United Singapore Growth Fund

United Singapore Growth FundAnnual Report

for the financial year ended31 December 2019

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

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

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

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

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

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

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A) Fund Performance

Fund Performance/Benchmark Returns

3 mth%

Growth

6 mth%

Growth

1 yr%

Growth

3 yrAnn

CompRet

5 yrAnn

CompRet

10 yrAnn

CompRet

SinceInception

28 February1990Ann

CompRet

United Singapore GrowthFund 4.03 0.81 13.00 8.56 3.07 3.55 6.16Benchmark 4.47 0.61 13.45 9.54 3.64 4.97 4.89

Source: Morningstar.

Note: The performance returns of the Fund are in Singapore Dollar based on a NAV-to-NAV basis with dividends and distributionsreinvested, if any.The benchmark of the Fund: Feb 90 – Dec 12: Straits Times Index; Jan 13 to Present: MSCI Singapore NR.

For the year ended 31 December 2019, the net asset value of the Fund rose 13.00% compared to a13.45% increase in the benchmark MSCI Singapore NR Index.

The Fund’s performance was aided by positive stock selection in the Industrials, Real Estate,Consumer Staples and Health Care sectors. The Fund also benefited from being underweight in theunderperforming Consumer Discretionary sector. However, these positive effects were offset bynegative stock selection in the Financials and Communications Services sectors.

On a stock level, the Fund’s investments in Keppel Corporation, ST Engineering and UOL addedpositively to performance. Moreover, the Fund’s off-benchmark investments in Thai Beverage andHealth Management International also performed well. However, stocks such as Jardine Cycle &Carriage and Genting Singapore underperformed and detracted from performance.

As at end December 2019, the Fund was 98.03% invested. In terms of sectors, the Fund’s allocationstood at Financials (45.44%), Real Estate (18.12%), Industrials (15.26%), Communication Services(8.62%), Consumer Staples (5.85%), Consumer Discretionary (2.97%), Information Technology(1.48%) and Unit Trust (0.29%), with the remainder in cash (1.97%).

Economic and Market Review

In the year 2019, equity markets in Asia ex-Japan posted gains, although underperforming globaldeveloped markets. Investor sentiment and market direction largely mirrored the ebb and flow ofheadlines surrounding the US-China trade war.

The markets rebounded strongly in the first quarter of 2019 as a trade deal looked to be on track, Chinapolicy eased more significantly and economic data improved. The US Federal Reserve (Fed) alsocontinued to signal a dovish stance.


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A) Fund Performance (continued)

Thereafter, the markets became much more volatile from May 2019. Trade tensions escalated as the USand China raised tariffs on each other’s goods when talks broke down. Furthermore, US President Trumpsigned an executive order to restrict US companies doing business with Huawei, with significantimplications throughout the technology sector. Trade tensions then eased again in June after USPresident Trump and Chinese President Xi met on the side-lines of a G20 meeting with both sidesagreeing to resume trade talks again without further tariff imposition and the US partially lifted the Huaweiban. Thereafter, the US-China trade talks and tit-for-tat tariff hikes were constantly on and off, making themarkets volatile to headline news on the status of negotiations, while economic data continued to slide onbusiness uncertainty. Adding to the economic woes for Asian markets was the chaos and social unrestthat erupted in Hong Kong after the government proposed an extradition treaty with China.

As uncertainties of US-China trade relations weighed upon the global economy, the US Fed turned moredovish and cut interest rates three times by 75 basis points altogether in 2019. Other central banksfollowed suit and reiterated accommodative or neutral monetary policy. Markets rallied but were hit againfrom a recession risk scare in August 2019 as bond yields collapsed and the US Treasury 10-year to2-year yield curve inverted. US President Trump also threatened further tariffs on China

Finally, in late October, there were clearer signals of a potential phase one trade deal between the US andChina that would resolve some issues, though some uncertainties lingered about whether it would reallymaterialise given the past flip flops. There was disagreement between the US and China on the extent ofrolling back existing tariffs, and also the added complication of Hong Kong, where the US signed a billsupporting Hong Kong protestors’ calls for more democracy and freedom.

In December the US announced that they were close to signing a phase one trade deal with China,together with some rollback of tariffs. Concurrently, leading indicators such as the purchasing managers’index (PMI) ticked up as sentiment improved, signalling some stabilisation of economic activity. Marketstook it very positively and the Asian markets ended the year with a strong October to December quarter.

Within South East Asia, Singapore was the best performing market. Singapore was preferred byinvestors seeking a defensive market amidst the global market uncertainty, with the market’s attractivedividend yield leading to fund inflows. Singapore also stood out favourably in terms of earnings cuts,where consensus 2019 earnings per share was cut by 5.8 per cent compared to a 14.0 per cent cut acrossthe region.

With a sharp decline in exports driven by the US-China trade war, Singapore’s gross domestic product(GDP) grew by a modest 0.7% year-on-year (YoY) in 2019. This was dragged by the manufacturingsector, which contracted by 1.5% YoY. Across sectors, Real Estate was the top performer. A fall in bondyields supported the valuation of real estate investment trusts (REITs), while developers re-rated onresilient residential demand and bottom-up corporate action.

Given this uncertain macroeconomic environment, companies accelerated corporate restructuring toimprove returns. Key transactions included Singapore sovereign wealth fund Temasek’s announcedpartial offer for Keppel Corp to increase its stake from 20.4% to 51%, which boosted the performance ofKeppel Corp’s share price. Similarly, City Developments outperformed after the company completed atakeover offer for Millennium & Copthorne.


