United Growth Fund

Semi Annual Report for the half year ended 30 June 2021

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

MANAGER UOB Asset Management Ltd Registered Address: 80 Raffles Place UOB Plaza Singapore 048624 Company Registration No. : 198600120Z Tel: 1800 22 22 228

DIRECTORS OF UOB ASSET MANAGEMENT LTD Lee Wai Fai Eric Tham Kah Jin PehKianHeng Thio Boon Kiat

TRUSTEE State Street Trust (SG) Limited 168 Robinson Road #33-01, Capital Tower Singapore 068912

CUSTODIAN / ADMINISTRATOR / REGISTRAR State Street Bank and Trust Company, acting through its Singapore Branch 168 Robinson Road #33-01, Capital Tower Singapore 068912

AUDITOR PricewaterhouseCoopers LLP 7 Straits View, Marina One East Tower, Level 12 Singapore 018936

SUB-MANAGER Fukoku Capital Management, Inc. 1-3-1 Uchisaiwaicho Chiyoda-Ku Saiwai Building 3rd Floor 100-0011, Japan

-1- United Japan Growth Fund (Constituted under a Trust Deed in the Republic of Singapore)

A) Fund Performance Since Inception 18 August 3yr 5yr 10 yr 1995 3mth 6mth 1yr Ann Ann Ann Ann Fund Performance/ % % % Comp Comp Comp Comp Benchmark Returns Growth Growth Growth Ret Ret Ret Ret United Japan Growth Fund -2.42 -2.27 16.23 3.68 5.17 4.75 2.57 Benchmark -0.24 3.01 20.29 6.73 10.16 8.13 0.60

Source: Morningstar.

Note: The performance returns of the Fund are in Singapore Dollar based on a NAV-to-NAV basis with dividends and distributions reinvested, if any. The benchmark of the Fund: Aug 95 – Dec 04: Stock Average; Jan 05 – Dec 10: Topix; Jan 11 to Present: MSCI Japan Index.

For the six months ended 30 June 2021, the net asset value (NAV) of the Fund declined by 2.27% compared to the 3.01% gain in the benchmark MSCI Japan Index in Singapore Dollar (SGD) terms.

The performance was attributed largely to negative security selection, while sector allocation had a marginal negative impact on relative performance. The underweight to Financials was the largest detractor which was offset by the underweight exposure to Health Care. As to security selection, the Fund’s performance suffered due to weak selection in the Financials, Health Care and Consumer Discretionary sectors.

Key contributors to performance included Ltd (Information Technology), JTEKT Corporation (Consumer Discretionary)andFujifilm Holdings Corp (Information Technology). Key detractors include Co Ltd (Health Care), Tokyo Century Corp (Financials) and Softbank Group Corp (Communication Services).

Sector allocation for the Fund as at end June 2021: Industrials (29.40%), Consumer Discretionary (17.14%), Information Technology (12.77%), Financials (8.88%), Communication Services (8.60%), Materials (8.31%), Health Care (7.15%), Real Estate (3.33%) and Consumer Staples (3.32%), with the remainder in cash (1.10%).

Economic and Market Review

The Japanese economy had deteriorated during the first quarter due to the negative impact from the imposition of a state of emergency following a rise in COVID-19 cases. Exports had continued to rise, mainly to the United States and China. Although capital investment was low, production was picking up, in particularly within the manufacturing sector. In contrast, personal consumption had declined due to restrictions such as shortened restaurant business hours due to the resurgence of infections and growing self-restraint among consumers. During the first quarter, the TOPIX Index rose by 9.3%. Japanese equities rose as the US stock market hit a new high. Towards the end of the quarter, the stock market however started to stagnate due to changes in the Bank of Japan’s ETF purchasing policy and continued caution around rising US long-term interest rates.

-2- United Japan Growth Fund (Constituted under a Trust Deed in the Republic of Singapore)

A) Fund Performance (continued)

In 2nd Quarter, Japanese economic activities began to rise despite the challenging situation due to COVID-19 stemming from the re-imposition of the state of emergency which led to sluggish consumption in particular in the services sector, such as the restaurant business. While the global shortage of semiconductors weighed on automobile production, exports continued to rise against a backdrop of strong overseas demand. Capital investment also rose in the manufacturing industry. During the quarter, the TOPIX declined by 0.3% in the wake of “priority measures such as prevention of spread” against new COVID-19 infections and the rise in long-term US interest rates amid concerns over rising inflation.

