmaceutical Company Limited 1,000 25,810 0.10Seibu Holdings Incorporated 600 13,326 0.05Sekisui Chemical Company Limited 1,100 25,914 0.10Seven & I Holdings Company Limited 600 29,717 0.11

15



By Geography (Primary) (continued)


2019


2019


2019S$ %


15

Quoted Equities (continued)

JAPAN (continued)Shionogi & Company Limited 300 25,118 0.10Softbank Group Corporation 400 23,538 0.09Sony Corporation 400 36,629 0.14Sumitomo Mitsui Financial Group Incorporated 700 34,973 0.13Sumitomo Warehouse Company Limited 900 16,381 0.06TDK Corporation 100 15,330 0.06Terumo Corporation 500 24,034 0.09THK Company Limited 600 22,034 0.08Toho Company Limited 300 16,871 0.06Tokio Marine Holdings Incorporated 400 30,284 0.12Toray Industries Incorporated 2,200 20,173 0.08Toyo Suisan Kaisha Limited 300 17,186 0.07Toyota Motor Corporation 600 57,267 0.22Trend Micro Incorporation 200 13,858 0.05West Japan Railway Company 200 23,363 0.09Z Holdings Corporation 2,300 13,119 0.05Total JAPAN 1,003,973 3.84

NETHERLANDSKoninklijke Philips NV 2,297 150,883 0.58Total NETHERLANDS 150,883 0.58

SWEDENHexagon AB 1,483 111,452 0.43Total SWEDEN 111,452 0.43

UNITED STATES OF AMERICAAdobe Incorporated 172 76,277 0.29Amazon.com Incorporated 36 89,403 0.34Anthem Incorporated 186 75,486 0.29Bio-Techne Corporation 208 61,435 0.24Bristol-Myers Squibb Company 293 25,266 0.10Burford Capital Limited 1,855 23,526 0.09Danaher Corporation 239 49,323 0.19Dolby Laboratories Incorporated 689 63,740 0.24Ecolab Incorporated 108 28,026 0.11Estee Lauder Companies Incorporation 162 44,958 0.17Gentex Corporation 1,115 43,449 0.17Laboratory Corporation of America Holdings 246 55,935 0.21LHC Group Incorporated 451 83,542 0.32Mccormick & Company Incorporation 277 63,222 0.24Microsoft Corporation 632 133,828 0.51Progressive Corporation 904 87,969 0.34Resmed Incorporated 173 36,049 0.14SVB Financial Group 160 54,009 0.21TJX Cos Incorporation 750 61,557 0.24

16


STATEMENT OF PORTFOLIOAs at 31 December 2019



2019


2019


2019S$ %


16

Quoted Equities (continued)

UNITED STATES OF AMERICA (continued)Transunion 825 94,947 0.36Verisk Analytics Incorporated 176 35,342 0.13Woodward Incorporated 382 60,837 0.23Total UNITED STATES OF AMERICA 1,348,126 5.16

Total Quoted Equities 3,769,980 14.43

Quoted Fixed Income Securities

AUSTRALIAAustralia & New Zealand Banking Group Limited 3.1% due

18/01/2023 200,000 197,727 0.76Commonwealth Bank of Australia 3.25% due 25/04/2023 200,000 199,211 0.76ETSA Utilities Finance Pty Limited 3.5% due 29/08/2024 100,000 100,502 0.38National Australia Bank Limited 3% due 10/02/2023 200,000 197,273 0.76Optus Finance Pty Limited 3.24% due 29/09/2022 250,000 257,095 0.98Queensland Treasury Corporation 3.25% due 21/07/2028 660,000 700,588 2.68SGSP Australia Assets Pty Limited 3.75% due 28/06/2023 100,000 100,920 0.39Stockland Trust 4.5% due 23/11/2022 200,000 201,765 0.77United Energy Distribution Pty Limited 3.5% due

12/09/2023 150,000 149,056 0.57Vicinity Centres Trust 3.5% due 26/04/2024 100,000 99,271 0.38Western Australian Treasury Corporation 3.25% due

20/07/2028 660,000 700,166 2.68Westpac Banking Corporation 3.125% due 27/10/2022 200,000 197,324 0.76Total AUSTRALIA 3,100,898 11.87

BRITISH VIRGIN ISLANDSCNOOC Finance 2012 Limited 3.875% due 02/05/2022 200,000 278,047 1.06Shanghai Port Group BVI Development Company Limited

2.875% due 18/06/2024 200,000 272,450 1.04Sinopec Group Overseas Development 2018 Limited

2.95% due 12/11/2029 200,000 270,387 1.04Total BRITISH VIRGIN ISLANDS 820,884 3.14

CAYMAN ISLANDSSun Hung Kai Properties Capital Market Limited 3.25%

due 20/05/2021 250,000 254,007 0.97Total CAYMAN ISLANDS 254,007 0.97

CHINAChina Government Bond 3.03% due 24/06/2024 1,000,000 195,343 0.75China Government Bond 3.31% due 30/11/2025 500,000 98,918 0.38China Government Bond 3.39% due 21/05/2025 3,500,000 693,743 2.66China Government Bond 4.5% due 22/05/2034 500,000 109,023 0.42China Construction Bank Corporation 2.08% due

26/10/2020 250,000 250,125 0.96Total CHINA 1,347,152 5.17

17





2019


2019


2019S$ %


17

Quoted Fixed Income Securities (continued)

FRANCEFrench Republic Government Bond OAT 0.5% due

25/05/2029 540,000 847,378 3.24Total FRANCE 847,378 3.24

INDONESIAIndonesia Treasury Bond 6.5% due 15/06/2025 6,350,000,000 618,370 2.37Total INDONESIA 618,370 2.37

MALAYSIADanga Capital Berhad 3.725% due 11/08/2020 250,000 252,421 0.97Total MALAYSIA 252,421 0.97

MEXICOMexican Bonos 8.5% due 31/05/2029 6,500,000 516,129 1.98Total MEXICO 516,129 1.98

PERUPeru Government Bond 8.2% due 12/08/2026 980,000 506,137 1.94Total PERU 506,137 1.94

SINGAPOREAscendas Real Estate Investment Trust 2.47% due

10/08/2023 250,000 250,873 0.96Ascendas Real Estate Investment Trust 3.14% due

02/03/2025 250,000 256,755 0.98CMT MTN Private Limited 3.2% due 21/08/2025 250,000 257,372 0.99DBS Group Holdings Limited 2.78% due 11/01/2021 250,000 252,175 0.96Great Eastern Life Assurance Company Limited4.6% due 19/01/2026 250,000 256,900 0.98

Housing & Development Board 2.675% due 22/01/2029 250,000 263,520 1.01Land Transport Authority of Singapore 2.73% due

18/09/2020 250,000 251,842 0.96Mapletree Commercial Trust Treasury Company Private

Limited 3.05% due 22/11/2029 250,000 249,763 0.96Monetary Authority of Singapore Bill 0% due 03/01/2020 200,000 199,990 0.77Monetary Authority of Singapore Bill 0% due 10/01/2020 250,000 249,903 0.96Public Utilities Board 3.52% due 26/10/2020 250,000 253,164 0.97RCS Trust 3.2% due 14/03/2025 250,000 257,229 0.98Singapore Airlines Limited 3.03% due 28/03/2024 250,000 254,703 0.98Singapore Government Bond 2.25% due 01/06/2021 150,000 151,515 0.58Singapore Technologies Telemedia Private Limited 4.05%

due 02/12/2025 250,000 264,659 1.01Singtel Group Treasury Private Limited 2.72% due

03/09/2021 250,000 252,782 0.97Singtel Group Treasury Private Limited 3.4875% due

08/04/2020 250,000 251,236 0.96Temasek Financial I Limited 3.265% due 19/02/2020 250,000 250,554 0.96

18





2019


2019


2019S$ %


18

Quoted Fixed Income Securities (continued)

SINGAPORE (continued)United Overseas Bank Limited 3.5% due 22/05/2026 250,000 251,588 0.96United Overseas Bank Limited 3.5% due 27/02/2029 250,000 260,638 1.00Total SINGAPORE 4,937,161 18.90

UNITED STATES OF AMERICAIntel Corporation 4% due 01/12/2022 100,000 100,977 0.38United States Treasury Note/Bond 2.625% due 15/02/2029 340,000 484,954 1.86Total UNITED STATES OF AMERICA 585,931 2.24

Accrued interest receivable on quoted fixed income securities 107,035 0.41

Total Quoted Fixed Income Securities 13,893,503 53.20

Quoted Investment Funds

BRITAINHICL Infrastructure Public Listed Company 61,336 186,389 0.71Total BRITAIN 186,389 0.71

GUERNSEYInternational Public Partnerships Limited 62,681 186,234 0.71Total GUERNSEY 186,234 0.71

HONG KONG SARiShares Core MSCI Ac Asia ex Japan Index ETF 23,100 214,865 0.83Premia CSI Caixin China New Economy ETF 123,000 165,139 0.63Total HONG KONG SAR 380,004 1.46

IRELANDiShares Euro Corporation Bond Large Cap UCITS ETF 3,751 789,223 3.02iShares Physical Gold ETC 30,267 1,211,784 4.64Total IRELAND 2,001,007 7.66

JERSEY3i Infrastructure Public Listed Company 37,454 196,476 0.75Total JERSEY 196,476 0.75

