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For the financial year ended 30 June 2018

ANNUAL REPORT

LIONGLOBAL INVESTMENT FUNDS

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Lion Global Investors Ltd65 Chulia Street #18-01OCBC Centre, Singapore 049513

T : +65 6417 6800F : +65 6417 6806Co Reg No:198601745D

For more information, visit: lionglobalinvestors.comor email: [email protected]

© Lion Global Investors Limited. All rights reserved.


DIRECTORY

ManagerLion Global Investors Limited65 Chulia Street #18-01OCBC CentreSingapore 049513

Directors of Lion Global Investors LimitedMr Khor Hock Seng (Chairman)Mr Ching Wei Hong (Deputy Chairman)Mr Gerard Lee How Cheng (CEO)Mr Norman Ip Ka CheungMr Tan Siew PengMr Ronnie Tan Yew ChyeMs Wee Ai Ning

TrusteeCiticorp Trustee (Singapore) Limited5 Changi Business Park CrescentLevel 5, Singapore 486027

CustodianCitibank NA, Singapore Branch5 Changi Business Park CrescentLevel 5, Singapore 486027

RegistrarHSBC Institutional Trust Services (Singapore) Limited21 Collyer Quay#13-02 HSBC BuildingSingapore 049320

Independent AuditorPricewaterhouseCoopers LLP7 Straits View, Marina OneEast Tower, Level 12Singapore 018936


1

CONTENTS

PAGE

PERFORMANCE OF THE FUNDSLIONGLOBAL INDIA FUND .......................................................................................................... 3LIONGLOBAL JAPAN FUND ........................................................................................................ 6LIONGLOBAL KOREA FUND ....................................................................................................... 9LIONGLOBAL MALAYSIA FUND ................................................................................................ 11LIONGLOBAL TAIWAN FUND .................................................................................................... 14LIONGLOBAL THAILAND FUND ................................................................................................ 16LIONGLOBAL SGD MONEY MARKET FUND ............................................................................ 19

DISCLOSURES ON THE FUNDSLIONGLOBAL INDIA FUND ........................................................................................................ 22LIONGLOBAL JAPAN FUND ...................................................................................................... 26LIONGLOBAL KOREA FUND ..................................................................................................... 29LIONGLOBAL MALAYSIA FUND ................................................................................................ 32LIONGLOBAL TAIWAN FUND .................................................................................................... 35LIONGLOBAL THAILAND FUND ................................................................................................ 38LIONGLOBAL SGD MONEY MARKET FUND ............................................................................ 42

REPORT OF THE TRUSTEE .................................................................................................... 46

STATEMENT BY THE MANAGER ............................................................................................ 47

INDEPENDENT AUDITOR’S REPORT ..................................................................................... 48

STATEMENTS OF TOTAL RETURNLIONGLOBAL INDIA FUND ........................................................................................................ 51LIONGLOBAL JAPAN FUND ...................................................................................................... 52LIONGLOBAL KOREA FUND ..................................................................................................... 53LIONGLOBAL MALAYSIA FUND ................................................................................................ 54LIONGLOBAL TAIWAN FUND .................................................................................................... 55LIONGLOBAL THAILAND FUND ................................................................................................ 56LIONGLOBAL SGD MONEY MARKET FUND ............................................................................ 57


2

STATEMENTS OF FINANCIAL POSITIONLIONGLOBAL INDIA FUND ........................................................................................................ 58LIONGLOBAL JAPAN FUND ...................................................................................................... 59LIONGLOBAL KOREA FUND ..................................................................................................... 60LIONGLOBAL MALAYSIA FUND ................................................................................................ 61LIONGLOBAL TAIWAN FUND .................................................................................................... 62LIONGLOBAL THAILAND FUND ................................................................................................ 63LIONGLOBAL SGD MONEY MARKET FUND ............................................................................ 64

STATEMENTS OF MOVEMENTS OF UNITHOLDERS’ FUNDSLIONGLOBAL INDIA FUND ........................................................................................................ 65LIONGLOBAL JAPAN FUND ...................................................................................................... 66LIONGLOBAL KOREA FUND ..................................................................................................... 67LIONGLOBAL MALAYSIA FUND ................................................................................................ 68LIONGLOBAL TAIWAN FUND .................................................................................................... 69LIONGLOBAL THAILAND FUND ................................................................................................ 70LIONGLOBAL SGD MONEY MARKET FUND ............................................................................ 71

STATEMENTS OF PORTFOLIOLIONGLOBAL INDIA FUND ........................................................................................................ 72LIONGLOBAL JAPAN FUND ...................................................................................................... 73LIONGLOBAL KOREA FUND ..................................................................................................... 80LIONGLOBAL MALAYSIA FUND ................................................................................................ 85LIONGLOBAL TAIWAN FUND .................................................................................................... 91LIONGLOBAL THAILAND FUND ................................................................................................ 96LIONGLOBAL SGD MONEY MARKET FUND .......................................................................... 101

NOTES TO THE FINANCIAL STATEMENTS ......................................................................... 106


3

PERFORMANCE OF THE FUNDFor the year ended 30 June 2018

LIONGLOBAL INDIA FUND

Past performance is not necessarily indicative of future performance. Returns for the Fund are calculated up to 30 June 2018 in SGD terms, on a single pricing basis with dividends reinvested net of all charges payable upon reinvestment.

Time PeriodFund Returns (%)

LionGlobal India Fund- SGD Class

Benchmark Returns (%)(MSCI India)

3 months 3.6 3.46 months -6.0 -5.61 year 4.6 5.43 years* 3.9 5.85 years* 9.0 10.610 years* 4.4 5.2Since Inception* (8 January 1999)

12.1 11.0

Past performance is not necessarily indicative of future performance. Returns for the Fund are calculated up to 30 June 2018 in USD terms, on a single pricing basis with dividends reinvested net of all charges payable upon reinvestment.


LionGlobal India Fund- USD Class

Benchmark Returns (%)(MSCI India)

3 months -0.5 -0.66 months -7.9 -7.51 year 5.7 6.53 years* 3.5 5.35 years* 7.4 9.0

10 years* 4.3 5.2Since Inception*(16 August 2004)

11.3 12.0

Source: Morningstar/Lion Global Investors Ltd.*Returns more than 1 year are annualised.

The Fund’s net asset value may have a higher volatility as a result of its narrower investment focus on a limited geographical market, when compared to funds investing in global or wider regional markets.


4

REVIEW

For the year ended 30 June 2018, the Fund returned 4.6%, underperforming the benchmark MSCI India Index which returned 5.4%, in SGD terms.

The Indian equity market benchmark MSCI India returned 5.44% during the 12 months ended 30 June 2018. Gains were led by the information technology (up 28.91%), energy (up 15.63%) and consumer staples (up 9.77%) sectors. All other industry sectors underperformed the market during this period. Telecommunication and healthcare were the worst performing sectors during this period. While the Fund ended the year with an overweight position on the information technology sector, it was underweight on the sector on an average, during the year, and this had a negative impact on performance. The Fund was directionally weighted in the right manner across the other sectors highlighted above, and this vastly aided fund performance during the year. Stock selection would have been positive during the year as well, but for the buy call on Tata Motors, which did not perform according to expectations, and pulled down the entire stock selection score, and hurt fund performance by more than 100 basis points during the year.



5

STRATEGY AND OUTLOOK

India’s consumer price inflation has been on a downward spiral since the end of 2013, and bottomed out at sub 2% levels in June 2017, and is expected to stabilize at current levels of 5%, barring any sudden, sharp rise in crude oil prices. Indian government bond yields have risen to reflect the rise in inflation, and the yield curve is now flattening on a relative basis due to tighter liquidity conditions and hike in repurchase rates by the Reserve Bank of India over the last few months. India’s index of industrial production remains choppy, although it seems to have bottomed out in June 2017 as well. Foreign institutional investors had pumped in about USD 7.5billion into the Indian equity market on a net basis in calendar year 2017, and the current calendar year has not seen any significant interest from foreigners so far, even as the Indian local currency equity market benchmark reached all-time highs earlier during the month of August 2018. Debt investments by foreigners into the Indian market have also been negative so far during the calendar year 2018. India’s current account balance was remarkably steady at -1% (deficit) between 2014 to 2017, and this has now started to deteriorate due to the twin effects of rising crude oil prices and nascent revival of growth and capital formation in the Indian economy (leading to increase in imports). The INR appears to have resumed on the long term path of depreciation versus the USD, after moving sideways during 2016 and 2017. The current Indian government has displayed resolve in maintaining the path of fiscal prudence so far, and this has resulted in the central government budget deficit contained at 3% to 4% of gross domestic product. The Indian equity market is currently trading near peak Price to Earnings multiples, reflecting the expected improvement in corporate earnings and capital return ratios post the disruption caused by the demonetization exercise and implementation of the Goods and Services Tax regime by the government. A few important Indian states are faced with elections later this year and early next year, and the Indian Union is also expected to enter the election mode from early next year, culminating into general elections in May 2019. Market volatility is expected to increase in the run up to the elections, and forward earnings expectations of the street already appear to be pricing in a sustained recovery in the Indian economy and corporate India. The Fund will continue to maintain its bottoms up stock selection driven investment philosophy in this market environment.

As of 17 August 2018.



6


LIONGLOBAL JAPAN FUND

Past performance is not necessarily indicative of future performance. Cumulative returns for the fund are calculated up to 30 June 2018 in SGD terms, on a single pricing basis with dividends reinvested net of all charges payable upon reinvestment.


LionGlobal Japan Fund - SGD Class

Benchmark* Returns (%)(TOPIX Total Return Index)

3 months 0.1 0.96 months -2.3 -0.21 year 10.1 9.83 years** 7.2 8.05 years** 9.3 10.010 years** 3.5 3.2Since Inception*(18 June 1999)

1.5 0.8

Past performance is not necessarily indicative of future performance. Cumulative returns for the fund are calculated up to 30 June 2018 in USD terms, on a single pricing basis with dividends reinvested net of all charges payable upon reinvestment.


LionGlobal Japan Fund - USD Class

Benchmark Returns* (%)(TOPIX Total Return Index)

3 months -3.8 -3.06 months -4.4 -2.21 year 11.1 10.93 years** 6.7 7.55 years** 7.7 8.4

10 years** 3.5 3.2Since Inception* (16 August 2004)

4.5 4.1

Source: Morningstar/Lion Global Investors Ltd.*Benchmarks:Tokyo Stock Price Index: Since Inception – 28 February 2014TOPIX Total Return Index: From 1 March 2014**Returns more than 1 year are annualised



7

REVIEW

For the year ended 30 June 2018, the Fund returned 10.1%, slightly outperforming the TOPIX Total Return Index benchmark which returned 9.8%, in SGD terms.

After experiencing subdued months in July 2017 and August 2017, the Japanese market started to rally from September 2017 on the back of the weaker Yen. The market rallied further when the snap Lower House election in October 2017 gave the ruling LDP a strong win and lifted expectations of continuing Abenomics and easy monetary policies. Strong corporate profits for the first half of fiscal year 2017 and the passage of the US tax reform bill in December 2017 further boosted investor sentiment and sparked a year-end rally that extended into January 2018. Thereafter, the market corrected sharply on the back of weaker China and Europe economic data, a spike in US long term interest rates pressuring emerging markets’ currencies and fears of a potential trade war as the US announced tariffs on steel and aluminum imports and Chinese imports worth US$50 billion. The market recovered after bottoming in March 2018 on the back on strong US economic data but trade tensions escalated again in June 2018 when the US imposed 25% tariffs on US$34 billion worth of Chinese imports starting on 6 July 2018, prompting retaliatory tariffs by China. The European Union also announced retaliatory tariffs on US$3 billion worth of US imports for the steel and aluminum tariffs imposed by the US. US President Trump responded by threatening new tariffs on US$200 billion of Chinese imports and on European Union car imports. Global stock markets fell, including the Japanese market.

For the period, the Fund generated strong performance from auto-related technology companies like Nidec and Iriso, as well as factory-automation companies like Daifuku. Healthcare related stocks like Asahi Intecc and M3 also did well. Our IT services stocks like Fujitsu and food-related stocks like Ajinomoto did not perform well.



8


The market sentiment in Japan has seen a sharp deterioration from the optimism of synchronized global growth to the gloom of an impending global trade war. With the backdrop of a strong US economy prompting steady US interest rate hikes while most of the rest of the world is experiencing slower growth, this has added to the pressure on emerging markets’ currencies and economies, a situation that is adverse to equity markets in general, including Japan.

Going forward, the situation can evolve in many directions, with very different effects on the market. The ongoing tariff war started by the US can be dialed back quickly or escalate into an all-out global trade war depending on how negotiations turn out. At the same time, the slowdown in Europe and China’s economies can start to ameliorate and recover seasonally or deteriorate further as a result of the uncertainty caused by the trade conflicts. The US Federal Reserve may slow its interest rate hikes in view of the uncertainty or be forced to accelerate its rate hikes if inflation data continues to strengthen. As can be seen from the various scenarios, the outlook for the stock market is highly uncertain and may remain so for some time, in particular if the trade conflicts continue to drag on. For the time being, we are not optimistic for a quick resolution to the issue. Japan is typically a victim of collateral damage despite not being at the center of the storm. This is due to the high exposure and dependence on overseas markets for growth opportunities for its companies.

Our investment strategy is focused on bottom-up stock selection based on business fundamentals and long term earnings potential of companies. We prefer globally-competitive companies that can ride on structural growth trends and companies that can grow through value-added products and services. We like structural growth themes like factory automation where wage inflation and productivity needs drive demand for automation. The electronics sector is also gaining new momentum from new applications such as advanced driver assistance systems in cars, the expansion of cloud services, big data and the Internet of Things in many areas, as well as advancements in the use of artificial intelligence. In consumer-related areas, we like consumer brands with quality and value-added products that can benefit from rising consumerism in emerging markets. Finally, we expect conditions to remain favourable for the construction sector in light of the multiple large scale projects in the coming years.




9


LIONGLOBAL KOREA FUND

Past performance is not necessarily indicative of future performance. Cumulative returns for the Fund are calculated up to 30 June 2018 in SGD terms, based on single pricing, with dividends reinvested net of all charges payable upon reinvestment.


LionGlobal Korea Fund - SGD Class

Benchmark* Returns (%)(MSCI Korea)

3 months -6.5 -5.56 months -9.3 -7.81 year 0.4 2.43 years** 6.7 10.95 years** 9.8 9.110 years** 2.0 4.1Since Inception** (3 July 1998)

10.7 14.1

Past performance is not necessarily indicative of future performance. Cumulative returns for the Fund are calculated up to 30 June 2018 in USD terms, based on single pricing, with dividends reinvested net of all charges payable upon reinvestment.


LionGlobal Korea Fund - USD Class

Benchmark* Returns (%)(MSCI Korea)


10 years** 2.0 4.1Since Inception** (16 August 2004)

8.6 9.6

Source: Morningstar/Lion Global Investors Ltd.** Returns more than 1 year are annualised.*BenchmarkMSCI Korea: Inception – 29 February 2004KOSPI: 1 March 2004 - 30 April 2011MSCI Korea: From 1 May 2011



10

REVIEW

For the year ended 30 June 2018, the Fund returned 0.4%, underperforming the benchmark MSCI Korea Index which returned 2.4%, in SGD terms.

The markets had a good start to the year in January but slipped by 9.4% from February to June 2018 as escalating trade tensions between the US and China, coupled with concerns over China’s credit tightening started to take a toll on the market.

The key drag came from stock selection in the industrials and health care sector. The largest detraction was from our underweight position in Celltrion. Its share price was up 168% during the period because of its strong earnings growth thanks to successful launch of Truxima. Other top detractors include Hanwha Techwin and Korea Aerospace in the defense industry due to investor concerns on the potential long-term demand reduction as relationship between North Korea and South Korea improves.

The top contributors came from the consumers and information technology space. The top contributor was RS Automation which specializes in robot motion controller and the stock price jumped 99% on the listing day led by attractive industry outlook. The second largest contributor was Hotel Shilla which rose as on the expected recovery of traffic from Chinese inbound travellers, and therefore improving margin amid subdued competition. SK Hynix was the third largest contributor in light of the continued strength in mobile dynamic random-access memory (DRAM) pricing driven by tight demand supply condition of the semiconductor industry.


Exports contributed to 64% of GDP growth in 2017 and exports to China and US accounted for 38% of total exports in Korea. Thus, the escalating trade war coupled with the signs of slower growth in China due to the credit tightening has led to increasing growth concerns and earnings uncertainty for stocks. In addition, the Moon administration’s socialist tilt has seen more pro-labour regulations which have adversely impacted business costs and sentiment towards some affected sectors including retail, telecom, utility and financial.

While the outlook seems challenging, we remain constructive on the market as we believe many of the negatives have been priced in and valuations are looking attractive. Meanwhile, policy risks are likely to be on the upside with China already starting to ease monetary policy, as a response to the economic uncertainty caused by the trade tensions. We believe that fiscal easing is in the offing to mitigate any fallout from a trade war. All this should be positive for the Korean market.




11


LIONGLOBAL MALAYSIA FUND



LionGlobal Malaysia Fund - SGD Class

Benchmark Returns (%)(MSCI Malaysia)

3 months -6.9 -7.96 months -4.2 -1.91 year -0.1 4.53 years* -2.5 1.05 years* -4.6 -1.910 years* 2.6 4.2Since Inception*(28 April 2000)

4.1 4.7



LionGlobal Malaysia Fund - USD Class

Benchmark Returns (%)(MSCI Malaysia)

3 months -10.5 -11.46 months -6.1 -3.91 year 0.9 5.63 years* -2.9 0.65 years* -6.0 -3.3

10 years* 2.5 4.2Since Inception* (16 August 2004)

6.6 8.0

Source: Morningstar/Lion Global Investors Ltd. *Returns more than 1 year are annualised.



