United Global Healthcare Fund - UOB Group · HSBC Institutional Trust Services (Singapore) Limited 21 Collyer Quay #10-02, HSBC Building Singapore 049320 ... The top positive contributors

United Global Healthcare FundAnnual Report

for the financial year ended 31st December 2014

1

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

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

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

DIRECTORS OF UOB ASSET MANAGEMENTTerence Ong Sea EngCheo Chai HongThio Boon Kiat

TRUSTEE / REGISTRARHSBC Institutional Trust Services (Singapore) Limited21 Collyer Quay#10-02, HSBC BuildingSingapore 049320

CUSTODIANState Street Bank and Trust CompanyOne Lincoln StreetBoston, MA 02111United States of America

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

SOLICITORS TO THE MANAGERAllen & Gledhill LLPOne Marina Boulevard#28-00Singapore 018989 SOLICITORS TO THE TRUSTEEDrew & Napier LLC10 Collyer Quay#10-00, Ocean Financial CentreSingapore 049315

2


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

Since Inception

21 August 2000 Ann

Comp Ret

United Global Healthcare Fund 16.14 18.08 32.04 28.32 17.22 9.57 9.89

Benchmark 6.97 13.35 23.98 24.46 14.83 7.32 4.81

Source: Lipper, a Thomson Reuters Company.

Note: The performance returns of the Fund are in Singapore dollars based on a NAV-to-NAV basis with net dividends reinvested. The benchmark of the Fund: MSCI ACWI Healthcare.

For the year ended 31 December 2014, the net asset value of the Fund rose 32.0% against an increase of 24.0% for the benchmark MSCI ACWI Healthcare Index (in Singapore dollar terms).

The Fund’s outperformance was mainly attributed to stock selection, particularly in the pharmaceuticals and biotechnology sectors. In terms of country exposure, investments in the United States, France and Germany generated most of the Fund’s outperformance.

The top positive contributors to returns were Actavis, Forest Laboratories and Agios Pharmaceuticals.

The key detractors were Arena Pharmaceuticals, Express Scripts, and Medicines Company.

As at end December 2014, the Fund had the following country asset allocation: United States (74.0%), Ireland (7.0%), Japan (5.7%), UK (4.6%), Belgium (2.6%), Switzerland (1.8%), France (1.5%), others (2.6%) and the remainder (0.2%) in cash. Our decision to keep a higher level of cash balances at the end of 2014 was a tactical move. Otherwise, the Fund had mostly maintained a low level of cash balances during the year.

Market Review

The healthcare sector continued to gain favour among investors due to its defensive characteristics and solid earnings growth momentum. It was the best performer in the broader market for the year, led by stellar contributions from biotechnology and healthcare services subsectors. We attribute the sector outperformance to strong mergers and acquisitions (“M&A”), advances in drug innovation, and favourable trends for healthcare service providers.

The year 2014 proved to be one of the busiest for M&A activities, especially within the pharmaceutical and medical device subsectors. The buoyant activities were driven by pipeline diversification, operational synergies and tax benefits. Encouragingly, several large industry players signalled their appetite for further consolidation in 2015.

3


The rapid pace of drug innovation has also continued to attract strong investor interests to the sector. A significant milestone in the development of cancer treatment was achieved in 2014 with the approval in the US of immuno-oncology drugs to treat advanced melanoma. The year was also marked by the highest number of new drugs approved in the US since 1996, as well as the largest drug launch in US history – an innovative Hepatitis C medication that garnered over US$2 billion in its first full quarter of sales.

The outlook for healthcare service providers, such as chain hospitals and drug wholesalers, has improved amidst favourable industry trends. US hospitals have started to see better patient volume growth on expanded healthcare coverage and reduced bad debt expenses on lower uncompensated care costs. Drug wholesalers have benefited from both prescription volume growth acceleration and generic drug price inflation.

Outlook and Fund Strategy

The long-term outlook for the healthcare sector remains bright, driven by an aging global population and rising income in the emerging markets. We see exciting investment opportunities arising from innovative drug development and healthcare delivery model transformation.

Our preference for drug makers with differentiated pipeline underpins our overweight call in biotechnology and underweight position in pharmaceuticals. In particular, we like firms which are leveraged to immuno-oncology products due to the field’s multi-blockbuster opportunity. On the other hand, we are cautious of firms which may face pricing pressure in the near- and mid-term due to competing drugs with comparable efficacy, generics or biosimilars.

We are also overweight in healthcare service providers, including hospitals and drug wholesalers. US hospitals are well-positioned to enjoy admission growth acceleration and margin improvement, thanks to the rollout of health insurance exchanges and the expansion of Medicaid coverage. Similarly, we expect drug wholesalers to continue to benefit from the rising medical utilisation trend.