LUXEMBOURGNikko AM Global Umbrella Fund - Nikko AM Asia ex Japan

Fund 79,516 1,658,327 6.35Total LUXEMBOURG 1,658,327 6.35

SINGAPORENikko AM Shenton Thrift Fund 331,052 788,898 3.02NikkoAm-StraitsTrading Asia ex Japan REIT ETF 106,280 133,275 0.51Total SINGAPORE 922,173 3.53

19





2019


2019


2019S$ %


19

Quoted Investment Funds (continued)

UNITED STATES OF AMERICAiShares Broad USD Investment Grade Corporate Bond

ETF 18,923 1,483,414 5.68iShares MSCI Singapore ETF 30 974 -Vaneck Vectors Russia ETF 9,361 314,300 1.21Total UNITED STATES OF AMERICA 1,798,688 6.89

Total Quoted Investment Funds 7,329,298 28.06

Quoted Real Estate Investment Trusts

UNITED STATES OF AMERICAAmerican Tower Corporation 141 43,536 0.17Total UNITED STATES OF AMERICA 43,536 0.17

Total Quoted Real Estate Investment Trusts 43,536 0.17

Quoted Derivatives

UNITED STATES OF AMERICABristol-Myers Squibb Company CVR 311 1,284 -Total UNITED STATES OF AMERICA 1,284 -

Total Quoted Derivatives 1,284 -

Portfolio of investments 25,037,601 95.86Other net assets 1,080,405 4.14Net assets attributable to unitholders 26,118,006 100.00

20




20

By Geography (Summary) Percentage oftotal net assets attributable to unitholders at31 December

2019%

Percentage oftotal net assets attributable tounitholders at31 December

2018%

Quoted EquitiesBritain 2.90 -Canada 0.88 0.22Ireland 0.29 -Italy 0.35 -Japan 3.84 5.19Netherlands 0.58 -Sweden 0.43 -United States of America 5.16 -Total Quoted Equities 14.43 5.41

Quoted Fixed Income SecuritiesAustralia 11.87 10.69British Virgin Islands 3.14 2.21Canada - 3.94Cayman Islands 0.97 2.19Chile - 2.12China 5.17 3.97France 3.24 2.94Indonesia 2.37 -Japan - 2.11Malaysia 0.97 1.03Mexico 1.98 -Netherlands - 0.55Norway - 1.59Peru 1.94 -Singapore 18.90 13.18South Korea - 1.09United States of America 2.24 7.49Accrued interest receivables on quoted fixed income securities 0.41 0.46Total Quoted Fixed Income Securities 53.20 55.56

Quoted Investment FundsAustralia - 1.01Britain 0.71 -Germany - 0.91Guernsey 0.71 0.51Hong Kong SAR 1.46 -Ireland 7.66 9.23Jersey 0.75 0.27Luxembourg 6.35 4.72Singapore 3.53 13.83United States of America 6.89 4.47Total Quoted Investment Funds 28.06 34.95

21




21

By Geography (Summary) (continued) Percentage oftotal net assets attributable to unitholders at31 December

2019%

Percentage oftotal net assets attributable tounitholders at31 December

2018%

Quoted Real Estate Investment TrustsUnited States of America 0.17 -Total Quoted Real Estate Investment Trusts 0.17 -

Quoted DerivativesUnited States of America 0.00 -Total Quoted Derivatives 0.00 -

Portfolio of investments 95.86 95.92Other net assets 4.14 4.08Net assets attributable to unitholders 100.00 100.00



2019


2019

Percentage oftotal net assets attributable to unitholders at31 December

2018S$ % %

Airlines 254,703 0.98 -Auto Manufacturers 91,776 0.35 0.45Auto Parts & Equipment - - 0.13Banks 2,406,672 9.22 10.60Beverages 91,212 0.35 -Building Materials 38,232 0.15 0.12Chemicals 166,400 0.64 0.37Closed-end Funds 196,476 0.75 0.27Commercial Services 519,662 1.99 1.17Commodity Fund 1,211,784 4.64 5.22Computers 75,573 0.29 0.61Cosmetics/Personal Care 206,455 0.79 -Debt Fund 2,272,637 8.70 8.07Distribution/Wholesale 32,293 0.12 1.39Diversified Financial Services 23,526 0.09 2.26Electric 502,703 1.92 1.30Electronics 119,616 0.46 -Engineering and Construction 22,390 0.09 -Entertainment 16,871 0.07 -Equity Fund 3,275,778 12.54 20.88Food 110,125 0.42 0.34Food Service 133,182 0.51 -Forest Products & Paper - - 0.66

22




22



2019


2019

Percentage oftotal net assets attributable to unitholders at31 December

2018S$ % %

Gas 100,920 0.39 0.40Healthcare-Products 421,500 1.61 0.24Healthcare-Services 214,963 0.82 -Home Builders 25,914 0.10 0.11Home Furnishings 100,369 0.38 0.13Household Products/Wares 16,407 0.06 -Insurance 520,130 1.99 1.20Internet 116,380 0.45 0.08Investment Companies 623,177 2.39 0.52Machinery-Construction & Mining 76,858 0.29 0.40Machinery-Diversified 209,983 0.80 0.06Oil and Gas 548,434 2.10 3.40Packaging & Containers - - 0.12Pharmaceuticals 77,478 0.30 0.85Real Estate 1,853,483 7.09 3.32Real Estate Investment Trusts (REITS) 43,536 0.17 5.74Regional(state/province) 1,400,754 5.36 -Retail 82,869 0.32 0.14Semiconductors 122,704 0.47 0.40Software 220,869 0.85 0.53Sovereign 5,242,457 20.07 22.19Storage/Warehousing 16,381 0.06 0.11Telecommunications 1,090,245 4.17 1.32Toys/Games/Hobbies - - 0.15Transportation 36,689 0.14 0.21Accrued interest receivables on quoted fixed

income securities 107,035 0.41 0.46

Portfolio of investments 25,037,601 95.86 95.92Other net assets 1,080,405 4.14 4.08Net assets attributable to unitholders 26,118,006 100.00 100.00

23


NOTES TO THE FINANCIAL STATEMENTS

23

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

1. General

Nikko AM Global Multi Asset Conservative Fund (the “Fund”) is a Singapore domiciled fund, constituted as a standalone unit trust, pursuant to the Trust Deed dated 21 August 2014 as amended by Supplemental Deeds and Amended and Restated Deeds (collectively referred to as the "Deeds"). The Deeds are governed by the laws of the Republic of Singapore. The Trustee of the Fund is BNP Paribas Trust Services Singapore Limited (the "Trustee"). The Manager of the Fund is Nikko Asset Management Asia Limited (the "Manager").

There are four classes of units established within the Fund, namely the SGD Class A Units (denominated in SGD), the SGD Class B Units (denominated in SGD), the United States Dollar Class Units (denominated in USD) and the Renminbi Class Units (denominated in RMB).

The classes differ in terms of their currency of denomination, management fee, initial sales charge, minimum initial and subsequent investment amounts, minimum holding amount and minimum realisation amount. In addition, the SGD Class B Units will only be available for subscription by such persons as the Managers may determine from time to time.

As of 31 December 2019, only units in the SGD Class A and SGD Class B have been issued.

2. Significant accounting policies

The principal accounting policies applied in the preparation of these financial statements are set out below:

(a) Basis of preparation

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

(b) Recognition of income

Dividend income from investments is recognised when the right to receive payment is established.

Interest income is recognised on a time-proportion basis using the effective interest rate method.

(c) Investments

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

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

24



2. Significant accounting policies (continued)

(c) Investments (continued)

24

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

Investments are derecognised on the trade date of disposal. The resultant realised gains and losses on the sales of investments are 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 Statement of Total Return.

(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 trading on the reporting date. The quoted market price used for equities held by the Fund is last traded market price for both financial assets and financial liabilities where the last traded price falls within the bid-ask spread. In circumstances where the last traded price is not within the bid-ask spread, the Manager will determine the point within the bid-ask spread that is most representative of fair value. The quoted market prices used for fixed income securities held by the Fund is the mid-market price for both financial asset and financial liabilities. The fair value of investments held in underlying funds is the quoted net asset value of the underlying fund as determined by the underlying fund's administrator.

(e) Receivables

Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Receivables are initially recognised at their fair value and subsequently carried at amortised cost using the effective interest method, less accumulated impairment losses.

(f) Sales and purchases awaiting settlement

Sales and purchases awaiting settlement represent receivables for securities sold and payables for securities purchased that have been contracted for but not yet settled or delivered on the Statement of Financial Position date respectively. These amounts are recognised initially at fair value and subsequently measured at amortised cost.

(g) Payables

Accrued expenses are recognised initially at fair value and subsequently stated at amortised cost using the effective interest method.

(h) Cash and bank balances

Cash and bank balances comprise cash at banks and on hand which are subject to an insignificant risk of changes in value.

25




25

(i) Foreign currency translation

The Fund qualifies as an authorised scheme under the Securities and Futures Act ("SFA") of Singapore and is offered to retail investors in Singapore. The Fund’s activities are substantially based in Singapore, with subscriptions and redemptions of the units of the Fund denominated in Singapore Dollar ("SGD").

The performance of the Fund is measured and reported to the investors in Singapore Dollar. The Manager considers the Singapore Dollar as the currency which most faithfully represents the economic effects of the underlying transactions, events and conditions. The financial statements are expressed in Singapore Dollar, which is the Fund’s functional and presentation currency.