12

REVIEW

For the year ended 30 June 2018, the Fund returned -0.1%, underperforming the benchmark MSCI Malaysia Index which returned 4.5%, in SGD terms.

For the full year ended June 2018, the benchmark MSCI Malaysia did reasonably well, supported by the global equities rally although it started the period under review with a weak undertone on lack of positive corporate developments. However, risk appetite returned subsequently on stronger Ringgit, helped by crude oil price recovery, strong export numbers, and stronger-than-expected GDP growth. However, the gains were lost, with the market plummeting 7.1% in May following the historical election in 2018 which saw a change of government for the first time in 61 years. The month of June fared no better, losing another -0.95% on fears of a US initiated global trade war. Higher US interest rates exacerbated selling pressure with foreign funds pulling out of emerging markets including the Malaysian bourse which saw outflows of RM 6.8bn.

The Fund’s underperformance mainly came from underweights in Public Bank as it was perceived as a defensive bank and Dialog which benefited from the higher oil price. Our position in Karex also detracted as the company reported weak earnings from poor sales. Our holdings in some of the consumer names contributed to performance as consumption remained robust, further boosted by the removal of GST post elections.



13


The MXMY index is trading at 15.8x current year valuations, less than -1 standard deviation (SD) implying undemanding valuations. For comparison, MSCI Asia ex Japan is trading slightly above its -1SD levels at 12.4x. The difference in absolute valuations is due to the fact that the Malaysian market usually trades at higher valuations than its regional peers.

Despite the undemanding valuations, the outlook for the local equity market in the near term is likely to be highly influenced by the US-China trade war rhetoric. Tariffs on USD 34bn of Chinese imports are due to go into effect on Friday, 6th July with threats of further tariffs on as much as USD 450bn should China retaliate. The proposed tariffs would hit international supply chains and hurt companies worldwide, causing world economic growth to stall.

The Malaysian bourse however is defensive in nature, has higher oil prices on its side and boasts a current account surplus which has helped the ringgit stand out as one of the best performing emerging market currencies. Aside from macroeconomic events, the county’s fundamentals remain strong with economic growth projected at 5.5% for 2018.

The Fund will continue to be overweight in the energy related sector as Petronas increases offshore oil and gas activities given the sustained high oil prices. The Fund is also well positioned in consumer related stocks given the recently implemented zero rated GST which should help stimulate a recovery in consumer spending. High dividend yielding stocks with a defensive nature will also be prioritized to ride out the current volatile environment.




14


LIONGLOBAL TAIWAN FUND



LionGlobal Taiwan Fund - SGD Class

Benchmark Returns (%)(MSCI Taiwan)

3 months -1.2 -2.66 months -0.3 1.01 year 3.7 2.93 years** 6.3 8.45 years** 10.3 10.810 years** 4.1 6.1Since Inception** (11 February 2000)

-1.4 0.8



LionGlobal Taiwan Fund - USD Class

Benchmark Returns (%)(MSCI Taiwan)


10 years** 4.1 6.1Since Inception** (16 August 2004)

6.6 8.0

Source: Morningstar/Lion Global Investors Ltd. *Returns more than 1 year are annualised.



15

REVIEW

For the year ended 30 June 2018, the Fund returned 3.7%, outperforming the benchmark MSCI Taiwan Index which returned 2.9%, in SGD terms.

The market had a strong start to the year but this soon fizzled out as weaker than expected technology sector earnings due to weaker than expected China smartphone and iphone demand and the NT$ strength hit many of the technology names. The negative sentiment was further exacerbated by escalating trade tensions between the US and China.

The Fund was hurt by its underweight position in the consumer staples sector which rallied as investors switched to a more defensive positioning following the economic uncertainty due to the trade tensions. The Fund was also negatively affected by its overweight position in the industrials sector which sold off on fears that capital expenditure will be held back due to the economic uncertainty. The biggest detractor in Industrials came from Aerospace Industrial Development, an aircraft designer and producer, which faced volatile earnings in the 1st quarter. However, we see earnings growth accelerating on new plants and improved manufacturing efficiency, and hold a long-term positive view on the global aircraft outsourcing trend. The largest stock detractor was Paiho in Consumer Discretionary which witnessed sharp decline in legacy products’ sales. We expect sales to turn better in 2H18 on the back of seasonality and potential new orders and remain positive on the company’s resilient core business.


The escalating trade war coupled with the signs of slower growth in China due to the credit tightening has led to increasing growth concerns for the Taiwan market and earnings uncertainty for stocks. However, we remain sanguine on the Taiwan market as valuations are undemanding especially in the technology sector and we believe earnings in this sector will recover as the inventory de-stocking is largely over and the weaker Taiwan dollar will serve as a tailwind. Export orders are already seeing signs of a recovery in both the technology and non-tech sectors helped by the currency and as a result, we are starting to see earnings upgrades coming through.

While there are wider concerns of the impact of a slower Chinese economy, we believe these risks will be mitigated by proactive policy measures both on the monetary and fiscal front. Improving macro numbers out of China should be a positive catalyst for the market.




16


LIONGLOBAL THAILAND FUND



LionGlobal Thailand Fund - SGD Class

Benchmark* Returns (%)(MSCI Thailand)

3 months -12.8 -11.66 months -7.6 -5.51 year 11.3 10.93 years** 6.1 7.35 years** 3.7 5.110 years** 6.8 9.4Since Inception**(14 May 1999)

8.1 7.4



LionGlobal Thailand Fund - USD Class

Benchmark* Returns (%)(MSCI Thailand)


10 years** 6.8 9.4Since Inception* (16 August 2004)

10.0 11.2

Source: Morningstar/Lion Global Investors Ltd.**Returns more than 1 year are annualized. *Benchmark:Thailand SET: Inception – 31 December 2005MSCI Thailand: From 1 January 2006



17

REVIEW

For the year ended 30 June 2018, the Fund returned 11.3%, outperforming the benchmark MSCI Thailand Index which returned 10.9%, in SGD terms.

The outperformance came from our overweight in the Materials sector and stock selection in the Energy sector. In Materials, our overweight in selected downstream petrochemical companies contributed to performance because of higher product margins and higher volume from capacity growth. In the Energy sector, our overweight and underweight in different refining companies helped performance as their share price performance differed because of company specific reasons. Our stock selection in the Financials and Consumer Discretionary sectors hurt performance as certain consumer finance stocks corrected on weaker than expected earnings, while our smaller cap holdings in the Consumer Discretionary sector corrected more relative to the market in spite of reasonably strong earnings.

For the overall Thai market, the strong performance in 2H17 on the back of a recovery in the Thai economy that was driven mainly by exports, gave way to profit taking in 2Q18 as funds flowed out of emerging markets on the back of global trade tensions, particularly between the USA and China, where the US slapped on a 25% tariff on US$50billion of Chinese exports. A second package is being considered and involves a 10% tariff on another US$200billion worth of Chinese exports.



18


In spite of the stock market volatility year-to-date, Thailand’s 2018 economic growth momentum remains on track, and appears to have further room for upward revision, with current consensus at 4.2% compared to 3.9% in 2017. Inflation has remained benign year-to-date and therefore we expect the Bank of Thailand to keep policy rate at 1.5% for the rest of 2018. The Thai baht has weakened recently mainly on the strength of the USD. However, any further weakness should be gradual given Thailand’s current account surplus and therefore companies should have sufficient room to make the necessary adjustments to soften any impact on earnings.

In terms of portfolio strategy, we will maintain the Fund’s investment approach to focus on fundamental research, company valuation and bottom-up stock picking to exploit opportunities in equities that we assess are either undervalued or overvalued by the market, while at the same time being cognizant of macro and non-fundamental factors that could positively or negatively impact stock prices in the short term. Our current portfolio structure is therefore a reflection of this approach. We maintain our positive view on selective downstream petrochemical companies that will benefit from volume growth and a stable or improving product spread outlook in 2018. We also like selective stocks in the renewable energy sector on the back of higher capacity. We still like companies that are exposed to the tourism sector as we believe Thailand will remain an attractive tourist spot in the region. We are overweight selective names in the consumer sector as consumption has recovered, although it has so far been concentrated in the mid to high end segments, as farm income recovery has been erratic so far. Based on the banks’ disclosure for 1H18, Thailand’s credit cycle should have bottomed but the economic recovery is still not on firm ground. However, valuation for the banking sector is not demanding and we have been adding to selective stocks in the sector.

Key downside risks to the Thai economy and corporate earnings include a slowdown in Thailand’s exports, any negative changes in China’s macro outlook and monetary stability, and the escalation of current global trade tensions into a full blown conflict.




19


LIONGLOBAL SGD MONEY MARKET FUND


Time Period Fund Returns (%)Benchmark* Returns (%)( 1 Month SGD Interbank

Offer Rate -0.25%.)3 months 0.3 0.36 months 0.5 0.51 year 1.0 0.93 years** 1.0 0.75 years** 0.9 0.510 years** 0.9 0.3Since Inception**(1 November 1999)

1.2 0.8

Source: Morningstar/Lion Global Investors Ltd.* Benchmark1 Month SGD Interbank Bid Rate: 23rd January 2003 – 30th April 20141 Month SGD Interbank Offered Rate -0.25%: since 1 May 2014** Returns more than 1 year are annualised.



20

REVIEW

For the year ended 30 June 2018, the Fund gained 1.0% outperforming the 1-month Singapore Interbank Offered Rate (SIBOR) benchmark which returned 0.9% in Singapore dollar terms.

Geo-political tension was elevated in the second half of 2017 as North Korea carried out a series of missile tests including intercontinental ballistic missiles which could potentially hit US and other missiles which flew over Japan. The missile tests and exchange of war rhetoric between Trump and North Korea initially triggered a risk-off sentiment but eventually fell to the sidelines with the US-North Korea meeting in Singapore on 12 June, 2018.

On the other hand, trade rhetoric and rising trade tensions were the main driving force behind financial markets in first half of 2018. Trump made good his campaign promise to re-negotiate trade deals. Tariffs were implemented on solar panels and washing machines at the start of the year and subsequently on steel and aluminum and most recently on US$34 billion of Chinese imports. With China vowing tit-for-tat, the risk of a trade war had escalated and weighed on market sentiment. On the political front, the political gridlock in Italy in May 2018 caused yields to fall significantly as market feared that the impasse might lead to a fresh election and possibly “Italexit”.

Despite these political overtures, most central banks are moving ahead with normalization of monetary policy, albeit in various degrees and timelines. Federal Reserve (Fed) hiked once in second half of 2017 (December 2017), followed by another 2 hikes in first half of 2018 (March 2018, June 2018). During this period, Fed started normalizing its balance sheet in October 2017 and Jerome Powell was selected as the next Fed Chairman. In general, data prints from U.S. pointed to a strong economy. The latest May 2018 non-farm payroll increased by a solid 223k and other indicators like retail sales remained healthy.

In Europe, European Central Bank (ECB) announced in October 2017 that the monthly bond purchases will be halved to €30billion for nine months from January 2018 but recent rhetoric remained cautiously dovish where interest rates are expected “to remain at their present levels at least through the summer of 2019 and in any case for as long as necessary to ensure that the evolution of inflation remains aligned with the current expectations of a sustained adjustment path”.

During this period, 3months London Interbank Offer Rate rose 105 basis points (bps) (more than 75bps Fed rate hike) and US Treasury curve flattened with 2 to 10years yield spread falling from 92bps to 33bps. 3months Singapore Interbank Offered Rate (SIBOR) and 3months SGD Swap Offer Rate (SOR) only rose 53bps and 84bps respectively, as SGD appreciated about 1% against USD.

MAS tightened its monetary policy at the meeting in April 18 by restoring a gradual positive slope of the SGD nominal effective exchange rate (NEER) band. The width of the policy band and the level at which it is centered are unchanged.



21


Singapore economy remained strong and the labour market had also improved. First quarter 2018 gross domestic product came in at 4.4% year-on-year as the manufacturing sector posted robust growth and industrial production for May 2018 was also above expectations at 11.1%. At the same time, inflationary pressures remained benign.

External gyrations stemming from the various US trade tensions with its trading partners continue to complicate the global economic outlook, and consequently the global central banks’ monetary policy decisions. While not seen as a base case scenario for most, the unpredictable nature of US trade tariffs and decisions along with the potential for non-negligible impact on the global economic engine has kept a lid on meaningful monetary policy communique.

Being very much an open economy dependent on global trade flows, the authorities are likely to keep the overall conditions in Singapore accommodative to cushion any adverse impact from the trade fallout.

As at 17 August 2018.



22

DISCLOSURES ON THE FUND1



1. DISTRIBUTION OF INVESTMENTS AS AT 30 JUNE 2018

Fair Value

Percentage of total net assets attributable to

unitholders$ %

a) By Asset ClassEquities 121,930,639 99.6 Other net assets 538,788 0.4 Net assets attributable to unitholders 122,469,427 100.0

b) By Credit Rating of Debt Securities

Not applicable

c) By Derivative Type

The total net realised losses from financial derivatives at the end of the year was $18,571.

1 As required by Code on Collective Investment Schemes


23

2. TOP 10 HOLDINGS

As at 30 June 2018

Fair Value


unitholders$ %

OAI Mauritius Limited 121,930,639 99.6

As at 30 June 2017

Fair Value


unitholders$ %


3. GLOBAL EXPOSURE

The global exposure relating to derivative instruments is calculated using the commitment approach by converting the derivative positions into equivalent positions in the underlying assets embedded in those derivatives.

The global exposure of the Fund to financial derivative instruments or embedded financial derivative instruments will not exceed 100% of the net asset value of the Fund at any time.

4. COLLATERAL

Nil

5. SECURITIES LENDING OR REPURCHASE TRANSACTIONS

Nil


24

6. INVESTMENT IN OTHER UNIT TRUSTS, MUTUAL FUNDS AND COLLECTIVE INVESTMENT SCHEMES

Fair Value


unitholders$ %


7. BORROWINGS

Fair Value


unitholders$ %

Bank overdraft 6,175 0.01

8. SOFT DOLLAR COMMISSION RECEIVED BY THE MANAGERS

The soft dollar commissions from various brokers for the period were utilised on research and advisory services, economic and political analyses, portfolio analyses, market analyses, data and quotation analyses and computer hardware and software used for and in support of the investment process of fund managers. Goods and services received were for the benefit of the scheme and there was no churning of trades. These brokers also execute trades for other funds managed by the managers.The trades are conducted on best available terms and in accordance with best practices.

9. OTHER MATERIAL INFORMATION

There is no other material information that will adversely impact the valuation of the Sub-Fund.


25

10. SUPPLEMENTAL INFORMATION ON UNDERLYING SUB-FUNDS

OAI Mauritius Limited

(i) Top 10 Holdings

Securities Fair ValueS$ % of NAV

As at 30 June 2018Housing Development Finance

Corporation Limited 12,858,936 10.5 Reliance Industries Limited 11,344,485 9.3 Infosys Technologies Limited 11,099,401 9.1 Tata Consultancy Services Limited 6,375,757 5.2 ITC Limited 5,689,516 4.7 Maruti Suzuki India Limited 4,710,560 3.9 Larsen & Toubro Limited 4,504,015 3.7 ICICI Bank Limited 4,503,946 3.7 Hindustan Unilever Limited 4,128,043 3.4 Mahindra & Mahindra Limited 3,952,485 3.2

(ii) Expense Ratio

2018%

2017%

As at 30 June 2018 (OAI Mauritius Limited) 1.51 1.50

(iii) Turnover Ratio

2018%

2017%

As at 30 June 2018 49 124


26





Fair Value


unitholders$ %

a) By Asset ClassEquities 8,313,619 99.5 Financial derivatives at fair value 119 * Other net assets 44,744 0.5 Net assets attributable to unitholders 8,358,482 100.0


Not applicable


The total net realised losses from financial derivatives at the end of the year was $750.