Outlook and Fund Strategy

We expect further improvement in foreign demand in the wake of the US and global recovery while domestically focused companies in consumer services to benefit from the normalisation of the domestic economy once vaccination rates improve in the latter half of this year. The US Fed shift to a slightly hawkish stance with suggestions of tapering and possible rate hikes despite its continued accommodative monetary stance and talk of US tax hikes may however on equity performance prices.

Stock selection wise, our focus will be on investing in companies that are able to:

1. Improve their business performances in the medium to long term.

2. Raise their profitability and capital efficiencies.

3. Benefit from a recovery as economic activities start to return to normal.

In terms of sector allocation, we will continue to overweight the Information Technology and Communication Services sectors which are expected to benefit from growth in demand; and the Electric Appliances and Precision Instruments sectors which are expected to see growth from the development and applications of new 5G, artificial intelligence (AI) and Internet of Things (IoT) deployment; business involved in development and supply of medical equipment as well as sectors that would benefit from the re-opening of the economy such as Passengers and Services whose revenues are expected to recover in anticipation of the normalisation of economic activities as vaccinations rates rise.

-3- United Japan Growth Fund (Constituted under a Trust Deed in the Republic of Singapore)

B) Investments at fair value and as a percentage of net asset value (“NAV”) as at 30 June 2021 under review classified by i) Country

Fair Value % of NAV (S$)

Japan 12,292,222 98.90 Portfolio of investments 12,292,222 98.90 Other net assets/(liabilities) 137,346 1.10 Total 12,429,568 100.00 ii) Industry

Fair Value % of NAV (S$)

Communication Services 1,068,700 8.60 Consumer Discretionary 2,130,022 17.14 Consumer Staples 412,264 3.32 Financials 1,104,012 8.88 Health Care 888,574 7.15 Industrials 3,654,783 29.40 Information Technology 1,587,546 12.77 Materials 1,032,471 8.31 Real Estate 413,850 3.33 Portfolio of investments 12,292,222 98.90 Other net assets/(liabilities) 137,346 1.10 Total 12,429,568 100.00 iii) Asset Class

Fair Value % of NAV (S$)

Quoted equities 12,292,222 98.90 Other net assets/(liabilities) 137,346 1.10 Total 12,429,568 100.00 iv) Credit rating of quoted bonds

N/A

-4- United Japan Growth Fund (Constituted under a Trust Deed in the Republic of Singapore)

C) Top Ten Holdings

10 largest holdings as at 30 June 2021

Percentage of total net assets attributable to Fair Value unitholders (S$) %

SONY GROUP CORP 484,628 3.90 SOFTBANK GROUP CORP 414,317 3.33 CORP 407,438 3.28 MOTOR CORP 376,313 3.03 HITACHI LTD 338,968 2.73 Z HOLDINGS CORP 324,358 2.61 CENTRAL JAPAN RAILWAY CO 306,106 2.46 NOMURA RESEARCH INSTITUTE LTD 275,949 2.22 INDUSTRIES LTD 275,634 2.22 CORP 256,262 2.06

10 largest holdings as at 30 June 2020

Percentage of total net assets attributable to Fair Value unitholders (S$) % KEYENCE CORP 349,367 3.41 TOYOTA MOTOR CORP 332,267 3.24 CORP 324,638 3.16 SOFTBANK GROUP CORP 324,178 3.16 HOLDINGS INC 273,372 2.67 OBIC CO LTD 268,407 2.62 DAIICHI SANKYO CO LTD 261,900 2.56 SUMITOMO FINANCIAL GROUP 258,763 2.52 CORP 252,160 2.46 Z HOLDINGS CORP 251,661 2.45

-5- United Japan Growth Fund (Constituted under a Trust Deed in the Republic of Singapore)

D) Exposure to derivatives

The global exposure relating to derivative instruments is calculated using the commitment approach:

(i) the absolute value of the exposure of each individual financial derivative not involved in netting or hedging arrangements;

(ii) the absolute value of the net exposure of each individual financial derivative after netting or hedging arrangements; and

(iii) the sum of the values of cash collateral received under certain cases. i) FairvalueofderivativecontractsandasapercentageofNAVasat30June2021

Contract or underlying principal Positive Negative amount fair value % of NAV fair value % of NAV $$ $

Foreign currency contracts 20,000 101 -* - -

* denotes amount less than 0.01% ii) There was a net realised gain of SGD 17,275 on derivative contracts during the financial period from 1 January 2021 to 30 June 2021. iii) There was a net unrealised gain of SGD 101 on outstanding derivative contracts marked to market as at 30 June 2021.