In our view, investor sentiment is likely to stay bullish on continued strong M&A momentum. The key consolidation drivers are diversification of products and markets for the larger firms, and enhancement of scale and commercialization capabilities for the smaller firms.

Finally, we will continue to maximise risk-adjusted returns by maintaining a well-diversified portfolio with a long-term investment horizon, and when appropriate, trim winners and add to underperformers. Our investment targets are drug makers with strong, innovative, and underappreciated product pipeline, as well as services and equipment providers which can deliver differentiated solutions at low costs.

Disclosures

As the Fund is denominated in SGD and invests in foreign currency denominated securities, the Fund uses financial derivatives such as FX Forward contracts for hedging purposes. The Fund had an overlay of currency hedges during the full year, but the effect was largely neutral on the portfolio. Our global exposure to financial derivatives is calculated based on the commitment approach. This is done by adding the exposure of each financial derivative (for those with and without netting arrangement) and cash collateral values under certain cases.

4


B) Investments at fair value and as a percentage of NAV as at 31 December 2014 under review classified by

Fair Value % of NAV(S$)

i) Country

Belgium 3,904,763 2.63Brazil 443,365 0.30Denmark 913,243 0.61France 2,147,274 1.45Ireland 10,333,758 6.96Israel 1,440,190 0.97Japan 8,477,332 5.71Spain 1,121,809 0.76Switzerland 2,680,855 1.81United Kingdom 6,849,600 4.61United States 109,837,622 73.99

Portfolio of investments 148,149,811 99.80Other net assets 289,962 0.20

Total 148,439,773 100.00

ii) Industry

Consumer Staples 4,429,360 2.98 Healthcare 129,446,788 87.20 Information Technology 1,308,351 0.89 Materials 759,728 0.51 Money Market Fund 12,205,584 8.22

Portfolio of investments 148,149,811 99.80Other net assets 289,962 0.20

Total 148,439,773 100.00

iii) Asset Class

Equities 135,944,227 91.58Money Market Fund 12,205,584 8.22Other net assets 289,962 0.20

Total 148,439,773 100.00

iv) Credit rating of debt securities

N/A

5


C) Top Ten Holdings

The top 10 holdings as at 31 December 2014 and 31 December 2013

10 largest holdings at 31 December 2014

Fair Value

Percentage oftotal net assetsattributable to

unitholders(S$) %

SSGA FDS MONEY MARKET FUND 12,205,584 8.22 BRISTOL-MYERS SQUIBB CO 5,365,155 3.61 ACTAVIS PLC 5,010,671 3.38 ASTRAZENECA PLC 4,843,810 3.26 MEDTRONIC PLC 3,932,511 2.65 HCA HOLDINGS INC 3,902,703 2.63 MERCK & CO INC 3,742,002 2.52 ALKERMES PLC 3,709,798 2.50 MCKESSON CORPORATION 3,619,846 2.44 UCB SA 3,532,008 2.38

10 largest holdings at 31 December 2013

Fair Value

Percentage oftotal net assetsattributable to

unitholders(S$) %

FOREST LABORATORIES INC 2,834,691 4.30 SSGA FDS MONEY MARKET FUND 2,278,020 3.45 UNITEDHEALTH GROUP INC 2,100,180 3.18 MERCK & CO INC 2,039,432 3.09 ALKERMES PLC 2,017,557 3.06 MCKESSON CORPORATION 1,819,788 2.76 QUINTILES TRANSNATIONAL HOLDINGS INC 1,802,074 2.73 UCB SA 1,740,023 2.64 SHIONOGI & CO LTD 1,654,300 2.51 BRISTOL-MYERS SQUIBB CO 1,399,051 2.12

6


D) Exposure to derivatives

i) fair value of derivative contracts and as a percentage of NAV as at 31 December 2014

Contract or underlying principal amount

$

Positive fair value

$ % of NAV

Negative fair value

$ % of NAV

Forward foreign exchange contracts 3,946,493 13,865 * - -

ii) there was a net gain of SGD 563,299 on derivative contracts realised during the financial year ended 31 December 2014

iii) there was a net gain of SGD 13,865 on outstanding derivative contracts marked to market as at 31 December 2014

* denotes amount less than 0.01%

E) Amount and percentage of net asset value (NAV) invested in other schemes as at 31 December 2014

Fair Value(S$) % of NAV

SSGA FDS MONEY MARKET FUND 12,205,584 8.22

F) Amount and percentage of borrowings to net asset value (NAV) as at 31 December 2014

N/A

G) Amount of redemptions and subscriptions for the financial year 31 December 2014

Total amount of redemptions SGD 71,927,500Total amount of subscriptions SGD 127,006,451

H) The amount and terms of related-party transactions for the financial year ended 31 December 2014

i) As at 31 December 2014 the Fund maintained current accounts with the United Overseas Bank Limited as follows:

Bank balances SGD 174,970

7


H) The amount and terms of related-party transactions for the financial year ended 31 December 2014 (continued)

ii) Purchase/holdings of UOBAM unit trusts by UOB or its affiliated companies as at 31 December 2014

Holdings of United Global Healthcare Fund as at 31 December 2014 were as follows:

Affiliated Companies No. of Units Unit Price Market ValueSGD SGD

(a) UOB Kay Hian Pte Ltd 6,051.46 3.684 22,293.58

Affiliated Companies No. of Units Unit Price Market ValueUSD USD

(a) UOB Smart Global Healthcare Fund 8,582,011.48 2.780 23,857,991.91

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

N/A

iv) As at 31 December 2014 there was no brokerage income earned by UOB Kay Hian Pte Ltd.

I) Expense ratios

31 December 2014 2.21%31 December 2013 2.16%

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 31 December 2014 was based on total operating expenses of $2,142,624 (2013: $1,150,822) divided by the average net asset value of $96,958,632 (2013: $53,251,796) 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.

J) Turnover ratios

31 December 2014 63.19%31 December 2013 42.40%

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, being sales of $61,272,941 (2013: sales of $22,581,302) divided by the average daily net asset value of $96,958,632 (2013: $53,251,796).

8


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 31 December 2014 and 31 December 2013

N/A

ii) expense ratios for the financial year ended 31 December 2014 and 31 December 2013

N/A

iii) turnover ratios for the financial year ended 31 December 2014 and 31 December 2013

N/A

M) Soft dollar commissions/arrangements

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

The Sub-manager, Wellington International Management Company Pte. Ltd. (“WIMC”) has entered into soft dollar arrangements with selected brokers. The products and services received may include research reports, services and seminars; computer software and certain related hardware for arraying and processing research data; and portfolio evaluation services.

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

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.

9


REPORT OF THE TRUSTEE

The Trustee is under a duty to take into custody and hold the assets of United Global Healthcare 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 year covered by these financial statements, set out on pages 12 to 38, in accordance with the limitations imposed on the investment and borrowing powers set out in the Trust Deed.

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

____________________________________Authorised signatory

24 March 2015

10


STATEMENT BY THE MANAGER

In the opinion of the directors of UOB Asset Management Ltd, the accompanying financial statements set out on pages 12 to 38, 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 of United Global Healthcare Fund (the “Fund”) as at 31 December 2014, and the total return and changes 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 ManagerUOB ASSET MANAGEMENT LTD

____________________________________THIO BOON KIATAuthorised signatory

24 March 2015

11


INDEPENDENT AUDITOR’S REPORT TO THE UNITHOLDERS OFUNITED GLOBAL HEALTHCARE FUND(Constituted under a Trust Deed in the Republic of Singapore)

We have audited the accompanying financial statements of United Global Healthcare Fund (the “Fund”), which comprise the Statement of Financial Position and Statement of Portfolio as at 31 December 2014, the Statement of Total Return and Statement of Movements of Unitholders’ Funds for the year then ended, and a summary of significant accounting policies and other explanatory information, as set out on pages 12 to 38.

Manager’s Responsibility for the Financial Statements

The Fund’s Manager (the “Manager”) is responsible for the preparation and fair presentation of these financial statements in accordance with the recommendations of Statement of Recommended Accounting Practice 7 “Reporting Framework for Unit Trusts” issued by the Institute of 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.

Auditor’s Responsibility

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

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

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

Opinion

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as at 31 December 2014 and the total return 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.

PricewaterhouseCoopers LLPPublic Accountants and Chartered Accountants

Singapore, 24 March 2015

12


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

STATEMENT OF TOTAL RETURNFor the financial year ended 31 December 2014

2014 2013Note $ $

IncomeDividends 842,545 581,203 Interest 1,074 1,250

843,619 582,453

Less: ExpensesManagement fee 9 1,698,224 932,146 Trustee fee 9 38,817 21,306 Audit fee 17,200 16,600 Registrar fee 9 25,000 25,000 Valuation fee 9 194,083 106,531 Custody fee 59,011 35,711 Transaction cost 117,576 54,477 Other expenses 163,788 31,891

2,313,699 1,223,662

Net loss (1,470,080) (641,209)

Net gains or losses on value of investments and financial derivativesNet gain on investments 30,364,197 21,238,819 Net gain on forward foreign exchange contracts 577,164 - Net foreign exchange (loss)/gain (1,893,457) 56,180

29,047,904 21,294,999

Total return for the year before income tax 27,577,824 20,653,790 Less: Income tax 3 (197,885) (132,935)

Total return for the year 27,379,939 20,520,855

13



STATEMENT OF FINANCIAL POSITIONAs at 31 December 2014

2014 2013Note $ $

ASSETSPortfolio of investments 148,149,811 63,625,447 Receivables 4 1,717,420 1,246,902 Financial derivatives at fair value 6 13,865 - Cash and bank balances 3,026,723 2,315,000