* denotes amount less than 0.1%1 As required by Code on Collective Investment Schemes


27

2. TOP 10 HOLDINGS

As at 30 June 2018

Fair Value


unitholders$ %

Toyota Motor Corporation 291,263 3.5 Sony Corporation 223,113 2.7 Sumitomo Mitsui Financial Group Inc 217,325 2.6 Mitsubishi UFJ Financial Group 204,318 2.4 Orix Corporation 196,258 2.3 Denso Corporation 166,552 2.0 Keyence Corporation 154,021 1.8 Chugai Pharmaceutical Company Limited 150,192 1.8 Mitsubishi Corporation 147,770 1.8 Suzuki Motor Corporation 143,092 1.7

As at 30 June 2017

Fair Value


unitholders$ %

Mitsubishi UFJ Financial Group 358,871 3.8 Toyota Motor Corporation 238,301 2.6 Orix Corporation 211,086 2.3 Nippon Telegraph & Telephone Corporation 195,205 2.1 Asahi Intecc Company Limited 187,853 2.0 Sony Corporation 183,821 2.0 Mitsubishi Corporation 181,882 1.9 Keyence Corporation 181,382 1.9 MEIJI Holdings Company Limited 167,450 1.8 SoftBank Group Corporation 167,211 1.8


28

3. GLOBAL EXPOSURE



4. COLLATERAL

Nil


Nil


Nil

7. BORROWINGS

Nil






Not applicable


29





Fair Value


unitholders$ %



Not applicable





30

2. TOP 10 HOLDINGS

As at 30 June 2018

Fair Value


unitholders$ %

Samsung Electronics Company Limited 2,476,945 12.7 Samsung Electronics Preference Shares 1,784,891 9.1 SK Hynix Inc 1,722,636 8.8 KB Financial Group Inc 911,780 4.7 POSCO 805,009 4.1 Hotel Shilla Company Limited 785,679 4.0 Hyundai Mobis Company Limited 729,593 3.7 LG Chemical Limited 685,457 3.5 Amorepacific Corporation 614,318 3.1 Naver Corporation 588,085 3.0

As at 30 June 2017

Fair Value


unitholders$ %

Samsung Electronics Company Limited 2,940,532 14.5 SK Hynix Inc 1,987,145 9.8 Samsung Electronics Preference Shares 1,313,049 6.5 KB Financial Group Inc 980,077 4.8 Hyundai Motor Company Limited 959,697 4.7 Naver Corporation 710,946 3.5 Amorepacific Corporation 569,595 2.8 Samsung Biologics Company Limited 527,081 2.6 Korea Aerospace Industries Limited 524,735 2.6 Hyundai Mobis Company Limited 481,353 2.4


31

3. GLOBAL EXPOSURE



4. COLLATERAL

Nil


Nil


Nil

7. BORROWINGS

Nil






Not applicable


32





Fair Value


unitholders$ %



Not applicable


The total net realised losses from financial derivatives at the end of the year were $1,858.



33

2. TOP 10 HOLDINGS

As at 30 June 2018

Fair Value


unitholders$ %

Malayan Banking Berhad 886,689 8.0 Tenaga Nasional Berhad 845,940 7.6 Public Bank Berhad 829,444 7.4 Petronas Chemicals Group Berhad 502,171 4.5 Heineken Malaysia Berhad 371,486 3.3 Genting Berhad 325,886 2.9 Axiata Group Berhad 303,651 2.7 IOI Corporation Berhad 300,052 2.7 Genting Malaysia Berhad 287,437 2.6 IHH Healthcare Berhad 285,378 2.6

As at 30 June 2017

Fair Value


unitholders$ %

Tenaga Nasional Berhad 1,063,480 9.2 Malayan Banking Berhad 717,926 6.2 Petronas Chemicals Group Berhad 534,709 4.6 Genting Berhad 494,384 4.3 IHH Healthcare Berhad 465,683 4.0 Sime Darby Berhad 452,913 3.9 Public Bank Berhad 404,043 3.5 MISC Berhad 357,000 3.1 Maxis Berhad 353,892 3.0 Genting Malaysia Berhad 351,056 3.0


34

3. GLOBAL EXPOSURE



4. COLLATERAL

Nil


Nil


Nil

7. BORROWINGS

Nil






Not applicable


35





Fair Value


unitholders$ %



Not applicable





36

2. TOP 10 HOLDINGS

As at 30 June 2018

Fair Value


unitholders$ %

Taiwan Semiconductor Manufacturing Company Limited 2,153,655 20.0

Hon Hai Precision Industry Company Limited 930,715 8.7 Largan Precision Company Limited 803,203 7.5 Formosa Plastics Corporation 728,719 6.8 CTBC Financial Holding Company Limited 529,665 4.9 Formosa Chemicals & Fibre Corporation 523,265 4.9 Fubon Financial Holding Company Limited 485,307 4.5 Cathay Financial Holding Company Limited 438,949 4.1 Chroma ATE Inc 337,381 3.1 Aerospace Industrial Development Corporation 299,071 2.8

As at 30 June 2017

Fair Value


unitholders$ %

Taiwan Semiconductor Manufacturing Company Limited 2,740,813 21.1

Hon Hai Precision Industry 1,446,407 11.2 Formosa Plastics Corporation 825,887 6.4 Largan Precision Company Limited 658,552 5.1 Cathay Financial Holding Company Limited 640,452 4.9 Formosa Chemicals & Fibre Corporation 558,894 4.3 First Financial Holding Company Limited 504,277 3.9 CTBC Financial Holding Company Limited 487,212 3.8 Fubon Financial Holding Company 465,691 3.6 Chroma ATE Inc 408,076 3.1


37

3. GLOBAL EXPOSURE



4. COLLATERAL

Nil


Nil


Nil

7. BORROWINGS

Nil






Not applicable


38





Fair Value


unitholders$ %



Not applicable





39

2. TOP 10 HOLDINGS

As at 30 June 2018

Fair Value


unitholders$ %

PTT Public Company Limited - NVDR 2,107,848 10.5 CP ALL Public Company Limited - NVDR 2,069,079 10.3 Airports of Thailand Public Company Limited -

NVDR 2,043,410 10.2 Indorama Ventures Public Company Limited -

NVDR 1,816,605 9.1 Siam Commercial Bank Public Company Limited

- NVDR 956,378 4.8 Srisawad Corporation Public Company Limited

- NVDR 924,009 4.6 Advanced Information Service Public Company

Limited - NVDR 820,775 4.1 Kasikornbank Public Company Limited - Foreign 819,828 4.1 PTT Global Chemical Public Company Limited

- NVDR 783,245 3.9 Central Pattana Public Company Limited - NVDR 683,785 3.4


40

As at 30 June 2017

Fair Value


unitholders$ %

CP ALL Public Company Limited - NVDR 1,681,403 8.9 PTT Public Company Limited - NVDR 1,600,137 8.4 Airports of Thailand Public Company Limited -

NVDR 1,572,302 8.3 Indorama Ventures Public Company Limited -

NVDR 1,399,572 7.4 Advanced Information Service Public Company

Limited - NVDR 1,245,336 6.6 IRPC Public Company Limited - NVDR 1,049,736 5.5 Siam Cement Public Company Limited - NVDR 996,877 5.3 Siam Commercial Bank Public Company Limited

- NVDR 813,039 4.3 Kasikornbank Public Company Limited - Foreign 805,366 4.2 Thai Oil Public Limited Company - NVDR 711,799 3.8

3. GLOBAL EXPOSURE



4. COLLATERAL

Nil


Nil


Nil


41

7. BORROWINGS

Nil






Not applicable


42





Fair Value


unitholders$ %

a) By Asset ClassDebt Securities (including accrued

interest on debt securities) 92,017,883 64.0 Financial Derivatives at fair value (200,430) (0.1)Other net assets 52,213,481 36.1 Net assets attributable to unitholders 144,030,934 100.0

b) By Credit Rating of Debt SecuritiesAaa 8,239,167 5.7 Aa2 14,086,849 9.8 A1 6,376,926 4.4 A2 1,088,616 0.8 A3 750,181 0.5 Unrated 60,874,774 42.4 Accrued interest receivable on

debt securities 601,370 0.4 Total Debt Securities 92,017,883 64.0

c) By Maturity of Debt SecuritiesUp to 30 days 11,505,258 8.0 31 - 90 days 16,053,201 11.1 91 - 180 days 25,710,132 17.9 More than 180 days 38,147,922 26.5 Accrued interest on debt securities 601,370 0.4 Total Debt Securities 92,017,883 63.9



43

Fair Value


unitholders$ %

d) By Derivative TypeForeign exchange forward contract (200,430) (0.1)

The total net realised gains and unrealised gains from financial derivatives at the end of the year were $1,154,127 and $200,430 respectively.

2. TOP 10 HOLDINGS

As at 30 June 2018

Fair Value


unitholders$ %

Public Utilities Board 3.9% due 31/08/2018 10,041,241 7.0 National University of Singapore Series MTN

1.708% due 13/02/2019 7,232,797 5.0 Housing & Development Berhad Series MTN

1.83% due 21/11/2018 6,757,456 4.7 Singapore T-Bills Series 365 Zcp 30/04/2019 5,912,084 4.1 SP Powerassets Limited Series GMTN 4.39%

due 15/05/2019 5,353,976 3.7 Joynote Limited 3.408% due 20/07/2018 5,003,678 3.5 Korea Development Bank Series GMTN 2.05%

due 23/07/2018 5,001,275 3.5 MAS Bill Series 169 ZCP 07/11/2018 4,969,916 3.5 Mapletree Treasury Services Series MTN 3.88%

due 04/10/2018 4,773,886 3.3 MAS Bill Series 168 ZCP 20/11/2018 4,576,968 3.2


44

As at 30 June 2017

Fair Value


unitholders$ %

Public Utilities Board 3.9% due 31/08/2018 10,295,301 5.8 Compet Team Tech Limited Series EMTN

2.125% due 13/12/2017 7,580,550 4.3 Keppel Land Limited Series MTN 3.1575% due

25/08/2017 7,519,316 4.3 Capitamalls Asia Treasury Series MTN 3.95%

due 24/08/2017 7,020,527 4.0 UOL Treasury Services Series MTN 2.5% due

20/04/2018 6,773,164 3.8 Kolao Holdings 2% due 21/08/2017 6,001,935 3.4 CMT MTN Private Limited Series MTN 3.55%

due 01/09/2017 5,767,637 3.3 AIA Group Limited Series EMTN 1.75% due

13/03/2018 5,505,176 3.1 CIMB Bank Berhad Singapore Series EMTN

2.12% due 30/06/2018 5,261,508 3.0 Housing & Development Berhad Series MTN 2%

due 30/11/2017 4,516,101 2.6

3. GLOBAL EXPOSURE



4. COLLATERAL

Nil


Nil


45


Nil

7. BORROWINGS

Nil


The soft dollar commissions from various brokers for the period were utilised on research and advisory services, economic and political analyses, portfolio analyses, market analyses, data and quotation analyses and computer hardware and software used for and in support of the investment process of fund managers. Goods and services received were for the benefit of the scheme and there was no churning of trades. These brokers also execute trades for other funds managed by the managers. The trades are conducted on best available terms and in accordance with best practices.




Not applicable


46

REPORT OF THE TRUSTEEFor the financial year ended 30 June 2018

The Trustee is under a duty to take into custody and hold the assets of the sub-funds of LionGlobal Investment Funds, namely LionGlobal India Fund, LionGlobal Japan Fund, LionGlobal Korea Fund, LionGlobal Malaysia Fund, LionGlobal Taiwan Fund, LionGlobal Thailand Fund, LionGlobal SGD Money Market Fund (collectively referred to as the “Sub-Funds”) 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 Sub-Funds during the financial year covered by these financial statements, set out on pages 51 to 161, in accordance with the limitations imposed on the investment and borrowing powers set out in the Trust Deed.

For and on behalf of the TrusteeCITICORP TRUSTEE (SINGAPORE) LIMITED

Authorised signatories

25 September 2018


47

STATEMENT BY THE MANAGERFor the financial year ended 30 June 2018

In the opinion of Lion Global Investors Limited, the accompanying financial statements set out on pages 51 to 161, comprising the Statements of Total Return, Statements of Financial Position, Statements of Movements of Unitholders’ Funds, Statements of Portfolio and Notes to the Financial Statements are drawn up so as to present fairly, in all material respects, the financial positions and the portfolio holdings of the sub-funds of LionGlobal Investment Funds namely, LionGlobal India Fund, LionGlobal Japan Fund, LionGlobal Korea Fund, LionGlobal Malaysia Fund, LionGlobal Taiwan Fund, LionGlobal Thailand Fund, LionGlobal SGD Money Market Fund (collectively referred to as the “Sub-Funds”) as at 30 June 2018, and the financial performance and movements in unitholders’ funds for the year then ended in accordance with the recommendations of Statement of Recommended Accounting Practice 7 “Reporting Framework for Unit Trusts” issued by the Institute of Singapore Chartered Accountants. At the date of this statement, there are reasonable grounds to believe that the Sub-Funds will be able to meet their financial obligations as and when they materialise.

For and on behalf of directors ofLION GLOBAL INVESTORS LIMITED

Authorised signatory

25 September 2018


48

INDEPENDENT AUDITOR’S REPORT TO THE UNITHOLDERS OFSUB FUNDS OF LIONGLOBAL INVESTMENT FUNDS(Constituted under a Trust Deed in the Republic of Singapore)

Our Opinion

In our opinion, the accompanying financial statements of the sub-funds of LionGlobal Investment Funds, namely LionGlobal India Fund, LionGlobal Japan Fund, LionGlobal Korea Fund, LionGlobal Malaysia Fund, LionGlobal Taiwan Fund, LionGlobal Thailand Fund, LionGlobal SGD Money Market Fund (collectively referred to as the “Sub-Funds”) 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 positions and portfolio holdings of the Sub-Funds as at 30 June 2018, and of 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 Sub-Funds comprise:• the Statements of Total Return for the financial year ended 30 June 2018;• the Statements of Financial Position as at 30 June 2018;• the Statements of Movements of Unitholders’ Funds for the financial year ended 30

June 2018;• the Statements of Portfolio as at 30 June 2018; and• the notes to the financial statements, including a summary of significant accounting

policies.

Basis for Opinion

We conducted our audit in accordance with Singapore Standards on Auditing (“SSAs”). 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 Sub-Funds 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.


49

Other Information

The Sub-Funds’ Manager (the “Manager”) is responsible for the other information. The other information comprises to all 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 and will 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 on the other information, 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 Sub-Funds’ ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Manager either intends to terminate the Sub-Funds or to cease the Sub-Funds’ operations, or has no realistic alternative but to do so.

The Manager’s responsibilities include overseeing the Sub-Funds’ 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.


50

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 due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Sub-Funds’ internal control.

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

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

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and 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.

PricewaterhouseCoopers LLPPublic Accountants and Chartered Accountants

Singapore, 25 September 2018


51

STATEMENTS OF TOTAL RETURNFor the financial year ended 30 June 2018

LionGlobal India Fund 2018 2017

Note $ $ IncomeDividends - - Interest on cash and bank balances 1,753 207

1,753 207 Less: ExpensesAudit fee 26,498 23,436 Custodian fees 14 7,694 6,546 Management fee 12,14 1,643,001 1,690,593 Less: Management fee rebate 12,14 (1,639,847) (1,687,829)Professional fees 15,411 13,630 Registration fee 23,349 22,573 Trustee fee 14 62,470 64,236 Transaction costs - - Valuation and administration fees 131,517 135,234 Miscellaneous expenses (9,743) 62,336

260,350 330,755 Net expense (258,597) (330,548)

Net gains or losses on value of investments and financial derivatives

Net gains on investments 6,699,180 21,920,668 Net (losses)/gains on foreign exchange

spot contracts (18,571) (4,218)Net foreign exchange gains/(losses) 14,213 (5,996)

6,694,822 21,910,454

Total return for the financial year before income tax 6,436,225 21,579,906

Less: Income tax 3 - -

Total return for the financial year 6,436,225 21,579,906

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


52


LionGlobal Japan Fund 2018 2017

Note $ $ IncomeDividends 173,360 185,676 Interest on cash and bank balances - -

173,360 185,676 Less: ExpensesAudit fee 15,197 13,962 Custodian fees 14 6,268 5,811 Management fee 12,14 111,900 116,243 Professional fees 6,291 5,179 Registration fee 18,993 18,797 Trustee fee 14 8,001 8,001 Transaction costs 29,004 35,834 Valuation and administration fees 8,952 9,299 Miscellaneous expenses (14,791) 17,024

189,815 230,150 Net expense (16,455) (44,474)


Net gains on investments 903,666 1,907,653 Net (losses)/gains on foreign exchange

spot contracts (631) 1,107 Net foreign exchange gains/(losses) (830) (9,525)

902,205 1,899,235

Total return for the financial year before income tax 885,750 1,854,761

Less: Income tax 3 (25,973) (27,859)

Total return for the financial year 859,777 1,826,902



53


LionGlobal Korea Fund2018 2017

Note $ $ IncomeDividends 319,249 303,876 Interest on cash and bank balances 4,498 205


460,667 477,486 Net (expense)/income (136,920) (173,405)


Net gains/(losses) on investments 220,340 3,786,320 Net losses on foreign exchange spot contracts (49,416) (32,584)Net foreign exchange gains/(losses) 74,489 40,651

245,413 3,794,387


Less: Income tax 3 (70,165) (66,844)




54


LionGlobal Malaysia Fund2018 2017

Note $ $ IncomeDividends 346,121 331,234 Interest on cash and bank balances 382 60


258,712 357,149 Net (expense)/income 87,791 (25,855)


Net gains/(losses) on investments (88,202) 437,272 Net losses on foreign exchange spot contracts (1,858) (2,559)Net foreign exchange gains/(losses) 12,108 (21,818)

(77,952) 412,895

Total return for the financial year before income tax 9,839 387,040

Less: Income tax 3 - -

Total return for the financial year 9,839 387,040



55


LionGlobal Taiwan Fund2018 2017

Note $ $ IncomeDividends 510,127 460,621 Interest on cash and bank balances - -

510,127 460,621 Less: ExpensesAudit fee 18,697 17,452 Custodian fees 14 7,691 8,412 Management fee 12,14 152,607 167,875 Professional fees 917 12,358 Registration fee 19,339 19,201 Trustee fee 14 8,000 8,000 Transaction costs 38,136 46,215 Valuation and administration fees 12,209 13,430 Miscellaneous expenses 1,225 8,507

258,821 301,450 Net income 251,306 159,171


Net gains on investments 334,688 3,535,478 Net losses on foreign exchange spot contracts (4,558) (3,646)Net foreign exchange gains/(losses) 44,485 18,104

374,615 3,549,936


Less: Income tax 3 (106,284) (104,101)




56


LionGlobal Thailand Fund2018 2017

Note $ $ IncomeDividends 550,900 522,000 Interest on cash and bank balances 895 7