E) Amount and percentage of NAV invested in other schemes as at 30 June 2021

N/A

F) Amount and percentage of borrowings to NAV as at 30 June 2021

N/A

G) Amount of redemptions and subscriptions for the financial period from 1 January 2021 to 30 June 2021 Total amount of redemptions SGD 2,072,757 Total amount of subscriptions SGD 59,330

-6- United Japan Growth Fund (Constituted under a Trust Deed in the Republic of Singapore)

H) The amount and terms of related-party transactions for the financial period from 1 January 2021 to 30 June 2021 i) As at 30 June 2021, the Fund maintained current accounts with its related party as follows:

State Street Bank and Trust Company, Singapore Branch Cash and bank balances SGD 216,584 ii) Investment in Initial Public Offerings managed by UOB Group

N/A iii) As at 30 June 2021, there was no brokerage income earned by UOB Kay Hian Pte Ltd.

I) Expense ratios 2021 2020 $ $

Total operating expenses 276,583 230,033 Average daily net asset value 12,754,288 9,656,960 Expense ratio 2.17% 2.38%

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 Fund’s expense ratio at 30 June 2021 was based on total operating expenses divided by the average net asset value respectively for the financial period. The total operating expenses do not include (where applicable) brokerage and other transaction 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.

J) Turnover ratios 2021 2020 $ $

Lower of total value of purchases or sales 3,821,879 2,261,915 Average daily net assets value 13,779,570 9,994,546 Tur nover ratio 27.74% 22.63%

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.

-7- United Japan Growth Fund (Constituted under a Trust Deed in the Republic of Singapore)

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

N/A

L) For schemes which invest more than 30% of their deposited property in another scheme, the following key information on the second-mentioned scheme (“the underlying scheme”)1 should be disclosed as well i) Top 10 holdings at fair value and as percentage of NAV as at 30 June 2021 and 30 June 2020

N/A ii) Expense ratios for the financial period ended 30 June 2021 and 30 June 2020

N/A iii) Turnover ratios for the financial period ended 30 June 2021 and 30 June 2020

N/A

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

M) Soft dollar commissions/arrangements

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

The Sub-Manager (Fukoku Capital Management, Inc.) does not receive or enter into soft-dollar commissions/arrangements in respect of the sub-management of the Fund.

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

N/A

-8- United Japan Growth Fund (Constituted under a Trust Deed in the Republic of Singapore)

STATEMENT OF TOTAL RETURN For the half year ended 30 June 2021 (Un-audited)

30 June 30 June 2021 2020 $ $ Income Dividends 122,960 108,807 Interest - 5 Total 122,960 108,812

Less: Expenses Management fee 102,548 74,496 Trustee fee 2,514 2,476 Audit fee 7,234 6,987 Registrar fee 7,469 7,458 Custody fee 12,281 6,262 Transaction costs 10,358 5,461 Interest expenses 34 - Other expenses 17,766 22,571 Total 160,204 125,711

Net income/(losses) (37,244) (16,899)

Net gains/(losses) on value of investments and financial derivatives Net gains/(losses) on investments (208,397) (331,251) Net gains/(losses) on financial derivatives 17,376 (5,295) Net foreign exchange gains/(losses) (24,980) 4,647 (216,001) (331,899)

Total return/(deficit) for the financial period before income tax (253,245) (348,798) Less: Income tax (18,832) (16,664) Total return/(deficit) for the financial period (272,077) (365,462)

-9- United Japan Growth Fund (Constituted under a Trust Deed in the Republic of Singapore)

STATEMENT OF FINANCIAL POSITION As at 30 June 2021 (Un-audited)

30 June 31 December 2021 2020 $ $ Assets Portfolio of investments 12,292,222 14,651,094 Sales awaiting settlement 87,334 - Receivables 19,884 15,589 Cash and bank balances 216,584 126,026 Financial derivatives at fair value 101 - Total assets 12,616,125 14,792,709

Liabilities Purchases awaiting settlement 80,633 - Payables 105,924 77,637 Total liabilities 186,557 77,637

Equity Net assets attributable to unitholders 12,429,568 14,715,072

-10- United Japan Growth Fund (Constituted under a Trust Deed in the Republic of Singapore)

