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NikkoAM-StraitsTrading Asia ex Japan REIT ETF

SEMI-ANNUAL REPORTFor the financial period ending 31 December 2019

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MANAGERSNikko Asset Management Asia Limited

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

Company Registration No. 198202562H

DIRECTORSHou Wey Fook

Lim Soon ChongKiyotaka Ryu

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

TRUSTEE & REGISTRARHSBC Institutional Trust Services (Singapore) Limited

21 Collyer Quay, #13-02 HSBC Building Singapore 049320

AUDITORSPricewaterhouseCoopers LLP7 Straits View, Marina One,

East Tower, Level 12,Singapore 018936

CUSTODIANThe Hongkong and Shanghai Banking Corporation Limited

1 Queen’s Road Central, Hong Kong

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

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PERFORMANCE SUMMARY

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

Inception

NikkoAM-StraitsTrading Asia ex Japan REIT ETF1 -0.68 -1.47 19.10 N/A N/A N/A 12.56

Benchmark2 -0.51 -1.12 20.01 N/A N/A N/A 13.28

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

Note:(1) With effect from 31 January 2018, SRE Capital Pte. Ltd. has ceased to be the Investment Adviser

to Nikko Asset Management Asia Limited in respect of the NikkoAM-StraitsTrading Asia ex Japan REIT ETF.

(2) With effect from 3 September 2018, the name of the Index (which is the current benchmark for the Fund) has been changed from “FTSE EPRA/NAREIT Asia ex Japan Net Total Return REIT Index” to “FTSE EPRA Nareit Asia ex Japan Net Total Return REIT Index”.

Inception date: 29 March 2017

About NikkoAM-StraitsTrading Asia ex Japan REIT ETF

The NikkoAM-StraitsTrading Asia ex Japan REIT ETF (the “Fund”) is a collective investment scheme authorised under Section 286 of the Securities and Futures Act and is established under the terms of a trust deed dated 27 February 2017 made between Nikko Asset Management Asia Limited as manager, and HSBC Institutional Trust Services (Singapore) Limited as trustee, of the Fund.

The investment objective of the Fund is to replicate as closely as possible, before expenses, the performance of the FTSE EPRA Nareit Asia ex Japan Net Total Return REIT Index (the “Index”), or upon the Manager giving three (3) months’ prior written notice to the Trustee and the Holders, such other index that gives, in the opinion of the Manager, the same or substantially similar exposure as the Index. There is no assurance that the Fund will achieve its investment objective or that it will be able to fully track the performance of the Index.

The Fund will seek to achieve its investment objective by investing all, or substantially all, of its assets in Index Securities in substantially the same weightings as reflected in the Index (i.e. using a full replication strategy).

The Fund is designed for investors who seek an “index-based” approach to investing in a portfolio of Asia ex Japan listed REIT or REIT-type securities in a cost effective and easy to access manner. Units may also be used as an asset allocation tool or as a trading instrument.

Note: Investors are advised to refer to the Fund’s prospectus for more details on the Fund.

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IMPORTANT INFORMATION

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

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

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

The performance of the ETF’s price on the Singapore Exchange Securities Trading Limited (“SGX-ST”) may be different from the net asset value per unit of the ETF. The ETF may also be delisted from the SGX. Transaction in units of the ETF will result in brokerage commissions. Listing of the units does not guarantee a liquid market for the units. Units of the ETF may be bought or sold throughout trading hours of the SGX through any brokerage account. Investors should note that the ETF differs from a typical unit trust and units may only be created or redeemed directly by a participating dealer in large creation or redemption units. Investors may only redeem the units with Nikko AM Asia under certain specified conditions.

The units of NikkoAM-StraitsTrading Asia ex Japan REIT ETF are not in any way sponsored, endorsed, sold or promoted by FTSE International Limited (“FTSE’’), by the London Stock Exchange Group companies (“LSEG’’), Euronext N.V. (“Euronext”), European Public Real Estate Association (“EPRA”), or the National Association of Real Estate Investment Trusts (“NAREIT”) (together the “Licensor Parties”) and none of the Licensor Parties make any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE EPRA Nareit Asia ex Japan Net Total Return REIT Index (the “Index”) and/or the figure at which the said Index stands at any particular time on any particular day or otherwise. The Index is compiled and calculated by FTSE. However, none of the Licensor Parties shall be liable (whether in negligence or otherwise) to any person for any error in the Index and none of the Licensor Parties shall be under any obligation to advise any person of any error therein.

“FTSE®” is a trade mark of LSEG, “NAREIT®” is a trade mark of the National Association of Real Estate Investment Trusts and “EPRA®” is a trade mark of EPRA and all are used by FTSE under licence.”

Nikko Asset Management Asia Limited. Registration Number 198202562H

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SOFT DOLLAR COMMISSIONS/ARRANGEMENTS

In its management of the NikkoAM-StraitsTrading Asia ex Japan REIT ETF (the “Fund”), the Manager currently does not receive or enter into any soft dollar commissions or arrangements.

The managers of the REITs into which the Fund may invest more than 10% of its asset value from time to time do not receive or intend to enter into soft dollar commissions or arrangements in their management of their REITs.

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NIKKOAM-STRAITSTRADING ASIA EX JAPAN REIT ETF (Constituted under a Trust Deed registered in the Republic of Singapore)

STATEMENT OF TOTAL RETURNFor the financial period ended 31 December 2019 (Unaudited)

31 December 2019 31 December 2018S$ S$

IncomeDividends 4,267,340 3,110,466Interest 4 3

4,267,344 3,110,469

Less: ExpensesAdministrator fee 36,660 25,731Audit fee 11,091 11,090Management fee 487,712 331,580Less: Management fee rebate (216,051) (185,579)Trustee fee 36,660 25,731Transaction costs 108,119 73,798Other expenses 210,513 166,703

674,704 449,054

Net income 3,592,640 2,661,415

Net gains or losses on value of investmentsNet (losses)/gains on investments (6,476,626) 1,424,915Net foreign exchange gains/(losses) 60,848 (18,809)

(6,415,778) 1,406,106

Total (deficit)/return for the period before income tax

(2,823,138) 4,067,521

Less: Income tax (18,463) (13,955)Total (deficit)/return for the period after

income tax (2,841,601) 4,053,566

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STATEMENT OF FINANCIAL POSITIONAs at 31 December 2019 (Unaudited)

31 December 2019 30 June 2019S$ S$

ASSETSPortfolio of investments 208,418,891 191,110,077Sales awaiting settlement - 6,181,030Receivables - 1,879,008Cash and bank balances 48,915 6,499,639Total assets 208,467,806 205,669,754

LIABILITIESPayables 233,103 13,468,090Purchases awaiting settlement - 982,856Distribution payable 2,306,052 1,664,219Total liabilities 2,539,155 16,115,165

EQUITYNet assets attributable to unitholders 205,928,651 189,554,589

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STATEMENT OF MOVEMENTS OF UNITHOLDERS' FUNDSFor the financial period ended 31 December 2019 (Unaudited)


Net assets attributable to unitholders at the beginning of financial period/ year 189,554,589 116,654,892

OperationsChange in net assets attributable to unitholders

resulting from operations (2,841,601) 35,149,236

Unitholders' contributions/(withdrawals)Creation of units 39,982,469 96,573,368Cancellation of units (16,581,853) (52,194,426)

Change in net assets attributable to unitholders resulting from net creation and cancellation of units 23,400,616 44,378,942

Distributions (4,184,953) (6,628,481)

Total increase in net assets attributable to unitholders 16,374,062 72,899,697

Net assets attributable to unitholders at the end of financial period/ year 205,928,651 189,554,589

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STATEMENT OF PORTFOLIOAs at 31 December 2019 (Unaudited)

By Geography (Primary)

Holdings at31 December

Fair value at31 December

Percentage oftotal net assetsattributable to unitholders at31 December

2019 2019 2019S$ %

Quoted Real Estate Investment Trusts (REITS)

HONG KONG SARChampion REIT 5,723,000 5,086,305 2.47Fortune Real Estate Investment Trust 3,912,000 6,136,690 2.98Hui Xian Real Estate Investment Trust 6,890,000 4,362,865 2.12Link REIT 1,450,500 20,651,096 10.03Yuexiu Real Estate Investment Trust 3,495,000 3,184,583 1.54Total Hong Kong SAR 39,421,539 19.14