388,865 498,626 Net income 162,930 23,381


Net gains on investments 1,913,981 3,590,198 Net losses on foreign exchange spot contracts (37,854) (36,977)Net foreign exchange gains/(losses) 9,082 (17,590)

1,885,209 3,535,631


Less: Income tax 3 (55,299) (52,188)




57


LionGlobal SGD Money Market Fund

2018 2017Note $ $

IncomeDividends - - Interest on cash and bank balances 230,869 144,717

230,869 144,717 Less: ExpensesAudit fee 20,886 19,447 Custodian fees 14 17,426 20,569 Management fee 12,14 370,937 475,645 Professional fees 13,014 14,916 Registration fee 20,407 19,551 Trustee fee 14 29,675 38,052 Transaction costs 1,575 3,851 Valuation and administration fees 29,675 38,052 Miscellaneous expenses 7,042 25,601

510,637 655,684 Net expense (279,768) (510,967)


Net gains on investments 800,629 3,422,829 Net gains on foreign exchange spot contracts 23,427 61,398 Net gains/(losses) on foreign exchange forward

contracts 930,270 (1,163,845)Net foreign exchange losses (30,458) (51,782)

1,723,868 2,268,600


Less: Income tax 3 - (103)




58

STATEMENTS OF FINANCIAL POSITIONAs at 30 June 2018


Note $ $ASSETSPortfolio of investments 121,930,639 133,371,863 Receivables 5 121,770 204,098 Due from brokers 6 - 686,996 Financial derivatives at fair value 7 - - Cash and bank balances 9 553,276 59,889

Total assets 122,605,685 134,322,846

LIABILITIESPayables 10 130,083 413,980 Due to brokers 6 - - Bank overdraft 9 6,175 -

Total liabilities 136,258 413,980

EQUITYNet assets attributable to unitholders 11 122,469,427 133,908,866



59



Note $ $ASSETSPortfolio of investments 8,313,619 9,035,732 Receivables 5 15,868 19,436 Due from brokers 6 - 97,804 Financial derivatives at fair value 7 119 - Cash and bank balances 9 140,871 377,137

Total assets 8,470,477 9,530,109

LIABILITIESPayables 10 83,128 78,907 Due to brokers 6 28,867 113,613





60


LionGlobal Korea Fund 2018 2017

Note $ $ASSETSPortfolio of investments 18,770,222 20,022,316 Receivables 5 409,655 32,250 Due from brokers 6 - 106,465 Cash and bank balances 9 440,324 262,206

Total assets 19,620,201 20,423,237

LIABILITIESPayables 10 107,353 163,794 Due to brokers 6 - -





61


LionGlobal Malaysia Fund 2018 2017

Note $ $ASSETSPortfolio of investments 10,277,932 11,018,701 Receivables 5 48,268 34,470 Due from brokers 6 164,705 22,219 Cash and bank balances 9 1,146,607 669,678

Total assets 11,637,512 11,745,068

LIABILITIESPayables 10 47,260 130,269 Due to brokers 6 440,015 -





62


LionGlobal Taiwan Fund 2018 2017

Note $ $ASSETSPortfolio of investments 10,658,163 12,945,452 Receivables 5 102,985 106,785 Due from brokers 6 - - Cash and bank balances 9 53,741 17,928

Total assets 10,814,889 13,070,165

LIABILITIESPayables 10 66,606 109,171 Due to brokers 6 - -





63


LionGlobal Thailand Fund 2018 2017

Note $ $ASSETSPortfolio of investments 19,865,229 19,049,449 Receivables 5 54,200 14,174 Due from brokers 6 98,540 700,783 Cash and bank balances 9 161,371 81,615

Total assets 20,179,340 19,846,021

LIABILITIESPayables 10 139,157 301,089 Due to brokers 6 - 580,630





64



2018 2017Note $ $

ASSETSPortfolio of investments 92,017,883 142,476,998 Receivables 5 619,061 11,481,701 Financial derivatives at fair value 7 6,109 904,253 Fixed deposits 8 44,014,075 21,002,485 Cash and bank balances 9 8,696,914 2,515,569

Total assets 145,354,042 178,381,006

LIABILITIESPayables 10 616,911 1,695,154 Due to brokers 6 499,658 - Financial derivatives at fair value 7 206,539 1,830

Total liabilities 1,323,108 1,696,984




65

STATEMENTS OF MOVEMENTS OF UNITHOLDERS’ FUNDSFor the financial year ended 30 June 2018


Note $ $Net assets attributable to unitholders at the

beginning of the financial year 133,908,866 130,053,846

OperationsChange in net assets attributable to unitholders

resulting from operations 6,436,225 21,579,906

Unitholders' contributions/(withdrawals)Creation of units 6,143,854 5,926,154 Cancellation of units (24,019,518) (23,651,040)

Change in net assets attributable to unitholders resulting from net creation and cancellation of units (17,875,664) (17,724,886)

Total (decrease)/increase in net assets attributable to unitholders (11,439,439) 3,855,020

Net assets attributable to unitholders

at the end of the financial year 11 122,469,427 133,908,866



66






resulting from operations 859,777 1,826,902

Unitholders' contributions/(withdrawals)Creation of units 743,247 563,320 Cancellation of units (2,582,131) (1,996,385)


Total (decrease)/increase in net assets attributable to unitholders (979,107) 393,837





67


LionGlobal Korea Fund 2018 2017






Change in net assets attributable to unitholders resulting from net creation and cancellation of units (784,923) (1,297,206)

Total (decrease)/increase in net assets attributable to unitholders (746,595) 2,256,932





68


LionGlobal Malaysia Fund 2018 2017




resulting from operations 9,839 387,040


Change in net assets attributable to unitholders resulting from net creation and cancellation of units (474,401) (691,799)

Total (decrease)/increase in net assets attributable to unitholders (464,562) (304,759)





69


LionGlobal Taiwan Fund 2018 2017





Unitholders' contributions/(withdrawals)Creation of units 1,987,690 763,973 Cancellation of units (4,720,038) (4,573,640)


Total (decrease)/increase in net assets attributable to unitholders (2,212,711) (204,661)





70


LionGlobal Thailand Fund 2018 2017






Change in net assets attributable to unitholders resulting from net creation and cancellation of units (916,959) (2,389,625)

Total (decrease)/increase in net assets attributable to unitholders 1,075,881 1,117,199





71



2018 2017Note $ $

Net assets attributable to unitholders at the beginning of the financial year 176,684,022 182,274,309





Total (decrease)/increase in net assets attributable to unitholders (32,653,088) (5,590,287)





72

STATEMENTS OF PORTFOLIOAs at 30 June 2018


Holdings at30 June

2018

Fair value at30 June

2018

Percentage of total net assetsattributable to unitholders at

30 June2018

30 June2017

$ % %UNQUOTED

FUNDS

OAI Mauritius Limited (see Note 16 for schedule of securities) 776,122 121,930,639 99.6 99.6

Portfolio of investment 121,930,639 99.6 99.6 Other net assets 538,788 0.4 0.4 Net assets attributable

to unitholders 122,469,427 100.0 100.0

LionGlobal India Fund invests wholly into OAI Mauritius Limited which is incorporated in Mauritius. OAI Mauritius Limited invests primarily into Indian equity securities. The industry segment is disclosed in Note 16 to these financial statements.



73



Holdings at30 June

2018


2018

Percentage oftotal net assetsattributable tounitholders at

30 June2018

$ %By Industry (Primary)

QUOTED

INDUSTRIALMitsubishi Corporation 3,900 147,770 1.8 Komatsu Limited 3,600 140,391 1.7 Recruit Holdings Company Limited 3,300 124,549 1.5 Nidec Corporation 600 122,791 1.5 Misumi Group Inc 2,800 111,330 1.3 Sanwa Holdings Corporation 7,600 109,833 1.3 Mitsui & Company Limited 4,800 109,164 1.3 ITOCHU Corporation 4,300 106,262 1.3 SMC Corporation Japan 200 100,030 1.2 Daikin Industries Limited 600 98,011 1.2 NSK Limited 6,500 91,456 1.1 Taisei Corporation 1,100 82,734 1.0 Seibu Holdings Inc 3,500 80,482 1.0 Amada Holdings Company Limited 6,000 78,660 0.9 Sankyu Inc 1,000 71,643 0.8 Seino Holdings Company Limited 2,800 67,694 0.8 East Japan Railway Company 500 65,335 0.8 Kajima Corporation 5,000 52,809 0.6 Daifuku Company Limited 800 47,811 0.6 Hitachi Transport System Limited 1,300 45,416 0.5 Japan Steel Works Limited 800 27,525 0.3 Harmonic Drive Systems Inc 300 17,320 0.2 SG Holdings Company Limited 500 14,956 0.2

1,913,972 22.9



74

Holdings at30 June

2018


2018


30 June2018

$ %CONSUMER, CYCLICALToyota Motor Corporation 3,300 291,263 3.5 Sony Corporation 3,200 223,113 2.7 Denso Corporation 2,500 166,552 2.0 Suzuki Motor Corporation 1,900 143,092 1.7 Isuzu Motors Limited 6,000 108,684 1.3 Stanley Electric Company Limited 2,300 107,022 1.3 Panasonic Corporation 5,700 104,793 1.3 Honda Motor Company Limited 2,100 84,092 1.0 Da Consortium Holdings Inc 2,000 76,075 0.9 NGK Spark Plug Company Limited 1,900 73,908 0.9 Fast Retailing Company Limited 100 62,670 0.7 Bridgestone Corporation 800 42,671 0.5 Nitori Holdings Company Limited 200 42,543 0.5 Koito Manufacturing Company Limited 300 27,032 0.3 Dentsu Inc 400 25,851 0.3

1,579,361 18.9

TECHNOLOGYKeyence Corporation 200 154,021 1.8 Murata Manufacturing Company Limited 600 137,526 1.6 ROHM Company Limited 1,100 125,930 1.5 Hitachi Limited 13,000 125,078 1.5 Tokyo Electron Limited 500 117,067 1.4 Disco Corporation 400 93,112 1.1 Nintendo Company Limited 200 89,123 1.1 Iriso Electronics Company Limited 800 65,882 0.8 Net One Systems Company Limited 1,900 44,555 0.5 Omron Corporation 700 44,549 0.5 Nippon Chemi-Com Corporation 800 42,494 0.5 TDK Corporation 300 41,804 0.5 Itochu Techno-Solutions Corporation 1,600 37,698 0.5 Fuji Film Holdings Corporation 700 37,277 0.5 Comture Corporation 1,000 33,741 0.4 Fujitsu Limited 4,000 33,079 0.4



75

Holdings at30 June

2018


2018


30 June2018

$ %Yaskawa Electric Corporation 600 28,916 0.3 KOA Corporation 700 23,963 0.3 ALPS Electric Company Limited 600 21,020 0.3 Hitachi High - Technologies Corporation 300 16,692 0.2 Mercari Inc 100 5,582 0.1

1,319,109 15.8

CONSUMER, NON-CYCLICALChugai Pharmaceutical Company

Limited 2,100 150,192 1.8 Asahi Intecc Company Limited 2,600 134,103 1.6 Yakult Honsha Company Limited 1,400 127,530 1.5 Asahi Group Holdings Limited 1,700 118,697 1.4 Nichirei Corporation 2,900 100,599 1.2 Tsuruha Holdings Inc 500 85,492 1.0 Japan Tobacco Inc 2,100 80,008 1.0 Otsuka Holdings Company Limited 1,200 79,236 0.9 Pigeon Corporation 1,000 66,350 0.8 Shiseido Company Limited 600 64,981 0.8 Daiichi Sankyo Company Limited 1,200 62,588 0.8 M3 Inc 1,100 59,783 0.7 Terumo Corporation 700 54,717 0.7 Hoya Corporation 600 46,524 0.6 EISAI Company Limited 300 28,820 0.3 Unicharm Corporation 700 28,720 0.3

1,288,340 15.4

FINANCIALSumitomo Mitsui Financial Group Inc 4,100 217,325 2.6 Mitsubishi UFJ Financial Group 26,300 204,318 2.4 Orix Corporation 9,100 196,258 2.3 Dai-Ichi Life Holdings Inc 3,600 87,567 1.1 Sompo Holdings Inc 1,400 77,208 0.9 Tokio Marine Holdings Inc 1,100 70,318 0.9



76

Holdings at30 June

2018


2018


30 June2018

$ %T&D Holdings Inc 3,400 69,665 0.8 Concordia Financial Group Limited 7,000 48,599 0.6 Chiba Bank Limited 3,600 34,699 0.4 Gunma Bank Limited 4,600 32,956 0.4

1,038,913 12.4

BASIC MATERIALSShin-Etsu Chemical Company Limited 1,100 133,689 1.6 Sumitomo Bakelite Company Limited 7,000 92,028 1.1 Toray Industries Inc 7,000 75,312 0.9 Mitsui Mining & Smelting Company

Limited 1,100 63,845 0.8 Nippon Steel & Sumitomo Metal

Corporation 1,500 40,170 0.5 Mitsui Chemicals Inc 1,000 36,314 0.4 Nitto Denko Corporation 300 30,958 0.4 Showa Denko K.K. 500 30,282 0.3 Sumitomo Metal Mining Company

Limited 500 26,085 0.3 528,683 6.3

COMMUNICATIONNippon Telegraph & Telephone

Corporation 1,900 117,785 1.4 SoftBank Group Corporation 1,200 117,776 1.4 KDDI Corporation 1,900 70,891 0.9 NTT DoCoMo Inc 1,700 59,066 0.7

365,518 4.4

REAL ESTATEDaiwa House Industry Company

Limited 1,700 79,019 1.0 Mitsui Fudosan Company Limited 1,600 52,666 0.6 Invincible Investment Corporation REIT 28 17,200 0.2

148,885 1.8



77

Holdings at30 June

2018


2018


30 June2018

$ %

ENERGYJXTG Holdings Inc 13,800 130,838 1.6

Portfolio of investments 8,313,619 99.5 Other net assets 44,863 0.5Net assets attributable to unitholders 8,358,482 100.0



78


30 June2018

30 June2017

% %By Industry (Summary)

Industrial 22.9 22.1 Consumer, Cyclical 18.9 17.7 Technology 15.8 10.7 Consumer, Non-cyclical 15.4 17.9 Financial 12.4 12.4 Basic Materials 6.3 6.6 Communications 4.4 6.6 Real Estate 1.8 2.8 Energy 1.6 -

Portfolio of investments 99.5 96.8 Other net assets 0.5 3.2 Net assets attributable to unitholders 100.0 100.0



79


2018


30 June2018

30 June2017

$ % %By Geography (Secondary)

Japan 8,313,619 99.5 96.8

Portfolio of investments 8,313,619 99.5 96.8 Other net assets 44,863 0.5 3.2 Net assets attributable to unitholders 8,358,482 100.0 100.0



80



Holdings at30 June

2018


2018


30 June2018


QUOTED

TECHNOLOGYSamsung Electronics Company Limited 43,400 2,476,945 12.7 Samsung Electronics Preference Shares 38,750 1,784,891 9.1 SK Hynix Inc 16,430 1,722,636 8.8 Naver Corporation 630 588,085 3.0 Samsung Electro Mechanics Company

Limited 2,400 436,026 2.3 LG Innotek Company Limited 1,800 318,211 1.7 Wonik IPS Company Limited 8,000 275,024 1.4

7,601,818 39.0

CONSUMER, CYCLICALHotel Shilla Company Limited 5,200 785,679 4.0 Hyundai Mobis Company Limited 2,813 729,593 3.7 Hyundai Motor Company Limited 3,580 549,670 2.8 Hanon Systems 15,000 194,524 1.0 Hyundai Motor Company Limited

Preference Shares 758 84,203 0.5 Mando Corporation 1,500 70,469 0.4

2,414,138 12.4



81

Holdings at30 June

2018


2018


30 June2018

$ %BASIC MATERIALSPOSCO 2,000 805,009 4.1 LG Chemical Limited 1,680 685,457 3.5 Hanwha Chemical Corporation 10,000 267,317 1.4 Hyosung Corporation 1,200 196,726 1.0 Hyundai Steel Company 2,600 167,315 0.9 Lotte Chemical Corporation 320 136,240 0.7

2,258,064 11.6

CONSUMER, NON-CYCLICALAmorepacific Corporation 1,557 614,318 3.1 LG Household & Health Care Limited 300 512,368 2.6 Cosmax Inc 2,350 467,193 2.4 Ottogi Corporation 225 236,456 1.2 AmorePacific Group 1,500 226,638 1.2 Nong Shim Company Limited 500 198,806 1.0

2,255,779 11.5

INDUSTRIALKorea Aerospace Industries Limited 7,650 385,597 2.0 Hyundai Construction Equipment

Company Limited 2,120 365,704 1.9 Samsung C&T Corporation 1,500 213,792 1.1 Hanwha Aerospace Company Limited 7,300 209,431 1.1 Hyundai Mipo Dockyard Company

Limited 1,737 182,332 0.9 KCC Corporation 357 143,257 0.7 CJ Corporation 823 142,976 0.7 Samsung Engineering Company

Limited 6,000 114,879 0.6 1,757,968 9.0



82

Holdings at30 June

2018


2018


30 June2018

$ %ENERGYSK Innovation Company Limited 2,288 565,435 2.9

Portfolio of investments 18,770,222 96.2 Other net assets 742,626 3.8 Net assets attributable to unitholders 19,512,848 100.0



