Stock Code: ES3 Website: · margin or sell short. Investors can also receive regular dividends....

SPDR® STRAITS TIMES INDEX ETFStock Code: ES3Website: www.spdrs.com.sg

Semi-Annual Report 20201st July 2020 to 31st December 2020

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SPDR® STRAITS TIMES INDEX ETFSemi-Annual Report 2020

Page

MANAGER’S INVESTMENT REPORT 2

STATEMENT OF TOTAL RETURN 8

STATEMENT OF FINANCIAL POSITION 9

STATEMENT OF MOVEMENTS OF UNITHOLDERS’ FUNDS 10

STATEMENT OF PORTFOLIO 11

Contents

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MANAGER’S INVESTMENT REPORTFor the period ended 31 December 2020 (unaudited)

Manager’s NotesAbout SPDR® STRAITS TIMES INDEX ETF (the “Fund”)SPDR® STRAITS TIMES INDEX ETF (the “Fund”), Singapore’s first locally created exchange traded fund, is designed to track the performance of the Straits Times Index (“STI”). Shares of SPDR® STRAITS TIMES INDEX ETF were listed and traded on Singapore Exchange Security Trading Limited (“SGX-ST”) since 17 April 2002.

Details of the Fund

NAV per share (31 December 2020): S$2.879Net Assets Attributable to Unitholders (31 December 2020): S$1,600.78 millionFund Currency: Singapore dollarListing Date on SGX-ST: 17 April 2002Stock Code on SGX-ST: ES3Board Lot: 10 sharesPrice: Approximately 1/1000th of the STICPF Usage: Included in CPF Investment Scheme – Ordinary AccountAnnual Costs: 0.3%

Benefits of investing in the FundSPDR® STRAITS TIMES INDEX ETF offers investors the opportunity to gain diversified exposure to the leading companies in Singapore and participate in Singapore’s long term growth potential in a single transaction, at relatively low cost.

Just like any share listed on SGX-ST, investors can buy and sell anytime during the trading day, on margin or sell short. Investors can also receive regular dividends. Unlike ordinary unit trusts, there are no sales charges upon purchase. Instead, investors pay brokerage commissions to buy or sell. SPDR® STRAITS TIMES INDEX ETF total annual fees, including management and trustee fees, are also low at 0.3%.


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MANAGER’S INVESTMENT REPORT (continued)For the period ended 31 December 2020 (unaudited)

Performance of the Scheme

3-month 6-month 1-year 3-year 5-year 10-yearAnnualisedSince inception

From 30-Sep-20 30-Jun-20 31-Dec-19 31-Dec-17 31-Dec-15 31-Dec-10 11-Apr-02To 31-Dec-20 31-Dec-20 31-Dec-20 31-Dec-20 31-Dec-20 31-Dec-20 31-Dec-20Fund* 15.56% 11.46% -8.47% -2.32% 3.19% 1.91% 6.04%STI 15.92% 11.82% -8.05% -2.00% 3.59% 2.35% 6.09%

* Includes dividends and net of fees

Notes:(i) As stated in the financial statements, units are issued and redeemed through the creation and redemption of an

Index Basket in accordance with the Fund’s Trust Deed. The Fund does not, therefore, publish a bid price and the Fund’s returns have been computed from Net Asset Values. The net distributions of the Fund have been included for the purposes of this return calculation.

(ii) The benchmark returns are calculated on a total return basis.

Details of Top 10 Holdings of the Fund

As at 31 December 2020

CostMarket Value/

Fair Value

Percentageof total netassets value

Percentageof free-float

adjusted sharecapital owned

Dividendsreceived

DividendCover Ratio

(S$) (S$) % % (S$)