INDONESIAFirst Real Estate Investment Trust 1,540,300 1,532,598 0.74Total Indonesia 1,532,598 0.74

MALAYSIAIGB Real Estate Investment Trust 4,970,600 3,088,186 1.50Pavilion Real Estate Investment Trust 2,430,900 1,390,430 0.67Sunway Real Estate Investment Trust 4,915,200 2,940,664 1.43Total Malaysia 7,419,280 3.60

SINGAPOREAscendas Real Estate Investment Trust 6,968,300 20,695,851 10.05Ascott Trust REIT 3,215,300 4,276,349 2.08CapitaLand Commercial Trust 7,391,900 14,709,881 7.14CapitaLand Mall Trust 7,051,800 17,347,428 8.42CapitaLand Retail China Trust 2,098,600 3,378,746 1.64CDL Hospitality Trusts 2,322,300 3,762,126 1.83Frasers Centrepoint Trust 2,062,100 5,794,501 2.81Frasers Logistics & Industrial Trust 4,843,000 6,005,320 2.92Keppel DC REIT 3,543,577 7,370,640 3.58Keppel REIT 5,824,900 7,222,876 3.51Lippo Malls Indonesia Retail Trust 5,913,400 1,330,515 0.65Manulife US REIT 4,172,500 5,610,552 2.72Mapletree Commercial Trust 6,420,439 15,344,849 7.45Mapletree Industrial Trust 4,504,900 11,712,740 5.69Mapletree Logistics Trust 7,503,190 13,055,551 6.34Mapletree North Asia Commercial Trust 6,195,900 7,187,244 3.49Sasseur REIT 1,495,000 1,323,075 0.64Suntec Real Estate Investment Trust 6,005,500 11,050,120 5.37Total Singapore 157,178,364 76.33

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By Geography (Primary) (continued)

Holdings at31 December

Fair value at31 December

Percentage oftotal net assetsattributable to unitholders at

31 December2019 2019 2019

S$ %

Quoted Real Estate Investment Trusts (REITS) (continued)

THAILANDWHA Premium Growth Freehold & Leasehold Real Estate Investment Trust 3,670,600 2,867,110 1.40Total Thailand 2,867,110 1.40

Total Quoted Real Estate Investment Trusts (REITS) 208,418,891 101.21

Portfolio of investments 208,418,891 101.21Other net liabilities (2,490,240) (1.21)Net assets attributable to unitholders 205,928,651 100.00

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By Geography (Summary) Percentage oftotal net assetsattributable tounitholders at31 December

Percentage oftotal net assetsattributable to unitholders at

30 June2019 2019

% %

Quoted Real Estate Investment Trusts (REITS)Hong Kong SAR 19.14 21.85Indonesia 0.74 0.89Malaysia 3.60 4.08Singapore 76.33 72.67Thailand 1.40 1.33Total Quoted Real Estate Investment Trusts (REITS) 101.21 100.82

Portfolio of investments 101.21 100.82Other net liabilities (1.21) (0.82)Net assets attributable to unitholders 100.00 100.00

Information on investment portfolio by industry segments is not presented as the Fund invests only into Real Estate Investment Trusts (REITS).

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REPORT TO UNITHOLDERSFor the financial period ended 31 December 2019 (Unaudited)

The following contains additional information relating to the Fund.

1. Distribution of investments

Please refer to the Statement of Portfolio on pages 8 to 10.

2. Credit rating of debt securities

Nil

3. Top 10 holdings

10 largest holdings at 31 December 2019

Cost Fair value

Percentage of total net assets attributable to

unitholders S$ S$ %

Ascendas Real Estate Investment Trust 19,312,439 20,695,851 10.05Link REIT 19,227,568 20,651,096 10.03 CapitaLand Mall Trust 15,903,511 17,347,428 8.42 Mapletree Commercial Trust 11,790,142 15,344,849 7.45 CapitaLand Commercial Trust 13,451,201 14,709,881 7.14 Mapletree Logistics Trust 12,566,168 13,055,551 6.34 Mapletree Industrial Trust 9,298,684 11,712,740 5.69 Suntec Real Estate Investment Trust 11,077,869 11,050,120 5.37 Keppel DC REIT 7,295,787 7,370,640 3.58 Keppel REIT 6,842,563 7,222,876 3.51


Cost Fair value


unitholders S$ S$ %

CapitaLand Mall Trust 13,225,681 14,552,818 10.30Link REIT 11,718,353 14,378,136 10.18Ascendas Real Estate Investment Trust 14,458,887 14,315,414 10.13CapitaLand Commercial Trust 12,051,254 12,472,425 8.83Suntec Real Estate Investment Trust 10,409,898 10,089,218 7.14Mapletree Commercial Trust 8,703,855 9,142,650 6.47Mapletree Logistics Trust 8,563,408 8,801,843 6.23Mapletree Industrial Trust 7,145,583 7,291,425 5.16Mapletree North Asia Commercial Trust 6,661,936 6,982,158 4.94Keppel REIT 6,446,890 6,504,270 4.60

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4. Exposure to derivatives

Nil

5. Global exposure to financial derivatives

Nil

6. Collateral

Nil

7. Securities Lending or Repurchase Transactions

Nil

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

Please refer to the Statement of Portfolio on pages 8 to 10.

9. Borrowings

Nil

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

S$

Units created 39,982,469Units cancelled (16,581,853)

11. Financial ratios

Expense ratio31 December

201931 December

2018

Total operating expenses S$ 1,082,925 722,420Average daily net asset value S$ 179,306,967 121,280,216Total expense ratio1 % 0.60 0.60

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11. Financial ratios (continued)

Turnover ratio31 December

2019 31 December

2018

Lower of total value of purchases or sales S$ 45,051,260 20,542,509Average daily net asset value S$ 193,541,178 131,507,220Total turnover ratio2 % 23.28 15.62

1The 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 31December 2019 was based on total operating expenses divided by the average net asset value for the year. The total operating expenses do not include 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.

2The 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 and sales of the underlying investments, divided by the average daily net asset value.

12. Related party transactions

The Manager of the Fund is Nikko Asset Management Asia Limited, a subsidiary of NikkoAsset Management International Limited. The Trustee of the Fund is HSBC InstitutionalTrust Services (Singapore) Limited (the "Trustee").

Management fee is payable to the Manager. Registrar fee, administrator fee and trusteefee are payable to the Trustee. Custody fee is payable to a related company of theTrustee, The Hongkong and Shanghai Banking Corporation Limited.

In addition to related party information shown elsewhere in the financial statements(including the Statement of Portfolio), the following significant transactions took placeduring the financial period between the Fund and a related party at terms agreed betweenthe parties and within the provisions of the Deeds:


Bank balances held with a related party of the Trustee 48,915 6,499,639

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13. Additional information

Service Providers:

Fund Manager : Nikko Asset Management Asia Limited appointed on 27Feb 17; any retirement or removal per Clause 29 of Trust

Deed Remuneration Basis : 0.5% p.a. on NAVTrustee/Custodian/Valuation Agent/Fund Registrar : HSBC Institutional Trust Services (Singapore) LimitedMarket Makers : Flow Traders Asia Pte Ltd, Societe Generale, Phillip Securities

Pte LtdParticipating Dealers : DBS Vickers Securities, UOB Kay Hian, OCBC Securities,

Commerzbank, ABN Amro and Phillip CapitalCorporate Secretariat : Boardroom Corporate & Advisory Services Pte LtdAuditor : PricewaterhouseCoopers appointed on 27 Feb 17Audit Partner : Lim Kheng WahTax Agent : Ernst & Young Solutions LLPSolicitors to Managers : Chan & Goh LLPSolicitors to Trustee : Clifford Chance Pte Ltd

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

Nil.

Intentionally left blank.