83


30 June2018

30 June2017


Technology 39.0 40.3 Consumer, Cyclical 12.4 9.9 Basic Materials 11.6 12.8 Consumer, Non-cyclical 11.5 14.3 Financial 9.8 7.3 Industrial 9.0 10.8 Energy 2.9 1.8 Utilities - 1.6




84


2018


30 June2018

30 June2017


South Korea 18,770,222 96.2 98.8




85



Holdings at30 June

2018


2018


30 June2018


QUOTED

FINANCIAL Malayan Banking Berhad 291,878 886,689 8.0 Public Bank Berhad 105,193 829,444 7.4 Alliance Bank Malaysia Berhad 154,300 210,414 1.9 CIMB Group Holdings Berhad 94,295 173,465 1.5 Hong Leong Bank Berhad 19,200 117,951 1.1 BIMB Holdings Berhad 63,400 82,391 0.7

2,300,354 20.6

CONSUMER, NON CYCLICALHeineken Malaysia Berhad 50,300 371,486 3.3 IOI Corporation Berhad 195,800 300,052 2.7 IHH Healthcare Berhad 138,600 285,378 2.6 Ajinomoto Malaysia Berhad 32,600 243,185 2.2 Sime Darby Plantation Berhad 132,338 238,089 2.1 Fraser & Neave Holdings Berhad 18,000 237,076 2.1 Kuala Lumpur Kepong Berhad 25,200 205,506 1.9 Top Glove Corporation Berhad 36,300 148,749 1.3 Ql Resources Berhad 10,500 21,265 0.2

2,050,786 18.4



86

Holdings at30 June

2018


2018


30 June2018

$ %CONSUMER,CYCLICALGenting Berhad 114,800 325,886 2.9 Genting Malaysia Berhad 174,500 287,437 2.6 Bermaz Auto Berhad 232,200 172,430 1.6 Mynews Holdings Berhad 292,400 157,916 1.4 DRB-Hicom Berhad 159,500 105,522 0.9 UMW Holdings Berhad 28,200 56,827 0.5

1,106,018 9.9

UTILITIESTenaga Nasional Berhad 171,187 845,940 7.6 Petronas Gas Berhad 30,600 178,687 1.6

1,024,627 9.2

BASIC MATERIALSPetronas Chemicals Group Berhad 176,900 502,171 4.5 Chemical Company Of Malaysia

Berhad 389,900 279,008 2.5 Denko Industrial Corporation Berhad 309,300 149,294 1.4 Press Metal Aluminium Holdings

Berhad 48,300 71,082 0.6 1,001,555 9.0

REAL ESTATEInta Bina Group Berhad 2,591,000 279,863 2.5 SP Setia Berhad 248,800 260,339 2.3 LBS Bina Group Berhad 868,300 256,451 2.3 Sime Darby Property Berhad 376,738 152,598 1.4

949,251 8.5



87

Holdings at30 June

2018


2018


30 June2018

$ %INDUSTRIALDialog Group Berhad 236,700 246,879 2.2 HAP Seng Consolidated Berhad 67,600 223,615 2.0 Sime Darby Berhad 156,438 129,371 1.2 GDB Holdings Berhad 1,075,100 117,939 1.1 IJM Corporation Berhad 115,100 69,543 0.6

787,347 7.1

COMMUNICATIONSAxiata Group Berhad 236,736 303,651 2.7 Digi.Com Berhad 156,600 219,366 2.0 Maxis Berhad 44,700 82,381 0.7

605,398 5.4

ENERGYBumi Armada Berhad 576,000 139,985 1.3 Dayang Enterprise Holdings Berhad 532,400 116,810 1.1 Velesto Energy Berhad (formerly known

as UMW Oil and Gas Corporation Berhad) 1,217,411 115,059 1.0

Velesto Energy Berhad Call Warrants 30/09/2024 (formerly known as UMW Oil and Gas Corporation Berhad) 330,346 13,381 0.1

385,235 3.5

TECHNOLOGYV.S. Industry Berhad 128,750 67,361 0.6



88

Holdings at30 June

2018


2018


30 June2018

$ %UNQUOTED

FINANCIAL RHB Capital Berhad* 111,145 - -


* This security has been delisted from the stock exchange prior to current financial year and the fair value represents the Manager’s best estimate.



89


30 June2018

30 June2017


Financial 20.6 19.6 Consumer, Non-cyclical 18.4 14.2 Consumer, Cyclical 9.9 14.4 Utilities 9.2 10.4 Basic Materials 9.0 8.8 Real Estate 8.5 2.5 Industrial 7.1 11.8 Communications 5.4 10.8 Energy 3.5 2.4 Technology 0.6 -




90


2018


30 June2018

30 June2017


Malaysia 10,277,932 92.2 94.9




91



Holdings at30 June

2018


2018


30 June2018


QUOTED

TECHNOLOGYTaiwan Semiconductor Manufacturing

Company Limited 222,433 2,153,655 20.0 Hon Hai Precision Industry Company

Limited 250,135 930,715 8.7 Largan Precision Company Limited 4,000 803,203 7.5 Chroma ATE Inc 46,000 337,381 3.1 Advantech Company Limited 24,199 217,527 2.0 Mediatek Inc 14,629 196,271 1.8 Quanta Computer Inc 72,000 172,268 1.6 Holtek Semiconductor Inc 51,000 169,236 1.6 Silergy Corporation 5,000 165,694 1.5 Realtek Semiconductor Corporation 31,000 153,888 1.4 ASE Technology Holding Company

Limited 47,424 151,855 1.4 Elite Material Company Limited 35,000 124,908 1.2 Delta Electronics Inc 24,363 119,306 1.1 Novatek Microelectronics Limited 12,000 73,791 0.7

5,769,698 53.6



92

Holdings at30 June

2018


2018


30 June2018

$ %FINANCIALCTBC Financial Holding Company

Limited 539,570 529,665 4.9 Fubon Financial Holding Company

Limited 212,362 485,307 4.5 Cathay Financial Holding Company

Limited 182,437 438,949 4.1 Yuanta Financial Holding Company

Limited 332,395 206,628 1.9 China Life Insurance Company Limited 109,000 156,477 1.5 E.Sun Financial Holding Company

Limited 163,000 154,905 1.5 Taishin Financial Holdings Company

Limited 220,000 141,679 1.3 First Financial Holding Company

Limited 153,441 141,360 1.3 Shin Kong Financial Holdings Company

Limited 182,000 95,638 0.9 Mega Financial Holding Company

Limited 79,000 95,038 0.9 2,445,646 22.8

BASIC MATERIALSFormosa Plastics Corporation 144,840 728,719 6.8 Formosa Chemicals & Fibre Corporation 96,300 523,265 4.9 Taiwan Cement Corporation 122,000 231,064 2.1 Nan Ya Plastic Corporation 39,000 152,090 1.4

1,635,138 15.2

INDUSTRIALAerospace Industrial Development

Corporation 210,958 299,071 2.8 Far Eastern New Century Corporation 120,000 155,095 1.4 AirTac International Group 4,357 84,469 0.8 Hiwin Technologies Corporation 5,200 83,719 0.8

622,354 5.8



93

Holdings at30 June

2018


2018


30 June2018

$ %CONSUMER, NON CYCLICALPresident Chain Store Corporation 8,000 123,611 1.2

CONSUMER, CYCLICALKMC Kuei Meng International Inc 10,000 61,716 0.6




94


30 June2018

30 June2017


Technology 53.6 58.5 Financial 22.8 19.7 Basic Materials 15.2 12.2 Industrial 5.8 4.3 Consumer, Non-cyclical 1.2 1.2 Consumer, Cyclical 0.6 3.0 Real Estate - 1.0




95


2018


30 June2018

30 June2017


Taiwan 10,658,163 99.2 99.9




96



Holdings at30 June

2018


2018


30 June2018


QUOTED

FINANCIALSiam Commercial Bank Public

Company Limited - NVDR 196,100 956,378 4.8 Srisawad Corporation Public Company

Limited - NVDR 761,063 924,009 4.6 Kasikornbank Public Company Limited

- Foreign 99,600 819,828 4.1 Kasikornbank Public Company Limited

- NVDR 53,700 428,756 2.1 Krung Thai Bank Public Company

Limited - NVDR 534,100 367,090 1.8 TMB Bank Public Company Limited -

NVDR 2,701,200 255,693 1.3 Srisawad Power 1979 Public Company

Limited - NVDR Warrants 29/05/2020 19,496 4,012 * 3,755,766 18.7

ENERGYPTT Public Company Limited - NVDR 1,067,000 2,107,848 10.5 PTT Exploration & Production Public

Company Limited NVDR 105,700 611,202 3.0 Banpu Public Company Limited - NVDR 639,100 512,905 2.6 Energy Absolute Public Company

Limited - NVDR 340,800 459,351 2.3 3,691,306 18.4

* denotes amount less than 0.1%



97

Holdings at30 June

2018


2018


30 June2018

$ %CONSUMER, NON-CYCLICALCP ALL Public Company Limited -

NVDR 684,000 2,069,079 10.3 Bangkok Dusit Medical Services Public

Company Limited - NVDR 515,300 530,193 2.7 Taokaenoi Food & Marketing Public

Company Limited - NVDR 467,600 282,895 1.4 Charoen Pokphand Foods Public

Company Limited - NVDR 146,600 146,010 0.7 Thonburi Healthcare Group Public

Company Limited - NVDR 81,000 104,176 0.5 3,132,353 15.6

INDUSTRIALAirports of Thailand Public Company

Limited - NVDR 788,100 2,043,410 10.2 BTS Group Holdings Public Company

Limited - NVDR 1,071,700 388,141 1.9 Berli Jucker Public Company Limited -

NVDR 94,900 197,239 1.0 Synergetic Auto Performance Company

Limited - NVDR 868,340 194,769 1.0 SEAFCO Public Company Limited -

NVDR 280,940 90,187 0.5 Pylon Public Company Limited - NVDR 243,000 60,506 0.3 BTS Group Holdings Public Company

Limited - Call Warrants 01/11/2018 661,333 1,633 * 2,975,885 14.9

BASIC MATERIALSIndorama Ventures Public Company

Limited - NVDR 806,200 1,816,605 9.1 PTT Global Chemical Public Company

Limited - NVDR 260,700 783,245 3.9 2,599,850 13.0

* denotes amount less than 0.1%



98

Holdings at30 June

2018


2018


30 June2018

$ %CONSUMER, CYCLICALSiam Wellness Group Public Company

Limited - NVDR 660,000 388,431 1.9 Minor International Public Company

Limited - NVDR 259,100 346,565 1.7 Home Product Center Public Company

Limited - NVDR 561,300 309,552 1.6 Rich Sport Public Company Limited -

NVDR 1,468,500 299,771 1.5 Robinson Public Company Limited -

NVDR 69,100 159,257 0.8 1,503,576 7.5

COMMUNICATIONSAdvanced Information Service Public

Company Limited - NVDR 107,800 820,775 4.1 True Corporation Public Company

Limited - NVDR 981,200 214,026 1.1 1,034,801 5.2

REAL ESTATECentral Pattana Public Company

Limited - NVDR 238,200 683,785 3.4

TECHNOLOGYNetbay Public Company Limited -

NVDR 245,100 358,101 1.8 KCE Electronics Public Company

Limited - NVDR 83,000 129,806 0.6 487,907 2.4




99


30 June2018

30 June2017


Financial 18.7 12.9 Energy 18.4 24.6 Consumer, Non-cyclical 15.6 14.6 Industrial 14.9 14.6 Basic Materials 13.0 13.1 Consumer, Cyclical 7.5 9.9 Communications 5.2 9.1 Real Estate 3.4 - Technology 2.4 1.6

Portfolio of investments 99.1 100.4 Other net assets/(liabilities) 0.9 (0.4)Net assets attributable to unitholders 100.0 100.0



100


2018


30 June2018

30 June2017


Thailand 19,865,229 99.1 100.4

Portfolio of investments 19,865,229 99.1 100.4 Other net assets/(liabilities) 174,954 0.9 (0.4)Net assets attributable to unitholders 20,040,183 100.0 100.0



101



Holdings at30 June

2018


2018


30 June2018


QUOTED

FINANCIAL Public Utilities Board 3.9% due

31/08/2018 10,000,000 10,041,241 7.0 Housing & Development Board Series

MTN 1.83% due 21/11/2018 6,750,000 6,757,456 4.7 Korea Development Bank Series GMTN

2.05% due 23/07/2018 5,000,000 5,001,275 3.5 Housing & Development Berhad Series

MTN 2.365% due 19/09/2018 2,500,000 2,504,708 1.7 Korea Development Bank Series 627

2.65% due 03/12/2018 1,750,000 1,755,484 1.2 Housing & Development Board Series

MTN 2.223% due 28/05/2019 1,000,000 1,002,186 0.7 Bank Of China Limited (Luxembourg

Branch) Series EMTN 1.875% due 12/07/2019 645,000 867,061 0.6

ICBCIL Finance Company Limited 2.6% due 13/11/2018 600,000 816,950 0.6

Cagamas Global Series EMTN 2.23% due 30/07/2018 750,000 750,181 0.5

Export-Import Bank of Korea Series EMTN 2.04% due 24/07/2018 750,000 750,124 0.5

Mizuho Bank Limited Series EMTN 2.01% due 28/10/2019 750,000 747,094 0.5

Haitong International Finance 3.95% due 29/10/2018 400,000 546,926 0.4

31,540,686 21.9



102

Holdings at30 June

2018


2018


30 June2018

$ %REAL ESTATEJoynote Limited 3.408% due 20/07/2018 5,000,000 5,003,678 3.5 Mapletree Treasury Services Series

MTN 3.88% due 04/10/2018 4,750,000 4,773,886 3.3 CapitaLand Limited 2.95% due

20/06/2022 4,000,000 3,998,774 2.8 City Developments Limited Series MTN

2.78% due 21/09/2018 3,500,000 3,507,252 2.4 City Developments Limited Series MTN

3.38% due 20/03/2019 1,500,000 1,511,355 1.1 CDL Properties Limited Series MTN

1.98% due 18/04/2019 1,500,000 1,496,967 1.0 Mapletree Treasury Services Limited

Series MTN 2.92% due 21/01/2019 250,000 251,062 0.2 20,542,974 14.3

SOVEREIGNSingapore T-Bills Series 365 Zcp

30/04/2019 6,000,000 5,912,084 4.1 MAS Bill Series 169 ZCP 07/11/2018 5,000,000 4,969,916 3.5 MAS Bill Series 168 ZCP 20/11/2018 4,608,000 4,576,968 3.2 Government of Singapore 2.5% due

01/06/2019 1,000,000 1,006,370 0.7 16,465,338 11.5

UTILITIESSP Powerassets Limited Series GMTN

4.39% due 15/05/2019 5,250,000 5,353,976 3.7 State Grid Overseas Investment 2.75%

due 07/05/2019 1,000,000 1,361,244 0.9 Korea Midland Power Company 2.75%

due 11/02/2019 900,000 1,225,990 0.9 7,941,210 5.5

CONSUMER, CYCLICALNational University of Singapore Series

MTN 1.708% due 13/02/2019 7,250,000 7,232,797 5.0



103

Holdings at30 June

2018


2018


30 June2018

$ %INDUSTRIALPSA Corporation Limted 4% due

05/06/2019 3,000,000 3,054,695 2.1

BASIC MATERIALSMinera Y Metalurgica del Boleo Series

2.875% due 07/05/2019 1,500,000 2,038,490 1.4

COMMUNICATIONSSK Broadband Company Limited

2.875% due 29/10/2018 1,110,000 1,512,546 1.1

ENERGYSinopec Group Overseas Development

Limited 2.75% due 10/04/2019 600,000 816,111 0.6 CNPC General Capital 2.75% due

14/05/2019 200,000 271,666 0.2 1,087,777 0.8

Accrued interest receivable on debt securities 601,370 0.4

Portfolio of investments 92,017,883 64.0 Other net assets 52,013,051 36.0 Net assets attributable to unitholders 144,030,934 100.0



104


30 June2018

30 June2017


Financial 21.9 34.9 Real Estate 14.3 26.7 Sovereign 11.5 1.1 Utilities 5.5 1.8 Consumer, Cyclical 5.0 3.4 Industrial 2.1 3.8 Basic Materials 1.4 - Communications 1.1 - Energy 0.8 1.7 Technology - 6.2 Consumer, Non-cyclical - 0.5

63.6 80.1 Accrued interest receivable on debt securities 0.4 0.5




105


2018


30 June2018

30 June2017


Singapore 67,951,693 47.2 38.4 South Korea 12,283,909 8.6 10.4 Hong Kong 5,003,678 3.5 8.3 China 4,679,958 3.3 10.1 Malaysia 750,181 0.5 7.5 Japan 747,094 0.5 1.1 Taiwan - - 4.3

91,416,513 63.6 80.1 Accrued interest receivable on

debt securities 601,370 0.4 0.5

Portfolio of investments 92,017,883 64.0 80.6 Other net assets 52,013,051 36.0 19.4 Net assets attributable to unitholders 144,030,934 100.0 100.0



106

NOTES TO THE FINANCIAL STATEMENTSFor the financial year ended 30 June 2018

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

1. GENERAL

LionGlobal Investment Funds (the “Fund”) is a Singapore domiciled umbrella fund constituted by a Deed of Trust dated 9 March 1998, together with its Supplemental Deeds thereon (thereafter referred to as “Trust Deed”) between Lion Global Investors Limited (the “Manager”) and Citicorp Trustee (Singapore) Limited (the “Trustee”). The Trust Deed is governed by the laws of the Republic of Singapore. The Sub-Funds’ administration have been delegated to HSBC Institutional Trust Serivces (Singapore) Limited (the “Administrator”).