Foreign currency monetary assets and liabilities are translated into Singapore Dollar at the rates of exchange prevailing at the date of the Statement of Financial Position. The net unrealised gain or loss is taken to the Statement of Total Return. Transactions during the year are recorded in Singapore Dollar at the rates of exchange ruling on transaction dates. All realised gains or losses are recognised in the Statement of Total Return.

(j) Offsetting financial instruments

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

(k) Margin and collateral

Cash collateral provided by the Fund is identified in the Statement of Financial Position as margin and collateral accounts and is not included as a component of cash and cash equivalents. For collateral other than cash, if the party to whom the collateral is provided has the right by contract or custom to sell or re-pledge the collateral, the Fund classifies that asset in its Statement of Financial Position separately from other assets and identifies the asset as pledged collateral. Where the party to whom the collateral is provided does not have the right to sell or re-pledge, a disclosure of the collateral provided is made in the Notes to the Financial Statements.

26




26

(l) Structured entities

A structured entity is an entity that has been designed so that voting or similar rights are not thedominant factor in deciding who controls the entity, such as when any voting rights relate to administrative tasks only and the relevant activities are directed by means of contractual arrangements. A structured entity often has some or all of the following features or attributes: (a) restricted activities, (b) a narrow and well-defined objective, such as to provide investment opportunities for investors by passing on risks and rewards associated with the assets of the structured entity to investors, (c) insufficient equity to permit the structured entity to finance its activities without subordinated financial support and (d) financing in the form of multiple contractually linked instruments to investors that create concentrations of credit or other risks (tranches).

The Fund considers all of their investments in other funds ("Underlying Funds") to be investments in unconsolidated structured entities. The Fund invests in Underlying Funds whose objectives range from achieving short to long term capital growth and whose investment strategy does not include the use of leverage. The Underlying Funds apply various investment strategies to accomplish their respective investment objectives. The Underlying Funds finance their operations by issuing redeemable units which are puttable at the unitholder's option and entitles the unitholder to a proportional stake in the respective Underlying Funds' net assets. The Fund holds redeemable units in the Underlying Funds.

The change in fair value of the Underlying Funds are included in the Statement of Total Return in "Net gains/(losses) on investments".

27




27

(m) Financial derivatives

Financial derivatives are entered into for the purposes 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 Deeds.

Financial derivatives outstanding at the end of the financial year 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.

(n) Expenses Charged to the Fund

Management fees are charged directly to each class as follows:

Management fee

SGD Class A: 1.0% per annumSGD Class B: 0.3% per annum

All other expenses relate to the Fund as a whole and are further allocated to each share class based on the respective asset under management proportion.

3. Income Tax

The Fund was granted the status of a Designated Unit Trust (DUT) in Singapore. The Manager and Trustee of the Fund will ensure that the Fund fulfills its 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 is not taxable in accordance to Sections 35(12) and 35(12A) of the Income Tax Act. Such income includes:

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

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

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

(d) gains or profits derived from foreign exchange transactions, transactions in futures contracts, transactions in interest rate or currency forwards, swaps or option contracts and transactions in forwards, swaps or option contracts relating to any securities or financial index;

(e) discount prepayment fees, redemption premium and break cost from qualifying debt securities issued during the prescribed period; and

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

28



3. Income Tax (continued)

28

Income tax for the financial year ended 31 December 2019 and 2018 comprises:

2019 2018S$ S$

Singapore income tax 1,959 304Overseas income tax 15,418 14,714

17,377 15,018

The Singapore income tax represents mainly tax charge on distribution from Singapore unit trusts. The overseas income tax represents tax deducted at source on dividend and interestderived from outside Singapore.

4. Receivables

2019 2018S$ S$

Dividends receivable 7,298 5,9647,298 5,964

5. Payables

2019 2018S$ S$

Payable to unitholders for cancellation of units 29,162 15,023Amount due to the Manager 36,578 38,812Amount due to the Trustee 1,878 1,826Valuation fee payable 2,503 2,434Registrar fee payable 606 606Provision for audit fee 12,307 12,307Custody fee payable 909 442Other payables 2,893 3,758

86,836 75,208

Amount due to the Manager comprises management fee payable to Nikko Asset Management Asia Limited. Trustee fee and registrar fee are payable to BNP Paribas Trust Services Singapore Limited. Valuation fee and custody fee are payable to BNP Paribas Securities Services operating through its Singapore Branch.

29



6. Financial derivatives

Contract or underlyingprincipal amount

Year-end positive fair value

Year-end negativefair value

2019 2019 2019S$ S$ S$

10,274,082 54,860 (57,765)- - -

54,860 (57,765)

Offsetting financial assets

Related accounts not set-off in the Statement of Financial

Position

Gross amounts of recognised

financial assets


financial liabilities

set-off in the Statement of

Financial Position

Net amounts of financial

assets presented in

the Statement of Financial

PositionFinancial

instrumentsCash

collateral Net exposure2019 S$ S$ S$ S$ S$ S$

- - - - - -

30



6. Financial derivatives

Offsetting financial assets


Position


financial assets




Financial Position


assets presented in


PositionFinancial

instrumentsCash


Offsetting financial liabilities


Position




financial assets


Financial Position


liabilities presented in


PositionFinancial

instrumentsCash



Position




financial assets


Financial Position


liabilities presented in


PositionFinancial

instrumentsCash


31



31

7. Units in issue

During the year ended 31 December 2019 and 2018, the number of units issued, redeemed and outstanding were as follows:

SGD Class A 2019 2018

Units at beginning of the financial year 12,460,727 -Units created - 13,504,739Units cancelled (2,516,698) (1,044,012)Units at end of the financial year 9,944,029 12,460,727

Net assets attributable to unitholders - S$ 10,492,746 12,240,612Net asset value per unit - S$ 1.055 0.982

SGD Class B 2019 2018

Units at beginning of the financial year 11,803,169 12,100,000Units created 1,763,468 11,803,169Units cancelled - (12,100,000)Units at end of the financial year 13,566,637 11,803,169

Net assets attributable to unitholders - S$ 15,625,260 12,561,220Net asset value per unit - S$ 1.152 1.064

A reconciliation of the net asset value as reported in the Statement of Financial Position to net asset value as determined for the purpose of processing unit subscription and redemption is not presented as there is no difference to the net assets attributable to unitholders per unit.

8. Margin and collateral accounts

2019 2018S$ S$

Margin account deposit 193,141 -Margin account overdraft - (33)

193,141 (33)

Margin account represent margin deposits in respect of open exchange-traded options contracts held with BNP Paribas Securities Services, operating through its Singapore Branch. In 2019, there is no open exchange-traded futures contract.

32



32

9. Financial risk management

The Fund’s activities expose it to a variety of risk, including but not limited to market risk (including currency risk, interest rate risk and price risk), liquidity risk and credit risk. The Manager is responsible for the implementation of the overall risk management programme, which seeks to minimise potential adverse effects on the Fund’s financial performance. Specific guidelines on exposures to individual securities and certain industries and/or countries are in place as part of the overall financial risk management to reduce the Fund’s exposures to these risks.

The Fund’s primary objective is to provide capital preservation and protection against inflation, whilst allowing for capital appreciation of investments. The Fund shall seek to optimise its overall investment returns at acceptable risk levels through adequate risk diversification.

These financial instruments are held in accordance with the published investment policies of the Fund and managed accordingly to achieve the investment objectives.

(a) Market risk - Price risk

Price risk is the risk that arises from uncertainties about future prices of financial instruments.

The Fund’s investment is substantially dependent on the changes of market prices. The Fund’s overall market positions are monitored regularly so as to assess any deviation from the Fund's investment objective. However, events beyond reasonable control of the Manager could affect the prices of the underlying investments and hence the net asset value of the Fund.

The Fund’s market price risk is managed through diversification of the investment portfolio across various geographies and industries globally.

As the Fund invests in both equities and fixed income securities, the Manager is of the view that the price risk of the Fund is best reflected by movements in the MSCI DC World Index Composite (the "Index").

As at 31 December 2019, an increase/decrease of the index component within the Index by 3%(2018: 3%), with all other variables remaining constant, the net assets attributable to unitholders for the year would increase/decrease by approximately 1% (2018: 1%). The analysis was based on the assumptions that the index components within the Index increased/decreased by a reasonable possible shift, with all other variables held constant and that the fair value of Fund’s investments moved according to the beta. Reasonable possible changes in market index percentage are revised annually depending on management’s current view on market volatility and other relevant factors.