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

Company registration number 198202562H

NikkoAM-StraitsTradingAsia ex Japan REIT ETF

ANNUAL REPORTFor the fi nancial year ended 30 June 2019

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



Lim Soon ChongKiyotaka Ryu

Seet Oon Hui EleanorYu-Ming Wang

TRUSTEE & REGISTRAR HSBC Institutional Trust Services (Singapore) Limited







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PERFORMANCE SUMMARY

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

Inception

NikkoAM-StraitsTrading Asia ex Japan REIT ETF1 6.95 20.88 24.88 N/A N/A N/A 16.34

Benchmark2 7.27 21.37 25.52 N/A N/A N/A 17.06

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

Note:(1) With effect from 31 January 2018, SRE Capital Pte. Ltd. has ceased to be the Investment Adviser

to Nikko Asset Management Asia Limited in respect of the NikkoAM-StraitsTrading Asia ex Japan REIT ETF.

(2) With effect from 3 September 2018, the name of the Index (which is the current benchmark for the Fund) has been changed from “FTSE EPRA/NAREIT Asia ex Japan Net Total Return REIT Index” to “FTSE EPRA Nareit Asia ex Japan Net Total Return REIT Index”.





The Fund will seek to achieve its investment objective by investing all, or substantially all, of its assets in Index Securities in substantially the same weightings as refl ected in the Index (i.e. using a full replication strategy).



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

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

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

The units of NikkoAM-StraitsTrading Asia ex Japan REIT ETF are not in any way sponsored, endorsed, sold or promoted by FTSE International Limited (“FTSE’’), by the London Stock Exchange Group companies (“LSEG’’), Euronext N.V. (“Euronext”), European Public Real Estate Association (“EPRA”), or the National Association of Real Estate Investment Trusts (“NAREIT”) (together the “Licensor Parties”) and none of the Licensor Parties make any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE EPRA Nareit Asia ex Japan Net Total Return REIT Index (the “Index”) and/or the fi gure at which the said Index stands at any particular time on any particular day or otherwise. The Index is compiled and calculated by FTSE. However, none of the Licensor Parties shall be liable (whether in negligence or otherwise) to any person for any error in the Index and none of the Licensor Parties shall be under any obligation to advise any person of any error therein.

“FTSE®” is a trade mark of LSEG, “NAREIT®” is a trade mark of the National Association of Real Estate Investment Trusts and “EPRA®” is a trade mark of EPRA and all are used by FTSE under licence.”


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The primary objective of the Manager in placing orders for the purchase and sale of Index Securities and non-Index Securities, when adjusting the NikkoAM-StraitsTrading Asia ex Japan REIT ETF (the “Fund”) portfolio to refl ect changes in the Index or in respect of a cash subscription or redemption, is to obtain the most favourable net results taking into account such factors as price, commission or spread and size of the order. Where it is consistent with this objective, it is the Manager’s practice to place such orders with brokers/dealers who supply research, market information and quotations and statistical information to the Manager, which may be useful to the Manager in providing its services as manager of the Fund and/or may be useful to the Manager in providing services to other clients (including other funds managed by the Manager), other than as manager of the Fund.

Appointment of soft dollar brokersThe Manager will appoint soft dollar brokers onto its broker panel only after it has ensured that:a) full disclosure of the practice of accepting soft dollars is made;b) the commission rates charged are comparable with the market rates;c) there is no confl ict of interest;d) the soft dollar credits are used only for clearly defi ned services;e) at all times trades are executed through the respective brokers only on the basis of best execution

regardless whether soft dollar benefi ts will accrue. Best execution shall include competitive prices with smooth execution ability; and

f) relevant regulations and guidelines are complied with.

The procedures for the appointment of the brokers shall be no different from that of normal full service brokers.

Execution and allocation

If the Trustee objects to the use of the soft dollar brokers, the trades of the Fund shall be segregated from the rest of the trades that are executed through the relevant soft dollar broker(s). The Manager will execute trades for such accounts only with authorised full service brokers.

It is the responsibility of the Manager to ensure that the allocation quotas are adhered to. In addition, the Manager will monitor the execution ability of the soft dollar brokers and assign the business strictly on a “best execution” basis.

Subject to the provisions of the CIS Code*, in its management of the Fund, the Manager may receive soft dollar commissions from, or may enter into soft dollar arrangements with, stockbrokers who execute trades on behalf of the Fund and the soft dollars received would be restricted to the following kinds of services:a) specifi c advice as to the advisability of dealing in, or of the value of any investments;b) research and advisory services;c) economic and political analysis;d) portfolio analysis including valuation and portfolio measurements;e) market analysis;f) data and quotation services;g) computer hardware or software that are used to support the investment decision making process, the

giving of advice, or the conduct of research or analysis; andh) custodial services in relation to the investments managed for clients.

The following are, however, prohibited:a) travel, accommodation and entertainment expenses;b) general administrative goods and services including offi ce equipment and premises;c) membership fees;d) employee salaries;e) direct money payments / rebates.

The Manager shall retain the records of the payments made using soft dollar commissions.


Please note that with effect from 25 January 2018, the Managers have ceased to receive soft dollar commissions, or enter into soft dollar arrangements, in their management of the Fund.

* The “Code” means the Code on Collective Investment Schemes issued by the Authority pursuant to the Securities and Futures Act, as may be amended, modifi ed, or supplemented from time to time by the Authority.

5


REPORT OF THE TRUSTEE For the financial year ended 30 June 2019

The Trustee is under a duty to take into custody and hold the assets of NikkoAM-StraitsTrading Asia ex Japan REIT ETF (the “Fund”) in trust for the unitholders. In accordance with the Securities and Futures Act (Cap.289), its subsidiary legislation and the Code on Collective Investment Schemes, the Trustee shall monitor the activities of the Manager for compliance with the limitations imposed on the investment and borrowing powers as set out in the Trust Deed in each annual accounting year and report thereon to unitholders in an annual report.

To the best knowledge of the Trustee, the Manager has, in all material respects, managed the Fund during the financial year covered by these financial statements, set out on pages 1 to 2 , in accordance with the limitations imposed on the investment and borrowing powers set out in the Trust Deed.

For and on behalf of the Trustee HSBC Institutional Trust Services (Singapore) Limited

Authorised signatory 27 September 2019

6


STATEMENT BY THE MANAGER For the financial year ended 30 June 2019

In the opinion of Nikko Asset Management Asia Limited, the accompanying financial statements set out on pages 1 to 2 , comprising the Statement of Total Return, Statement of Financial Position, Statement of Movements of Unitholders' Funds, Statement of Portfolio and Notes to the Financial Statements are drawn up so as to present fairly, in all material respects, the financial position and portfolio holdings of NikkoAM-StraitsTrading Asia ex Japan REIT ETF (the “Fund”) as at 30 June 2019 and the financial performance and movements in unitholders’ funds for the financial year then ended in accordance with the recommendations of Statement of Recommended Accounting Practice 7 “Reporting Framework for Unit Trusts” issued by the Institute of Singapore Chartered Accountants. At the date of this statement, there are reasonable grounds to believe that the Fund will be able to meet its financial obligations as and when they materialise.

For and on behalf of the ManagerNikko Asset Management Asia Limited

Authorised signatory 27 September 2019

7

INDEPENDENT AUDITOR’S REPORT TO THE UNITHOLDERS OF NIKKOAM-STRAITSTRADING ASIA EX JAPAN ETF(Constituted under a Trust Deed registered in the Republic of Singapore)

Our Opinion

In our opinion, the accompanying financial statements of NikkoAM-StraitsTrading Asia ex Japan REIT ETF (the “Fund”) are properly drawn up in accordance with the recommendations of Statement of Recommended Accounting Practice 7 “Reporting Framework for Unit Trusts” issued by the Institute of Singapore Chartered Accountants, so as to present fairly, in all material respects, the financial position and portfolio holdings of the Fund as at 30 June 2019, and the financial performance and movements of unitholders’ 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 30 June 2019;the Statement of Financial Position as at 30 June 2019the Statement of Movements of Unitholders’ Funds for the financial year ended 30 June2019;the Statement of Portfolio as at 30 June 2019; andthe notes to the financial statements, including a summary of significant accountingpolicies.

Basis for opinion

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

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

Independence

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

Our Audit Approach

As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the accompanying financial statements. In particular, we considered where management made subjective judgements; for example, in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. As in all of our audits, we also addressed the risk of management override of internal controls, including among other matters consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud.

Key Audit Matters

We have determined that there are no key audit matters to communicate in our report.