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Outlook and Fund Strategy

Global growth has been sluggish amidst trade tensions in 2019. The US-China tariffs have had a majorimpact on industrial production and business investments. However, we head into 2020 with a US-Chinaphase one trade deal at hand and leading indicators pointing to economic stabilisation. The policyenvironment is still fairly benign with China cutting reserve requirement ratio and easing fiscal policy, Indiacontinuing to cut rates and US Fed putting rates on hold as the global economy is still reeling from theindustrial slowdown. Hence, we are more optimistic on Asia’s 2020 prospects.

Asian equity market valuations remain fair, trading above its near-term mean on a price-to-book basis.Nonetheless, a phase one US-China trade deal should lower risk premiums and improve corporates’earnings outlook, driving Asian equity markets higher. Moreover, Asian markets are still trading at asignificant discount to US markets and have more room for earnings upgrades as the industrial cycleturns for the better.

Risks still linger despite the current buoyant market sentiment. Geopolitical tensions in the Middle Eastare heating up after a top Iranian General was assassinated, sparking fears that a war could be imminent.The path towards a phase two and beyond of a US-China trade deal is still marred with uncertainty, andin the long term will likely hit some obstacles. In Asia, the social unrest and chaos in Hong Kong stilllingers, dragging its economy into recession and affecting a major part of Asian market’s capitalizationwhich is listed on the Hong Kong bourse.

Turning to Singapore, we remain relatively bullish, as cyclical indicators for the island state such aselectronics exports as well as cargo throughput have shown signs of bottoming out. The de-escalation oftrade tensions between the US and China is positive for Singapore, which is one of the countries' mostexposed to trade flow in Asia.

Accordingly, analysts expect Singapore’s GDP to post a modest recovery in 2020, with forecast GDPgrowth of 1.4%, close to the midpoint of the Ministry of Trade & Industry (MTI)’s forecast of 0.5 - 2.5%.The recovery is expected to be driven by the manufacturing sector, in line with the bottoming in globalindustrial production. While growth momentum is expected to pick up, the rebound will likely be subdued.There has been de-escalation in the US-China trade conflict, but the level of tariffs remains above July2019 levels and business uncertainty remains elevated. We see some bright spots in the economy in theform of growth in wealth management businesses, and sustained construction demand. Together, theseshould drive a slower pace of earnings cuts, which should help to support the market’s performance.

Against a mixed economic backdrop, we expect 2020 to be an eventful year for the Singapore market withnumerous drivers across sectors. There are expectations that a General Election could be held in 2020and the market is likely to anticipate more government policies to drive further economic transformation.In the near term, the Budget in February could be expansionary with more social spending and focus onsupporting employment, tapping the close to S$15.6 billion of accumulated surplus during the currentterm of the government.


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’


Following a string of corporate actions in 2019, companies are likely to accelerate ongoing restructuringto drive higher returns and increase dividend pay-outs. We expect restructuring to be a more significantshare price driver in the Consumer Staples, Industrials and Property sectors. We will continue toposition the Fund positively in these sectors.

With attractive valuations accompanied by fiscal flexibility of the government to support growth and theattractiveness of a relatively high dividend yield, our view is that the Singapore market will continue to findfavour with investors.

Key risks to our more positive view include a full blown Middle East war and another U-turn in the progressof US-China trade negotiations, which has happened multiple times in the past one and a half years.Lastly, the slowdown in tourist arrivals and weaker consumer sentiment following the coronavirusoutbreak could also present downside risks to both GDP and earnings growth forecasts.


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B) Investments at fair value and as a percentage of net asset value (“NAV”) as at 31 December2019 under review classified by

i) Country

Fair Value(S$)

% of NAV

Singapore 50,015,602 95.48Thailand 1,335,000 2.55Portfolio of investments 51,350,602 98.03Other net assets/(liabilities) 1,030,556 1.97Total 52,381,158 100.00

ii) Industry

Fair Value(S$)

% of NAV

Communication Services 4,515,800 8.62Consumer Discretionary 1,555,500 2.97Consumer Staples 3,065,400 5.85Financials 23,795,801 45.44Industrials 7,993,900 15.26Information Technology 777,600 1.48Real Estate 9,491,921 18.12Unit Trusts 154,680 0.29Portfolio of investments 51,350,602 98.03Other net assets/(liabilities) 1,030,556 1.97Total 52,381,158 100.00

iii) Asset Class

Fair Value(S$) % of NAV

Quoted unit trusts 154,680 0.29Quoted equities 51,195,922 97.74Other net assets/(liabilities) 1,030,556 1.97Total 52,381,158 100.00


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B) Investments at fair value and as a percentage of net asset value (“NAV”) as at 31 December2019 under review classified by (continued)

iv) Credit rating of quoted bonds

N/A

C) Top Ten Holdings

10 largest holdings as at 31 December 2019

Fair Value(S$)

Percentage oftotal net assetsattributable to

unitholders%

DBS GROUP HOLDINGS LTD 9,446,200 18.03UNITED OVERSEAS BANK LTD 7,449,601 14.22OVERSEA-CHINESE BANKING CORP LTD 6,368,400 12.16SINGAPORE TELECOMMUNICATIONS LTD 4,515,800 8.62CAPITALAND LTD 3,187,500 6.09KEPPEL CORP LTD 3,046,500 5.82SINGAPORE TECHNOLOGIES ENGINEERING LTD 2,403,400 4.59UOL GROUP LTD 2,080,000 3.97COMFORTDELGRO CORP LTD 1,785,000 3.41WILMAR INTERNATIONAL LTD 1,730,400 3.30