33




Market risk - Interest rate risk

As at 31 December 2019 Floating rate Fixed rate

Non-interestbearing

S$Up to 1 year

S$1-5 years

S$Over 5 years

S$ S$Total

S$Assets

769,126 1,959,235 3,963,016 7,095,091 11,251,133 25,037,601

- - - - 273,034 273,034- - - - 7,298 7,298

861,312 - - - - 861,312

193,141 - - - - 193,141

- - - - 54,860 54,860Total assets 1,823,579 1,959,235 3,963,016 7,095,091 11,586,325 26,427,246

Liabilities- - - - 86,836 86,836

- - - - 164,639 164,639

- - - - 57,765 57,765Total liabilities - - - - 309,240 309,240

34



9. Financial risk management (continued)

(b) Market risk - Interest rate risk (continued)

34

As at 31 December 2018 Floating rate Fixed rate

Non-interestbearing

S$Up to 1 year

S$1-5 years

S$Over 5 years

S$ S$Total

S$AssetsPortfolio of investments 784,889 2,025,572 5,131,560 5,723,283 10,125,055 23,790,359Sales awaiting

settlement - - - - 139,653 139,653Receivables - - - - 5,964 5,964Cash and bank balances 722,442 - - - - 722,442Financial derivatives at

fair value - - - - 224,057 224,057Total assets 1,507,331 2,025,572 5,131,560 5,723,283 10,494,729 24,882,475

LiabilitiesPayables - - - - 75,208 75,208Margin overdraft and

collateral withheld - - - - 33 33Financial derivatives at

fair value - - - - 5,402 5,402Total liabilities - - - - 80,643 80,643

As at 31 December 2019 and 2018, an increase/decrease of interest rates 1% (2018: 1%), with all other variables remaining constant, would result in a decrease/increase of the net assets attributable to unitholders by approximately 3% (2018: 2%). Reasonable possible changes in interest rate are revised annually depending on management's current view of market volatility and other factors.

(c) Market risk - Currency risk

Currency risk is the risk that the value of financial instrument will fluctuate due to changes in foreign exchange rates.

To minimise currency risk, the Fund mainly holds its excess cash in its functional currency. For hedging purposes, the Fund may also enter into forward foreign exchange contracts.

35




Market risk - Currency risk

As at 31 December 2019 SGD USD GBP JPY AUD EUR Others TotalS$ S$ S$ S$ S$ S$ S$ S$

Assets6,920,800 7,719,314 1,289,196 1,003,973 2,974,248 1,881,145 3,248,925 25,037,601

273,034 - - - - - - 273,034- 2,734 3,837 727 - - - 7,298

797,357 38,502 16,524 964 3,473 4,488 4 861,31220,364 27,183 39,613 7,986 21,307 76,688 - 193,141

Total assets 8,011,555 7,787,733 1,349,170 1,013,650 2,999,028 1,962,321 3,248,929 26,372,386

Liabilities86,836 - - - - - - 86,836

- 164,639 - - - - - 164,639Total liabilities 86,836 164,639 - - - - - 251,475

Net off-balance sheet derivative financial instruments 8,927,191 (2,799,413) (1,227,287) 910 (2,990,451) (1,913,855) -

Net currency exposure 16,851,910 4,823,681 121,883 1,014,560 8,577 48,466 3,248,929

36




Market risk - Currency risk

As at 31 December 2018 SGD USD GBP JPY AUD EUR Others TotalS$ S$ S$ S$ S$ S$ S$ S$

Assets

Total assets

Liabilities

Total liabilities

Net off-balance sheet derivative financial instruments

Net currency exposure

37




(c) Market risk - Currency risk (continued)

37

Portfolio of investments, which is a significant item in the Statement of Financial Position is exposed to currency risk and other price risk. The Manager has considered the impact of currency risk sensitivity on non-monetary assets as part of the price risk sensitivity analysis.

The following table shows the Fund’s sensitivity to major foreign currencies exposure with all over variables held constant. Changes in foreign exchange rate are revised annually depending on management’s current view of market volatility and other relevant factors.

Increase/decrease in foreign exchange rate

(%)

Increase/decrease in net asset attributable to unitholders

(%)

31 December 2019 31 December 2018 31 December 2019 31 December 2018

USD 4 5 1 1

(d) Liquidity risk

Liquidity risk is the risk of loss arising from the inability of the Fund to meet its obligations as and when they fall due without incurring unacceptable cost or losses.

The Fund is exposed to daily cash redemptions from unitholders. However, in accordance with the Fund’s prospectus, minimum holdings and redemption size are set.

To manage the liquidity risk, a cash buffer is maintained in the Fund and monitored for minimum cash balances to prevent any extensive disposition of assets which may occur at lower prices and overdraft situations to meet trade settlements and obligations.

The Fund’s financial liabilities are analysed using contractual undiscounted cash flows for maturity groupings based on the remaining year at the Statement of Financial Position date to the contractual maturity date. As at 31 December 2019 and 2018 all liabilities are either payable upon demand or due in less than 3 months. The impact of discounting is not significant.

Less than 3 monthsAs at

31 December 2019

As at31 December

2018S$ S$

Payables 86,836 75,208Margin overdraft & collateral withheld - 33Purchases awaiting settlement 164,639 -Contractual cash outflows

(excluding gross settled derivatives) 251,475 75,241

38




(d) Liquidity risk (continued)

38

The table below analyses the Fund’s derivative financial instruments in a loss position that will be settled on a gross basis into relevant maturity groupings based on the period at the Statement of Financial Positon date to the contractual maturity date. As at 31 December 2019 and 2018, all liabilities are either payable upon demand or due in less than 3 months. The impact of discounting is not significant.

Less than 3 monthsAs at

31 December 2019

As at31 December

2018S$ S$

Currency forwards- Outflow (4,620,191) (2,268,717)- Inflow 4,562,426 2,263,315Net outflow (57,765) (5,402)

(e) Credit risk

Credit risk is the risk that a counterparty will be unable to fulfil its obligations to the Fund in part or in full as and when they fall due.

Concentrations of credit risk are minimised primarily by:

– ensuring counterparties as well as the respective credit limits are approved;– ensuring there are controls in place to identify and assess the creditworthiness of

counterparties and review such controls on a semi-annual basis; and– ensuring that transactions are undertaken with a large number of counterparties.

39




(e) Credit risk (continued)

39

The table below analyses the Fund’s investments by credit ratings. The credit ratings arereviewed regularly.

Fair value at31 December 2019

Fair value at31 December 2018

Floating rate securities

S$

Fixed rate securities

S$

Floating rate securities

S$

Fixed rate securities

S$

AAA# - 2,105,442 - 2,884,392AA+ - 1,400,754 - 1,120,602AA - - - 270,702AA- - 791,535 - 1,315,549A+ 256,900 1,679,886 531,649 1,608,630A - 257,095 - 389,804A- - 1,831,738 - 1,198,922BBB+ 251,588 - - -A1 - - - 988,036A2 260,638 356,643 253,240 614,790A3 - 507,628 - 493,397A1u - 802,766 - -Aa2u - - - 729,736Not rated - 3,283,855 - 1,265,855Accrued interest receivables on

quoted fixed income securities 9,154 97,881 11,413 102,514778,280 13,115,223 796,302 12,982,929

# The balance includes securities that are issued by government agencies of government that have an AAA rating as rated by Standard & Poor’s.

40




(e) Credit risk (continued)

40

All trade settlement with approved counterparties are on Delivery versus Payment and/or Receipt versus Payment basis, with the exception of initial public offerings, new issues and placement transactions.

Credit risk arises from cash and bank balances and outstanding and committed transactions from brokers. The table below summarises the credit rating of bank and custodians in which the Fund’s assets are held as at 31 December 2019 and 2018.

Credit rating as at31 December 2019

Credit rating as at31 December 2018

Source of credit rating

Bank balance- BNP Paribas Securities

Services, operating through its Singapore Branch A+ A Standard & Poor's

Financial derivatives- Australia and New Zealand

Bank AA- AA- Standard & Poor's- Goldman Sachs International BBB+ BBB+ Standard & Poor's- JP Morgan Chase N.A A- Standard & Poor's

Custodian- BNP Paribas Securities

Services, operating through its Singapore Branch A+ A Standard & Poor's

The credit ratings are based on Long-Term Local Issuer Ratings published by the rating agency.

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

(f) 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.

41




Fair value estimation

As at 31 December 2019 Level 1 Level 2 Level 3 TotalS$ S$ S$ S$

Assets

3,769,980 - - 3,769,980- 13,893,503 - 13,893,503

7,329,298 - 7,329,29843,536 - - 43,536

- 1,284 - 1,284- 54,860 - 54,860

11,142,814 13,949,647 - 25,092,461

Liabilities

- 57,765 - 57,765

As at 31 December 2018 Level 1 Level 2 Level 3 TotalS$ S$ S$ S$

Assets

Liabilities

42




Fair value estimation

Interests in unconsolidated structured entities

43



43


In addition to related party information shown elsewhere in the financial statements, the following significant transactions took place during the financial year between the Fund and related party at terms agreed between the parties and within the provisions of the Deeds:

2019 2018S$ S$

Bank balances held with related party of the Trustee 861,312 722,442Margin deposit/(overdraft) with related party of the Trustee 193,141 (33)

11. Financial ratios

Expense ratio2019 2018

SGD Class A

Total operating expenses S$ 138,510 68,359Average daily net asset value S$ 11,498,359 12,762,778Total expense ratio1 (annualised)

(including Underlying Fund's expense ratio) % 1.29 1.28

Weighted average of the Underlying Fund's unaudited expense ratio % 0.09 0.12

2019 2018SGD Class B

Total operating expenses S$ 62,147 97,126Average daily net asset value S$ 13,669,245 18,617,730Total expense ratio1

(including Underlying Fund's expense ratio) % 0.54 0.64

Weighted average of the Underlying Fund's unaudited expense ratio % 0.09 0.12

44



44

11. Financial ratios (continued)

Turnover ratio

2019 2018

Lower of total value of purchases or sales S$ 22,691,709 19,992,757Average daily net asset value S$ 25,167,604 24,519,884Total turnover ratio3 % 90.16 81.54

1 The expense ratio has been computed based on the guidelines laid down by the Investment Management Association of Singapore ("IMAS"). This is the sum of the Fund's expense ratio and the weighted average of the Underlying Fund's unaudited expense ratio. The calculation of the expense ratio at financial year end was based on total operating expenses divided by the average net asset value for the 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 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 ratio was based on the lower of the total value of purchases or sales of the underlying investments, divided by the average daily net asset value.