The umbrella fund currently comprises of the following sub-funds (the “Sub-Funds”), each of which has a separate investment objective as follow:

(1) LionGlobal India Fund

The LionGlobal India Fund aims for medium to long-term capital appreciation by investing in Indian equities and equity-related instruments.

All investments of LionGlobal India Fund are held through its investment in wholly owned subsidiary (the “Subsidiary”), OAI Mauritius Limited, incorporated in Mauritius.

(2) LionGlobal Japan Fund

The LionGlobal Japan Fund aims for medium to long-term capital appreciation by investing in Japanese equities and equity-related instruments.

(3) LionGlobal Korea Fund

The LionGlobal Korea Fund aims for medium to long-term capital appreciation by investing in Korean equities and equity-related instruments.

(4) LionGlobal Malaysia Fund

The LionGlobal Malaysia Fund aims to achieve medium to long-term capital appreciation by investing in Malaysian equities and equity-related instruments.

(5) LionGlobal Taiwan Fund

The LionGlobal Taiwan Fund aims for medium to long-term capital appreciation by investing in Taiwan equities and equity-related instruments.


107

(6) LionGlobal Thailand Fund (a fund under List B of the CPF Investment Scheme)

The LionGlobal Thailand Fund aims for medium to long-term capital appreciation by investing in Thai equities and equity-related instruments.

(7) LionGlobal SGD Money Market Fund

The LionGlobal SGD Money Market Fund aims to manage liquidity and risk while looking to provide a return which is comparable to that of SGD short-term deposits by investing in high quality short-term money market instruments and debt securities. Such investments may include government and corporate bonds, commercial bills and deposits with financial institutions.

Subscriptions and redemptions of the Sub-Funds are denominated in Singapore Dollar and United States Dollar (for relevant Sub-Funds). Investors may subscribe in United States Dollar at the applicable rate of exchange from Singapore Dollar.

2. SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of preparation

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

(b) Recognition of income

Dividend income is recognised when the right to receive payment is established.

Interest income is recognised on a time proportion basis using the effective interest method.

(c) Financial derivatives

Financial derivatives are entered into for the purposes of efficient portfolio management, tactical asset allocation or specific hedging of financial assets held as determined by the Manager and in accordance with the provisions of the Trust Deed.

Financial derivatives outstanding at the end of the financial year are measured at their fair values using the marked-to-market method, and the resultant gains and losses are taken up in the Statements of Total Return.


108

(d) Distributions

The Manager has the absolute discretion to determine whether a distribution is to be made. In such an event, an appropriate amount will be transferred to a distribution account to be paid out on the distribution date. The amount shall not be treated as part of the property of the Sub-Funds. Distributions are accrued for at the reporting date if the necessary approvals have been obtained and a legal or constructive 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. Investments are recorded at fair value on initial recognition.

(ii) Subsequent measurement

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

(iii) Derecognition

Investments are derecognised on the trade date of disposal. The resultant realised gains and losses on the sales of investments are computed on the basis of the difference between the weighted average cost and selling price gross of transaction costs, and are taken up in the Statements of Total Return.

(f) Basis of valuation of investments

The fair value of financial assets and liabilities traded in active markets is based on quoted market prices at the close of trading on the reporting date. The quoted market price used for investments in equities held by the Sub-Funds is the last traded market price for both financial assets and financial liabilities where the last traded price falls within the bid-ask spread. The quoted market price used for investments in debt securities held by the Sub-Funds is the market mid prices. Accrued interest or discount or premium on debt securities at the reporting date are included in the fair value of debt securities. Interest income on debt securities is presented within net gains or losses on investments on the Statements of Total Return. In circumstances where the last traded price is not within the bid-ask spread, the Manager will determine the point within the bid-ask spread that is most representative of fair value.


109

The quoted market price used for investments in underlying funds held by the Sub-Funds is the published price of the underlying funds at the close of trading on the reporting date.

LionGlobal India Fund

LionGlobal India Fund’s investment in Subsidiary and the underlying investments held by its Subsidiary have been designated at fair value through profit or loss at inception as they are managed as a portfolio and their performance evaluated on a fair value basis in accordance with the LionGlobal India Fund’s offering documents.

The investment in the Subsidiary is valued at fair value, which is based on the latest net asset value of the Subsidiary’s participating shares. The Manager reviews the details of the net asset value information obtained from the Administrator.

(g) Receivables

Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Receivables are initially recognised at their fair value and subsequently carried at amortised cost using the effective interest method.

(h) Foreign currencies

(i) Functional and presentation currency

The Sub-Funds’ investors are mainly from Singapore with the subscriptions and redemptions of the units denominated in Singapore dollars.

The performances of the Sub-Funds are measured and reported to the investors in Singapore dollars. The Manager considers the Singapore Dollar as the currency which most faithfully represents the economic effects of the underlying transactions, events and conditions. The Sub-Funds’ functional and presentation currency is the Singapore Dollar.

(ii) Transactions and balances

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


110

(i) Investment entity and consolidation


These financial statements do not consolidate the financial performance and position of the Subsidiary.

The majority of the LionGlobal India Fund’s investors are not related to the LionGlobal India Fund. LionGlobal India Fund holds multiple investments indirectly through its Subsidiary. LionGlobal India Fund is deemed to meet the definition of an investment entity per FRS 110 as the following conditions exist:

(a) LionGlobal India Fund has obtained funds for the purpose of providing investors with investment management services.

(b) LionGlobal India Fund’s business purpose, which was communicated directly to investors, is investing solely for returns from capital appreciation and investment income.

(c) The performance of investments made through the Subsidiary are measured and evaluated on a fair value basis.

Although LionGlobal India Fund does not meet all of the typical characteristics of an investment entity (namely, LionGlobal India Fund does not have multiple investments), it is nevertheless an investment entity because it was formed in conjuction with its Subsidiary and effects multiple investments through its Subsidiary.

As such, consolidated financial statements have not been prepared by the LionGlobal India Fund. In these non-consolidated financial statements, the LionGlobal India Fund’s investment in its Subsidiary is carried at fair value.

(j) Offsetting financial instruments

Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Sub-Funds or the counterparty.


111

(k) Structured entities

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

LionGlobal India Fund considers its investment in the Subsidiary to be investment in unconsolidated structured entities. LionGlobal India Fund invests in the Subsidiary whose objectives range from achieving short to long term capital growth and whose investment strategy does not include the use of leverage. The Investee Fund is managed by related asset managers and apply various investment strategies to accomplish their respective investment objectives. The Subsidiary finances their operations by issuing redeemable shares which are puttable at the holder’s option and entitles the holder to a proportional stake in its net assets. LionGlobal India Fund holds redeemable shares in each of its Subsidiary.

The change in fair value of the lnvestee Fund is included in the Statement of Total Return in “Net gains/losses on investments”.

3. INCOME TAX

The Sub-Funds were granted the status of Designated Unit Trust (“DUT”) in Singapore. The Trustee of the Sub-Funds will also ensure that the Sub-Funds fulfill its reporting obligations under the DUT Scheme.

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

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

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

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


112

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

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

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

Enhanced-tier Fund Tax Incentive Scheme

LionGlobal India Fund is approved by the Monetary Authority of Singapore (MAS) under the Enhanced-Tier Fund (“ETF”) Incentive Tax Scheme under section 13X of the Income Tax Act and the relevant Regulations. Subject to certain conditions being met on an annual basis, the LionGlobal India Fund may enjoy Singapore corporate tax exemption on “specified income” derived from “designated investments” for the life of the LionGlobal India Fund. The tax exemption does not apply in the year when the relevant conditions are not met. Losses from “designated investments” are correspondingly disregarded. The terms “specified income” and “designated investments” are defined in the relevant income tax regulation. The Trustee of the LionGlobal India Fund will ensure that it fullfills its reporting obligatons under the ETF scheme.

LionGlobal Japan Fund LionGlobal Korea Fund2018 2017 2018 2017

$ $ $ $

Overseas income tax 25,973 27,859 70,165 66,844 Total income tax 25,973 27,859 70,165 66,844

LionGlobal Taiwan Fund LionGlobal Thailand Fund2018 2017 2018 2017

$ $ $ $

Overseas income tax 106,284 104,101 55,299 52,188 Total income tax 106,284 104,101 55,299 52,188

LionGlobal SGD Money Market Fund2018 2017

$ $

Singapore income tax - 103 Total income tax - 103


113

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 and capital gains on realised investments.

4. DISTRIBUTIONS

The Manager does not propose any distribution to unitholders for the financial year ended 30 June 2018 (2017: Nil).

5. RECEIVABLES

LionGlobal India Fund LionGlobal Japan Fund2018 2017 2018 2017

$ $ $ $

Amount receivable for creation of units 113,652 195,652 100 4,851

Dividends receivable - - 10,258 9,040 Other receivable 8,118 8,446 5,510 5,545

121,770 204,098 15,868 19,436

LionGlobal Korea Fund LionGlobal Malaysia Fund2018 2017 2018 2017

$ $ $ $

Amount receivable for creation of units 396,131 21,380 3,064 15,318

Dividends receivable - - 38,116 12,142 Other receivable 13,524 10,870 7,088 7,010

409,655 32,250 48,268 34,470


$ $ $ $

Amount receivable for creation of units - 17,037 41,389 3,303

Dividends receivable 96,239 82,115 - - Other receivable 6,746 7,633 12,811 10,871

102,985 106,785 54,200 14,174


114


$ $

Amount receivable for creation of units 601,741 11,458,014 Other receivable 15,873 22,939 Interest receivable from a bank which is the ultimate

holding company of the Manager - 606 Interest receivable from a bank which is a non-related

company 1,447 142 619,061 11,481,701

6. DUE FROM/(TO) BROKERS


$ $ $ $

Sales awaiting settlement - 686,996 - 97,804

Purchases awaiting settlement - - (28,867) (113,613)


$ $ $ $

Sales awaiting settlement - 106,465 164,705 22,219

Purchases awaiting settlement - - (440,015) -

LionGlobal Thailand FundLionGlobal SGD

Money Market Fund2018 2017 2018 2017

$ $ $ $

Sales awaiting settlement 98,540 700,783 - -

Purchases awaiting settlement - (580,630) (499,658) -


115

7. FINANCIAL DERIVATIVES AT FAIR VALUE

Financial derivatives comprise foreign exchange spot and forward contracts due for settlement within 6 months (2017: within 1 year) from the reporting date. The contracts or underlying principal amounts of these financial derivatives and their corresponding gross fair values at the reporting date are analysed below.

LionGlobal Japan Fund30 June 2018 Contract or

underlyingprincipalamount Fair value

Asset Liability$ $ $

Foreign exchange spot contracts 20,000 119 -

LionGlobal SGD Money Market Fund30 June 2018 Contract or

underlyingprincipalamount Fair value


Foreign exchange spot contracts 12,547,508 6,109 206,539

30 June 2017 Contract orunderlyingprincipalamount Fair value


Foreign exchange spot contracts 51,188,952 904,253 1,830

The foreign exchange spot and forward contracts were undertaken for the purposes of efficient portfolio management and have the effect of reducing the net balance sheet currency exposure (Note 13(a)(iii)).


116

8. FIXED DEPOSITS


2018 2017 $ $

Fixed deposits placed with a bank which is the ultimate holding company of the Manager - 13,002,413

Fixed deposits placed with a bank which is a non-related company 44,014,075 8,000,072

44,014,075 21,002,485

Fixed deposits have the following average maturity from the end of the financial year:

2018 2017 Days Days

LionGlobal SGD Money Market Fund 2 3

Fixed deposits have the following weighted average effective interest rates:


2018 2017 % %

Effective interest rate 0.51 0.77

9. CASH AND BANK BALANCES

Cash and bank balances and bank overdraft are placed with a financial institution which is a related company to the Trustee.


117

10. PAYABLES


$ $ $ $

Amount payable for cancellation of units 78,617 318,187 42,339 18,759

Amount due to the Administrator 10,108 11,268 707 777

Amount due to the Manager 351 224 8,834 9,711

Amount due to the Trustee 4,801 5,352 658 658 Amount due to the

Custodian - - 740 226 Amount due to the

Registrar 6,433 6,433 5,485 5,485 Other payables 29,773 72,516 24,365 43,291

130,083 413,980 83,128 78,907


$ $ $ $

Amount payable for cancellation of units 46,615 40,598 46 25,964

Amount due to the Administrator 1,769 1,695 932 979

Amount due to the Manager 22,117 21,192 11,650 12,239

Amount due to the Trustee 840 805 2,918 2,873 Amount due to the

Custodian 822 822 575 575 Amount due to the


107,353 163,794 47,260 130,269


118


$ $ $ $

Amount payable for cancellation of units 13,630 40,115 76,412 154,779

Amount due to the Administrator 916 1,070 1,788 1,573

Amount due to the Manager 11,453 13,379 22,351 19,656

Amount due to the Trustee 2,636 2,129 849 747 Amount due to the

Custodian 1,184 1,184 1,233 1,233 Amount due to the


66,606 109,171 139,157 301,089


$ $

Amount payable for cancellation of units 546,355 1,617,859 Amount due to the Administrator 2,364 2,976 Amount due to the Manager 29,554 37,205 Amount due to the Trustee 2,364 2,976 Amount due to the Custodian 1,184 1,184 Amount due to the Registrar 4,239 4,239 Other payables 30,851 28,715

616,911 1,695,154


119

11. UNITS IN ISSUE

LionGlobal India Fund LionGlobal Japan Fund2018 2017 2018 2017Units Units Units Units

Units at beginning of the year 95,342,175 108,512,922 8,201,755 9,571,319

Units created 4,102,749 4,523,054 594,443 523,798 Units cancelled (16,083,730) (17,693,801) (2,124,634) (1,893,362)Units at end of the year 83,361,194 95,342,175 6,671,564 8,201,755

of which, units denominated in

- USD 2,085,334 2,842,684 35,952 50,749

Net assets attributable to unitholders ($) 122,469,427 133,908,866 8,358,482 9,337,589

Net asset value per unit ($) 1.469 1.404 1.252 1.138

LionGlobal Korea Fund LionGlobal Malaysia Fund2018 2017 2018 2017Units Units Units Units


Units created 9,103,061 4,092,507 993,318 579,083 Units cancelled (9,807,034) (5,355,229) (1,219,543) (927,081)Units at end of the year 16,399,243 17,103,216 5,583,866 5,810,091


- USD 1,533,085 2,471,498 415,798 430,086




120

LionGlobal Taiwan Fund LionGlobal Thailand Fund2018 2017 2018 2017Units Units Units Units


Units created 2,698,468 1,215,374 1,162,199 720,204 Units cancelled (6,358,608) (7,249,889) (1,422,651) (1,413,407)Units at end of the year 14,673,480 18,333,620 4,898,212 5,158,664


- USD 17,463 17,463 287,716 354,748



LionGlobal SGD Money Market Fund2018 2017Units Units

Units at beginning of the year 138,837,388 144,579,280 Units created 91,503,392 192,910,440 Units cancelled (118,256,996) (198,652,332)Units at end of the year 112,083,784 138,837,388

Net assets attributable to unitholders ($) 144,030,934 176,684,022

Net asset value per unit ($) 1.285 1.272


121

A reconciliation of the net assets attributable to unitholders per unit per the financial statements and the net assets attributable to unitholders per unit for issuing/redeeming units at the reporting date is presented below:


$ $ $ $

Net assets attributable to unitholders per unit per the financial statements 1.469 1.404 1.252 1.138

Effect of movement in the net asset value between the last dealing date and the financial year end date * - 0.001 -

Net assets attributable to unitholders per unit for issuing/redeeming units 1.469 1.404 1.253 1.138


$ $ $ $


Effect of movement in the net asset value between the last dealing date and the financial year end date * - 0.001 -



122


$ $ $ $


Effect of movement in the net asset value between the last dealing date and the financial year end date * - * -



2018 2017 $ $

Net assets attributable to unitholders per unit per the financial statements 1.285 1.272

Effect of movement in the net asset value between the last dealing date and the financial year end date * -

Net assets attributable to unitholders per unit for issuing/redeeming units 1.285 1.272

* Denotes amount less than SG$0.001

12. MANAGEMENT FEES

The management fee charged on any investment in other unit trusts managed by the Manager is rebated back to the Sub-Funds, where applicable.


123

13. FINANCIAL RISK MANAGEMENT

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

The Sub-Funds’ assets principally consist of investments in equity securities, debt securities and derivatives securities. They are held in accordance with the published investment policies of the Sub-Funds. The allocation of assets between the various types of investments is determined by the Manager to achieve their investment objectives.

The following is a summary of the main risks and risk management policies:

(a) Market risk

Market risk is the risk of loss to the value of financial investments because of changes in market conditions like interest and currency rate movements and volatility in security prices. External factors such as changes in economic environment, consumption patterns and investors’ expectation contribute to market risk which may have a significant impact on the asset’s value.

The Sub-Funds’ investments are substantially dependent on changes in market prices. The Manager monitors the Sub-Funds’ investments closely so as to assess changes in fundamentals and valuation. Although the Manager makes reasonable efforts in the choice of investments, events beyond reasonable control of the Manager could affect the prices of the underlying investments and hence the asset value of the Sub-Funds. Guidelines are set to reduce the Sub-Funds’ risk exposures to market volatility such as diversifying the portfolio by investing across various geographies/industries.

The Sub-Funds’ market risk is affected primarily by three main components: changes in actual market prices, interest rate volatilities and foreign exchange movements.