8


Other Information

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

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Manager for the financial statements

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

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

The Manager’s responsibilities include overseeing the Fund’s financial reporting process.

Auditor’s responsibilities for the audit of the financial statements

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

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

Identify and assess the risks of material misstatement of the financial statements, whether dueto fraud or error, design and perform audit procedures responsive to those risks, and obtainaudit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk ofnot detecting a material misstatement resulting from fraud is higher than for one resulting fromerror, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or theoverride of internal control.

9


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 ofaccounting estimates and related disclosures made by the Manager.

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

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

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

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partner on the audit resulting in this independent auditor’s report is Lim Kheng Wah

PricewaterhouseCoopers LLP Public Accountants and Chartered Accountants Singapore, 27 September 2019

10


STATEMENT OF TOTAL RETURN For the financial year ended 30 June 2019

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

Note 2019 2018S$ S$


7,000,512 5,174,197 Less: Expenses Administrator fee 56,738 38,997Audit fee 21,999 16,500Management fee 739,109 490,827Less: Management fee rebate (339,386) (260,550)Trustee fee 56,738 38,997Transaction costs 177,878 97,640Other expenses 356,397 260,737

1,069,473 683,148

Net income 5,931,039 4,491,049

Net gains or losses on value of investments Net gains/(losses) on investments 29,315,901 (143,644)Net foreign exchange losses (64,932) (27,389)

29,250,969 (171,033)

Total return for the financial year before income tax 35,182,008 4,320,016

Less: Income tax 3 (32,772) (519,599)Total return for the financial year after income

tax 35,149,236 3,800,417

11


STATEMENT OF FINANCIAL POSITION As at 30 June 2019

The accompanying notes form an integral part of these financial statements

Note 2019 2018S$ S$

ASSETSPortfolio of investments 191,110,077 117,418,651 Sales awaiting settlement 6,181,030 5,827Receivables 4 1,879,008 1,427,803Cash and bank balances 6,499,639 36,787Total assets 205,669,754 118,889,068

LIABILITIESPayables 5 13,468,090 102,024Purchases awaiting settlement 982,856 997,462Distribution payable 6 1,664,219 1,134,690Total liabilities 16,115,165 2,234,176

EQUITY Net assets attributable to unitholders 7 189,554,589 116,654,892

12


STATEMENT OF MOVEMENTS OF UNITHOLDERS' FUNDS For the financial year ended 30 June 2019


Note 2019 2018S$ S$

Net assets attributable to unitholders at the beginning of financial year 116,654,892 73,276,248

Operations Change in net assets attributable to unitholders

resulting from operations 35,149,236 3,800,417

Unitholders' contributions/(withdrawals) Creation of units 96,573,368 48,927,189Cancellation of units (52,194,426) (5,114,750)


Distributions 6 (6,628,481) (4,234,212)


Net assets attributable to unitholders at the end of financial year 7 189,554,589 116,654,892

13


STATEMENT OF PORTFOLIO As at 30 June 2019



Holdings at 30 June 2019

Fair value at 30 June 2019

Percentage of total net assets attributable to unitholders at 30 June 2019

S$ %Quoted Real Estate Investment Trusts (REITS)

HONG KONG SAR Champion REIT 6,097,000 6,873,673 3.62Fortune Real Estate Investment Trust 4,153,000 7,724,278 4.08Hui Xian Real Estate Investment Trust 7,244,000 4,848,336 2.56Link REIT 1,118,500 18,595,117 9.81Yuexiu Real Estate Investment Trust 3,663,000 3,387,427 1.78Total Hong Kong SAR 41,428,831 21.85


MALAYSIA IGB Real Estate Investment Trust 5,107,700 3,193,946 1.68Pavilion Real Estate Investment Trust 2,408,900 1,443,240 0.76Sunway Real Estate Investment Trust 5,068,100 3,102,813 1.64Total Malaysia 7,739,999 4.08

SINGAPOREAscendas Real Estate Investment Trust 6,289,900 19,624,488 10.35Ascott Residence Trust 3,458,000 4,495,400 2.37CapitaLand Commercial Trust 7,636,400 16,570,988 8.74CapitaLand Mall Trust 7,211,900 18,967,297 10.01CapitaLand Retail China Trust 1,858,000 2,898,480 1.53CDL Hospitality Trusts 2,444,900 3,985,187 2.10Frasers Logistics & Industrial Trust 4,667,900 5,648,159 2.98Keppel REIT 6,179,200 7,785,792 4.11Lippo Malls Indonesia Retail Trust 6,385,700 1,532,568 0.81Mapletree Commercial Trust 6,022,000 12,585,980 6.64Mapletree Industrial Trust 4,433,600 9,931,264 5.24Mapletree Logistics Trust 7,601,790 12,086,846 6.38Mapletree North Asia Commercial Trust 6,649,800 9,708,708 5.12Suntec Real Estate Investment Trust 6,145,800 11,922,852 6.29Total Singapore 137,744,009 72.67

THAILANDWHA Premium Growth Freehold & Leasehold Real

Estate Investment Trust 3,437,500 2,517,411 1.33Total Thailand 2,517,411 1.33

Total Quoted Real Estate Investment Trusts (REITS) 191,110,077 100.82

Portfolio of investments 191,110,077 100.82Other net liabilities (1,555,488) (0.82) Net assets attributable to unitholders 189,554,589 100.00

14


STATEMENT OF PORTFOLIO As at 30 June 2019


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

Percentage of total net assets attributable to unitholders at 30 June 2018

% %Quoted Real Estate Investment Trusts (REITS)Hong Kong SAR 21.85 24.43Indonesia 0.89 1.44Malaysia 4.08 5.14Singapore 72.67 69.64Thailand 1.33 -Total Quoted Real Estate Investment Trusts (REITS) 100.82 100.65

Portfolio of investments 100.82 100.65Other net liabilities (0.82) (0.65)Net assets attributable to unitholders 100.00 100.00


15


NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 30 June 2019

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

1. General

NikkoAM-StraitsTrading Asia ex Japan REIT ETF (the “Fund”) is a Singaporedomiciled fund constituted by a Trust Deed dated 27 February 2017 as amendedby Supplemental Deed (collectively referred to as the “Deeds”). The Deeds aregoverned by the laws of the Republic of Singapore. The Trustee of the Fund isHSBC Institutional Trust Services (Singapore) Limited (the “Trustee”). TheManager of the Fund is Nikko Asset Management Asia Limited (the “Manager”).

2. Significant accounting policies

The principal accounting policies applied in the preparation of these financialstatements are set out below.

(a) Basis of preparation

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

(b) Recognition of income

Dividend income from investment is recognised when the right to receive paymentis established.

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

16



2. Significant accounting policies (continued)

(c) Foreign currency translation

(i) Functional and presentation currency

The Fund qualifies as an authorised scheme under the Securities andFutures Act (“SFA”) of Singapore and is offered to retail investors inSingapore. The Fund’s activities are substantially based in Singapore, withsubscriptions and redemptions of the units of the Fund being denominatedin Singapore dollars.

The performance of the Fund is measured and reported to the investors inSingapore dollars. The Manager considers the Singapore Dollar as thecurrency which most faithfully represents the economic effects of theunderlying transactions, events and conditions. The financial statementsare expressed in Singapore dollars, which is the Fund’s functional andpresentation currency.

(ii) Transactions and balances

Foreign currency monetary assets and liabilities are translated intoSingapore dollars at the rates of exchange prevailing at the date of theStatement of Financial Position. The net unrealised gain or loss is taken tothe Statement of Total Return. Transactions during the period are recordedin Singapore dollars at the rates of exchange ruling on transaction dates.All realised gains or losses are recognised in the Statement of TotalReturn.

(d) Distributions

The Manager has the absolute discretion to determine whether a distribution is tobe made. In such an event, an appropriate amount will be transferred to adistribution account to be paid on the distribution date. The amount shall not betreated as part of the property of the Fund. Distributions are accrued for at thepoint in time when the necessary approvals have been obtained and a legal orconstructive obligation has been created.

(e) Investments

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

(i) Initial recognition

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

17




(e) Investments (continued)

(ii) Subsequent measurement

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

(iii) Derecognition

Investments are derecognised on the trade date of disposal. The resultantrealised gains and losses on the sales of investments are computed on thebasis of the difference between the weighted average cost and sellingprice gross of transaction costs, and are taken up in the Statement of TotalReturn.