45


REPORT TO UNITHOLDERS

45

The following contains additional information relating to the Fund.

1. Distribution of investments


2. Credit rating of debt securities


2019S$


2019%

AAA 2,105,442 8.06AA+ 1,400,754 5.36AA- 791,535 3.03A+ 1,936,786 7.42A 257,095 0.99A- 1,831,738 7.02BBB+ 251,588 0.96A1u 802,766 3.07A2 617,281 2.36A3 507,628 1.94Not rated 3,283,855 12.58Accrued interest receivables on quoted fixed income

securities 107,035 0.41Total 13,893,503 53.20

3. Top 10 holdings

10 Largest holdings at 31 December 2019

Fair valueS$

Percentage of total net assets attributable to

unitholders%

Nikko AM Global Umbrella Fund - Nikko AM Asia exJapan Fund 1,658,327 6.35

iShares Broad USD Investment Grade Corporate BondETF 1,483,414 5.68

iShares Physical Gold ETC 1,211,784 4.64French Republic Government Bond Oat 0.5% due25/05/2029 847,378 3.24

iShares Euro Corporation Bond Large Cap UCITS ETF 789,223 3.02Nikko AM Shenton Thrift Fund 788,898 3.02Queensland Treasury Corporation 3.25% due21/07/2028 700,588 2.68

Western Australian Treasury Corporation 3.25% due20/07/2028 700,166 2.68

China Government Bond 3.39% due 21/05/2025 693,743 2.66Indonesia Treasury Bond 6.5% due 15/06/2025 618,370 2.37

46



3. Top 10 holdings (continued)

46

10 Largest holdings at 31 December 2018

Fair valueS$

Percentage of total net assets attributable to

unitholders%

Nikko AM Shenton Short Term Bond Fund 1,508,222 6.08Nikko AM Shenton Thrift Fund 1,429,294 5.76iShares Physical Gold ETC 1,295,238 5.22Nikko AM Global Umbrella Fund - Nikko AM Asia ex Japan

Fund 1,170,727 4.72Canadian Government Bond 2.5% due 01/06/2024 977,170 3.94French Republic Government Bond OAT 0.5% due

25/05/2025 729,736 2.94Chile Government International Bond 2.25% due

30/10/2022 525,994 2.12United States Treasury Note/Bond 2% due 15/08/2025 512,636 2.07iShares Core S&P 500 UCITS ETF 499,938 2.02Western Australian Treasury Corporation 5% due

23/07/2025 495,822 2.00

4. Exposure to financial derivatives


2019S$

Percentage oftotal net assets attributable to

unitholders31 December

2019%

Unrealised gains/(losses)

S$

Realised gains/(losses)

S$Forward foreign

exchange contracts (2,905) (0.01) (2,905) 55,786Futures - - - (33,292)Options - - - (80,280)Rights 1,284 - 1,284 -


The global exposure to financial derivatives is computed using the commitment approach which is calculated as the sum of:

a. the absolute value of the exposure of each individual financial derivative not involved in netting or hedging arrangement;

b. the absolute value of the net exposure of each individual financial derivative after netting or hedging arrangements; and

47



5. Global exposure to financial derivatives (continued)

47

c. the sum of the values of cash collateral received pursuant to:

i. the reduction of exposure to counterparties of OTC financial derivatives; and

ii. EPM techniques relating to securities lending and repurchase transactions, and that are reinvested.

6. Collateral

Please refer to Note 8 of the Notes to the Financial Statements on page 32.

7. Securities lending or repurchase transactions

Nil.

8. Investment in unit trusts, mutual funds and collective investment schemes


9. Borrowings

Nil.

10. Amount of units created and cancelled for the financial year ended 31 December 2019

S$

Units created 2,008,395Units cancelled (2,590,773)

11. Turnover ratio


12. Expense ratio




14. Any other material information that will adversely impact the valuation of the fund

Nil.

48

SEMI-ANNUAL REPORTFor the fi nancial period ending 30 June 2019

Nikko AM Global Multi Asset Conservative Fund






Seet Oon Hui EleanorYu-Ming Wang








1


Inception

Nikko AM Global Multi Asset Conservative Fund - SGD Class A1 1.87 5.50 N/A N/A N/A N/A 3.60

Benchmark2 1.26 2.53 N/A N/A N/A N/A 4.83

Source: Nikko Asset Management Asia Limited, returns as at 30 June 2019. Returns are calculated on a NAV-NAV basis, SGD, and based on the assumption that all dividends and distributions are reinvested, if any. Returns for period in excess of 1 year are annualised. Past performance is not indicative of future performance.


Inception

Nikko AM Global Multi Asset Conservative Fund - SGD Class A1 -3.23 0.22 N/A N/A N/A N/A -1.58

Benchmark2 1.26 2.53 N/A N/A N/A N/A 4.83

Source: Nikko Asset Management Asia Limited, returns as at 30 June 2019. Returns are calculated on a NAV-NAV basis, SGD, and based on the assumption that all dividends and distributions are reinvested, if any, and take into account of maximum initial sales charge and a realisation charge, currently nil, as and where applicable. Returns for period in excess of 1 year are annualised. Past performance is not indicative of future performance.



Inception

Nikko AM Global Multi Asset Conservative Fund - SGD Class B1 2.08 5.92 4.64 2.91 N/A N/A 2.51

Benchmark2 1.26 2.53 5.05 4.66 N/A N/A 4.44

Source: Nikko Asset Management Asia Limited, returns as at 30 June 2019. Returns are calculated on a NAV-NAV basis, SGD, and based on the assumption that all dividends and distributions are reinvested, if any. Returns for period in excess of 1 year are annualised. Past performance is not indicative of future performance. There is no initial sales charge and realisation charge for SGD Class B.


Note:(1) SGD Class A was incepted on 17 July 2018. There is no initial sales charge and realisation charge

for SGD Class B.


PERFORMANCE SUMMARY

2

Portfolio Review

Fund gained 5.50% in 1H2019The Nikko AM Global Multi Asset Conservative Fund (SGD Class A) (the “Fund”) returned 5.50% (SGD terms, on a NAV-NAV basis) for the six months ended 30 June 2019, outperforming the benchmark return of 2.53%.

Equities, sovereign bonds, corporate bonds and alternatives all contributed to fund performance in the fi rst half of 2019. Although equities gave up some of the gains beginning in early May as the trade war appeared back on, most of the losses were reversed during June as it became clear that Presidents Trump and Xi would meet at the G20 Summit to hopefully get negotiations back on track.

Among the equity markets, Asia and US equities added the most to performance. US equities had their strongest fi rst half of the year performance since 1998, returning over 16% in Singapore dollar terms, while in the process reaching new highs. Asia equities returned a respectable 8.6% but still remained about 5% below their 1H2019 peak set in April before the return of trade wars. The slower recovery in equity prices was at least partially due to weak growth fi gures, but this is likely to turn during 2H2019 as China stimulus begins to show up in the real economy.

Bonds also showed remarkable 1H2019 performance as the US Federal Reserve (Fed) continued to sound increasingly dovish. This helped to compress US Treasury 10-year yields from 2.68% to 2.01%, which is an unusually large move that lifted fi xed income markets across all geographies around the world. Within fi xed income, Asian bonds were the biggest contributor to performance, but this was mainly driven by its large weight in the portfolio. US and Australia investment grade (IG), and Australian sovereign bonds, also contributed positively to fund performance. Credit benefi ted from compressing spreads as the Fed prepares to ease, while easing fi nancial conditions also helped to boost emerging markets.

Alternatives also added to performance, led by Global REITs and Gold. Global REITs were buoyed by central bank dovishness, while Gold was a key contributor to Fund performance as prices surged, breaching the key resistance level of USD 1350 per ounce, and fi nishing the period above USD 1400.

Market Review

The protracted trade confl ict between the US and China continued to dominate headlines in the fi rst half of 2019. Although the year started with optimism that a compromise would be reached, a fl are-up in May ended with both countries hiking tariffs on each other’s imports. However, expectations for a trade truce between Presidents Trump and Xi at their G20 meeting in Osaka subsequently underpinned sentiment.

The increasingly dovish tilt of major central banks also supported global bonds and risk assets over the period. The US Federal Reserve went from signalling two hikes in 2019 late last year, to indicating that it would pause rate hikes for the foreseeable future, to ultimately opening the door to rate cuts at its meeting in June. This, along with European Central Bank (ECB) President Mario Draghi’s comments that “additional stimulus” may be announced in the absence of any improvement in growth and infl ation, pushed the benchmark 10-year UST yield to a low of 1.97%. At the end of June, 2-year and 10-year yields were at 1.76% and 2% respectively, about 74 and 68 basis points (bps) lower compared to end-December.