Total Assets 152,907,819 67,187,349

LIABILITIESPurchases awaiting settlement 2,677,932 445,665 Payables 5 1,790,114 760,801

Total Liabilities 4,468,046 1,206,466

EQUITYNet assets attributable to unitholders 7 148,439,773 65,980,883

14



STATEMENT OF MOVEMENTS OF UNITHOLDERS’ FUNDSFor the financial year ended 31 December 2014

2014 2013Note $ $

Net assets attributable to unitholders at the beginning of the financial year 65,980,883 40,133,229 OperationsChange in net assets attributable to unitholders resulting from operations 27,379,939 20,520,855

Unitholders' contributions/(withdrawals)Creation of units 127,006,451 33,806,917 Cancellation of units (71,927,500) (28,480,118)

Change in net assets attributable to unitholders resulting from net creation and cancellation of units 55,078,951 5,326,799

Total increase in net assets attributable to unitholders 82,458,890 25,847,654

Net assets attributable to unitholders at the end of the financial year 7 148,439,773 65,980,883

15



STATEMENT OF PORTFOLIOAs at 31 December 2014

Holdings at31 December

2014

Fair value at31 December

2014

Percentage oftotal net assetsattributable tounitholders at 31 December

2014$ %

By Geography - PrimaryMoney Market Fund

UNITED STATESSSGA FDS MONEY MARKET FUND 9,211,066 12,205,584 8.22

TOTAL MONEY MARKET FUND 12,205,584 8.22

Quoted Equities

BELGIUMABLYNX NV 25,716 372,755 0.25 UCB SA 34,854 3,532,008 2.38

TOTAL BELGIUM 3,904,763 2.63

BRAZILBRASIL PHARMA SA 343,400 443,365 0.30

DENMARKGENMAB A/S 11,771 913,243 0.61

FRANCEINNATE PHARMA SA 46,400 587,756 0.40 SANOFI 12,855 1,559,518 1.05

TOTAL FRANCE 2,147,274 1.45

16





2014


2014


2014$ %

By Geography - Primary (continued)Quoted Equities

IRELANDACTAVIS PLC 14,690 5,010,671 3.38 ALKERMES PLC 47,808 3,709,798 2.50 PERRIGO CO PLC 3,081 682,453 0.46 PROTHENA CORP PLC 18,876 519,261 0.35 UDG HEALTHCARE PLC 52,037 411,575 0.27

TOTAL IRELAND 10,333,758 6.96

ISRAELLUMENIS LTD - B 14,510 179,582 0.12 TEVA PHARMACEUTICAL INDUSTRIES LTD-ADR 16,542 1,260,608 0.85

TOTAL ISRAEL 1,440,190 0.97

JAPANALFRESA HOLDINGS CORPORATION 15,340 247,529 0.17 ASTELLAS PHARMA INC 31,435 585,932 0.39 CHUGAI PHARMACEUTICAL COMPANY LTD 21,090 690,880 0.47 DAIICHI SANKYO CO LTD 31,510 587,853 0.40 EISAI CO LTD 20,860 1,077,121 0.72 OLYMPUS CORPORATION 16,810 793,310 0.53 ONO PHARMACEUTICAL CO LTD 5,880 697,308 0.47 SHIONOGI & CO LTD 81,900 2,828,665 1.91 SUZUKEN CO LTD 10,210 376,894 0.25 SYSMEX CORPORATION 9,935 591,840 0.40

TOTAL JAPAN 8,477,332 5.71

17




2014


2014


2014$ %


SPAINALMIRALL SA 50,882 1,121,809 0.76

SWITZERLANDACTELION LTD - REG 4,212 647,639 0.44 NOVARTIS AG - REG 4,936 607,893 0.41 ROCHE HOLDING AG GENNUSSCHEINE 3,960 1,425,323 0.96

TOTAL SWITZERLAND 2,680,855 1.81

UNITED KINGDOMAL NOOR HOSPITALS GROUP 22,393 458,049 0.31 ASTRAZENECA PLC 51,462 4,843,810 3.26 GENUS PLC 16,096 416,045 0.28 NMC HEALTH PLC 50,593 480,853 0.32 SPIRE HEALTHCARE GROUP PLC 82,895 650,843 0.44