(f) Basis of valuation of investments

The fair value of financial assets and liabilities traded in active markets is basedon quoted market prices at the close of trading on the reporting date. The quotedmarket price used for investments held by the Fund is the last traded market pricefor both financial assets and financial liabilities where the last traded price fallswithin the bid-ask spread. In circumstances where the last traded price is notwithin the bid-ask spread, the Manager will determine the point within the bid-askspread that is most representative of fair value.

(g) Receivables

Receivables are non-derivative financial assets with fixed or determinablepayments that are not quoted in an active market. Receivables are initiallyrecognised at their fair value and subsequently carried at amortised cost using theeffective interest method, less accumulated impairment losses.

(h) Sales and purchases awaiting settlement

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

(i) Cash and cash equivalents

Cash and cash equivalents comprise cash at banks and on hand which aresubject to an insignificant risk of changes in value.

18




(j) Payables

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

3. Income tax

The Manager and Trustee of the Fund have assessed and are satisfied that theFund has met the requisite conditions under the Designated Unit Trust (''DUT'')Scheme for the current financial year. The Manager and Trustee of the Fund willensure that the Fund fulfills its reporting obligations under the DUT Scheme.

Under the DUT Scheme, certain income of the DUT Fund is not taxable inaccordance with Sections 35(12) and 35(12A) of the Income Tax Act. Suchincome includes:

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

(b) interest (other than interest for which tax has been deducted under section45 of the Income Tax Act);

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

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

(e) discount prepayment fee, redemption premium and break cost fromqualifying debt securities issued during the prescribed period; and

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

19



3. Income tax (continued)

Income tax for the financial year ended 30 June 2019 and 2018 comprises:

2019 2018S$ S$

Overseas income tax 32,772 29,351Singapore income tax - 490,248

32,772 519,599

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

The Fund is also approved for tax transparency treatment under Section 43(2) of the Income Tax Act. Subject to meeting the terms and conditions of the tax transparency treatment, the Fund may not be taxed on the distributions received which are made out of the qualifying income of REITs listed on the Singapore Exchange (“S-REIT”).

4. Receivables

2019 2018S$ S$

Amount due from unitholders 1,590,663 1,003,470 Dividends receivables 287,578 424,333 Other receivables 767 -

1,879,008 1,427,803

5. Payables

2019 2018S$ S$

Amount due to unitholders 13,228,320 -Amount due to the Manager 64,534 20,076Amount due to the Trustee 7,117 3,762Provision for audit fee 21,999 22,000

Other payables 146,120 56,18613,468,090 102,024

Amount due to the Manager comprises management fee payable to Nikko Asset Management Asia Limited. Amount due to the Trustee comprises trustee fee payable to HSBC Institutional Trust Services (Singapore) Limited.

20



6. Distributions

2019 2018S$ S$

July final distribution of S$1.130 per 100 units in respect of the financial year ended 30 June 2019 1,664,219

April interim distribution of S$1.180 per 100 units in respect of the financial year ended 30 June 2019 1,573,933 -

January interim distribution of S$1.380 per 100 units in respect of the financial year ended 30 June 2019 1,797,579 -

October interim distribution of S$1.290 per 100 units in respect of the financial period ended 30 June 2019 1,592,750 -

July final distribution of S$1.046 per 100 units in respect of the financial year ended 30 June 2018 - 1,134,690

April interim distribution of S$1.238 per 100 units in respect of the financial year ended 30 June 2018 - 1,237,245

January interim distribution of S$1.117 per 100 units in respect of the financial year ended 30 June 2018 - 965,133

October interim distribution of S$1.128 per 100 units in respect of the financial period ended 30 June 2018 - 897,144

6,628,481 4,234,212

7. Units in issue

During the year ended 30 June 2019 and 30 June 2018 the number of unitsissued, redeemed and outstanding was as follow:

2019 2018

Units at beginning of the financial year 108,479,000 68,986,000 Units created 82,377,000 44,018,000

Units cancelled (43,580,000) (4,525,000)Units at end of the financial year 147,276,000 108,479,000

Net assets attributable to unitholders – S$ 189,554,589 116,654,892 Net asset value per unit – S$ 1.2871 1.0754

Distributions are accrued for at the reporting date if the necessary approvals have been obtained and a legal or constructive obligation has been created, for the purpose of determining the accounting net asset values in the financial statements.

21



7. Units in issue (continued)

A reconciliation of the net asset value as reported in the Statement of FinancialPosition to the net asset value as determined for the purpose of processing unitsubscription and redemption is provided below:

2019 2018 S$ S$

Net assets attributable to unitholders as per financial statements per unit 1.2871 1.0754

Effect of movement in the net asset value between the last dealing date and the end of the reporting period^ 0.0001 0.0002

Effect of distribution per unit 0.0113 0.0105Net assets attributable to unitholders for

issuing/redeeming per unit 1.2985 1.0861

^ The net asset value for the purposes of processing unit subscription and redemption was established in accordance with the methodology indicated in the Fund’s Prospectus. This item reflects the movement in net asset value between the last dealing date and the end of the reporting period due to accrual of operating expenses.

8. Financial risk management

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

The Fund’s primary objective is provide investors with investment returns thatcorrespond closely to the total return of the FTSE EPRA Nareit Asia ex Japan NetTotal Return REIT Index (the “Index”) before fees and expenses.

The Fund’s assets principally consist of investments in index securities insubstantially the same weightings as reflected in the Index, and cash. TheManager will rebalance the Fund’s investment from time to time to reflect anychanges to the composition of, or the weighting of securities in, the Index with aview to minimise tracking error of the Fund’s overall returns relative to theperformance of the Index. Such rebalancing may be in the form of investments innon-index securities.

The financial instruments are held in accordance with the published investmentpolicies of the Fund and managed accordingly to achieve the investmentobjectives.

22



8. Financial risk management (continued)

(a) Market risk - Price risk

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

The Fund’s investment is substantially dependent on the changes of marketprices. The Fund’s overall market positions are monitored regularly so as toassess changes in fundamentals and valuation. However, events beyondreasonable control of the Manager could affect the prices of the underlyinginvestments and hence the net asset value of the Fund.

As at 30 June 2019, an increase/decrease of the Index by 11% (2018:11%), withall other variables remaining constant, the net asset attributable to unitholders forthe period would increase/decrease by approximately 10% (2018:11%) Theanalysis was based on the assumptions that the index components within theIndex increased/decreased by a reasonable possible shift, with all other variablesheld constant and that the fair value of Fund’s investments moved according tothe beta. Reasonable possible changes in market index percentage are revisedannually depending on management’s current view on the market volatility andother relevant factors.

(b) Market Risk - Interest rate risk

Interest rate risk is the risk that the value of a financial instrument will fluctuatedue to changes in market interest rates (fair value risk).

Investment funds that invest in securities may be subject to interest rate risk asany interest rate change may affect the risk premium though at varying degrees.To manage this risk, the Manager analyses how interest rate changes may affectdifferent industries and securities and then seeks to adjust the Fund’s portfolioinvestments accordingly.

However, the effects of changes in interest rates on the Fund’s portfolio may notbe quantified as the relationship between the interest rates and the value ofsecurities is indirect. Hence, no sensitivity analysis has been presentedseparately.

(c) Market Risk - Currency risk

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

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

23




(c) Market Risk - Currency risk (continued)

The tables below summarise the Fund’s exposure to currency risks.