DBS Group Holdings Limited 212,761,891 257,302,752 16.07 0.57 3,374,420 2.03Overseas Chinese Banking Corporation 189,436,410 202,351,588 12.64 0.57 2,681,100 2.08United Overseas Bank Limited 152,761,871 166,982,434 10.43 0.57 2,459,082 1.96Singapore Telecommunications Limited 123,459,330 98,863,170 6.18 0.57 4,032,165 0.38Jardine Matheson Holdings Limited 86,026,273 89,299,803 5.58 0.57 609,477 4.45Wilmar International Limited 45,191,203 56,715,906 3.54 0.57 376,063 2.16Ascendas Real Estate Investment Trust 54,407,219 55,945,447 3.49 0.57 1,918,054 0.91CapitaLand Mall Trust 53,902,719 54,197,210 3.39 0.57 744,203 1.58CapitaLand Limited 45,179,082 48,532,995 3.03 0.57 1,311,728 3.53Keppel Corporation Limited 47,025,455 44,394,436 2.77 0.57 200,967 1.95

1,010,151,453 1,074,585,741

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Details of Top 10 Holdings of the Fund (continued)

As at 31 December 2019

CostMarket Value/

Fair Value

Percentageof total netassets value

Percentageof free-float

adjusted sharecapital owned

Dividendsreceived

DividendCover Ratio

(S$) (S$) % % (S$)

DBS Group Holdings Limited 98,980,217 127,168,368 15.29 0.27 2,895,221 1.81Overseas Chinese Banking Corporation 93,524,486 103,240,416 12.42 0.27 2,121,852 2.46United Overseas Bank Limited 76,990,085 92,631,253 11.14 0.27 1,803,484 1.95Singapore Telecommunications Limited 71,932,338 68,452,488 8.23 0.27 3,443,916 1.08Jardine Matheson Holdings Limited 48,214,895 43,597,135 5.24 0.27 329,809 3.29Keppel Corporation Limited 26,088,019 26,463,510 3.18 0.27 295,155 1.74CapitaLand Limited 21,790,185 25,556,130 3.07 0.27 – 3.53Hong Kong Land Holdings Limited 28,871,837 24,505,275 2.95 0.27 244,422 4.79Thai Beverage PCL 20,490,099 23,826,516 2.87 0.27 – 1.93Ascendas Real Estate Investment Trust 20,387,715 23,785,587 2.86 0.27 549,052 1.04

507,269,876 559,226,678

The industry in which the above companies conduct their business is shown in the Statement of Portfolio on pages 11 to 16.

Amount of Subscription and RedemptionFor the period ended 31 December 2020

Units S$

Subscription 150,300,000 389,470,356Redemption (15,500,000) (41,878,684)

Other InformationDuring the period ended 31 December 2020, the Fund had no exposure to other unit trusts, mutual funds and collective investment schemes (except for certain listed funds that are included in the Straits Times Index) and did not hold any collateral. During the period ended 31 December 2020, the Fund had no borrowings, securities lending and repurchase transactions. There are no other material information that will adversely impact the valuation of the Fund.


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Soft Dollar PracticesThe Manager may receive soft dollar commissions/arrangements in respect of the Fund and is subject to the applicable regulatory and industry standards on soft dollars. The soft dollar commissions/arrangements which the Manager may for the time being receive or enter into include specific advice as to the advisability of dealing in or as to the value of any investments, research and advisory services, economic and political analyses, portfolio analyses including valuation and performance measurements, market analyses, data and quotation services, computer hardware and software or any other information facilities to the extent that they are used to support the investment decision making process, the giving of advice, or the conduct of research or analysis, and custodial service in relation to the investments managed for clients.

Brokers for the Fund are selected on the basis of the best available terms for execution. As the Manager is a part of the State Street Group which approaches soft dollar on a group wide basis, the benefits received by the Manager through soft dollars may or may not be directly related to the transactions performed for the Fund.

The goods and services received were for the benefit of the Fund. The trades were executed on best available terms, and there was no churning of trades.

During the period ended 31 December 2020, the Manager had not participated in any soft dollar arrangements in respect of any transactions for the account of the Fund.