In politics, UK Prime Minister Theresa May announced her resignation after her latest Brexit deal failed to pass through parliament, paving the way for a contest to replace her. In Asia, Narendra Modi and the Bharatiya Janata Party-led coalition clinched a resounding win in India’s general election. Thailand’s new parliament voted to elect Prayuth Chan-ocha as prime minister, fi ve years after he came to power in a military coup. Hong Kong saw large-scale demonstrations in protest against a controversial China extradition bill. In Turkey, President Erdogan’s AK Party was defeated in the re-run of Istanbul’s mayoral elections, sparking a rally in the lira.

3


Although the G20 delivered a trade war truce, it remains to be seen how much economic damage has been done in the nearly two months of uncertainty initiated by Trump’s tweet on 5 May threatening additional tariffs on China. The bond market suggests that the damage has been quite considerable, possibly enough to tip the economy into recession. Equities, on the other hand, are bullish at the prospect of more easing ahead.

Economic data is undoubtedly weak, but as US cuts rates and China fi ne-tunes its stimulus for better growth, the formula looks promising to prolong the current cycle. We are mindful if excess risk-taking has sown the seeds of the next downturn when policy gets too tight. Debt levels are currently high and major central banks are stepping in to ease any strains. In light of this, taking risks could reap returns, and as refl ation returns we would be wary of fi xed income that could re-price to the downside.

4

This document is for information only with no consideration given to the specifi c investment objective, fi nancial situation and particular needs of any specifi c person. Any securities mentioned herein are for reporting or illustration purposes only and should not be construed as a recommendation for investment. You should seek advice from a fi nancial adviser before making any investment. In the event that you choose not to do so, you should consider whether the investment selected is suitable for you. Investments in unit trusts or ETFs are not deposits in, obligations of, or guaranteed or insured by Nikko Asset Management Asia Limited (“Nikko AM Asia”).

Past performance or any prediction, projection or forecast is not indicative of future performance. The funds may use or invest in fi nancial derivative instruments. The value of units and income from them may fall or rise. Investments in the funds are subject to investment risks, including the possible loss of principal amount invested. You should read the relevant prospectus and product highlights sheet obtainable from appointed distributors of Nikko AM Asia or our website (www.nikkoam.com.sg) before investing.

The information contained herein may not be copied, reproduced or redistributed without the express consent of Nikko AM Asia. While reasonable care has been taken to ensure the accuracy of the information as at the date of publication, Nikko AM Asia does not give any warranty or representation, either express or implied, and expressly disclaims liability for any errors or omissions. Information may be subject to change without notice. Nikko AM Asia accepts no liability for any loss, indirect or consequential damages, arising from any use of or reliance on this document. This publication has not been reviewed by the Monetary Authority of Singapore.


The fund is only offered to professional investors and is not authorized by the Securities and Futures Commission in Hong Kong. The contents of this document have not been reviewed by any regulatory authority in Hong Kong. You are advised to exercise caution in relation to this document. If you are in any doubt about any of the contents, you should obtain independent professional advice.


5



6


STATEMENT OF TOTAL RETURN For the financial period from 01 January 2019 to 30 June 2019 (unaudited)

30 June 2019 30 June 2018 S$ S$

IncomeDividends 49,686 100,510 Interest 2,685 978 Other income 193 -

52,564 101,488

Less: Expenses Management fee 78,622 35,079 Management fee rebate (13,341) (8,762) Registrar fee 1,730 1,133 Trustee fee 3,341 3,214 Custody fee 1,377 1,166 Audit fee 6,203 6,186 Valuation fee 4,455 4,304 Transaction costs 13,117 11,755 Other expenses 23,024 15,132

118,528 69,207

Net (loss)/income (65,964) 32,281

Net gains or losses on value of investments and financial derivatives

Net gain/(loss) on investments 1,490,363 (431,983) Net foreign exchange losses (14,618) (7,077) Net losses on financial derivatives (18,924) (86,277)

1,456,821 (525,337)

Total return/(deficit) for the financial period before income tax 1,390,857 (493,056)

Less: Income tax (3,143) (4,212) Total return/(deficit) for the financial period

after income tax 1,387,714 (497,268)

7


STATEMENT OF FINANCIAL POSITION As at 30 June 2019 (unaudited)

30 June 2019 31 December 2018 S$ S$

ASSETSPortfolio of investments 23,852,580 23,790,359 Sales awaiting settlement - 139,653Receivables 9,246 5,964 Cash and bank balances 853,991 722,442 Margin accounts 87,400 -Financial derivatives at fair value 71,097 224,057 Total assets 24,874,314 24,882,475

LIABILITIESPayables 147,537 75,208 Margin overdraft - 33 Financial derivatives at fair value 45,849 5,402 Total liabilities 193,386 80,643

EQUITYNet assets attributable to unitholders 24,680,928 24,801,832

8


STATEMENT OF MOVEMENTS OF UNITHOLDERS' FUNDSFor the financial period from 01 January 2019 to 30 June 2019 (unaudited)

30 June 2019 31 December 2018 S$ S$

Net assets attributable to unitholders at the beginning of the financial period/year 24,801,832 13,245,135

OperationsChange in net assets attributable to unitholders

resulting from operations 1,387,714 (858,349)

Unitholders' contributions/(withdrawals)

Creation of units 4,096 26,510,216 Cancellation of units (1,512,714) (14,095,170)

Change in net assets attributable to unitholders resulting from net creation and cancellation of units (1,508,618) 12,415,046

Total (decrease)/increase in net assets attributable to unitholders (120,904) 11,556,697

Net assets attributable to unitholders at the end of the financial period/year 24,680,928 24,801,832

9


STATEMENT OF PORTFOLIO As at 30 June 2019 (unaudited)

By Geography (Primary)




S$ %Quoted Equities

BRITAINCompass Group Public Listed Company 3,026 98,321 0.39Johnson Matthey Public Listed Company 1,339 76,754 0.31LivaNova Public Listed Company 676 65,815 0.27Prudential Public Listed Company 3,421 101,083 0.41Rentokil Initial Public Listed Company 13,315 91,135 0.37Unilever Public Listed Company 1,585 133,581 0.54Weir Group Public Listed Company 2,204 58,690 0.24Total BRITAIN 625,379 2.53

CANADABrookfield Infrastructure Partners LP 2,686 156,046 0.63Total CANADA 156,046 0.63

FRANCEAltran Technologies SA 4,208 90,477 0.37Total FRANCE 90,477 0.37

IRELANDAccenture Public Listed Company 310 77,471 0.31Total IRELAND 77,471 0.31

ITALYDavide Campari-Milano SPA 5,684 75,447 0.31Total ITALY 75,447 0.31

JAPANAICA Kogyo Company Limited 300 13,562 0.06AS ONE Corporation 100 11,239 0.05Bandai Namco Holdings Incorporated 200 13,135 0.05Daikin Industries Limited 100 17,662 0.07Denka Company Limited 300 12,036 0.05Electric Power Development Company Limited 400 12,296 0.05Hitachi Limited 300 14,877 0.06Honda Motor Company Limited 500 17,486 0.07Itochu Corporation 700 18,112 0.07Komatsu Limited 500 16,325 0.07Mitsubishi Corporation 500 17,832 0.07Mitsubishi Electric Corporation 800 14,255 0.06Mitsubishi UFJ Financial Group Incorporated 3,700 23,789 0.10Mitsui Fudosan Company Limited 500 16,403 0.07Morinaga & Company Limited 200 13,186 0.05Nippon Telegraph & Telephone Corporation 400 25,201 0.10Nitori Holdings Company Limited 100 17,932 0.07Nitto Denko Corporation 200 13,354 0.05Olympus Corporation 600 9,011 0.04Otsuka Corporation 200 10,887 0.04Recruit Holdings Company Limited 500 22,566 0.09San-A Company Limited 200 10,812 0.04Santen Pharmaceutical Company Limited 700 15,691 0.06Seven & I Holdings Company Limited 300 13,743 0.06Shionogi & Company Limited 200 15,593 0.06Softbank Group Corporation 400 25,944 0.11

10







S$ %Quoted Equities (continued)

JAPAN (continued)Sony Corporation 300 21,278 0.09Sumitomo Electric Industries Limited 900 15,986 0.06Sumitomo Mitsui Financial Group Incorporated 400 19,118 0.08Sumitomo Warehouse Company Limited 800 13,812 0.06Terumo Corporation 400 16,124 0.07THK Company Limited 400 12,934 0.05Toho Company Limited 200 11,503 0.05Tokio Marine Holdings Incorporated 300 20,340 0.08Toray Industries Incorporated 1,500 15,431 0.06Toyo Suisan Kaisha Limited 300 16,727 0.07Toyobo Company Limited 800 12,919 0.05Toyota Motor Corporation 400 33,594 0.14Trend Micro Incorporation 200 12,068 0.05West Japan Railway Company 100 10,945 0.04Total JAPAN 645,708 2.62