SGD USD CNH HKD MYR THB TotalS$ S$ S$ S$ S$ S$ S$

As at 30 June 2019

Assets Portfolio of

investments 139,423,836 - 4,848,336 36,580,495 7,739,999 2,517,411 191,110,077Sales awaiting

settlement 4,505,065 - 156,546 1,184,388 251,579 83,452 6,181,030 Receivables 1,591,430 - - 287,578 - - 1,879,008

Cash and bank balances 6,499,638 - - 1 - - 6,499,639

Total assets 152,019,969 - 5,004,882 38,052,462 7,991,578 2,600,863 205,669,754

Liabilities Payables 13,459,498 8,592 - - - - 13,468,090

Purchases awaiting settlement 726,000 - 25,318 197,251 34,287 - 982,856

Distribution payable 1,664,219 - - - - - 1,664,219Total liabilities 15,849,717 8,592 25,318 197,251 34,287 - 16,115,165

Net currency exposure 136,170,252 (8,592) 4,979,564 37,855,211 7,957,291 2,600,863

SGD USD CNH HKD MYR Total S$ S$ S$ S$ S$ S$

As at 30 June 2018

Assets Portfolio of investments 82,920,604 - 3,591,715 24,913,259 5,993,073 117,418,651Sales awaiting settlement 5,827 - - - - 5,827 Receivables 1,217,901 - - 209,902 - 1,427,803 Cash and bank balances 36,787 - - - - 36,787 Total assets 84,181,119 - 3,591,715 25,123,161 5,993,073 118,889,068

Liabilities Payables 100,366 1,658 - - - 102,024 Purchases awaiting settlement 661,928 - 44,030 231,716 59,788 997,462 Distribution payable 1,134,690 - - - - 1,134,690 Total liabilities 1,896,984 1,658 44,030 231,716 59,788 2,234,176

Net currency exposure 82,284,135 (1,658) 3,547,685 24,891,445 5,933,285

24




(c) Market Risk - Currency risk (continued)

Portfolio of investments, which is a significant item in the Statement of FinancialPosition, is exposed to currency risk and other price risk. The Manager hasconsidered the impact of currency risk sensitivity on non-monetary assets as partof price risk sensitivity analysis.

The following table shows the Fund’s sensitivity to major foreign currenciesexposure with all other variables held constant. Changes in foreign currency rateare revised annually depending on management current view of market volatilityand other relevant factors.

Increase/decrease in foreign exchange rate

%

Increase/decrease in net asset attributable to

unitholders %

30 June 2019 30 June 2018 30 June 2019 30 June 2018

HKD 4 5 1 1MYR 3 4 -* -*

* Amount is less than 1%.

(d) Liquidity risk

Liquidity risk is the risk of loss arising from the inability of the Fund to meet itsobligations as and when they fall due without incurring unacceptable cost orlosses.

The Fund is exposed to daily cash redemptions from unitholders. However, inaccordance with the Fund’s prospectus, minimum holdings and redemption sizeare set.

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

The Fund’s securities are considered readily realisable, as all the securities arelisted on a recognised stock exchange.

The Fund’s financial liabilities are analysed for maturity groupings usingcontractual undiscounted cashflows based on the remaining period at theStatement of Financial Position date to the contractual maturity date. As at 30June 2019, all liabilities are either payable on demand or due in less than 3months. The impact of discounting is not significant.

25




(d) Liquidity risk (continued)

As at 30 June 2019

As at 30 June 2018

S$ S$

Distribution payable 1,664,219 1,134,690 Payables 13,468,090 102,024 Purchases awaiting settlement 982,856 997,462

Contractual cash outflows (excluding gross settled derivatives) 16,115,165 2,234,176

(e) Credit risk

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

Concentrations of credit risk are minimised primarily by:- ensuring counterparties as well as the respective credit limits are approved;- ensuring there are controls in place to identify and assess the creditworthiness

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

counterparties.

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

Credit risk also arises from cash and bank balances, and outstanding and committed transactions with brokers. The table below summarises the credit rating of the bank and custodian in which the Fund’s assets are held 30 June 2019 and 30 June 2018.

Credit ratingas at

30 June 2019

Credit rating as at

30 June 2018Source of

credit rating Bank balances - The Hong Kong and Shanghai

Banking Corporation Limited AA- AA-Standard &

Poor’s

Custodian- The Hong Kong and Shanghai

Banking Corporation Limited AA- AA-Standard &

Poor’s

26




(e) Credit risk (continued)

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

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

(f) Capital management

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

(g) Fair value estimation

The Fund classifies fair value measurements using a fair value hierarchy thatreflects the significance of the inputs used in making the measurements. The fairvalue hierarchy has the following levels:

Quoted prices (unadjusted) in active markets for identical assets orliabilities (Level 1).Inputs other than quoted prices included within level 1 that are observablefor 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 30 June 2019 and 30 June 2018:

Level 1 Level 2 Level 3 Total S$ S$ S$ S$

As at 30 June 2019

AssetsFinancial assets designated at fair value

through profit or loss at inception: - Quoted real estate investment trusts 191,110,077 - - 191,110,077

27




(g) Fair value estimation (continued)

Level 1 Level 2 Level 3 Total S$ S$ S$ S$

As at 30 June 2018

AssetsFinancial assets designated at fair value

through profit or loss at inception: - Quoted real estate investment trusts 117,481,651 - - 117,481,651

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

Except for cash and bank balances which are classified as level 1, the Fund’s assets and liabilities not measured at fair value at 30 June 2019 and 2018 have been classified as Level 2. The carrying amounts of these assets and liabilities approximate their fair values as at the Statement of Financial Position date.


In addition to related party information shown elsewhere in the financialstatements, the following significant transactions took place during the financialyear between the Fund and a related party at terms agreed between the partiesand within the provisions of the Deeds:

2019 2018S$ S$

Bank balances held with related party of the Trustee 6,499,639 36,787

28




Expense ratio2019 2018

Total operating expenses S$ 891,595 585,508Average daily net asset value S$ 147,609,991 98,107,130 Total expense ratio1 0.60 0.60

Turnover ratio2019 2018

Lower of total value of purchases or sales S$ 61,384,378 15,872,010 Average daily net asset value S$ 147,609,991 98,107,130 Total turnover ratio2 % 41.59 16.18

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 financial period end was based on total operating expenses divided by the average net asset value for the period. The total operating expenses do not include (where applicable) brokerage and other transactions costs, performance fee, interest expense, distribution paid out to unitholders, foreign exchange gains/losses, front or back end loads arising from the purchase or sale of other funds and tax deducted at source or arising out of income received. The Fund does not pay any performance fee. The average net asset value is based on the daily balances.

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

29


REPORT TO UNITHOLDERS For the financial year ended 30 June 2019


Distribution of investments

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

Credit rating of debt securities

Nil

Top 10 holdings

10 largest holdings at 30 June 2019

Cost Fair value


unitholders S$ S$ %

Ascendas Real Estate Investment Trust 16,856,564 19,624,488 10.35 CapitaLand Mall Trust 15,656,047 18,967,297 10.01Link REIT 14,046,823 18,595,117 9.81 CapitaLand Commercial Trust 13,444,772 16,570,988 8.74 Mapletree Commercial Trust 10,087,436 12,585,980 6.64 Mapletree Logistics Trust 9,840,224 12,086,846 6.38 Suntec Real Estate Investment Trust 11,295,424 11,922,852 6.29 Mapletree Industrial Trust 8,627,947 9,931,264 5.24 Mapletree North Asia Commercial Trust 7,650,962 9,708,708 5.12Keppel REIT 7,150,189 7,785,792 4.11

30



3. Top 10 holdings (continued)

10 largest holdings at 30 June 2018

Cost Fair value


unitholders S$ S$ %

Link REIT 10,044,151 11,860,922 10.17 Ascendas Real Estate Investment Trust 11,697,118 11,860,728 10.17 CapitaLand Mall Trust 11,276,715 11,643,543 9.98 CapitaLand Commercial Trust 9,489,248 9,478,102 8.12 Suntec Real Estate Investment Trust 8,718,016 8,145,186 6.98 Mapletree Commercial Trust 7,219,027 7,310,391 6.27 Mapletree Industrial Trust 5,880,900 6,152,647 5.27Mapletree Logistics Trust 5,963,553 6,117,639 5.24Mapletree North Asia Commercial Trust 5,493,902 5,829,504 5.00 Keppel REIT 5,294,053 5,226,980 4.48

Exposure to derivatives

Nil

Global exposure to financial derivatives

Nil

Collateral

Nil

Securities Lending or Repurchase Transactions

Nil.

Investment in unit trusts, mutual funds and collective investment schemes

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

Borrowings

Nil

31



10. Amount of redemptions and subscriptions for the financial year ended 30 June2019

S$

Units created 96,573,368 Units cancelled 52,194,426

Turnover ratios

Please refer to Note 10 of the Notes to the Financial Statements on page 2 .