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C) Top Ten Holdings (continued)

10 largest holdings as at 31 December 2018

Fair Value

Percentage oftotal net assetsattributable to

unitholders(S$) %

DBS GROUP HOLDINGS LTD 10,376,220 20.69UNITED OVERSEAS BANK LTD 8,232,793 16.41OVERSEA-CHINESE BANKING CORP LTD 7,431,600 14.82SINGAPORE TELECOMMUNICATIONS LTD 4,600,100 9.17KEPPEL CORP LTD 2,606,310 5.20CAPITALAND LTD 1,555,000 3.10UOL GROUP LTD 1,547,500 3.08SINGAPORE TECHNOLOGIES ENGINEERING LTD 1,535,600 3.06GENTING SINGAPORE LTD 1,394,250 2.78THAI BEVERAGE PCL 1,220,000 2.43

D) Exposure to derivatives

i) Fair value of derivative contracts and as a percentage of NAV as at 31 December 2019

N/A

ii) There was a net realised loss of SGD 241 on derivative contracts during the financial year ended31 December 2019.

iii) Net gains/(losses) on outstanding derivative contracts marked to market as at 31 December 2019

N/A

E) Amount and percentage of NAV invested in other schemes as at 31 December 2019

Please refer to the Statement of Portfolio.

F) Amount and percentage of borrowings to NAV as at 31 December 2019

N/A


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G) Amount of redemptions and subscriptions for the financial year ended 31 December 2019

Total amount of redemptions SGD 5,308,539Total amount of subscriptions SGD 2,316,264

H) The amount and terms of related-party transactions for the financial year ended 31 December2019

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

I) Expense ratios


J) Turnover ratios


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

N/A

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

should be disclosed as well

i) Top 10 holdings at fair value and as percentage of NAV as at 31 December 2019 and 31 December2018

N/A

ii) Expense ratios for the financial year ended 31 December 2019 and 31 December 2018

N/A

iii) Turnover ratios for the financial year ended 31 December 2019 and 31 December 2018

N/A

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


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M) Soft dollar commissions/arrangements

UOB Asset Management has entered into soft dollars arrangements with selected brokers fromwhom products and services are received from third parties. The products and services relateessentially to computer hardware and software to the extent that they are used to support theinvestment decision making process, research and advisory services, economic and politicalanalyses, portfolio analyses including performance measurements, market analyses, data andquotation services, all of which are believed to be helpful in the overall discharge of UOB AssetManagement’s duties to clients. As such services generally benefit all of UOB Asset Management’sclients in terms of input into the investment decision making process, the soft credits utilised are notallocated on a specific client basis. The Manager confirms that trades were executed on a bestexecution basis and there was no churning of trades.

N) Where the scheme offers pre-determined payouts, an explanation on the calculation of theactual payouts received by participants and any significant deviation from thepre-determined payouts

N/A


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REPORT OF THE TRUSTEE

The Trustee is under a duty to take into custody and hold the assets of United Singapore Growth Fund(the “Fund”) in trust for the unitholders. In accordance with the Securities and Futures Act (Cap. 289), itssubsidiary legislation and the Code on Collective Investment Schemes, the Trustee shall monitor theactivities of the Manager for compliance with the limitations imposed on the investment and borrowingpowers as set out in the Trust Deed in each annual accounting year and report thereon to unitholders inan annual report.

To the best knowledge of the Trustee, the Manager has, in all material respects, managed the Fundduring the financial year covered by these financial statements, set out on pages 16 to 40, in accordancewith the limitations imposed on the investment and borrowing powers set out in the Trust Deed.

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

Authorised signatory20 March 2020


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STATEMENT BY THE MANAGER

In the opinion of UOB Asset Management Ltd, the accompanying financial statements set out on pages16 to 40, comprising the Statement of Total Return, Statement of Financial Position, Statement ofMovements of Unitholders’ Funds, Statement of Portfolio and Notes to the Financial Statements aredrawn up so as to present fairly, in all material respects, the financial position and portfolio holdings ofUnited Singapore Growth Fund (the “Fund”) as at 31 December 2019, and the financial performance andmovements of unitholders’ funds for the year then ended in accordance with the recommendations ofStatement of Recommended Accounting Practice 7 “Reporting Framework for Unit Trusts” issued by theInstitute of Singapore Chartered Accountants. At the date of this statement, there are reasonablegrounds to believe that the Fund will be able to meet its financial obligations as and when they materialise.

For and on behalf of the ManagerUOB ASSET MANAGEMENT LTD

THIO BOON KIATAuthorised signatory20 March 2020


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INDEPENDENT AUDITOR’S REPORT TO THE UNITHOLDERS OF UNITED SINGAPORE GROWTHFUND

Our Opinion

In our opinion, the accompanying financial statements of United Singapore Growth Fund (the “Fund”),are properly drawn up in accordance with the recommendations of Statement of RecommendedAccounting Practice 7 “Reporting Framework for Unit Trusts” issued by the Institute of SingaporeChartered Accountants, so as to present fairly, in all material respects, the financial position and portfolioholdings of the Fund as at 31 December 2019, and of the financial performance and movements ofunitholders’ funds for the financial year ended on that date.