Financial RatiosAs at As at

31 December 31 December2020 2019

S$ S$

Total operating expenses 3,326,150 2,281,874Average daily net asset value 1,108,545,828 760,866,139

Total expense ratio1 0.30% 0.30%

Lower of total value of purchases or sales 60,139,556 51,837,312Average daily net assets value 1,315,307,973 783,154,183

Total turnover ratio2 4.57% 6.62%

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Financial Ratios (continued)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 Fund’s expense ratio at financial period end was based on total operating expenses divided by the average net asset value respectively for the financial period. The total operating expenses do not include (where applicable) brokerage and other 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 for the period from 1 January 2020 to 31 December 2020.

2 The portfolio turnover ratio is calculated in accordance with the formula stated in the Code on Collective Investment Schemes. In accordance with the Fund’s Trust Deed, units are issued through a creation of an Index Basket. For each creation Unit (comprising 500,000 units), the Fund receives an Index Basket consisting of Index Shares plus or minus a cash payment as determined by the Manager on a daily basis. For the purpose of computation of the portfolio turnover rate, the value of the Index Baskets received is not considered as part of purchases. 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 for the period from 1 July 2020 to 31 December 2020.

Exposure to Financial DerivativesThe Fund had no exposure to derivative for the period ended 31 December 2020.

Global Exposure to Financial DerivativesThe global exposure to financial derivatives is computed using the commitment approach which is calculated as the sum of:

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

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

(c) The sum of the values of cash collateral received pursuant to:

(i) The reduction of exposure to counterparties of OTC financial derivatives; and

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

Related party disclosures(a) The Manager and the Trustee of the Fund are State Street Global Advisors Singapore Limited and

DBS Trustee Limited, respectively. State Street Global Advisors Singapore Limited is an indirect wholly-owned subsidiary of State Street Corporation. DBS Trustee Limited is a wholly-owned subsidiary of DBS Group Holding Ltd. (“DBS”).

State Street Bank and Trust Company (“SSB”) is the custodian of the Fund and is a subsidiary of State Street Corporation.


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Related party disclosures (continued)(b) The cash balance of the Fund is held in current accounts as follows:

As at As at31 December 30 June

2020 2020S$ S$

State Street Bank and Trust Company, Singapore BranchCash and bank balances 23,486,044 26,100,408

DistributionOn 3 August 2020, the Fund declared a dividend distribution of S$0.059 per unit in relation to the income received in the financial year ended 30 June 2020. This dividend distribution is made out of Singapore tax exempt (one-tier) dividends and other exempt income and income taxable at trustee level. The dividend totalling S$26,072,100 was paid on 25 August 2020.

It is anticipated that distributions will be made twice a year and that the amount of the distribution will approximately the yield on the Straits Times Index.

Event occurring after balance sheet dateOn 2 February 2021, the Fund announced a dividend of S$0.04 per unit totaling S$22,860,000. The dividend will be paid on 24 February 2021.

On 8 January 2021, Ms. June Wong resigned from her position as director of the Manager. On 10 February 2021, Mr. Ong Hwee Yeow resigned from his position as director of the Manager and Mr. Kheng Siang Ng is appointed as director of the Manager.

In the second half of the financial year of 2020, the outbreak of COVID-19 was declared a pandemic by the World Health Organisation. The situation is dynamic with various cities and countries around the world responding in different ways to address the outbreak.

As a result of the COVID-19 outbreak, global financial markets have experienced significant volatility. Given the extent of the crisis, it is difficult to estimate the impact or duration of the volatility in the portfolio of the Fund.

There was no impact on the Fund’s financial statements, including the going concern assumption, as of 31 December 2020.

Information on the ManagerThe Manager is State Street Global Advisors Singapore Limited, an indirect wholly-owned subsidiary of State Street Corporation. The Manager will remain manager of the Fund until terminated in accordance to the Fund’s Trust Deed. The basis of the Manager’s remuneration is set down in the Fund’s prospectus dated 15 September 2020. As agreed between the Manager and the Trustee, the total combined management fees, trustee fees and other recurring expenses for the Fund are currently set at 0.3% per annum of its net asset value.