Expense ratios


Related party transactions



Service Providers:

Fund Manager : Nikko Asset Management Asia Limited appointed on 27 Feb 17; any retirement or removal per Clause 29 of Trust Deed

Remuneration Basis : 0.5% p.a. on NAV Trustee/Custodian/ Valuation Agent/ Fund Registrar : HSBC Institutional Trust Services (Singapore) Limited Market Makers : Flow Traders Asia Pte Ltd, Societe Generale, Phillip Securities

Pte Ltd Participating Dealers : DBS Vickers Securities, UOB Kay Hian, OCBC Securities,

Commerzbank, ABN Amro and Phillip Capital Corporate Secretariat : Boardroom Corporate & Advisory Services Pte Ltd Auditor : PricewaterhouseCoopers appointed on 27 Feb 17 Audit Partner : Lim Kheng Wah Tax Agent : Ernst & Young Solutions LLP Solicitors to Managers : Chan & Goh LLP Solicitors to Trustee : Clifford Chance Pte Ltd


Nil.

i

NikkoAM-StraitsTradingAsia ex Japan REIT ETF

SEMI-ANNUAL REPORTFor the fi nancial period ending 31 December 2018

1


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



Lim Soon ChongJunichi Sayato

Seet Oon Hui EleanorYu-Ming Wang

TRUSTEE & REGISTRAR HSBC Institutional Trust Services (Singapore) Limited







2

PERFORMANCE SUMMARY

Returns (%) 3 Mth 6 Mth 1 Yr 3 Yr 5 YrSince

Inception

Benchmark1 -1.23 3.42 -1.49 N/A N/A 9.61

NikkoAM-StraitsTrading Asia ex Japan REIT ETF2 -1.22 3.31 -1.84 N/A N/A 9.01

Source: FTSE International Ltd. & Nikko Asset Management Asia Limited, returns as at 31 December 2018. Returns are calculated on a NAV-NAV basis, in SGD, and assuming all dividends and distributions are reinvested if any. Returns for periods

in excess of 1 year are annualised. Past performance is not indicative of future performance.

Note:(1) With effect from 3 September 2018, the name of the Index (which is the current benchmark for

the Fund) has been changed from “FTSE EPRA/NAREIT Asia ex Japan Net Total Return REIT Index” to “FTSE EPRA Nareit Asia ex Japan Net Total Return REIT Index”.

(2) With effect from 31 January 2018, SRE Capital Pte. Ltd. has ceased to be the Investment Adviser to Nikko Asset Management Asia Limited in respect of the NikkoAM-StraitsTrading Asia ex Japan REIT ETF.





The Fund will seek to achieve its investment objective by investing all, or substantially all, of its assets in Index Securities in substantially the same weightings as refl ected in the Index (i.e. using a full replication strategy).



3


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

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

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

The units of NikkoAM-StraitsTrading Asia ex Japan REIT ETF are not in any way sponsored, endorsed, sold or promoted by FTSE International Limited (“FTSE’’), by the London Stock Exchange Group companies (“LSEG’’), Euronext N.V. (“Euronext”), European Public Real Estate Association (“EPRA”), or the National Association of Real Estate Investment Trusts (“NAREIT”) (together the “Licensor Parties”) and none of the Licensor Parties make any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE EPRA Nareit Asia ex Japan Net Total Return REIT Index (the “Index”) and/or the fi gure at which the said Index stands at any particular time on any particular day or otherwise. The Index is compiled and calculated by FTSE. However, none of the Licensor Parties shall be liable (whether in negligence or otherwise) to any person for any error in the Index and none of the Licensor Parties shall be under any obligation to advise any person of any error therein.

“FTSE®” is a trade mark of LSEG, “NAREIT®” is a trade mark of the National Association of Real Estate Investment Trusts and “EPRA®” is a trade mark of EPRA and all are used by FTSE under licence.


4


The primary objective of the Manager in placing orders for the purchase and sale of Index Securities and non-Index Securities, when adjusting the NikkoAM-StraitsTrading Asia ex Japan REIT ETF (the “Fund”) portfolio to refl ect changes in the Index or in respect of a cash subscription or redemption, is to obtain the most favourable net results taking into account such factors as price, commission or spread and size of the order. Where it is consistent with this objective, it is the Manager’s practice to place such orders with brokers/dealers who supply research, market information and quotations and statistical information to the Manager, which may be useful to the Manager in providing its services as manager of the Fund and/or may be useful to the Manager in providing services to other clients (including other funds managed by the Manager), other than as manager of the Fund.

Appointment of soft dollar brokers

The Manager will appoint soft dollar brokers onto its broker panel only after it has ensured that:a) full disclosure of the practice of accepting soft dollars is made;b) the commission rates charged are comparable with the market rates;c) there is no confl ict of interest;d) the soft dollar credits are used only for clearly defi ned services;e) at all times trades are executed through the respective brokers only on the basis of best execution

regardless whether soft dollar benefi ts will accrue. Best execution shall include competitive prices with smooth execution ability; and

f) relevant regulations and guidelines are complied with.

The procedures for the appointment of the brokers shall be no different from that of normal full service brokers.

Execution and allocation

If the Trustee objects to the use of the soft dollar brokers, the trades of the Fund shall be segregated from the rest of the trades that are executed through the relevant soft dollar broker(s). The Manager will execute trades for such accounts only with authorised full service brokers.

It is the responsibility of the Manager to ensure that the allocation quotas are adhered to. In addition, the Manager will monitor the execution ability of the soft dollar brokers and assign the business strictly on a “best execution” basis.

Subject to the provisions of the CIS Code*, in its management of the Fund, the Manager may receive soft dollar commissions from, or may enter into soft dollar arrangements with, stockbrokers who execute trades on behalf of the Fund and the soft dollars received would be restricted to the following kinds of services:a) specifi c advice as to the advisability of dealing in, or of the value of any investments;b) research and advisory services;c) economic and political analysis;d) portfolio analysis including valuation and portfolio measurements;e) market analysis;f) data and quotation services;g) computer hardware or software that are used to support the investment decision making process, the

giving of advice, or the conduct of research or analysis; andh) custodial services in relation to the investments managed for clients.

The following are, however, prohibited:a) travel, accommodation and entertainment expenses;b) general administrative goods and services including offi ce equipment and premises;c) membership fees;d) employee salaries;e) direct money payments / rebates.

The Manager shall retain the records of the payments made using soft dollar commissions.


Please note that with effect from 25 January 2018, the Managers have ceased to receive soft dollar commissions, or enter into soft dollar arrangements, in their management of the Fund.

* The “Code” means the Code on Collective Investment Schemes issued by the Authority pursuant to the Securities and Futures Act, as may be amended, modifi ed, or supplemented from time to time by the Authority.

5


STATEMENT OF TOTAL RETURN For the financial period ended 31 December 2018 (Unaudited)

31 December 2018 31 December 2017 S$ S$


3,110,469 2,147,872

Less: Expenses Administrator fee 25,731 17,277Audit fee 11,090 6,621Management fee 331,580 215,963Less: Management fee rebate (185,579) (135,700)Trustee fee 25,731 17,277Transaction costs 73,79 40,522Other expenses 166,703 116,906

449,054 278,866

Net income 2,661,415 1,869,006

Net gains or losses on value of investments Net gains on investments 1,424,915 7,739,664 Net foreign exchange losses (18,809) (12,469)

1,406,106 7,727,195

Total return for the financial period before income tax

4,067,521 9,596,201

Less: Income tax (13,955) (212,224)Total return for the financial period after

income tax 4,053,566 9,383,977

6


STATEMENT OF FINANCIAL POSITION As at 31 December 2018 (Unaudited)


ASSETS Portfolio of investments 142,902,861 117,418,651 Sales awaiting settlement 1,689,435 5,827Receivables 246,878 1,427,803Cash and bank balances 1,691,485 36,787Total assets 146,530,659 118,889,068

LIABILITIESPayables 2,405,533 102,024Purchases awaiting settlement 1,039,531 997,462Distribution payable 1,826,408 1,134,690Total liabilities 5,271,472 2,234,176

EQUITYNet assets attributable to unitholders 141,259,187 116,654,892

7


STATEMENT OF MOVEMENTS OF UNITHOLDERS' FUNDS For the financial period ended 31 December 2018 (Unaudited)