What we have audited

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 December2019;

• the Statement of Portfolio as at 31 December 2019; and

• the Notes to the Financial Statements, including a summary of significant accounting policies.

Basis for Opinion

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

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

Independence

We are independent of the Fund in accordance with the Accounting and Corporate Regulatory AuthorityCode 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 inSingapore, and we have fulfilled our other ethical responsibilities in accordance with these requirementsand the ACRA Code.

Other Information

The Fund’s Manager (the “Manager”) is responsible for the other information. The other informationcomprises all sections of the annual report but does not include the financial statements and our auditor’sreport thereon.

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Our opinion on the financial statements does not cover the other information and we do not express anyform of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other informationand, in doing so, consider whether the other information is materially inconsistent with the financialstatements 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 otherinformation, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Manager for the Financial Statements

The Manager is responsible for the preparation and fair presentation of these financial statements inaccordance with the recommendations of Statement of Recommended Accounting Practice 7“Reporting Framework for Unit Trusts” issued by the Institute of Singapore Chartered Accountants andfor such internal control as the Manager determines is necessary to enable the preparation of financialstatements 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 tocontinue as a going concern, disclosing, as applicable, matters related to going concern and using thegoing concern basis of accounting unless the Manager either intends to terminate the Fund or to ceasethe 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 arefree from material misstatement, whether due to fraud or error, and to issue an auditor’s report thatincludes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that anaudit 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 theaggregate, they could reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

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

• Identify and assess the risks of material misstatement of the financial statements, whether due tofraud or error, design and perform audit procedures responsive to those risks, and obtain auditevidence that is sufficient and appropriate to provide a basis for our opinion. The risk of notdetecting a material misstatement resulting from fraud is higher than for one resulting from error,as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the overrideof internal control.

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• Obtain an understanding of internal control relevant to the audit in order to design auditprocedures that are appropriate in the circumstances, but not for the purpose of expressing anopinion on the effectiveness of the Fund’s internal control.

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

• Conclude on the appropriateness of the Manager’s use of the going concern basis of accountingand, based on the audit evidence obtained, whether a material uncertainty exists related to eventsor 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’sreport 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 ofour auditor’s report. However, future events or conditions may cause the Fund to cease to continueas a going concern.

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

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

PricewaterhouseCoopers LLPPublic Accountants and Chartered AccountantsSingapore, 20 March 2020

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STATEMENT OF TOTAL RETURN

For the financial year ended 31 December 2019

2019 2018Note $ $

IncomeDividends 2,174,295 2,352,528Interest 1,086 1,221Total 2,175,381 2,353,749

Less: ExpensesManagement fee 10 524,260 571,637Trustee fee 10 18,131 20,127Audit fee 15,578 15,500Registrar fee 10 15,000 14,928Custody fee 10 12,107 24,770Transaction costs 66,862 108,618Other expenses 140,343 92,670Total 792,281 848,250

Net income/(losses) 1,383,100 1,505,499

Net gains/(losses) on value of investments and financialderivativesNet gains/(losses) on investments 5,025,255 (6,982,750)Net gains/(losses) on financial derivatives (241) 3,468Net foreign exchange gains/(losses) (497) 9,212

5,024,517 (6,970,070)

Total return/(deficit) for the financial year before incometax 6,407,617 (5,464,571)Less: Income tax 3 (20,866) (13,999)Total return/(deficit) for the financial year 6,386,751 (5,478,570)


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

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STATEMENT OF FINANCIAL POSITION

As at 31 December 2019

2019 2018Note $ $

AssetsPortfolio of investments 51,350,602 50,372,035Receivables 5 204,757 202,063Cash and bank balances 1,656,729 696,925Total assets 53,212,088 51,271,023

LiabilitiesPayables 6 248,437 496,437Distribution payable 4 582,493 616,532Total liabilities 830,930 1,112,969

EquityNet assets attributable to unitholders 7 52,381,158 50,158,054



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STATEMENT OF MOVEMENTS OF UNITHOLDERS’ FUNDS


2019 2018Note $ $

Net assets attributable to unitholders at the beginning ofthe financial year 50,158,054 60,313,241

OperationsChange in net assets attributable to unitholders resulting fromoperations 6,386,751 (5,478,570)

Unitholders’ contributions/(withdrawals)Creation of units 2,316,264 6,614,875Cancellation of units (5,308,539) (10,050,808)

Change in net assets attributable to unitholders resulting fromnet creation and cancellation of units (2,992,275) (3,435,933)

Distributions 4 (1,171,372) (1,240,684)

Total increase/(decrease) in net assets attributable tounitholders 2,223,104 (10,155,187)

Net assets attributable to unitholders at the end of thefinancial year 7 52,381,158 50,158,054