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STATEMENT OF TOTAL RETURNFor the period ended 31 December 2020 (unaudited)

31 December 31 December2020 2019

S$ S$

IncomeDividends 22,342,697 15,250,759Interest 571 5,615Other income 29,749 –

Total income 22,373,017 15,256,374

Less: ExpensesManagement fee (1,985,170) (1,183,991)Transaction costs (78,693) (84,516)

Total expenses (2,063,863) (1,268,507)

Net income 20,309,154 13,987,867

Net gains or losses on value of investmentsNet gains/(losses) on investments 146,429,436 (21,674,548)Net losses on foreign exchange (38,784) (3,927)

146,390,652 (21,678,475)

Total return/(deficit) for the period before income tax 166,699,806 (7,690,608)Less: Income tax (640,946) (205,440)

Total return/(deficit) for the period after income tax 166,058,860 (7,896,048)


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STATEMENT OF FINANCIAL POSITIONAs at 31 December 2020 (unaudited)

As at As at31 December 30 June

2020 2020S$ S$

AssetsPortfolio of investments 1,577,177,675 1,086,931,663Receivables 2,138,614 917,460Cash and bank balances 23,486,044 26,100,408

Total assets 1,602,802,333 1,113,949,531

LiabilitiesPayables 2,017,417 743,047

Total liabilities 2,017,417 743,047

EquityNet assets attributable to unitholders 1,600,784,916 1,113,206,484

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STATEMENT OF MOVEMENTS OF UNITHOLDERS’ FUNDSFor the period ended 31 December 2020 (unaudited)

31 December 30 June2020 2020

S$ S$

Net assets attributable to unitholders at the beginning of the financial period/year 1,113,206,484 783,433,366

OperationsChange in net assets attributable to unitholders resulting from operations 166,058,860 (160,346,402)

Unitholders’ contributions/(withdrawals)Creation of units 389,470,356 565,429,575Cancellation of units (41,878,684) (46,198,053)

Change in net assets attributable to unitholders resulting from net creation and cancellation of units 347,591,672 519,231,522

Distributions (26,072,100) (29,112,002)

Total increase in net assets attributable to unitholders 487,578,432 329,773,118

Net assets attributable to unitholders at the end of the financial period/year 1,600,784,916 1,113,206,484


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STATEMENT OF PORTFOLIOAs at 31 December 2020 (unaudited)

Primary – by Industry

Holdings at Fair value at

Percentage of total net assets attributable to unitholders at

31 December 31 December 31 December2020 2020 2020

S$ %

Quoted Equities

Aerospace & DefenceSingapore Technologies Engineering Ltd 8,776,307 33,525,493 2.10

33,525,493 2.10

Bank & Financial ServicesDBS Group Holdings Limited 10,275,669 257,302,752 16.07Overseas Chinese Banking Corporation 20,114,472 202,351,588 12.64Singapore Exchange Ltd 4,724,110 43,839,741 2.74United Overseas Bank Limited 7,391,874 166,982,434 10.43

670,476,515 41.88

BeveragesThai Beverage PCL 56,412,477 41,463,170 2.59

41,463,170 2.59

Electronic & Electrical EquipmentVenture Corp Limited 1,495,277 29,038,279 1.81

29,038,279 1.81

Food & Drug RetailersDairy Farm International Holdings Limited 1,729,333 9,531,921 0.60

9,531,921 0.60

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STATEMENT OF PORTFOLIO (continued)As at 31 December 2020 (unaudited)

Primary – by Industry (continued)




S$ %

Quoted Equities (continued)

Food ProducersWilmar International Limited 12,196,969 56,715,906 3.54

56,715,906 3.54

Gas, Water & Multi-utilitiesSembcorp Industries Ltd 5,225,069 8,934,868 0.56

8,934,868 0.56

General IndustrialsJardine Matheson Holdings Limited 1,206,415 89,299,803 5.58Jardine Strategic Holdings Limited 1,044,294 34,343,054 2.14

123,642,857 7.72

General RetailersJardine Cycle & Carriage Limited 569,034 11,124,615 0.70

11,124,615 0.70

Industrial EngineeringYangzijiang Shipbuilding Holdings Limited 12,081,244 11,537,588 0.72