NETHERLANDSKoninklijke Philips NV 1,590 93,545 0.38Total NETHERLANDS 93,545 0.38

SWEDENHexagon AB 1,118 83,634 0.34Total SWEDEN 83,634 0.34

UNITED STATES OF AMERICAAdobe Incorporated 167 66,574 0.27Amazon.com Incorporated 45 115,054 0.47Anthem Incorporated 214 81,648 0.33Burford Capital Limited 1,982 52,898 0.21Celgene Corporation 430 53,779 0.22Danaher Corporation 449 86,797 0.35Dolby Laboratories Incorporated 800 69,878 0.28Ecolab Incorporated 222 59,104 0.24EOG Resources Incorporated 307 38,703 0.16Estee Lauder Companies Incorporation 247 61,155 0.25Laboratory Corporation of America Holdings 211 49,336 0.20LHC Group Incorporated 419 67,789 0.27McCormick & Company Incorporation 311 65,190 0.26Microsoft Corporation 744 134,844 0.55Progressive Corporation 1,022 110,521 0.45Red Hat Incorporated 134 34,024 0.14ResMed Incorporated 303 50,005 0.20SVB Financial Group 181 54,999 0.22Transunion 947 94,082 0.38Verisk Analytics Incorporated 268 53,084 0.22Total UNITED STATES OF AMERICA 1,399,464 5.67

Total Quoted Equities 3,247,171 13.16

11







S$ %Quoted Fixed Income Securities

AUSTRALIAAustralia & New Zealand Banking Group Limited 3.1%

due 18/01/2023 200,000 199,032 0.81Commonwealth Bank of Australia 3.25% due

25/04/2023 200,000 200,450 0.81ETSA Utilities Finance Private Limited 3.5% due

29/08/2024 100,000 100,896 0.41National Australia Bank Limited 3% due 10/02/2023 200,000 198,422 0.80Optus Finance Private Limited 3.24% due 29/09/2022 250,000 256,232 1.04Queensland Treasury Corporation 3.25% due

21/07/2028 470,000 501,221 2.03SGSP Australia Assets Private Limited 3.75% due

28/06/2023 100,000 101,706 0.41Stockland Trust 4.5% due 23/11/2022 200,000 203,486 0.82United Energy Distribution Private Limited 3.5% due

12/09/2023 150,000 149,681 0.61Vicinity Centres Trust 3.5% due 26/04/2024 100,000 99,530 0.40Western Australian Treasury Corporation 3.25% due

20/07/2028 460,000 491,156 1.99Westpac Banking Corporation 3.125% due 27/10/2022 200,000 198,800 0.81Total AUSTRALIA 2,700,612 10.94

BRITISH VIRGIN ISLANDSCNOOC Finance 2012 Limited 3.875% due 02/05/2022 200,000 279,198 1.13CNPC General Capital Limited 2.7% due 25/11/2019 200,000 270,784 1.10Shanghai Port Group BVI Development Company

Limited 2.875% due 18/06/2024 200,000 271,536 1.10Total BRITISH VIRGIN ISLANDS 821,518 3.33

CANADACanadian Government Bond 2.5% due 01/06/2029 1,347,000 1,495,841 6.06Total CANADA 1,495,841 6.06

CAYMAN ISLANDSHongkong Land Finance Cayman Islands Company

Limited 4.5% due 01/06/2022 200,000 285,251 1.16Sun Hung Kai Properties Capital Market Limited 3.25%

due 20/05/2021 250,000 252,989 1.02Total CAYMAN ISLANDS 538,240 2.18

CHINAChina Government Bond 3.39% due 21/05/2025 2,500,000 498,818 2.02China Construction Bank Corporation 2.08% due

26/10/2020 250,000 249,312 1.01Total CHINA 748,130 3.03

FRANCEFrench Republic Government Bond O.A.T 0.5% due

25/05/2029 540,000 873,761 3.54Total FRANCE 873,761 3.54

12







S$ %Quoted Fixed Income Securities (continued)

MALAYSIADanga Capital Berhad 3.725% due 11/08/2020 250,000 253,248 1.03Total MALAYSIA 253,248 1.03

NETHERLANDSShell International Finance BV 3.4% due 12/08/2023 60,000 84,805 0.34Total NETHERLANDS 84,805 0.34

NORWAYEquinor ASA 2.45% due 17/01/2023 60,000 81,722 0.33Total NORWAY 81,722 0.33

SINGAPOREAscendas Real Estate Investment Trust 2.47% due

10/08/2023 250,000 247,255 1.00Ascendas Real Estate Investment Trust 3.14% due

02/03/2025 250,000 253,009 1.03CMT MTN Private Limited 3.2% due 21/08/2025 250,000 253,732 1.03Great Eastern Life Assurance Company Limited 4.6%

due 19/01/2026 250,000 258,623 1.05Housing & Development Board 2.288% due 19/09/2019 250,000 250,203 1.01Housing & Development Board 2.675% due 22/01/2029 250,000 257,584 1.05Land Transport Authority of Singapore 2.73% due

18/09/2020 250,000 251,813 1.02RCS Trust 3.2% due 14/03/2025 250,000 252,642 1.02Singapore Airlines Limited 3.03% due 28/03/2024 250,000 251,870 1.02Singapore Government Bond 2.75% due 01/07/2023 250,000 259,875 1.05Singapore Technologies Telemedia Private Limited

4.05% due 02/12/2025 250,000 262,217 1.06Singtel Group Treasury Private Limited 3.4875% due

08/04/2020 250,000 252,071 1.02United Overseas Bank Limited 3.5% due 27/02/2029 250,000 257,971 1.05Total SINGAPORE 3,308,865 13.41

13







S$ %Quoted Fixed Income Securities (continued)

UNITED STATES OF AMERICAApple Incorporation 2.25% due 23/02/2021 60,000 81,493 0.33Bank of America Corporation 4.125% due 22/01/2024 60,000 86,880 0.35Georgia-Pacific LLC 8% due 15/01/2024 100,000 167,257 0.68Intel Corporation 4% due 01/12/2022 100,000 101,815 0.41JPMorgan Chase & Company 3.9% due 15/07/2025 60,000 86,752 0.35Microsoft Corporation 1.55% due 08/08/2021 60,000 80,514 0.33Novartis Capital Corporation 3.4% due 06/05/2024 60,000 85,424 0.35Simon Property Group LP 2.5% due 15/07/2021 60,000 81,625 0.33United States Treasury Note 2.625% due 15/02/2029 560,000 799,076 3.24Visa Incorporation 2.8% due 14/12/2022 60,000 83,178 0.33Total UNITED STATES OF AMERICA 1,654,014 6.70

Accrued interest receivable on quoted fixed income securities 89,138 0.36

Total Quoted Fixed Income Securities 12,649,894 51.25

14







S$ %Quoted Investment Fund

BRITAINHICL Infrastructure Public Listed Company 48,132 132,439 0.54Total BRITAIN 132,439 0.54

GUERNSEYInternational Public Partnerships Limited 49,188 126,537 0.51Total GUERNSEY 126,537 0.51

IRELANDiShares EUR Corporation Bond Large Cap UCITS ETF 2,903 622,932 2.53iShares Physical Gold ETC 30,943 1,158,498 4.69Total IRELAND 1,781,430 7.21

JERSEY3i Infrastructure Public Listed Company 29,391 150,559 0.61Total JERSEY 150,559 0.61

LUXEMBOURGNikko AM Global Umbrella Fund - Nikko AM Asia ex

Japan Fund 83,609 1,583,673 6.42Total LUXEMBOURG 1,583,673 6.42

SINGAPORENikko AM Shenton Thrift Fund 445,676 1,041,991 4.22Nikko AM Shenton Short Term Bond Fund 1,455,176 2,225,226 9.02NikkoAM-StraitsTrading Asia ex Japan REIT ETF 447,000 581,100 2.35Total SINGAPORE 3,848,317 15.59

UNITED STATES OF AMERICAiShares MSCI Singapore ETF 30 1,003 -VaNeck Vectors Russia ETF 8,503 271,844 1.11Total UNITED STATES OF AMERICA 272,847 1.11

Total Quoted Investment Fund 7,895,802 31.99

15







S$ %Quoted Real Estate Investment Trusts

UNITED STATES OF AMERICAAmerican Tower Corporation 216 59,713 0.24Total UNITED STATES OF AMERICA 59,713 0.24

Total Quoted Real Estate Investment Trusts 59,713 0.24

Portfolio of investments 23,852,580 96.64Other net assets 828,348 3.36Net assets attributable to unitholders 24,680,928 100.00

16



By Geography (Summary) Percentage oftotal net assets attributable to unitholders at 30 June 2019

%


31 December 2018 %

Quoted Equities Britain 2.53 -Canada 0.63 0.22 France 0.37 -Ireland 0.31 -Italy 0.31 -Japan 2.62 5.19 Netherlands 0.38 -Sweden 0.34 -United States of America 5.67 -Total Quoted Equities 13.16 5.41

Quoted Fixed Income Securities Australia 10.94 10.69 British Virgin Islands 3.33 2.21 Canada 6.06 3.94 Cayman Islands 2.18 2.19 Chile - 2.12 China 3.03 3.97 France 3.54 2.94 Japan - 2.11 Malaysia 1.03 1.03 Netherlands 0.34 0.55 Norway 0.33 1.59 Singapore 13.41 13.18 South Korea - 1.09 United States of America 6.70 7.49 Accrued interest receivable on quoted fixed income securities 0.36 0.46 Total Quoted Fixed Income Securities 51.25 55.56

17



By Geography (Summary) (continued) Percentage oftotal net assets attributable to unitholders at 30 June 2019

%


31 December 2018 %

Quoted Investment FundAustralia - 1.01 Britain 0.54 -Germany - 0.91 Guernsey 0.51 0.51 Ireland 7.21 9.23 Jersey 0.61 0.27 Luxembourg 6.42 4.72 Singapore 15.59 13.83 United States of America 1.11 4.47 Total Quoted Investment Fund 31.99 34.95