STATEMENT OF MOVEMENTS OF UNITHOLDERS’ FUNDS For the half year ended 30 June 2021 (Un-audited)

30 June 31 December 2021 2020 $ $ Net assets attributable to unitholders at the beginning of the financial period/year 14,715,072 10,220,874 Operations Change in net assets attributable to unitholders resulting from operations (272,077) 1,757,339

Unitholders’ contributions/(withdrawals) Creation of units 59,330 3,768,454 Cancellation of units (2,072,757) (1,031,595)

Change in net assets attributable to unitholders resulting from net creation and cancellation of units (2,013,427) 2,736,859

Total increase/(decrease) in net assets attributable to unitholders (2,285,504) 4,494,198

Net assets attributable to unitholders at the end of the financial period/year 12,429,568 14,715,072

-11- United Japan Growth Fund (Constituted under a Trust Deed in the Republic of Singapore)

STATEMENT OF PORTFOLIO As at 30 June 2021 (Un-audited)

Percentage of total net assets attributable to Holdings at Fair value at unitholders at 30 June 30 June 30 June 2021 2021 2021 $ %

By Industry - Primary Quoted equities

COMMUNICATION SERVICES CO LTD 200 156,523 1.26 SOFTBANK GROUP CORP 4,400 414,317 3.33 SQUARE ENIX HOLDINGS CO LTD 2,600 173,502 1.40 Z HOLDINGS CORP 48,100 324,358 2.61

TOTAL COMMUNICATION SERVICES 1,068,700 8.60

CONSUMER DISCRETIONARY INC 2,500 233,379 1.88 JAPAN ORIENTAL LAND CO LTD 400 76,687 0.62 GROUP CO LTD 6,600 166,899 1.34 PAN PACIFIC INTERNATIONAL HOLDINGS LTD 6,200 173,153 1.39 RESORTTRUST INC 4,000 87,877 0.71 ROUND ONE CORP 3,800 63,280 0.51 SONY GROUP CORP 3,700 484,628 3.90 SUBARU CORP 6,200 164,556 1.32 MOTOR CORP 2,500 142,335 1.15 TOYOTA MOTOR CORP 3,200 376,313 3.03 YAMADA HOLDINGS CO LTD 25,900 160,915 1.29

TOTAL CONSUMER DISCRETIONARY 2,130,022 17.14

CONSUMER STAPLES FANCL CORP 3,800 165,679 1.33

-12- United Japan Growth Fund (Constituted under a Trust Deed in the Republic of Singapore)

STATEMENT OF PORTFOLIO As at 30 June 2021 (Un-audited)

Percentage of total net assets attributable to Holdings at Fair value at unitholders at 30 June 30 June 30 June 2021 2021 2021 $ %

By Industry - Primary (continued) Quoted equities

CONSUMER STAPLES (continued) KIRIN HOLDINGS CO LTD 9,400 246,585 1.99

TOTAL CONSUMER STAPLES 412,264 3.32

FINANCIALS MITSUBISHI UFJ FINANCIAL GROUP INC 26,000 188,963 1.52 INC 23,000 158,162 1.27 SUMITOMO MITSUI FINANCIAL GROUP 4,700 218,010 1.76 TOKIO MARINE HOLDINGS INC 4,000 247,452 1.99 TOKYO CENTURY CORP 2,600 187,987 1.51 UZABASE INC 3,200 103,438 0.83

TOTAL FINANCIALS 1,104,012 8.88

HEALTH CARE DAIICHI SANKYO CO LTD 8,000 231,998 1.87 HOYA CORP 1,000 178,395 1.44 M3 INC 700 68,780 0.55 TAKEDA PHARMACEUTICAL CO LTD 3,400 153,139 1.23 TERUMO CORP 4,700 256,262 2.06

TOTAL HEALTH CARE 888,574 7.15

INDUSTRIALS LTD 11,700 159,128 1.28 CENTRAL JAPAN RAILWAY CO 1,500 306,106 2.46

-13- United Japan Growth Fund (Constituted under a Trust Deed in the Republic of Singapore)

STATEMENT OF PORTFOLIO As at 30 June 2021 (Un-audited)

Percentage of total net assets attributable to Holdings at Fair value at unitholders at 30 June 30 June 30 June 2021 2021 2021 $ %