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STATEMENT OF PORTFOLIO


Holdings at Fair value at

Percentage oftotal net assetsattributable tounitholders at

31 December2019

31 December2019

$

31 December2019

%

By Geography - Primary

Quoted unit trusts

SINGAPOREUNITED SGD MONEY MARKET FUND -CLASS Z SGD 150,000 154,680 0.29

Quoted equities

SINGAPORECAPITALAND COMMERCIAL TRUST 613,800 1,221,462 2.33CAPITALAND LTD 850,000 3,187,500 6.09CAPITALAND MALL TRUST 550,000 1,353,000 2.58CITY DEVELOPMENTS LTD 60,000 657,000 1.25COMFORTDELGRO CORP LTD 750,000 1,785,000 3.41DBS GROUP HOLDINGS LTD 365,000 9,446,200 18.03GENTING SINGAPORE LTD 1,200,000 1,104,000 2.11JARDINE CYCLE & CARRIAGE LTD 15,000 451,500 0.86KEPPEL CORP LTD 450,000 3,046,500 5.82KEPPEL DC REIT 77,500 161,200 0.31LENDLEASE GLOBAL COMMERCIAL REIT 92,900 86,397 0.17MAPLETREE COMMERCIAL TRUST 121,400 290,146 0.55OVERSEA-CHINESE BANKING CORP LTD 580,000 6,368,400 12.16SATS LTD 150,000 759,000 1.45SINGAPORE EXCHANGE LTD 60,000 531,600 1.02SINGAPORE TECHNOLOGIESENGINEERING LTD 610,000 2,403,400 4.59SINGAPORE TELECOMMUNICATIONS LTD 1,340,000 4,515,800 8.62SUNTEC REAL ESTATE INVESTMENTTRUST 247,400 455,216 0.87UNITED OVERSEAS BANK LTD 282,075 7,449,601 14.22



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Holdings at Fair value at

Percentage oftotal net assetsattributable tounitholders at

31 December2019

31 December2019

$

31 December2019

%

By Geography - Primary (continued)Quoted equities

SINGAPORE (continued)UOL GROUP LTD 250,000 2,080,000 3.97VENTURE CORP LTD 48,000 777,600 1.48WILMAR INTERNATIONAL LTD 420,000 1,730,400 3.30

TOTAL SINGAPORE 49,860,922 95.19

THAILANDTHAI BEVERAGE PCL 1,500,000 1,335,000 2.55

Total Equities 51,195,922 97.74

Portfolio of investments 51,350,602 98.03Other net assets/(liabilities) 1,030,556 1.97Net assets attributable to unitholders 52,381,158 100.00



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Percentage oftotal net assetsattributable tounitholders at31 December

2019%


2018%

By Geography - Primary (Summary)Quoted equities and unit trusts

Hong Kong - 0.80Singapore 95.48 97.20Thailand 2.55 2.43Portfolio of investments 98.03 100.43Other net assets/(liabilities) 1.97 (0.43)Net assets attributable to unitholders 100.00 100.00



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Fair value at31 December

2019$


2019%


2018%

By Industry - SecondaryQuoted equities and unit trusts

Communication Services 4,515,800 8.62 9.17Consumer Discretionary 1,555,500 2.97 3.84Consumer Staples 3,065,400 5.85 4.66Financials 23,795,801 45.44 53.06Health Care - - 1.18Industrials 7,993,900 15.26 13.90Information Technology 777,600 1.48 1.34Real Estate 9,491,921 18.12 12.98Unit Trusts 154,680 0.29 0.30Portfolio of investments 51,350,602 98.03 100.43Other net assets/(liabilities) 1,030,556 1.97 (0.43)Net assets attributable to unitholders 52,381,158 100.00 100.00



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

1 General

United Singapore Growth Fund (the “Fund”) is a Singapore-registered trust fund constituted under a TrustDeed between UOB Asset Management Ltd (the “Manager”) and State Street Trust (SG) Limited (the“Trustee”). The Trust Deed is governed by the laws of the Republic of Singapore.

The investment objective of the Fund is to achieve medium to long term capital appreciation and toreceive regular income distributions during the investment period through investing in shares ofcompanies listed or quoted on the Singapore Exchange Securities Trading. There will be no limit onforeign currency denominated investments in respect of the Fund.

Subscriptions and redemptions of the units are denominated in the Singapore Dollar and theUnited States Dollar. Investors may subscribe in the United States Dollar at the applicable rate ofexchange from the Singapore Dollar.

The Fund is included by the Central Provident Fund (“CPF”) Board under the CPF Investment Scheme(“CPFIS”) - Ordinary account for subscription by unitholders using their CPF monies. The Fund isincluded under List B of the CPFIS and is not allowed to accept new CPF monies.

2 Significant accounting policies

(a) Basis of preparation

The financial statements have been prepared under the historical cost convention, modified by therevaluation of financial assets held at fair value through profit or loss, and in accordance with therecommendations of Statement of Recommended Accounting Practice 7 “Reporting Framework for UnitTrusts” issued by the Institute of Singapore Chartered Accountants.

(b) Recognition of income

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

(c) Investments

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


NOTES TO THE FINANCIAL STATEMENTS


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2 Significant accounting policies (continued)

(c) Investments (continued)

(i) Initial recognition

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

(ii) Subsequent measurement

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

(iii) Derecognition

Investments are derecognised on the trade date of disposal. The resultant realised gains and losses onthe sale of investments are computed on the basis of the difference between the weighted average costand 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 pricesat the close of trading on the financial year end date. The quoted market price used for investments heldby the Fund is the last traded market price for both financial assets and financial liabilities where the lasttraded price falls within the bid-ask spread. In circumstances where the last traded price is not within thebid-ask spread, the Manager will determine the point within the bid-ask spread that is most representativeof fair value.

The fair value of investments held in underlying funds is the quoted net asset value of the underlyingfunds as determined by the underlying funds’ administrator. Net changes in fair value of investments areincluded in the Statement of Total Return in the year in which they arise.