Quoted Real Estate Investment Trusts United States of America 0.24 -Total Quoted Real Estate Investment Trusts 0.24 -

Portfolio of investments 96.64 95.92 Other net assets 3.36 4.08 Net assets attributable to unitholders 100.00 100.00

18





Percentage oftotal net assets attributable to unitholders at 30 June 2019


31 December 2018 S$ % %

Airlines 251,870 1.02 -Auto Manufacturers 51,080 0.21 0.45 Auto Parts & Equipment 15,986 0.06 0.13 Banks 1,575,525 6.38 10.60 Beverages 75,447 0.31 -Biotechnology 53,779 0.22 -Building Materials 17,662 0.07 0.12 Chemicals 190,241 0.77 0.37 Closed-end Funds 150,559 0.61 0.27 Commercial Services 532,403 2.16 1.17 Commodity Fund 1,158,498 4.69 5.22 Computers 169,851 0.69 0.61 Cosmetics/Personal Care 194,736 0.79 -Debt Fund 622,932 2.52 8.07 Distribution/Wholesale 35,944 0.15 1.39 Diversified Financial Services 136,076 0.55 2.26 Electric 418,919 1.70 1.30 Engineering and Construction 90,477 0.37 -Entertainment 11,503 0.05 -Equity Fund 5,704,837 23.11 20.88 Food 119,658 0.48 0.34 Food Service 98,321 0.39 -Forest Products & Paper 167,257 0.68 0.66 Gas 101,706 0.41 0.40 Healthcare-Products and Services 332,536 1.35 0.24 Healthcare-Services 198,773 0.81 -Home Builders - - 0.11 Home Furnishings 91,156 0.37 1.13 Insurance 490,567 1.99 1.20Internet 127,122 0.52 0.08 Investment Companies 258,976 1.05 0.52 Machinery-Construction & Mining 45,457 0.18 0.40 Machinery-Diversified 155,258 0.63 0.06 Miscellaneous Manufacture 12,919 0.05 -Oil and Gas 755,212 3.06 3.40 Packaging & Containers - - 0.12 Pharmaceuticals 116,708 0.47 0.85 Real Estate 554,643 2.25 3.32 Real Estate Investment Trusts (REITS) 1,450,992 5.88 5.74 Regional (State/Province) 992,377 4.02 -Retail 17,932 0.07 0.14 Semiconductors 101,815 0.41 0.40 Software 315,956 1.28 0.53 Sovereign 4,940,219 20.02 22.19

19





Percentage oftotal net assets attributable to unitholders at 30 June 2019


31 December 2018 S$ % %

Storage/Warehousing 13,812 0.06 0.11 Telecommunications 821,665 3.33 1.32 Toys/Games/Hobbies 13,135 0.05 0.15 Transportation 10,945 0.04 0.21 Accrued interest receivable on quoted fixed

income securities 89,138 0.36 0.46

Portfolio of investments 23,852,580 96.64 95.92 Other net assets 828,348 3.36 4.08 Net assets attributable to unitholders 24,680,928 100.00 100.00

20


REPORT TO UNITHOLDERS For the financial period from 01 January 2019 to 30 June 2019 (unaudited)

The following contains additional information relating to the Fund.

Distribution of investments

Please refer to the Statement of Portfolio on pages 1 to 2 .

Credit rating of debt securities

Fair value at30 June 2019

S$

Percentage oftotal net assets

attributable to unitholders at 30 June 2019

%

AAA 3,394,906 13.75AA+ 1,073,870 4.35AA- 1,131,833 4.59A+ 1,854,273 7.51A 623,108 2.52A- 982,043 3.98A1 498,818 2.02A2 611,233 2.48A3 500,264 2.03Not Rated 1,890,408 7.66Accrued interest receivables on quoted

fixed income securities 89,138 0.36Total 12,649,894 51.25

21



3. Top 10 holdings


Fair value S$



%

2,225,226 9.02

1,583,673 6.42

1,495,841 6.061,158,498 4.691,041,991 4.22

873,761 3.54

799,076 3.24

622,932 2.52

581,100 2.35

501,221 2.03

Nikko AM Shenton Short Term Bond Fund Nikko AM Global Umbrella Fund - Nikko AM

Asia ex Japan FundCanadian Government Bond 2.25% due

01/06/2029iShares Physical Gold ETCNikko A Shenton Thrift FundFrench Republic Government Bond O.A.T

0.5% due 25/05/2029United States Treasury Note 2.625% due

15/02/2029iShares EUR Corporation Bond Large Cap

UCITS ETFNikkoAM-StraitsTrading Asia ex Japan REIT

ETFQueensland Treasury Corporation 3.25% due

21/07/2028


Fair valueS$



%

Nikko AM Shenton Thrift Fund 1,529,854 5.94Nikko AM Global Umbrella Fund - Nikko AM Asia ex Japan Fund 1,407,650 5.47

Canadian Government Bond 2.5% due 01/06/2024 1,037,291 4.03

United Kingdom Gilt 2% due 07/09/2025 1,033,682 4.01French Republic Government Bond O.A.T 0.5% due 25/05/2025 797,974 3.10

iShares Physical Gold ETC 756,581 2.94iShares Core S&P 500 UCITS ETF 523,437 2.03Western Australian Treasury Corporation 5% due 23/07/2025 516,064 2.00

iShares EUR Corporation Bond Large Cap UCITS ETF EUR DIST 515,409 2.00

iShares Core Dax UCITS ETF DE 514,901 2.00

22



4. Exposure to financial derivatives


S$



30 June 2019 %

Unrealised gains/(losses)

S$

Realisedgains/(losses)

S$Forward foreign exchange contracts 22,844 0.09 22,844 4,507Futures contracts 2,404 0.01 2,404 (3,014)Option contracts - - - (45,665)


The global exposure to financial derivatives is computed using the commitmentapproach which is calculated as the sum of:

a. the absolute value of the exposure of each individual financial derivative notinvolved in netting or hedging arrangement;

b. the absolute value of the net exposure of each individual financial derivativeafter netting or hedging arrangements; and

c. the sum of the values of cash collateral received pursuant to:

i. the reduction of exposure to counterparties of OTC financial derivatives;and

ii. EPM techniques relating to securities lending and repurchase transactions,and that are reinvested.

6. Collateral30 June 2019

S$31 December 2018

S$

Margin account 87,400 -Margin account overdraft - (33)

Margin account represents margin deposits held in respect of open exchange-traded futures contract with BNP Paribas Securities Services operating through its Singapore Branch.

23



Securities lending or repurchase transactions

Nil.

Investment in unit trusts, mutual funds and collective investment schemes

Please refer to the Statement of Portfolio on pages 1 to 2 .

Borrowings

Nil.

Amount of units created and cancelled for the financial period ended 30June 2019

S$

Units created 4,096Units cancelled (1,512,714)

11. Turnover ratio

30 June 2019 30 June 2018

Lower of total value of purchases or sales S$ 11,763,800 11,713,881Average daily net asset value S$ 24,957,857 23,544,143Total turnover ratioNote % 47.13 49.75

Note: The portfolio turnover ratio is calculated in accordance with the formula stated in the Code on Collective Investment Schemes. The calculation of the portfolio turnover ratio was based on the lower of the total value of purchases or sales of the underlying investments, divided by the average daily net asset value.

24



12. Expense ratio

SGD Class A 30 June 2019 30 June 2018

Total operating expenses S$ 141,873 -Average daily net asset value S$ 12,353,348 -Total expense ratioNote (includingunderlying fund's expense ratio)(annualised) % 1.35 -

Weighted average of the underlying fund'sunaudited expense ratio % 0.15 -

SGD Class B 30 June 2019 30 June 2018

Total operating expenses S$ 71,600 107,280Average daily net asset value S$ 13,396,557 18,280,112Total expense ratioNote (includingunderlying fund's expense ratio) % 0.68 0.70

Weighted average of the underlying fund'sunaudited expense ratio % 0.15 0.11

Note: The expense ratio has been computed based on the guidelines laid down by the Investment Management Association of Singapore ("IMAS"). The calculation of the expense ratio at financial year end was based on total operating expenses divided by the average net asset value for the 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 Fund does not pay any performance fee. The average net asset value is based on the daily balances.

25




The Manager of the Fund is Nikko Asset Management Asia Limited, a subsidiaryof Nikko Asset Management International Limited. The Trustee of the Fund isBNP Paribas Trust Services Singapore Limited (the "Trustee").

Management fee is payable to the Manager. Trustee fee and registrar fee arepayable to the Trustee. Custody fee and valuation fee are payable to a relatedcompany of the Trustee, BNP Paribas Securities Services operating through itsSingapore Branch.

In addition to related party information shown elsewhere in the financialstatements (including the Statement of Portfolio), the following significanttransactions took place during the financial period between the Fund and arelated party at terms agreed between the parties and within the provisions of theDeeds:

30 June 2019 S$

31 December 2018 S$

Bank balances held with related party of the Trustee 853,991 722,442

Margin account/(overdraft) held with related party of the Trustee 87,400 (33)

14. Any other material information that will adversely impact the valuation ofthe fund

Nil.

26

Intentionally left blank.

427023 Global Multi Asset KS4 - Nikko AM...SEMI-ANNUAL REPORT For the ﬁ nancial period ending 30...

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