TOTAL UNITED KINGDOM 6,849,600 4.61


18




2014


2014


2014$ %


UNITED STATESABIOMED INC 14,094 710,807 0.48 ACADIA HEALTHCARE CO INC 8,497 689,186 0.46 ACHILLION PHARMACEUTICALS INC 24,600 399,319 0.27 ACORDA THERAPEUTICS INC 11,935 646,362 0.43 AERIE PHARMACEUTICALS INC 16,120 623,516 0.42 AETNA INC 11,326 1,333,168 0.90 AGILENT TECHNOLOGIES INC 9,457 513,038 0.34 AGIOS PHARMACEUTICALS INC 12,622 1,873,915 1.26 ALLSCRIPTS HEALTHCARE SOLUTIONS INC 68,149 1,153,185 0.78 ALNYLAM PHARMACEUTICALS INC 12,365 1,589,331 1.07 AMAG PHARMACEUTICALS INC 10,855 613,044 0.41 AMGEN INC 4,710 994,164 0.67 ANACOR PHARMACEUTICALS INC 42,780 1,828,181 1.23 ARATANA THERAPEUTICS INC 49,900 1,178,303 0.79 ARENA PHARMACEUTICALS INC 208,446 958,455 0.64 ATHENAHEALTH INC 6,985 1,348,573 0.91 BECTON DICKINSON AND COMPANY 7,968 1,469,306 0.99 BOSTON SCIENTIFIC CORP 70,293 1,234,175 0.83 BRISTOL-MYERS SQUIBB CO 68,590 5,365,155 3.61 CARDINAL HEALTH INC 14,277 1,527,287 1.03 CAREFUSION CORPORATION 20,098 1,580,334 1.06 CIGNA CORPORATION 16,166 2,204,493 1.49 CONMED CORPORATION 8,998 536,069 0.36 COVIDIEN PLC 4,587 621,682 0.42 CUBIST PHARMACEUTICALS INC 5,205 694,198 0.47 CVS HEALTH CORPORATION 17,684 2,256,839 1.52 ELI LILLY AND COMPANY 20,652 1,887,978 1.27 ENVISION HEALTHCARE HOLDINGS INC 29,953 1,376,871 0.93 EVERYDAY HEALTH INC 21,830 426,672 0.29 EXELIXIS INC 13,905 26,533 0.02

Balance carried forward 37,660,139 25.35


19




2014


2014


2014$ %


UNITED STATES (continued)Balance brought forward 37,660,139 25.35FATE THERAPEUTICS INC 41,740 278,208 0.19 FIVE PRIME THERAPEUTICS INC 24,780 886,571 0.60 GLOBUS MEDICAL INC - A 7,860 247,571 0.17 HCA HOLDINGS INC 40,131 3,902,703 2.63 HEARTWARE INTERNATIONAL INC 9,144 889,730 0.60 HOSPIRA INC 19,488 1,581,692 1.07 HUMANA INC 7,796 1,483,767 1.00 ILLUMINA INC 5,237 1,280,902 0.86 IMS HEALTH HOLDINGS INC 22,477 763,669 0.51 INCYTE CORP 29,412 2,849,378 1.92 INFINITY PHARMACEUTICALS INC 53,741 1,202,774 0.81 INTEGRA LIFESCIENCES HOLDINGS 4,950 355,708 0.24 INTUITIVE SURGICAL INC 1,830 1,282,644 0.86 IRONWOOD PHARMACEUTICALS INC 67,034 1,360,826 0.92 KEYSIGHT TECHNOLOGIES 4,513 201,951 0.14 MCKESSON CORPORATION 13,160 3,619,846 2.44 MEDNAX INC 6,980 611,464 0.41 MEDTRONIC PLC 41,104 3,932,511 2.65 MERCK & CO INC 49,726 3,742,002 2.52 MONSANTO COMPANY 4,799 759,728 0.51 MYLAN INC 24,393 1,822,057 1.23 NEUROCRINE BIOSCIENCES INC 14,100 417,399 0.28 NPS PHARMACEUTICALS INC 27,643 1,310,246 0.88 PORTOLA PHARMACEUTICALS INC 33,520 1,257,899 0.85 PRA HEALTH SCIENCES INC 23,870 766,082 0.52 PROGENICS PHARMACEUTICALS INC 42,340 424,152 0.29 PTC THERAPEUTICS INC 8,480 581,732 0.39 QUINTILES TRANSNATIONAL HOLDINGS INC 8,215 640,841 0.43