(e) Foreign currency translation

(i) Functional and presentation currency

The performance of the Fund is measured and reported to the investors in the Singapore Dollar. TheManager considers the Singapore Dollar as the currency of the primary economic environment in whichthe Fund operate. The financial statements are presented in the Singapore Dollar, which is the Fund’sfunctional and presentation currency.




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(e) Foreign currency translation (continued)

(ii) Transactions and balances

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

(f) Receivables

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

(g) Sales and purchases awaiting settlement

Sales and purchases awaiting settlement represent receivables for securities sold and payables forsecurities purchased that have been contracted for but not yet settled or delivered on the statement offinancial position date respectively. These amounts are recognised initially at fair value and subsequentlymeasured at amortised cost.

(h) Cash and cash equivalents

Cash and cash equivalents comprise cash at banks and on hand which are subject to an insignificant riskof changes in value.

(i) Payables

Payables are recognised initially at fair value and subsequently stated at amortised cost using theeffective interest method.

(j) Expenses charged to the Fund

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




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(k) Financial derivatives

Financial derivatives including forwards and swaps may be entered into for the purposes of efficientportfolio management, tactical asset allocation or specific hedging of financial assets held as determinedby the Manager and in accordance with the provision of the Trust Deed and the Code on CollectiveInvestment Schemes.

Financial derivatives outstanding on the financial year end date are valued at the forward rate or at thecurrent market prices using the “mark-to-market” method, as applicable, and the resultant gains andlosses are taken up in the Statement of Total Return.

(l) Distributions

The Manager has the absolute discretion to determine whether a distribution is to be made. In such anevent, an appropriate amount will be transferred to a distribution account, to be paid out on the distributiondate. The amount shall not be treated as part of the property of the Fund. Distributions are accrued forat the financial year end date if the necessary approvals have been obtained and a legal or constructiveobligation has been created.

(m) Structured entities

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

The Fund considers all of their investments in other fund (“Investee Fund”) to be investments inunconsolidated structured entities. The Fund invests in an Investee Fund whose objective is to provide areturn which is comparable to that of Singapore dollar short-term deposits. The Investee Fund ismanaged by related asset managers and the Investee Fund applies various investment strategies toaccomplish its respective investment objectives. The Investee Fund finances its operations by issuingredeemable shares which are puttable at the holder’s option and entitles the holder to a proportionalstake in the respective fund’s net assets. The Fund holds redeemable shares in the Investee Fund.

The change in fair value of the Investee Fund is included in the Statement of Total Return within “Netgains/losses on investments”.




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3 Income tax

2019 2018$ $

Singapore income tax 18,333 11,147Overseas income tax 2,533 2,852Total income tax 20,866 13,999

The Fund was granted the status of Designated Unit Trust (“DUT”) in Singapore. The Trustee of the Fundensures that the Fund fulfills its reporting obligations under the DUT Scheme.

Under the DUT Scheme, subject to certain conditions and reporting obligations being met, certainincome of the DUT Fund is not taxable in accordance with Sections 35(12) and 35(12A) of the IncomeTax Act. Such income includes:

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

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

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

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

(v) discount, prepayment fee, redemption premium and break cost from qualifying debt securitiesissued during the prescribed period; and

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

The Singapore income tax represents tax deducted at source for Singapore sourced dividends.

The overseas income tax represents tax withheld on foreign sourced income.




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4 Distributions

2019 2018Per 100 units Amount Per 100 units Amount

$ $ $ $

June interim distribution on unitsoutstanding as at 1 July 2019(2018: 2 July 2018) 4.000 588,879 4.000 624,152December final distribution on unitsoutstanding as at 2 January 2020(2018: 2 January 2019) 4.000 582,493 4.000 616,532

1,171,372 1,240,684

5 Receivables

2019 2018$ $

Amounts receivable for creation of units 71,079 2,834Dividends receivable 91,120 106,760Other receivables 42,558 92,469

204,757 202,063

6 Payables

2019 2018$ $

Amount payable for cancellation of units 67,339 315,452Amount due to the Manager 132,298 134,197Amount due to Trustee 4,630 4,697Other creditors and accrued expenses 44,170 42,091

248,437 496,437




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7 Units in issue

During the financial year ended 31 December 2019 and 2018, the numbers of units issued, redeemedand outstanding were as follows:

2019 2018Units at the beginning of the financial year 15,413,294 16,342,626Units created 662,218 1,825,739Units cancelled (1,513,200) (2,755,071)Units at the end of the financial year* 14,562,312 15,413,294

*Included above are units denominated in USD 532,515 548,286

$ $

Net assets attributable to unitholders 52,381,158 50,158,054Net assets value per unit 3.597 3.254

Distributions are accrued for at the financial year end date if the necessary approvals have been obtainedand a legal or constructive obligation has been created, for the purpose of determining the accounting netasset values in the financial statements.

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

2019 2018$ $

Net assets attributable to unitholders per financial statements per unit 3.597 3.254Effect of distribution payable 0.040 0.040Net assets attributable to unitholders for issuing/redeeming per unit 3.637 3.294




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8 Financial risk management

The Fund’s activities expose it to a variety of market risk (including foreign exchange risk, price risk andinterest rate risk), credit risk and liquidity risk. The Fund’s overall risk management programme seeks tominimise potential adverse effects on the Fund’s financial performance. The Fund may use financialfutures contracts, financial options contracts and/or foreign currency contracts subject to the terms of theTrust Deed to moderate certain risk exposures. Specific guidelines on exposures to individual securitiesand certain industries are in place for the Fund at any time as part of the overall financial riskmanagement to reduce the Fund’s risk exposures.