(i) Price risk

The Sub-Funds’ sensitivity to the market is measured using its beta, a ratio that describes how the expected return of a portfolio is correlated to the return of the financial market as a whole. The daily funds’ price movements are measured against the daily price movement of the benchmark to derive the beta.


124

As at 30 June 2018 and 2017, the Sub-Funds’ beta is calculated based on the daily returns over the preceding 12 months for the Sub-Funds and their benchmarks.

The table below summarises the impact of increases/decreases from the Sub-Funds’ (except for LionGlobal SGD Money Market Fund) underlying investments in equities on the Sub-Funds’ net assets attributable to the unitholders as at 30 June 2018 and 2017. The analysis was based on the assumptions that the index components within the benchmark index increased/decreased by a reasonable possible shift, with all variables held constant and that the fair value of the Sub-Funds’ investments moved according to the historical correlation with the index.

Beta for

Impact of 5% (2017: 5%) movement in benchmark on

net assets attributable to the unitholders

Fund Benchmark 2018/2017 2018 2017$ $

LionGlobal India Fund MSCI India 1.00/0.97 6,096,532 6,468,535

Beta for



Fund Benchmark 2018/2017 2018 2017$ $

LionGlobal Japan Fund

TOPIX Total Return Index 1.06/1.00 440,622 451,787

Beta for



Fund Benchmark 2018/2017 2018 2017$ $

LionGlobal Korea Fund

MSCI Korea Index 0.94/0.94 882,200 1,505,678


125

Beta for



Fund Benchmark 2018/2017 2018 2017$ $

LionGlobal Malaysia Fund MSCI Malaysia 0.93/1.02 477,924 561,954

Beta for



Fund Benchmark 2018/2017 2018 2017$ $

LionGlobal Taiwan Fund MSCI Taiwan 0.97/0.98 516,921 1,014,923

Beta for



Fund Benchmark 2018/2017 2018 2017$ $

LionGlobal Thailand Fund MSCI Thailand 1.02/0.96 1,621,003 914,374

(ii) Interest rate risk

Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates. Other than LionGlobal SGD Money Market Fund, the other Sub-Funds’ financial assets and liabilities are largely non-interest bearing. The other Sub-Funds are not subject to significant risk due to fluctuations in the prevailing levels of market interest rates. Hence, no separate sensitivity analysis has been presented for the Sub-Funds.

Investment funds that invest in equity securities may be subject to interest rate risk as any interest rate change may affect the equity risk premium though at varying degrees. To manage this risk, the Manager analyses how interest rate changes may affect different industries and securities and then seeks to adjust the Sub-Funds’ portfolio investments accordingly. However, the effects of changes in interest rates on the Sub-Funds’ portfolio may not be quantified as the relationship between interest rates and the value of the equity securities is indirect. Hence, no separate sensitivity analysis has been presented.


126

Interest risk movements affect the value of fixed income securities more directly than equities, and is a major risk to the LionGlobal SGD Money Market Fund. As interest rates rise, prices of fixed income securities may fall and vice versa. The rationale is that as interest rates increase, the opportunity cost of holding a fixed income security increases since investors are able to realise greater yields by switching to other investments that reflect the higher interest rate. The Manager will regularly assess the economic condition, monitor changes in interest rates outlook and take appropriate measures accordingly to control the impact of interest rate risk.

The table below summarises the Sub-Fund’s exposure to interest rate risks. They include the Sub-Fund’s assets and liabilities at fair value, categorised by the interest rate types.


30 June 2018Variable

ratesFixedrates

Non-interest bearing Total

$ $ $ $ AssetsPortfolio of investments - 91,416,513 601,370 92,017,883 Receivables - - 619,061 619,061 Financial derivatives at

fair value - - 6,109 6,109 Fixed deposits - 44,014,075 - 44,014,075 Cash and bank balances 8,696,914 - - 8,696,914 Total assets 8,696,914 135,430,588 1,226,540 145,354,042

LiabilitiesPayables - - 616,911 616,911 Due to brokers - - 499,658 499,658 Financial derivatives at

fair value - - 206,539 206,539 Total liabilities - - 1,323,108 1,323,108


127

30 June 2017Variable

ratesFixedrates

Non-interest bearing Total

$ $ $ $ AssetsPortfolio of investments - 141,515,743 961,255 142,476,998 Receivables - - 11,481,701 11,481,701 Financial derivatives at

fair value - - 904,253 904,253 Fixed deposits - 21,002,485 - 21,002,485 Cash and bank balances 2,515,569 - - 2,515,569 Total assets 2,515,569 162,518,228 13,347,209 178,381,006

LiabilitiesPayables - - 1,695,154 1,695,154 Due to brokers - - - - Financial derivatives at

fair value - - 1,830 1,830 Total liabilities - - 1,696,984 1,696,984

The duration, a measure of the sensitivity of the price of a fixed income security to a change in interest as at 30 June 2018 is 0.48 (2017: 0.56). As of 30 June 2018, should interest rates lower or rise by 1% (2017: 1%), with all other variables remaining constant, the increase or decrease in net assets attributable to unitholders would be as follows:

Impact of 1% (2017: 1%) movement in interest rates on net assets attributable to the

unitholders 2018 2017

$ $Fund

LionGlobal SGD Money Market Fund 438,799 792,488

(iii) Currency risk

The Sub-Funds have monetary financial assets/liabilities denominated in currencies other than the functional currency and the Sub-Funds may be affected favourably or unfavourably by exchange rate regulations or changes in the exchange rates between the functional currency and such other currencies. The Sub-Funds may enter into foreign currency contracts designed to either hedge some or all of this exposure, or alternatively increase exposure to preferred foreign currencies.


128

The tables below summarise the Sub-Funds’ exposure to key currencies at the end of the financial year. Monetary and non-monetary items have been taken into the account for the analysis.


30 June 2018 USD SGD Total$ $ $

AssetsPortfolio of investments 121,930,639 - 121,930,639 Receivables 2,636 119,134 121,770 Cash and bank balances 553,276 - 553,276 Total assets 122,486,551 119,134 122,605,685

LiabilitiesPortfolio of investments 13,047 117,036 130,083 Payables - 6,175 6,175 Total liabilities 13,047 123,211 136,258

Net financial assets/(liabilities) 122,473,504 (4,077) 122,469,427

Net currency exposure 122,473,504 (4,077)

30 June 2017 USD SGD Total$ $ $

AssetsPortfolio of investments 133,371,863 - 133,371,863 Receivables 2,588 201,510 204,098 Due from brokers 686,996 - 686,996 Cash and bank balances 11,902 47,987 59,889 Total assets 134,073,349 249,497 134,322,846

LiabilitiesPayables 9,483 404,497 413,980 Total liabilities 9,483 404,497 413,980

Net financial assets/(liabilities) 134,063,866 (155,000) 133,908,866

Net currency exposure 134,063,866 (155,000)


129


30 June 2018 JPY USD SGD Total$ $ $ $

AssetsPortfolio of investments 8,313,619 - - 8,313,619 Receivables 10,258 182 5,428 15,868 Cash and bank balances 128,825 824 11,222 140,871 Total assets 8,452,702 1,006 16,650 8,470,358

LiabilitiesPayables - 1,157 81,971 83,128 Due to brokers 28,867 - - 28,867 Total liabilities 28,867 1,157 81,971 111,995

Net financial assets/(liabilities) 8,423,835 (151) (65,321) 8,358,363

Currency spots and financial derivatives (20,000) - 20,000

Net currency exposure 8,403,835 (151) (45,321)

30 June 2017 JPY USD SGD Total$ $ $ $

AssetsPortfolio of investments 9,035,732 - - 9,035,732 Receivables 9,040 375 10,021 19,436 Due from brokers 97,804 - - 97,804 Cash and bank balances 278,321 6,558 92,258 377,137 Total assets 9,420,897 6,933 102,279 9,530,109

LiabilitiesPayables - 475 78,432 78,907 Due to brokers 113,613 - - 113,613 Total liabilities 113,613 475 78,432 192,520

Net financial assets 9,307,284 6,458 23,847 9,337,589

Net currency exposure 9,307,284 6,458 23,847


130


30 June 2018 KRW USD SGD Total $ $ $ $

AssetsPortfolio of investments 18,770,222 - - 18,770,222 Receivables - 3,391 406,264 409,655 Cash and bank balances - 122,813 317,511 440,324 Total assets 18,770,222 126,204 723,775 19,620,201

LiabilitiesPayables - 2,357 104,996 107,353 Total liabilities - 2,357 104,996 107,353



30 June 2017 KRW USD SGD Total $ $ $ $

AssetsPortfolio of investments 20,022,316 - - 20,022,316 Receivables - 1,665 30,585 32,250 Due from brokers 106,465 - - 106,465 Cash and bank balances 1 115,672 146,533 262,206 Total assets 20,128,782 117,337 177,118 20,423,237





131

LionGlobal Malaysia Fund

30 June 2018 MYR USD SGD Total $ $ $ $

AssetsPortfolio of investments 10,277,932 - - 10,277,932 Receivables 38,116 1,524 8,628 48,268 Due from brokers 164,705 - - 164,705 Cash and bank balances 831,256 157,574 157,777 1,146,607 Total assets 11,312,009 159,098 166,405 11,637,512

LiabilitiesPayables - 184 47,076 47,260 Due to brokers 440,015 - - 440,015 Total liabilities 440,015 184 47,076 487,275



30 June 2017 MYR USD SGD Total $ $ $ $

AssetsPortfolio of investments 11,018,701 - - 11,018,701 Receivables 12,142 1,999 20,329 34,470 Due from brokers 22,219 - - 22,219 Cash and bank balances 583,722 29,786 56,170 669,678 Total assets 11,636,784 31,785 76,499 11,745,068


Net financial assets/(liabilities) 11,636,784 23,782 (45,767) 11,614,799

Net currency exposure 11,636,784 23,782 (45,767)


132

LionGlobal Taiwan Fund

30 June 2018 TWD USD SGD Total $ $ $ $

AssetsPortfolio of investments 10,658,163 - 10,658,163 Receivables 96,239 6,746 102,985 Cash and bank balances 34,096 19,645 53,741 Total assets 10,788,498 - 26,391 10,814,889


Net financial assets/(liabilities) 10,788,498 (5,263) (34,952) 10,748,283

Net currency exposure 10,788,498 (5,263) (34,952)

30 June 2017 TWD USD SGD Total $ $ $ $

AssetsPortfolio of investments 12,945,452 - - 12,945,452Receivables 82,115 - 24,670 106,785Cash and bank balances 610 - 17,318 17,928Total assets 13,028,177 - 41,988 13,070,165

LiabilitiesPayables - 16,215 92,956 109,171Total liabilities - 16,215 92,956 109,171




133

LionGlobal Thailand Fund

30 June 2018 THB USD SGD Total $ $ $ $

AssetsPortfolio of investments 19,865,229 - - 19,865,229 Receivables - 5,068 49,132 54,200 Due from brokers 98,540 - - 98,540 Cash and bank balances - 90,919 70,452 161,371 Total assets 19,963,769 95,987 119,584 20,179,340

LiabilitiesPayables - 23,312 115,845 139,157 Due to brokers - - - - Total liabilities - 23,312 115,845 139,157



30 June 2017 THB USD SGD Total $ $ $ $

AssetsPortfolio of investments 19,049,449 - - 19,049,449Receivables - 3,289 10,885 14,174Due from brokers 700,783 - - 700,783Cash and bank balances - 4,022 77,593 81,615Total assets 19,750,232 7,311 88,478 19,846,021

LiabilitiesPayables - 105,151 195,938 301,089Due to brokers 580,630 - - 580,630Total liabilities 580,630 105,151 195,938 881,719




134


30 June 2018 USD SGD Total $ $ $

AssetsPortfolio of investments - 92,017,883 92,017,883 Receivables - 619,061 619,061 Fixed deposits - 44,014,075 44,014,075 Cash and bank balances 129,281 8,567,633 8,696,914 Total assets 129,281 145,218,652 145,347,933

LiabilitiesDue to brokers - 499,658 499,658 Payables - 616,911 616,911 Total liabilities - 1,116,569 1,116,569

Net financial assets 129,281 144,102,083 144,231,364

Currency forwards and financial derivatives (9,275,108) 9,275,108

Net currency exposure (9,145,827) 153,377,191

30 June 2017 USD SGD Total $ $ $

AssetsPortfolio of investments 47,890,885 94,586,113 142,476,998 Receivables - 11,481,701 11,481,701 Fixed deposits - 21,002,485 21,002,485 Cash and bank balances 124,227 2,391,342 2,515,569 Total assets 48,015,112 129,461,641 177,476,753

LiabilitiesPayables - 1,695,154 1,695,154 Total liabilities - 1,695,154 1,695,154

Net financial assets 48,015,112 127,766,487 175,781,599

Currency forwards and financial derivatives (48,435,252) 48,435,252

Net currency exposure (420,140) 176,201,739


135

Equity/mutual fund investments are non-monetary financial assets and are exposed to both currency risk and price risk. As these financial assets are non-monetary, no separate sensitivity analysis has been performed to analyse currency risk. The impact of currency risk arising from these financial assets on the Sub-Funds’ net asset value has been included in the above price risk sensitivity analysis.

The Sub-Funds’ monetary assets/liabilities are measured for their sensitivity to exchange rate movements based on the balance of the monetary assets/liabilities, forecasted exchange rate movements and the net asset value of the Sub-Funds.

As of 30 June 2018 and 2017, the Sub-Funds’ exposure to foreign currency fluctuations is not considered to be significant and hence no sensitivity analysis on foreign currency risk has been presented.

(b) Liquidity risk

The Sub-Funds are exposed to daily redemption of units. They therefore invest the majority of their assets in investments that are traded in an active market and can be readily disposed of.

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


30 June 2018Less than 3 months

3 months- 1 year

1-5 years

Above 5 years

$ $ $ $

Payables 130,083 - - - Bank overdraft 6,175 - - -


3 months- 1 year

1-5 years

Above 5 years

$ $ $ $

Payables 413,980 - - -


136



3 months- 1 year

1-5 years

Above 5 years

$ $ $ $

Payables 83,128 - - - Due to brokers 28,867 - - -


3 months- 1 year

1-5 years

Above 5 years

$ $ $ $




3 months- 1 year

1-5 years

Above 5 years

$ $ $ $

Payables 107,353 - - -


3 months- 1 year

1-5 years

Above 5 years

$ $ $ $

Payables 163,794 - - -



3 months- 1 year

1-5 years

Above 5 years

$ $ $ $



137


3 months- 1 year

1-5 years

Above 5 years

$ $ $ $

Payables 130,269 - - -



3 months- 1 year

1-5 years

Above 5 years

$ $ $ $

Payables 66,606 - - -


3 months- 1 year

1-5 years

Above 5 years

$ $ $ $

Payables 109,171 - - -



3 months- 1 year

1-5 years

Above 5 years

$ $ $ $

Payables 139,157 - - -


3 months- 1 year

1-5 years

Above 5 years

$ $ $ $



138



3 months- 1 year

1-5 years

Above 5 years

$ $ $ $

Derivative financial instruments

- inflows (8,109,800) (2,796,898) - - - outflows 8,245,452 2,867,785 - - Payables 616,911 - - - Due to brokers 499,658 - - -


3 months- 1 year

1-5 years

Above 5 years

$ $ $ $

Derivative financial instruments

- inflows (1,376,850) - - - - outflows 1,378,680 - - - Payables 1,695,154 - - -

(c) Credit risk

Credit risk is the risk that counterparty will fail to perform contractual obligations, either in whole or in part, under a contract.

Concentrations of credit risk are minimised primarily by:

– ensuring counterparties, together with the respective credit limits, are approved,

– ensuring that transactions are undertaken with a large number of counterparties, and

– ensuring that the majority of transactions are undertaken on recognised exchanges.

The LionGlobal SGD Money Market Fund invests mostly in financial assets, which have an investment grade as rated by Standard and Poor’s or Moody’s. The credit ratings are reviewed regularly.


139

The table below analyses the Sub-Fund’s investments by credit ratings in percentage, out of total net asset attributable to unitholders.

Lion Global SGD Money Market Fund

2018 2017% %

Aaa 5.7 - Aa2 9.8 4.0 A1 4.4 6.7 A2 0.8 7.9 A3 0.5 10.0 Unrated 42.4 51.5 Accrued interest receivable on debt securities 0.4 0.5 Total debt securities 64.0 80.6

All transactions in listed securities are settled/paid upon delivery using approved brokers. The risk of default is considered minimal, as delivery of securities is only made once the broker has received payment. Payment is made on a purchase once the securities have been received by the broker. The trade will fail if either party fails to meet its obligation.

Credit risk also arises from cash and cash equivalents and assets held with financial institutions.

The Sub-Funds may also enter into derivatives to manage their exposures to currency risk and price risk, including foreign exchange forward contracts and options. Hence, the Sub-Funds are also exposed to the risk that derivatives held with counterparties may not be recoverable in the event of any default by the parties concerned. The Manager minimises the Sub-Funds’ credit risk by undertaking transactions with banks that are part of banking groups with good credit-ratings assigned by international credit rating agencies.


140

The tables below summarise the credit rating of banks and custodians in which the Sub-Funds’ assets are held as at 30 June 2018 and 2017.