Balance carried forward 76,114,192 51.27


20





2014


2014


2014$ %


UNITED STATES (continued)Balance brought forward 76,114,192 51.27REGENERON PHARMACEUTICALS INC 4,368 2,374,542 1.60 REGULUS THERAPEUTICS INC 59,380 1,262,098 0.85 RIGEL PHARMACEUTICALS INC 76,440 229,930 0.15 SANGAMO BIOSCIENCES INC 11,025 222,206 0.15 SPECTRUM PHARMACEUTICALS INC 42,607 391,258 0.26 ST JUDE MEDICAL INC 5,693 490,573 0.33 STRYKER CORPORATION 3,480 434,988 0.29 TEAM HEALTH HOLDINGS INC 5,930 452,062 0.30 TESARO INC 13,502 665,385 0.45 THE MEDICINES COMPANY 22,110 810,675 0.55THORATEC CORPORATION 10,885 468,194 0.32 TREVENA INC 25,880 205,076 0.14 T2 BIOSYSTEMS INC 7,920 201,920 0.14 UNITEDHEALTH GROUP INC 13,499 1,808,250 1.22 UNIVERSAL HEALTH SERVICES - B 19,563 2,884,185 1.94 VERTEX PHARMACEUTICALS INC 11,652 1,834,280 1.24 VWR CORP 12,570 430,904 0.29 WALGREENS BOOTS ALLIANCE INC 17,125 1,729,156 1.16 WEBMD HEALTH CORP 12,970 679,728 0.46 WELLCARE HEALTH PLANS INC 3,907 424,838 0.29 XENOPORT INC 116,012 1,348,190 0.91 ZIMMER HOLDINGS INC 9,847 1,479,934 1.00 ZOETIS INC 12,092 689,474 0.46

TOTAL UNITED STATES 97,632,038 65.77

TOTAL QUOTED EQUITIES 135,944,227 91.58

21




2014


2014


2014$ %


Unquoted SecuritiesUNITED STATESTRIUS THERAPEUTICS INC - CONTINGENT VALUE RIGHTS* 10,500 - -

TOTAL UNQUOTED SECURITIES - -

Portfolio of investments 148,149,811 99.80 Other net assets 289,962 0.20

Net assets attributable to unitholders 148,439,773 100.00

* During 2013, Trius Therapeutics Inc was acquired by another party. As a result, each share held by the Fund was disposed via (i) cash settlement, and (ii) automatic conversion of each share into a contingent value right (“CVR”). The Fund’s remaining holdings as at the end of the financial year comprises of such CVRs, which represent the right to receive cash payments if the underlying company meets specified sales criteria in 2016.


22



Percentage of total net assetsattributable tounitholders at31 December

2014

Percentage oftotal net assetsattributable tounitholders at31 December

2013% %

By Geography - Primary (Summary)Money Market Fund

United States 8.22 3.45

Quoted Equities

Belgium 2.63 2.64 Brazil 0.30 - Denmark 0.61 0.19 France 1.45 0.65 Germany - 0.47 Ireland 6.96 4.52 Israel 0.97 1.27 Japan 5.71 7.44 Spain 0.76 0.99 Switzerland 1.81 2.30 United Kingdom 4.61 2.94 United States 65.77 69.57

99.80 96.43 Unquoted Securities

United States - -

Portfolio of investments 99.80 96.43 Other net assets 0.20 3.57

Net assets attributable to unitholders 100.00 100.00


23




2014

Percentage of total net assetsattributable tounitholders at31 December

2014

Percentage of total net assetsattributable to unitholders at31 December

2013$ % %

By Industry - SecondaryMoney Market Fund 12,205,584 8.22 3.45

Quoted Equities

Consumer Staples 4,429,360 2.98 2.96 Healthcare 129,446,788 87.20 90.02 Information Technology 1,308,351 0.89 - Materials 759,728 0.51 -

135,944,227 91.58 92.98

Unquoted Securities

Healthcare - - -

Portfolio of investments 148,149,811 99.80 96.43 Other net assets 289,962 0.20 3.57

Net assets attributable to unitholders 148,439,773 100.00 100.00


24


NOTES TO THE FINANCIAL STATEMENTSFor the financial year ended 31 December 2014

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

1. General

United Global Healthcare Fund (the “Fund”) is a Singapore registered trust fund constituted under a Trust Deed in Singapore dated 5 July 2000. The Deed is governed by the laws of the Republic of Singapore.

The Manager of the Fund is UOB Asset Management Ltd (the “Manager”), and the Trustee is HSBC Institutional Trust Services (Singapore) Limited (the “Trustee”).

The Fund is included by the Central Provident Fund (“CPF”) Board under the CPF investment scheme - Ordinary account for subscription by unitholders using their CPF monies. However, unitholders should note that no new subscriptions for units (including subscriptions under the RSP) are accepted using CPF monies with effect from 31 March 2009. The Fund will nevertheless remain as a CPFIS Included Fund.

The primary activity of the Fund is to achieve long term capital growth by investing in securities issued by companies principally involved in the development, production or distribution of products, equipment and/or services related to healthcare, in any part of the world. Such investments would include investing in sub-sectors of the healthcare industry such as medical products, health services, major pharmaceuticals, specialty major pharmaceuticals and specialty pharmaceuticals.

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

2. Significant accounting policies

(a) Basis of preparation

The financial statements have been prepared under the historical cost convention, modified by the revaluation of financial assets at fair value through profit or loss, and in accordance with the Statement of Recommended Accounting Practice 7 “Reporting Framework for Unit Trusts” 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 is recognised on a time proportion basis using the effective interest method.