By Industry - Primary (continued) Quoted equities

INDUSTRIALS (continued) HOLDINGS CORP 4,700 175,034 1.41 DAIFUKU CO LTD 900 109,980 0.88 DAIKIN INDUSTRIES LTD 1,100 275,634 2.22 EN JAPAN INC 2,600 124,380 1.00 CO LTD 4,500 150,800 1.21 HITACHI LTD 4,400 338,968 2.73 ITOCHU CORP 5,200 201,527 1.62 KAWASAKI HEAVY INDUSTRIES LTD 5,200 149,571 1.20 MINEBEA MITSUMI INC 6,600 234,922 1.89 MITSUBISHI CORP 4,000 146,688 1.18 NGK INSULATORS LTD 5,500 124,162 1.00 CORP 1,300 202,708 1.63 NIHON M&A CENTER INC 4,100 143,056 1.15 RAKSUL INC 1,100 72,339 0.58 RECRUIT HOLDINGS CO LTD 2,900 192,117 1.55 CO LTD 1,400 143,171 1.15 SMC CORP 200 159,017 1.28 WEST JAPAN RAILWAY CO 3,200 245,475 1.98

TOTAL INDUSTRIALS 3,654,783 29.40

INFORMATION TECHNOLOGY DISCO CORP 300 123,351 0.99 FUJIFILM HOLDINGS CORP 1,500 149,674 1.20 HAMAMATSU PHOTONICS KK 1,600 129,830 1.04 KEYENCE CORP 600 407,438 3.28 CO LTD 1,000 102,726 0.83

-14- United Japan Growth Fund (Constituted under a Trust Deed in the Republic of Singapore)

STATEMENT OF PORTFOLIO As at 30 June 2021 (Un-audited)

Percentage of total net assets attributable to Holdings at Fair value at unitholders at 30 June 30 June 30 June 2021 2021 2021 $ %

By Industry - Primary (continued) Quoted equities

INFORMATION TECHNOLOGY (continued) NOMURA RESEARCH INSTITUTE LTD 6,200 275,949 2.22 OBIC CO LTD 900 225,737 1.82 TOPCON CORP 2,300 46,184 0.37 CORP 6,300 126,657 1.02

TOTAL INFORMATION TECHNOLOGY 1,587,546 12.77

MATERIALS DAICEL CORP 11,400 126,192 1.02 FP CORP 1,200 59,949 0.48 NIPPON SANSO HOLDINGS CORP 9,100 250,948 2.02 CHEMICAL CORP 1,800 118,591 0.95 SHIN-ETSU CHEMICAL CO LTD 1,000 225,022 1.81 TOKYO OHKA KOGYO CO LTD 1,500 127,347 1.03 INC 13,900 124,422 1.00

TOTAL MATERIALS 1,032,471 8.31

REAL ESTATE INDUSTRY CO LTD 5,000 201,951 1.62

-15- United Japan Growth Fund (Constituted under a Trust Deed in the Republic of Singapore)

STATEMENT OF PORTFOLIO As at 30 June 2021 (Un-audited)

Percentage of total net assets attributable to Holdings at Fair value at unitholders at 30 June 30 June 30 June 2021 2021 2021 $ %

By Industry - Primary (continued) Quoted equities

REAL ESTATE (continued) MITSUI FUDOSAN CO LTD 6,800 211,899 1.71

TOTAL REAL ESTATE 413,850 3.33

Total Equities 12,292,222 98.90

Portfolio of investments 12,292,222 98.90 Other net assets/(liabilities) 137,346 1.10

Net assets attributable to unitholders 12,429,568 100.00

-16- United Japan Growth Fund (Constituted under a Trust Deed in the Republic of Singapore)

STATEMENT OF PORTFOLIO As at 30 June 2021 (Un-audited)

Percentage of Percentage of total net assets total net assets attributable to attributable to unitholders at unitholders at 30 June 31 December 2021 2020 % %

By Industry - Primary (Summary) Quoted equities

Communication Services 8.60 7.69 Consumer Discretionary 17.14 17.29 Consumer Staples 3.32 4.86 Financials 8.88 6.58 Health Care 7.15 9.36 Industrials 29.40 25.00 Information Technology 12.77 17.68 Materials 8.31 6.94 Real Estate 3.33 4.17 Portfolio of investments 98.90 99.57 Other net assets/(liabilities) 1.10 0.43 Net assets attributable to unitholders 100.00 100.00

By Geography - Secondary Quoted equities

The Fund invests wholly in Japanese equities.

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