The Fund’s assets principally consist of financial instruments such as equity investments, investments inopen-ended collective investment schemes which are also managed by the Manager and cash. They areheld in accordance with the published investment policies of the Fund. The allocation of assets betweenthe various types of investments is determined by the Manager to achieve its investment objectives.

(a) Market risk

Market risk is the risk of loss arising from uncertainty concerning movements in market prices and rates,including observable variables such as interest rates, credit spreads, exchange rates, and others thatmay be only indirectly observable such as volatilities and correlations. Market risk includes such factorsas changes in economic environment, consumption pattern and investor’s expectation etc. which mayhave significant impact on the value of the investments. The Fund’s investments are substantiallydependent on changes in market prices and are monitored by the Manager on a regular basis so as toassess changes in fundamentals and valuation. Although the Manager makes reasonable efforts in thechoice of investments, events beyond reasonable control of the Manager could affect the prices of theunderlying investments and hence the asset value of the Fund. Guidelines are set to reduce the Fund’srisk exposures to market volatility such as diversifying the portfolio by investing across variousgeographies, alternatively, the Fund may be hedged using derivative strategies.

(i) Foreign exchange risk

The Fund has monetary financial assets and liabilities denominated in currencies other than theSingapore Dollar and it may be affected favourably or unfavourably by exchange rate regulations orchanges in the exchange rates between the Singapore Dollar and such other currencies. The Managermay at his discretion, implement a currency management strategy either to reduce currency volatility orto hedge the currency exposures of the Fund.




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8 Financial risk management (continued)

(a) Market risk (continued)

(i) Foreign exchange risk (continued)

The tables below summarise the Fund’s exposure to foreign currencies at the end of the financial year.

As at 31 December 2019SGD USD Total

$ $ $

AssetsPortfolio of investments 51,350,602 - 51,350,602Receivables 134,647 70,110 204,757Cash and bank balances 1,574,294 82,435 1,656,729Total Assets 53,059,543 152,545 53,212,088

LiabilitiesPayables 245,276 3,161 248,437Distribution payable 561,192 21,301 582,493Total Liabilities 806,468 24,462 830,930

Net currency exposure 52,253,075 128,083




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(i) Foreign exchange risk (continued)

As at 31 December 2018SGD USD Total

$ $ $

AssetsPortfolio of investments 49,971,749 400,286 50,372,035Receivables 199,988 2,075 202,063Cash and bank balances 593,021 103,904 696,925Total Assets 50,764,758 506,265 51,271,023

LiabilitiesPayables 493,537 2,900 496,437Distribution payable 594,600 21,932 616,532Total Liabilities 1,088,137 24,832 1,112,969

Net currency exposure 49,676,621 481,433

Investments, which is the significant item in the Statement of Financial Position, is exposed to foreignexchange risk and other price risk. Other price risk sensitivity analysis includes the impact of foreignexchange risk on non-monetary investments. The Fund’s net financial assets comprise significantlynon-monetary investments, hence foreign exchange risk sensitivity analysis has not been presented onthe remaining financial assets.

(ii) Price risk

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




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(ii) Price risk (continued)

The table below summarises the impact of increases/decreases from the Fund’s investments in equitiesand Investee Fund on the Fund’s net assets attributable to unitholders at 31 December 2019 and 2018.The analysis is based on the assumption that the index components within the benchmarkincreased/decreased by a reasonable possible shift, with all other variables held constant and that theprices of the Fund’s investments and the Investee Fund moved according to the historical correlation withthe index.

2019 2018

Benchmark component Volatility

Net impact tonet assets

attributable tounitholders Volatility

Net impact tonet assets

attributable tounitholders

% $ % $

MSCI Singapore NR 20 10,219,081 20 9,786,339

(iii) Interest rate risk

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

Investment funds that invest in equity securities may be subject to interest rate risk as any interest ratechange may affect the equity risk premium though at varying degrees. To manage this risk, the Manageranalyses how interest rate changes may affect different industries and securities and then seeks to adjustthe Fund’s portfolio investments accordingly. However, the effects of changes in interest rates in theFund’s portfolio may not be quantified as the relationship between the interest rates and the value ofequity securities is indirect.

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

Hence, no sensitivity analysis has been presented separately.




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(b) Liquidity risk

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

The Fund’s investments in quoted securities are considered to be readily realisable as they are quoted onestablished regional stock exchanges. The Fund’s investments in Investee Fund are considered to bereadily realisable as the net asset value is struck daily, and units are redeemable on demand at thepublished price.

The tables below analyse the Fund’s financial liabilities into relevant maturity groupings based on theremaining period at the financial year end to the contractual maturity date. The amounts in the tables arethe contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances,as the impact of discounting is not significant.

Less than 3months

3 months to1 year

Over1 year

$ $ $

As at 31 December 2019Payables 248,437 - -Distribution payable 582,493 - -

Less than 3months

3 months to1 year

Over1 year

$ $ $As at 31 December 2018Payables 496,437 - -Distribution payable 616,532 - -




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(c) Credit risk

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

The table below summarises the credit rating of banks and custodians in which the Fund’s assets areheld as at 31 December 2019 and 2018.