31 December 2018 30 June 2018 S$ S$

Net assets attributable to unitholders at the beginning of financial period/ year 116,654,892 73,276,248

OperationsChange in net assets attributable to unitholders

resulting from operations 4,053,566 3,800,417

Unitholders' contributions/(withdrawals) Creation of units 38,087,075 48,927,189Cancellation of units (14,146,021) (5,114,750)


Distributions (3,390,325) (4,234,212)


Net assets attributable to unitholders at theend of financial period/ year 141,259,187 116,654,892

8


STATEMENT OF PORTFOLIO As at 31 December 2018 (Unaudited)


Holdings at 31 December

Fair value at 31 December

Percentage of total net assets attributable to unitholders at 31 December

2018 2018 2018S$ %

Quoted Real Estate Investment Trusts (REITS)

HONG KONG SAR Champion REIT 5,687,000 5,306,622 3.76 Fortune Real Estate Investment Trust 3,861,000 6,042,681 4.28 Hui Xian Real Estate Investment Trust 6,714,000 4,249,022 3.01 Link REIT 1,041,500 14,378,136 10.18 Spring Real Estate Investment Trust 2,261,000 1,361,905 0.96 Yuexiu Real Estate Investment Trust 3,354,000 2,931,142 2.07 Total Hong Kong SAR 34,269,508 24.26


MALAYSIAIGB Real Estate Investment Trust 4,929,700 2,812,869 1.99 Pavilion Real Estate Investment Trust 2,338,200 1,264,761 0.90 Sunway Real Estate Investment Trust 4,854,600 2,770,017 1.96 Total Malaysia 6,847,647 4.85

SINGAPOREAscendas Real Estate Investment Trust 5,570,200 14,315,414 10.13 Ascott Residence Trust 3,191,600 3,446,928 2.44 CapitaLand Commercial Trust 7,127,100 12,472,425 8.83 CapitaLand Mall Trust 6,439,300 14,552,818 10.30 CapitaLand Retail China Trust 1,695,400 2,305,744 1.64 CDL Hospitality Trusts 2,279,700 3,328,362 2.36 Keppel REIT 5,705,500 6,504,270 4.60 Lippo Malls Indonesia Retail Trust 5,781,300 1,052,197 0.75 Mapletree Commercial Trust 5,541,000 9,142,650 6.47 Mapletree Industrial Trust 3,817,500 7,291,425 5.16 Mapletree Logistics Trust 6,985,590 8,801,843 6.23 Mapletree North Asia Commercial Trust 6,124,700 6,982,158 4.94 Suntec Real Estate Investment Trust 5,668,100 10,089,218 7.14 Total Singapore 100,285,452 70.99

Total Quoted Real Estate Investment Trusts(REITS) 142,902,861 101.16

Portfolio of investments 142,902,861 101.16 Other net liabilities (1,643,674) (1.16) Net assets attributable to unitholders 141,259,187 100.00

9


STATEMENT OF PORTFOLIO As at 31 December 2018 (Unaudited)

By Geography (Summary) Percentage of total net assetsattributable to unitholders at 31 December

Percentage of total net assets attributable to unitholders at

30 June 2018 2018

% %

Quoted Real Estate Investment Trusts (REITS)Hong Kong SAR 24.26 24.43 Indonesia 1.06 1.44Malaysia 4.85 5.14Singapore 70.99 69.64 Total Quoted Real Estate Investment Trusts (REITS) 101.16 100.65

Portfolio of investments 101.16 100.65Other net liabilities (1.16) (0.65) Net assets attributable to unitholders 100.00 100.00


10


REPORT TO UNITHOLDERS For the financial period ended 31 December 2018 (Unaudited)


Distribution of investments

Please refer to the Statement of Portfolio on pages to .

Credit rating of debt securities

Nil

Top 10 holdings


Cost Fair value


unitholders S$ S$ %

CapitaLand Mall Trust 13,225,681 14,552,818 10.30 Link REIT 11,718,353 14,378,136 10.18 Ascendas Real Estate Investment Trust 14,458,887 14,315,414 10.13 CapitaLand Commercial Trust 12,051,254 12,472,425 8.83 Suntec Real Estate Investment Trust 10,409,898 10,089,218 7.14 Mapletree Commercial Trust 8,703,855 9,142,650 6.47 Mapletree Logistics Trust 8,563,408 8,801,843 6.23 Mapletree Industrial Trust 7,145,583 7,291,425 5.16 Mapletree North Asia Commercial Trust 6,661,936 6,982,158 4.94 Keppel REIT 6,446,890 6,504,270 4.60


Cost Fair value


unitholdersS$ S$ %

Suntec Real Estate Investment Trust 8,537,494 10,150,365 10.16 Link REIT 8,150,738 9,989,010 10.00 Ascendas Real Estate Investment Trust 9,433,695 9,954,656 9.96 CapitaLand Mall Trust 8,512,196 9,155,805 9.16 CapitaLand Commercial Trust 6,999,029 8,394,535 8.40 Mapletree Commercial Trust 5,385,946 5,722,164 5.73 Mapletree Logistics Trust 4,447,458 5,013,347 5.02 Mapletree Industrial Trust 4,351,678 4,953,200 4.96 Keppel REIT 3,913,531 4,589,298 4.59 Mapletree Greater China Commercial Trust 3,659,846 4,381,014 4.38

11



Exposure to derivatives

Nil

Global exposure to financial derivatives

Nil

Collateral

Nil

Securities Lending or Repurchase Transactions

Nil

Investment in unit trusts, mutual funds and collective investment schemes

Please refer to the Statement of Portfolio on pages to .

Borrowings

Nil

Amount of units created and cancelled for the financial period ended 31 December2018

S$

Units created 38,087,075 Units cancelled 14,146,021


Expense ratio31 December

2018 31 December

2017

Total operating expenses S$ 722,420 359,789Average daily net asset value S$ 121,280,216 77,089,141Total expense ratio1 % 0.60 0.60

12



11. Financial ratios (continued)

Turnover ratio 31 December

2018 31 December

2017

Lower of total value of purchases or sales S$ 20,542,509 4,721,726Average daily net asset value S$ 131,507,220 85,610,041Total turnover ratio2 % 15.62 5.52

1The 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 2018 was based on total operating expenses divided by the average net asset value for the year. The total operating expenses do not include 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.

2The 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 and sales of the underlying investments, divided by the average daily net asset value.


The Manager of the Fund is Nikko Asset Management Asia Limited, a subsidiary of NikkoAsset Management International Limited. The Trustee of the Fund is HSBC InstitutionalTrust Services (Singapore) Limited (the "Trustee").

Management fee is payable to the Manager. Registrar fee, administrator fee and trusteefee are payable to the Trustee. Custody fee is payable to a related company of theTrustee, The Hongkong and Shanghai Banking Corporation Limited.

In addition to related party information shown elsewhere in the financial statements(including the Statement of Portfolio), the following significant transactions took placeduring the financial period between the Fund and a related party at terms agreed betweenthe parties and within the provisions of the Deeds:


Bank balances held with a related party of the Trustee 1,691,485 36,787

13




Service Providers:

Fund Manager : Nikko Asset Management Asia Limited appointed on 27 Feb 17; any retirement or removal per Clause 29 of Trust

DeedRemuneration Basis : 0.5% p.a. on NAV Trustee/Custodian/ Valuation Agent/ Fund Registrar : HSBC Institutional Trust Services (Singapore) Limited Market Makers : Flow Traders Asia Pte Ltd, Commerzbank AG (Hong Kong) Participating Dealers : DBS Vickers Securities (S) Pte Ltd, UOB Kay Hian, OCBC

Bank, Commerzbank AG (Hong Kong), Flow Traders Asia Pte Ltd, ABN AMRO and Phillip Capital

Corporate Secretariat : Boardroom Corporate & Advisory Services Pte Ltd Auditor : PricewaterhouseCoopers appointed on 27 Feb 17 Audit Partner : Ong King Howe Tax Agent : Ernst & Young Solutions LLP Solicitors to Managers : Chan & Goh LLP Solicitors to Trustee : Clifford Chance Pte Ltd


Nil.

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