Credit rating ##

Source of credit rating

30 June 2018

CustodianCitibank N.A. A+ S&P

BankCitibank N.A. A+ S&P

Credit rating ##


30 June 2017

CustodianCitibank N.A. A+ S&P


## Group credit ratings are presented for unrated subsidiaries.


141


Credit rating ##


30 June 2018

CustodianCitibank N.A., Singapore Branch A+ S&P

BankCitibank N.A. A+ S&P Australia & New Zealand Banking Group AA- S&P The Hongkong and Shanghai Banking

Corporation Limited AA- S&P

Credit rating ##


30 June 2017




Credit rating ##


30 June 2018





142

Credit rating ##


30 June 2017




Credit rating ##


30 June 2018



Credit rating ##


30 June 2017




Credit rating ##


30 June 2018





143

Credit rating ##


30 June 2017




Credit rating ##


30 June 2018



Credit rating ##


30 June 2017





144


Credit rating ##


30 June 2018


BankAustralia & New Zealand Banking Group AA- S&P Standard Chartered Bank, Singapore A S&P Citibank N.A. A+ S&P United Overseas Bank AA- S&P The Hongkong and Shanghai Banking

Corporation Limited AA- S&P BNP Paribas A S&P

Credit rating ##


30 June 2017


BankAustralia & New Zealand Banking Group AA- S&P Standard Chartered Bank, Singapore A S&P Citibank N.A. A+ S&P Oversea-Chinese Banking Corporation Limited AA- S&P The Hongkong and Shanghai Banking

Corporation Limited AA- S&P Westpac Banking Corporation, Sydney AA- S&P

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

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



145

(d) Capital management

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

(e) Fair value estimation

The Sub-Funds classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels:

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

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

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

The following tables analyse within the fair value hierarchy the Sub-Funds’ financial assets and liabilities (by class) measured at fair value at 30 June 2018 and 2017:


30 June 2018 Level 1 Level 2 Level 3 Total$ $ $ $

AssetsFinancial assets at fair

value through profit or loss- Investment in

Subsidiary -

121,930,639* - 121,930,639



value through profit or loss- Investment in

Subsidiary -

133,371,863* - 133,371,863


146

* The LionGlobal India Fund invests its assets substantially in its Subsidiary which is valued based on the underlying net assets of the Subsidiary as determined by the Administrator of its Subsidiary, and therefore the LionGlobal India Fund’s investment in the Subsidiary has been classified as Level 2. The Subsidiary’s investment in equity securities amounting to $116,803,320 (2017: $130,372,703) is classified as Level 1. Their values are based on quoted market prices in active markets.




value through profit or loss- Quoted equities 8,313,619 - - 8,313,619

Held for trading- Derivative financial

instruments - 119 - 119





147











value through profit or loss- Quoted equities 10,277,932 - - 10,277,932 - Unquoted equities - - - -



value through profit or loss- Quoted equities 11,018,701 - - 11,018,701 - Unquoted equities - - - -


148
















149




value through profit or loss- Quoted debt

securities - 92,017,883 - 92,017,883 Held for trading

- Derivative financial instruments - 6,109 - 6,109

- 92,023,992 - 92,023,992 LiabilitiesHeld for trading


- 206,539 - 206,539



value through profit or loss- Quoted debt

securities - 142,476,998 - 142,476,998 Held for trading


- 143,381,251 - 143,381,251 LiabilitiesHeld for trading


Investments whose values are based on quoted market prices in active markets, and therefore classified within Level 1, comprise active listed equities and exchange traded derivatives. The Sub-Funds do not adjust the quoted price for these instruments.


150

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

Investments classified within Level 3 have significant unobservable inputs as there are no readily available quoted market prices. Investment classified as Level 3 of LionGlobal Malaysia Fund consists of 1 equity security which has been delisted and ceased trading since the prior financial year. The fair value of the security has been written down to nil value. The valuation techniques and key unobservable inputs for this investment is not disclosed and no sensitivity analysis is presented as the amount is insignificant.

Except for cash and cash balances which are classified as Level 1, the Sub-Funds’ assets and liabilities not measured at fair value at 30 June 2018 and 2017 have been classified as Level 2. The carrying amounts of these assets and liabilities approximate their fair values as at the reporting date.

(f) Offsetting financial assets and financial liabilities

LionGlobal India FundLionGlobal Japan Fund LionGlobal Korea Fund LionGlobal Malaysia FundLionGlobal Taiwan FundLionGlobal Thailand Fund

There are no financial assets or liabilities subject to offsetting, enforceable master netting arrangement and similar agreements.


30 June 2018

Financial assets subject to offsetting, enforceable master netting arrangements and similar agreements:

A B C = A-B D E = C-D

Gross amounts of recognised

financial assets


financial liabilities

set-off in the statement

of financial position

Net amounts of financial

assets presented in the statement of financial

position

Related amounts not set-off in the statement of financial

position

Net amount

D(i) and D(ii) Financial

Instruments

D(ii) Cash Collaterals Received

Foreign exchange forward contracts 6,109 - 6,109 (6,109) - -


151

Financial liabilities subject to offsetting, enforceable master netting arrangements and similar agreements:





financial assets set-off in the statement



liabilities presented in the statement of financial

position


position

Net amount


Instruments


Foreign exchange forward contracts 77,954 - 77,954 (6,109) - 71,845

30 June 2017

Financial assets subject to offsetting, enforceable master netting arrangements and similar agreements:



financial assets



set-off in the statement



assets presented in the statement of financial

position


position

Net amount


Instruments


Foreign exchange forward contracts 904,253 - 904,253 (1,830) - 902,423

Financial liabilities subject to offsetting, enforceable master netting arrangements and similar agreements:





financial assets set-off in the statement



liabilities presented in the statement of financial

position


position

Net amount


Instruments


Foreign exchange forward contracts 1,830 - 1,830 (1,830) - -


152

14. RELATED PARTY TRANSACTIONS

Management fees are paid to the Manager, while trustee fee is paid to the Trustee. These fees paid or payable by the Sub-Funds shown in the Statements of Total Return and in the respective notes to the financial statements are on terms set out in the Trust Deed.

In addition to the related party information shown elsewhere in the financial statements, the following transactions took place during the financial year between the Sub-Funds and related parties at terms agreed between the parties and within the provisions of the Trust Deed:

LionGlobal India Fund LionGlobal Japan Fund 2018 2017 2018 2017

$ $ $ $

Interest expenses incurred with a bank which is a related company of the Trustee 4,175 1,357 16 55

Transaction fees charged by a related company of the Trustee - - 4,009 3,610

Custodian fees charged by a related company of the Trustee 7,694 6,546 6,268 5,811

Bank service fees charged by a bank which is a related company of the Trustee 970 238 201 212

Cash transfer fees charged by a related company 18,739 50,362 1,332 11,242


153


$ $ $ $

Interest expenses incurred with a bank which is a related company of the Trustee - 136 11 2

Transaction fees charged by a related company of the Trustee 2,285 2,137 2,822 4,444



Cash transfer fees charged by a related company 15,938 43,780 9,249 37,653


154


$ $ $ $ Interest expenses incurred

with a bank which is a related company of the Trustee - 55 392 11

Transaction fees charged by a related company of the Trustee 3,709 4,186 2,291 2,995



Cash transfer fees charged by a related company 750 2,000 18,373 59,576


$ $ Interest expenses incurred with a bank which is a

related company of the Trustee - 7,167

Transaction fees charged by a related company of the Trustee 824 1,619

Custodian fees charged by a related company of the Trustee 17,426 20,569

Bank service fees charged by a bank which is a related company of the Trustee 301 347

Cash transfer fees charged by a related company 2,901 5,001


155

15. FINANCIAL RATIOS


$ $

Expense ratio1 (excludes underlying sub-fund’s expense ratio) 0.19 0.24

Expense ratio1 (includes underlying sub-fund’s expense ratio) 1.70* 1.74*

Portfolio turnover ratio2 14 13

LionGlobal Japan Fund LionGlobal Korea Fund 2018 2017 2018 2017

$ $ $ $

Expense ratio1 1.80 2.09 1.53 1.99

Portfolio turnover ratio2 57 68 46 45

LionGlobal Malaysia Fund LionGlobal Taiwan Fund 2018 2017 2018 2017

$ $ $ $

Expense ratio1 1.55 2.28 1.81 1.90


LionGlobal Thailand Fund LionGlobal SGD


$ $ $ $

Expense ratio1 1.45 2.10 0.35 0.34


* The expense ratio is the sum of the sub-fund’s expense ratio and weighted average of the underlying investment fund’s expense ratio.


156

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 30 June 2018 was based on total operating expenses divided by the average net asset value respectively for the year. The total operating expenses do not include, (where applicable) brokerage and other transactions costs, performance fee, interest expense, distribution paid out to unitholders, foreign exchange gains/losses, front or back end loads arising from the purchase or sale of other funds and tax deducted at source or arising out of income received. The Sub-Funds do not pay any performance fee. The average net asset value is based on the daily balances.

There following tables present the total operating expenses and average net asset values of the Sub-Funds for the financial year ended 30 June 2018 and 2017.


$ $

Total operating expenses 256,174 329,348 Average net asset value 131,440,071 135,247,402

Weighted average of the underlying funds’ expense ratio (%) 1.51 1.50

LionGlobal Japan Fund LionGlobal Korea Fund2018 2017 2018 2017

$ $ $ $

Total operating expenses 160,795 194,255 344,764 383,489 Average net asset value 8,945,842 9,294,629 22,562,388 19,253,894

LionGlobal Malaysia Fund LionGlobal Taiwan Fund2018 2017 2018 2017

$ $ $ $


LionGlobal Thailand FundLionGlobal SGD


$ $ $ $



157

2 The portfolio turnover ratios are 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 weighted average daily net asset value respectively as below:


$ $ $ $ Total value of purchases or

sales of the underlying investments 18,140,403# 17,290,726# 5,097,150 6,340,251

Average daily net asset value 131,440,071 135,247,402 8,945,842 9,294,629



sales of the underlying investments 10,473,051 8,625,914 9,371,535 10,099,162




sales of the underlying investments 2,369,885 2,742,120 8,804,369 9,904,208



$ $ Total value of purchases or sales of the underlying

investments 100,487,013 127,370,271

Average daily net asset value 148,484,765 190,005,170

# There were no purchases during the financial years ended 30 June 2018. Therefore, the total value of sales is used in the calculation of portfolio turnover ratio.


158

16. INVESTMENT IN SUBSIDIARY AND SCHEDULE OF SECURITIES

The Subsidiary is a wholly owned subsidiary of LionGlobal India Fund. The Subsidiary operates as an integrated structure whereby LionGlobal India Fund invests into the Subsidiary by subscribing the Subsidiary’s participating shares. The Subsidiary allows redemption of these participating shares on a daily basis.

Total net redemption made by LionGlobal India Fund from the Subsidiary during the year ended 30 June 2018 were $18,140,403 (2017: $17,290,726). As at 30 June 2018 and 2017, there were no capital commitment obligations and no amount due to the Subsidiary for unsettled purchases.

During the year ended 30 June 2018, total net gains of LionGlobal India Fund from investment in Subsidiary was $6,699,180 (2017: $21,920,668).

Movements in the fair value of the Subsidiary’s portfolio and corresponding movement in the fair value of the Subsidiary may expose LionGlobal India Fund to a loss.

The schedule of securities of the Subsidiary is presented as below:

Holdings at30 June

2018


2018


30 June2018

$ %By Industry

QUOTED

FINANCIAL Housing Development Finance

Corporation Limited 338,637 12,858,936 10.5 ICICI Bank Limited 821,788 4,503,946 3.7 YES Bank Limited 394,183 2,664,397 2.2 Shriram Transport Finance 77,073 1,993,111 1.6 HDFC Limited 45,438 1,906,567 1.6 State Bank Of India Limited 361,708 1,866,869 1.5 Mahindra & Mahindra Financial

Services Limited 189,400 1,770,206 1.5 Edelweiss Capital Limited 215,879 1,265,217 1.0 ICICI Prudential Life Insurance 143,960 1,080,931 0.9

29,910,180 24.5


159

Holdings at30 June

2018


2018


30 June2018

$ %TECHNOLOGYInfosys Technologies Limited 426,666 11,099,401 9.1 Tata Consultancy Services

Limited 173,388 6,375,757 5.2 HCL Technologies Limited 195,957 3,612,089 3.0

21,087,247 17.3

CONSUMER, CYCLICALMaruti Suzuki India Limited 26,820 4,710,560 3.9 Hindustan Unilever Limited 126,394 4,128,043 3.4 Mahindra & Mahindra Limited 221,243 3,952,485 3.2 Tata Motors Limited 348,209 1,866,147 1.5 Motherson Sumi Systems 263,955 1,495,501 1.2 Future Retail Limited 90,923 1,039,973 0.9

17,192,709 14.1

ENERGYReliance Industries Limited 586,203 11,344,485 9.3 Indian Oil Corporation Limited 580,314 1,801,595 1.5 Bharat Petroleum Corporation

Limited 151,397 1,124,721 0.9 14,270,801 11.7

CONSUMER, NON-CYCLICALITC Limited 1,073,984 5,689,516 4.7 Aurobindo Pharmaceuticals

Limited 137,095 1,656,347 1.3 Britannia Industries Limited 13,386 1,655,290 1.3 Sun Pharmaceutical Industries

Limited 126,741 1,422,544 1.2 Dr Reddy's Laboratories Limited 26,385 1,173,583 1.0 Glenmark Pharmaceuticals

Limited 95,685 1,110,246 0.9 Lupin Limited 42,547 765,263 0.6

13,472,789 11.0


160

Holdings at30 June

2018


2018


30 June2018

$ %BASIC MATERIALSVedanta Limited 646,785 3,040,250 2.5 Hindalco Industries Limited 469,730 2,154,709 1.8 TATA Steel Limited 133,202 1,505,003 1.2 Shree Cements Limited 4,242 1,313,070 1.1 Phillips Carbon Black Limited 206,635 898,720 0.7

8,911,752 7.3

INDUSTRIALLarsen & Toubro Limited 177,495 4,504,015 3.7 Eicher Motors Limited 3,833 2,180,868 1.8 IRB Infrastructure Developers

Limited 243,664 1,022,675 0.9 Nagarjuna Construction

Company Limited 530,975 1,014,941 0.8 8,722,499 7.2

COMMUNICATIONSBharti Airtel Limited 115,572 878,473 0.7 Bharat Infratel Limited 137,822 824,337 0.7

1,702,810 1.4

UTILITIESNTPC Limited 288,555 916,784 0.8 Gail India Limited 90,936 615,749 0.5

1,532,533 1.3

UNQUOTED

CORPORATEBrillio Technologies Private

Limited* (formerly Collabera Solutions Private Limited) 730,000 - -


161

Holdings at30 June

2018


2018


30 June2018

$ %Total value of equities held by

the Subsidiary 116,803,320 95.80 Other net assets of the

Subsidiary 5,127,319 3.80 Net assets attributable to the

Subsidiary 121,930,639 99.6

* The security has been suspended from trading in the previous financial years and its fair value represents the Investment Manager’s best estimate.


30 June2018

30 June2017


Financial 24.5 24.9 Technology 17.3 14.6 Consumer, Cyclical 14.1 14.3 Energy 11.7 11.4 Consumer,Non Cyclical 11.0 14.0 Basic Materials 7.3 8.4 Industrial 7.2 6.4 Communications 1.4 - Utilities 1.3 1.5 Diversified - 1.3 Real Estate - 1.0

Total value of equities held by the Subsidiary 95.8 97.8 Other net assets of the Subsidiary 3.8 1.8 Net assets attributable to the Subsidiary 99.6 99.6

DISCLAIMER

This publication is for information only. It is not a recommendation, offer or solicitation for the purchase or sale of any securities or investments and does not have regard to your specific investment objectives, financial situation, tax position or needs. Applications for units in our funds must be made on forms accompanying the prospectus. You should read the prospectus and Product Highlights Sheet which is available and may be obtained from Lion Global Investors Limited (“LGI”) or any of its distributors, consider if a fund is suitable for you and seek such advice from a financial adviser if necessary, before deciding whether to invest in the fund. Investments in our funds are not obligations of, deposits in, guaranteed or insured by LGI or any of its affiliates and are subject to investment risks including the possible loss of the principal amount invested. The performance of a fund is not guaranteed and the value of units in a fund and the income accruing to the units, if any, may rise or fall. Past performance, as well as any predictions, projections, or forecasts are not necessarily indicative of the future or likely performance of a fund. Dividend distributions, which may be either out of income and/or capital, are not guaranteed and subject to LGI’s discretion. Any such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value of the fund. Any information (which includes opinions and estimates) is subject to change or correction at any time without notice and is not to be relied on as advice. You are advised to conduct your own independent assessment and investigation of the relevance, accuracy, adequacy and reliability of any information contained herein and no warranty is given and no liability is accepted for any loss arising directly or indirectly as a result of you acting on such information. The fund may, where permitted by the prospectus, invest in financial derivative instruments for hedging purposes or for the purpose of efficient portfolio management. LGI, its related companies, their directors and/or employees may hold units of a fund and be engaged in purchasing or selling units of a fund for themselves or their clients. Lion Global Investors® Limited (UEN/ Registration No. 198601745D) is a Singapore incorporated company, and is not related to any asset or fund management entity that is domiciled in Europe or the United States.

This publication may be translated into the Chinese language. In the event of any ambiguity, discrepancy or omission between the English and Chinese versions, the English version shall apply and prevail. In the event of any ambiguity, discrepancy or omission between this publication and the prospectus, the contents of the prospectus shall apply and prevail.

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Lion Global Investors Ltd65 Chulia Street #18-01OCBC Centre, Singapore 049513

For more information, visit: lionglobalinvestors.com or email: [email protected]

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