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

Credit ratingas at 31

December2019

Credit ratingas at 31

December2018

Bank and custodianState Street Bank and Trust Company aa- aa-

The custodian of the Investee Fund is also State Street Bank and Trust Company, with credit ratings

disclosed in the table above.

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

of investments and cash and bank balances as presented in Statement of Financial Position.

(d) Capital management

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




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(e) Fair value estimation

The Fund classifies fair value measurements using a fair value hierarchy that reflects the significance ofthe inputs used in making the measurements. The fair value hierarchy has the following levels:

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

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

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

The following tables analyse within the fair value hierarchy, the Fund’s financial assets and liabilities (byclass) measured at fair value at 31 December 2019 and 2018:

Level 1 Level 2 Level 3 Total$ $ $ $

As at 31 December 2019AssetsPortfolio of investments

- Quoted equities 51,195,922 - - 51,195,922- Quoted unit trusts 154,680 - - 154,680

Total 51,350,602 - - 51,350,602

Level 1 Level 2 Level 3 Total$ $ $ $

As at 31 December 2018AssetsPortfolio of investments

- Quoted equities 50,220,685 - - 50,220,685- Quoted unit trusts 151,350 - - 151,350

Total 50,372,035 - - 50,372,035

Investments whose values are based on quoted market prices in active markets, and therefore classifiedwithin Level 1, comprise listed equities. The Fund does not adjust the quoted price for these instruments.




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(e) Fair value estimation (continued)

Investment in open-ended investment funds whose net asset value is struck daily, price information ispublished and readily available and units are subscribed and redeemable on demand at the publishedprice, are classified within Level 1. The quoted price for these financial instruments is not adjusted.

Except for cash and bank balances which are classified as Level 1, the Fund’s assets and liabilities notmeasured at fair value at 31 December 2019 and 2018 have been classified as Level 2. The carryingamounts of these assets and liabilities approximate their fair values as at the financial year end date.

9 Structured entities

The Fund’s investment in the Investee Fund is subject to the terms and conditions of the Investee Fund’soffering documentation and is susceptible to market price risk arising from uncertainties about futurevalue of the Investee Fund. The Manager makes investment decisions after extensive due diligence ofthe Investee Fund, its strategy and the overall quality of the Investee Fund’s manager. The InvesteeFund’s portfolio manager is compensated by the Investee Fund for their services. Such compensationgenerally consists of an asset based fee and is reflected in the valuation of the Fund’s investment in theInvestee Fund.

The Fund has the right to request redemption of its investments in the Investee Fund on a daily basis.

The exposure to investment in the Investee Fund at fair value is disclosed under the Statement ofPortfolio. The investment is included within “Portfolio of investments” in the Statement of FinancialPosition.

The Fund’s holdings in an Investee Fund, as a percentage of the Investee Fund’s total net asset value, willvary from time to time, dependent on the volume of subscriptions and redemptions at the Investee Fundlevel. It is possible that the Fund may, at any point in time, hold a majority of an Investee Fund’s total unitsin issue.

The Fund’s maximum exposure to loss from its interests in the Investee Fund is equal to the total fair valueof its investment in the Investee Fund.

Once the Fund has disposed of its shares in an Investee Fund, the Fund ceases to be exposed to any riskfrom it.




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10 Related party transactions

(a) The Manager and the Trustee of the Fund are UOB Asset Management Ltd and State Street Trust(SG) Limited respectively. The Manager is a subsidiary of United Overseas Bank Limited while theTrustee is a subsidiary of State Street Bank and Trust Company.

Management fee is paid to the Manager for the financial year. Trustee fee is paid to the Trustee whileregistrar fee and custody fee are paid to State Street Bank and Trust Company, Singapore Branch.

These fees paid or payable by the Fund shown in the Statement of Total Return and in the respectiveNotes to the Financial Statements are on terms set out in the Trust Deed. All other related partytransactions are shown elsewhere in the financial statements.

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

2019 2018$ $

State Street Bank and Trust Company, Singapore BranchCash and bank balances 1,656,729 696,925

(c) The following transactions took place during the financial year between the Fund and related partiesat terms agreed between the parties:

2019 2018$ $

State Street Bank and Trust Company, Singapore BranchInterest income 1,086 1,221

United Overseas Bank LimitedBank charges 15,845 16,504




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10 Related party transactions (continued)

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

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

2019 2018$ $

Brokerage charges 375 4,794




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11 Financial ratios

2019 2018$ $

Total operating expenses 725,419 739,632Average daily net asset value 52,424,046 57,135,855Expense ratio1 1.38% 1.29%

Lower of total value of purchases or sales 8,536,801 16,574,759Average daily net assets value 52,424,046 57,135,855Turnover ratio2 16.28% 29.01%

1 The expense ratio has been computed based on the guidelines laid down by the Investment Management Association ofSingapore (“IMAS”). The calculation of the Fund’s expense ratio at financial year end was based on total operating expensesdivided by the average net asset value respectively for the financial year. The total operating expenses do not include (whereapplicable) brokerage and other transactions costs, performance fee, interest expense, distribution paid out to unitholders, foreignexchange gains/losses, front or back end loads arising from the purchase or sale of other funds and tax deducted at source orarising out of income received. The Fund does not pay any performance fee. The average net asset value is based on the dailybalances.

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 underlyinginvestments divided by the average daily net asset value.




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United Singapore Growth Fund

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