11,537,588 0.72


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S$ %


Mobile TelecommunicationsSingapore Telecommunications Limited 42,797,909 98,863,170 6.18

98,863,170 6.18

Oil Equipment Services & DistributionKeppel Corporation Limited 8,251,754 44,394,436 2.77

44,394,436 2.77

Real Estate InvestmentsAscendas Real Estate Investment Trust* 18,773,640 55,945,447 3.49CapitaLand Limited 14,796,645 48,532,995 3.03CapitaLand Mall Trust* 25,091,301 54,197,210 3.39City Developments Ltd 2,693,833 21,469,849 1.34Hong Kong Land Holdings Limited 6,668,278 36,402,356 2.27Keppel DC REIT* 6,977,923 19,607,964 1.23Mapletree Commercial Trust* 12,592,128 26,821,233 1.68Mapletree Industrial Trust* 9,411,379 27,198,885 1.70Mapletree Logistics Trust* 15,908,917 31,976,923 2.00UOL Group Limited 2,832,225 21,836,455 1.36

343,989,317 21.49

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S$ %


Travel & LeisureComfortDelGro Corporation Limited 11,801,607 19,708,684 1.23Genting Singapore Limited 33,324,608 28,325,917 1.77SATS Limited 3,649,041 14,523,183 0.91Singapore Airlines Limited 7,332,186 31,381,756 1.96

93,939,540 5.87

Portfolio of investments 1,577,177,675 98.53Cash and other net assets 23,607,241 1.47

Net assets attributable to unitholders 1,600,784,916 100.00

* This is a collective investment scheme


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Primary – by Industry (Summary)

Percentage of Percentage oftotal net assets total net assetsattributable to attributable tounitholders at unitholders at

31 December 30 June 2020 2020

% %

Quoted Equities

Aerospace & Defence 2.10 2.01Bank & Financial Services 41.88 40.35Beverages 2.59 2.65Electronic & Electrical Equipment 1.81 1.68Food & Drug Retailers 0.60 0.78Food Producers 3.54 3.19Gas, Water & Multi-utilities 0.56 0.64General Industrials 7.72 7.07General Retailers 0.70 0.80Industrial Engineering 0.72 0.78Industrial Transportation – 0.72Mobile Telecommunications 6.18 7.32Oil Equipment Services & Distribution 2.77 3.42Real Estate Investments 21.49 21.38Travel & Leisure 5.87 4.85

Portfolio of investments 98.53 97.64Cash and other net assets 1.47 2.36

Net assets attributable to unitholders 100.00 100.00

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Secondary – By Geography

Percentage of Percentage oftotal net assets total net assetsattributable to attributable to

Fair value at unitholders at unitholders at31 December 31 December 30 June

2020 2020 2020S$ % %

Quoted Equities

By Country of IncorporationBermuda 169,577,134 10.59 10.52Singapore 1,366,137,371 85.35 84.47Thailand 41,463,170 2.59 2.65

Portfolio of investments 1,577,177,675 98.53 97.64Cash and other net assets 23,607,241 1.47 2.36

Net assets attributable to unitholders 1,600,784,916 100.00 100.00

Standard & Poor's®, S&P® and SPDR® are registered trademarks of Standard & Poor's Financial Services LLC (S&P); Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones); and these trademarks have been licensed for use by S&P Dow Jones Indices LLC (SPDJI) and sublicensed for certain purposes by State Street Corporation. State Street Corporation's financial products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and third party licensors and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability in relation thereto, including for any errors, omissions, or interruptions of any index.

The SPDR® Straits Times Index ETF (the "Fund") is not in any way sponsored, endorsed, sold or promoted by SPH Data Services Pte Ltd or Singapore Press Holdings Ltd (collectively "SPH") or FTSE International Limited ("FTSE"). SPH and FTSE bear no liability in connection with the administration, marketing or trading of the Fund. No warranties, representations or guarantees of any kind are made in relation to the Straits Times Index ("STI") or the Fund by FTSE or SPH. All intellectual property rights in the STI vest in SPH.

Stock Code: ES3 Website: · margin or sell short. Investors can also receive regular dividends....

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