25



2. Significant accounting policies (continued)

(c) Investments

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

(i) Initial recognition

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

(ii) Subsequent measurement

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

(e) Foreign currency translation

(i) Functional and presentation currency

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

26



2. Significant accounting policies (continued)

(e) Foreign currency translation (continued)

(i) Functional and presentation currency (continued)

The performance of the Fund is measured and reported to the investors in Singapore Dollar. The Manager considers the Singapore Dollar as the currency of the primary economic environment in which the Fund operates. The financial statements are presented in Singapore Dollar, which is the Fund’s functional and presentation currency.

(ii) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Total Return. Translation differences on non-monetary financial assets and liabilities such as equities are also recognised in the Statement of Total Return within the net gain or loss on investments.

(f) Expenses charged to the Fund

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

(g) Financial derivatives

Financial derivatives including forwards and swaps may be 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 provision of the Trust Deed and the Code on Collective Investment Schemes.

Financial derivatives outstanding on the reporting date are valued at the forward rate or at the 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.

(h) Distributions

The Manager has the absolute discretion to determine whether a distribution is to be made. In such an event, an appropriate amount will be transferred to a distribution account to be paid out on the distribution date. The amount shall not be treated a part of the property of the Fund. Distributions are accrued for at the reporting date if the necessary approvals have been obtained and a legal or constructive obligation has been created.

27



3. Income tax

2014 2013$ $

Overseas income tax 197,885 132,935

The Fund was granted the status of a Designated Unit Trust (“DUT’’) in Singapore. Under the DUT Scheme, subject to certain conditions and reporting obligations being met, certain income of the DUT Fund is not taxable in accordance with Sections 35(12) and 35(12A) of the Income Tax Act. Such income includes:

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

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

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

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

(v) discount, prepayment fee, redemption premium and break cost from qualifying debt securities issued 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.

4. Receivables

2014 2013$ $

Amounts receivable for creation of units 1,637,368 1,206,421 Dividend receivable 79,950 40,481 Other receivables 102 -

1,717,420 1,246,902

28



5. Payables

2014 2013$ $

Amounts payable for cancellation of units 1,083,029 429,900 Amount due to Manager 669,923 301,948 Amount due to Trustee 13,657 6,104 Other creditors and accrued expenses 23,505 22,849

1,790,114 760,801

6. Fair value of financial derivatives

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

2014Contract or underlying principal amount

Positivefair value

Negative fair value

$ $ $

Forward foreign exchange contracts 3,946,493 13,865 -

There are no financial derivatives as at 31 December 2013.

29



7. Units in issue

During the year ended 31 December 2014 and 2013, the number of units issued, redeemed and outstanding were as follows:

2014 2013

Units at the beginning of the year 23,645,765 21,490,352 Units created 39,143,136 13,964,513 Units cancelled (22,498,229) (11,809,100)

Units at the end of the year* 40,290,672 23,645,765

*Included above are units denominated in USD 19,694,356 3,747,938

Net assets attributable to unitholders ($) 148,439,773 65,980,883

Net asset value per unit ($) 3.684 2.790

There is no difference between the net assets attributable to unitholders per financial statements and the net assets attributable to unitholders for issuing/redeeming of units.

8. Financial risk management

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

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

30



8. Financial risk management (continued)

(a) Market risk

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

(i) Foreign exchange risk

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

31




(a) Market risk (continued)

(i) Foreign exchange risk (continued)

The table below summarises the Fund’s exposure to foreign currencies as of the end of the financial year.

As at 31 December 2014

SGD USD JPY Others Total $ $ $ $ $

AssetsPortfolio of investments - 121,199,995 8,477,332 18,472,484 148,149,811Receivables 943,428 764,498 4,577 4,917 1,717,420Cash and bank

balances 1,564,520 1,462,203 - - 3,026,723

Total Assets 2,507,948 123,426,696 8,481,909 18,477,401 152,893,954

LiabilitiesPurchases awaiting

settlement - 2,360,811 12,291 304,830 2,677,932Payables 1,025,075 764,984 - 55 1,790,114

Total Liabilities 1,025,075 3,125,795 12,291 304,885 4,468,046

Forward foreign exchange contracts (notional value) - 3,946,493 (3,932,628) -

Net currency exposure 1,482,873 124,247,394 4,536,990 18,172,516

32





(i) Foreign exchange risk (continued)

As at 31 December 2013

SGD USD JPY Others Total $ $ $ $ $

AssetsPortfolio of investments - 51,771,425 4,906,313 6,947,709 63,625,447Receivables 741,510 498,771 2,714 3,907 1,246,902Cash and bank

balances 1,743,045 571,955 - - 2,315,000

Total Assets 2,484,555 52,842,151 4,909,027 6,951,616 67,187,349

LiabilitiesPurchases awaiting

settlement - 445,665 - - 445,665Payables 641,097 119,704 - - 760,801

Total Liabilities 641,097 565,369 - - 1,206,466

Net currency exposure 1,843,458 52,276,782 4,909,027 6,951,616

Investments, which is the significant item in the Statement of Financial Position, is exposed to currency risk and interest rate risk. The other price risk sensitivity analysis includes the impact of currency risk on non-monetary investments. The Fund’s net financial assets comprises significantly non-monetary investments, hence currency risk sensitivity analysis has not been performed on the remaining financial assets.

33





(ii) Price risk

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

The table below summarises the impact of increases/decreases from the Fund’s underlying investments in equities on the Fund’s net assets attributable to unitholders at 31 December 2014 and 2013. The analysis is based on the assumption that the index components within the benchmark increased/decreased by a reasonable possible shift, with all other variables held constant and that the fair value of the Fund’s investments moved according to the historical correlation with the index.

2014 2013Benchmark component Net impact to

net assets attributable to

unitholders

Net impact tonet assets

attributable tounitholders

$ % $ %

MSCI ACWI Healthcare 29,333,663 20 11,325,330 20

(iii) Interest rate risk

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

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

(b) Liquidity risk

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

34




(b) Liquidity risk (continued)

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

The Fund’s investments in other funds are considered to be readily realisable as the net asset value is struck daily, and units are redeemable on demand at the published price.

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

As at 31 December 2014Less than3 months

$

Purchases awaiting settlement 2,677,932 Payables 1,790,114

As at 31 December 2013Less than3 months

$

Purchases awaiting settlement 445,665 Payables 760,801

(c) Credit risk

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

35




(c) Credit risk (continued)

The table below summarises the credit rating of banks and custodians in which the Fund’s assets are held as at 31 December 2014 and 2013.

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

As at 31 December 2014Source of

Credit rating credit rating

BankCommonwealth Bank of Australia B- Moody'sState Street Bank & Trust Co. B- Moody'sUnited Overseas Bank Limited B Moody's

CustodianState Street Bank & Trust Co. B- Moody's

As at 31 December 2013Source of

Credit rating credit rating

BankState Street Bank & Trust Co. B- Moody’sUnited Overseas Bank Limited B Moody’s

CustodianState Street Bank & Trust Co. B- Moody’s

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

(d) Capital management

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

36




(e) Fair value estimation

The Fund classifies fair value measurements using a fair value hierarchy that reflects the significance of the 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, unobservable inputs) (Level 3).

The following table analyses within the fair value hierarchy the Fund’s financial assets and liabilities (by class) measured at fair value at 31 December 2014 and 2013:

As at 31 December 2014 Level 1 Level 2 Level 3 Total$ $ $ $

AssetsFinancial assets at fair value through profit or loss - Money market fund 12,205,584 - - 12,205,584 - Quoted equities 135,944,227 - - 135,944,227 - Unquoted securities - - - - - Financial derivatives - 13,865 - 13,865

148,149,811 13,865 - 148,163,676

As at 31 December 2013 Level 1 Level 2 Level 3 Total$ $ $ $

AssetsFinancial assets at fair value through profit or loss - Money market fund 2,278,020 - - 2,278,020 - Quoted equities 61,347,427 - - 61,347,427 - Unquoted securities - - - -

63,625,447 - - 63,625,447

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

37




(e) Fair value estimation (continued)

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

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

Except for cash and cash equivalents which are classified as Level 1, the Fund’s assets and liabilities not measured at fair value at 31 December 2014 and 2013 have been classified as Level 2. The carrying amounts of these assets and liabilities approximate their fair values as at the reporting date.

9. Related party transactions

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

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

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

2014 2013$ $

United Overseas Bank LimitedBank balances 174,970 191,025

38



9. Related party transactions (continued)

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

2014 2013$ $

Bank charges 30 30

10. Financial ratios

2014 2013

Expense ratio 1 2.21% 2.16%Turnover ratio 2 63.19% 42.40%

1 The expense ratio has been computed based on the guidelines laid down by the Investment Management Association of Singapore (“IMAS”). The calculation of the expense ratio at 31 December 2014 was based on total operating expenses of $2,142,624 (2013: $1,150,822) divided by the average net asset value of $96,958,632 (2013: $53,251,796) 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, being sales of $61,272,941 (2013: sales of $22,581,302) divided by the average daily net asset value of $96,958,632 (2013: $53,251,796).

39


This page has been intentionally left blank.

40


This page has been intentionally left blank.

Documents

United Global Healthcare Fund - UOB Group · HSBC Institutional Trust Services (Singapore) Limited 21 Collyer Quay #10-02, HSBC Building Singapore 049320 ... The top positive contributors