Market volatility has risen in recent days, driven largely by a sell‑off in technology stocks globally, including across Asia. While such pullbacks can be uncomfortable, they also highlight that market leadership does not move in a straight line, and that periods of weakness can create opportunities to gain exposure at more attractive entry points.
Despite near-term fluctuations, Asia’s long-term investment case remains underpinned by strong earnings growth, attractive valuations, and a broad set of structural tailwinds. At the same time, Asia is not a single story. Its markets offer distinct return drivers, ranging from AI‑ and innovation‑led growth in North Asia to more income‑oriented opportunities in ASEAN.
In this environment, capturing Asia’s potential comes down to selecting the right exposures for different investment needs.
Solutions from UOBAM
UOBAM offers a broad range of Asian equity solutions, giving investors the flexibility to align their Asia exposure with their specific objectives.
Asian equity solutions at a glance
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United Asia Fund |
United Greater China Fund |
United China A-Shares Innovation Fund |
UOBAM FTSE China A50 Index ETF |
UOBAM Ping An FTSE ASEAN Dividend Index ETF |
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What it offers |
Broad Asia exposure |
Exposure to China, Taiwan, Hong Kong |
Access to China’s innovation leaders |
Exposure to China’s 50 largest A-share companies |
Dividends of at least 6% p.a. in 2026 and 2027* |
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Top country allocation |
China, Taiwan, South Korea |
Taiwan, China, Hong Kong |
China |
China |
Thailand, Singapore, Indonesia |
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Top sector allocation |
Technology, Financials, Industrials |
Technology, Financials, Communication Services |
Technology, Industrials, Energy |
Financials, Technology, Industrials |
Financials, Energy, Industrials |
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Top holdings |
TSMC, Samsung Electronics, SK Hynix |
TSMC, Tencent Holdings, Fubon Taiwan Technology |
Suzhou Dongshan Precision Manufacturing, Zhongji Innolight, Yuanjie Semiconductor Technologies |
CATL, Kweichow Moutai, Zhongji Innolight |
DBS, SCB X, PTT |
Source: UOBAM, as of 30 April 2026. TSMC: Taiwan Semiconductor Manufacturing Company; CATL: Contemporary Amperex Technology
* Distributions are not guaranteed. Distributions may be made out of income, capital gains and/or capital. This relates to the disclosed distribution policy as set out in the Fund’s prospectus.
1. I want a core Asia allocation
For investors seeking broad exposure to Asia’s long‑term growth, the United Asia Fund is designed to serve as a core portfolio allocation. It offers access to Asia’s key growth themes while providing diversification across markets and sectors to help manage risk.
Portfolio positioning
The Fund focuses on Asia’s largest and most established stock markets, such as China, Taiwan, South Korea, and India. These markets are home to many of the region’s leading companies including Taiwan Semiconductor Manufacturing Company (TSMC), a key supplier of AI chips to global tech firms, and memory chipmakers Samsung Electronics and SK Hynix.
Sector-wise, the Fund has a meaningful allocation to tech stocks, reflecting Asia’s crucial role in the global AI hardware supply chain – particularly through Taiwan and South Korea. This is complemented by exposure to financials, industrials and materials, helping diversify returns beyond tech.
Performance1
This positioning has translated into strong recent performance. In May, the Fund outperformed its benchmark with a return of 13.8 percent, driven in part by its exposure to companies benefiting from the global surge in demand for AI infrastructure.
The Fund’s unique AI-enhanced investment approach has also contributed to its performance. UOBAM has developed a proprietary AI engine that scans large amounts of market and company data to identify potential opportunities across Asia. These insights are then carefully assessed by the investment team, with analysts applying their own views and adding high-conviction ideas. By combining AI-driven insights with human experience and judgement, the Fund is able to build a portfolio of stocks with good return potential across different market conditions.
2. I want exposure to Greater China’s growth potential
The Fund provides diversified exposure to the China, Taiwan and Hong Kong markets, allowing investors to participate in Greater China’s long‑term growth. Rather than investing in China alone, this approach allows investors to tap into different but complementary growth drivers across the region.
- China: Access to an innovation‑led economy, with industries such as electric vehicles, robotics, biotechnology and advanced manufacturing driving growth.
- Taiwan: Global hub for advanced semiconductor manufacturing; key pillar of global AI hardware ecosystem.
- Hong Kong: Major IPO hub; key gateway for investing in Chinese companies as many mainland firms choose to list there.
Portfolio positioning
The Fund is primarily invested in Taiwan and China, with additional exposure to Hong Kong. Key holdings include TSMC, alongside Tencent and Alibaba, two of China’s largest internet companies. To capture growth across different parts of the Greater China economy, the Fund complements its tech allocation with exposure to financials, consumer discretionary and industrials.
Performance2
The Fund rose 9.8 percent in May, outperforming its benchmark by 3.1 percent. This strong performance was driven by a broad rally in tech stocks across Taiwan and China.
3. I want concentrated exposure to China’s innovation leaders
United China A-Shares Innovation Fund
The Fund offers investors targeted access to innovation-driven companies listed on China’s domestic A-shares market. Core themes include semiconductors, advanced manufacturing, and new energy – industries aligned with China’s push to strengthen domestic capabilities in AI and other strategic technologies.
Portfolio positioning
The Fund is positioned around China’s key innovation-related sectors, with a strong emphasis on tech and advanced industrial companies.
Top holdings include Suzhou Dongshan Precision Manufacturing, Zhongji Innolight and Yuanjie Semiconductor Technology, companies which operate at the forefront of China’s electronics, optical communications and semiconductor value chains. This results in a more focused and growth‑oriented portfolio compared with broader Greater China strategies.
Performance3
The Fund gained 13.3 percent in May, supported by a broad rally in China’s tech sector and effective stock selection. The fund manager seeks to identify companies with strong growth potential before their prospects are fully recognised by the market. This allows the Fund to capture potential upside as these companies gain wider investor attention and their earnings potential becomes clearer.
Importantly, performance has not come at the expense of excessive risk‑taking. The Fund seeks to capture innovation‑led growth while maintaining a strong focus on downside risk management. As a result, its core holdings have historically shown better resilience during market pullbacks compared with China’s tech‑focused ChiNext Index4.
4. I want broad exposure to China’s domestic economy
UOBAM FTSE China A50 Index ETF (SGX: JK8)
Investors who prefer to gain access to China A-shares via an exchange traded fund (ETF) can do so via the UOBAM FTSE China A50 Index ETF. It tracks the FTSE China A50 Index, which represents China’s 50 largest and most established A‑share companies.
Portfolio positioning
The portfolio is tilted towards blue‑chip companies. Top holdings include well‑known market leaders such as Contemporary Amperex Technology (CATL), Kweichow Moutai, China Merchants Bank, and Zijin Mining, offering diversified exposure to new energy, industrials, financial services and consumer sectors.
Performance5
The ETF generated a positive return of 2.3 percent in May, providing investors with a simple, cost‑efficient way to track the performance of China’s A-share market, without active stock selection.
5. I want to capture ASEAN’s dividend potential
UOBAM Ping An FTSE ASEAN Dividend Index ETF (SGX: UPD, UPU)
The ETF offers a simple and efficient way to access ASEAN’s income opportunities, aiming to pay dividends of at least 6.0 percent per annum in 2026 and 20276.
ASEAN markets are generally more domestically focused, with banks, telcos, and consumer-related companies having a strong presence. These businesses operate in mature industries with steady earnings, enabling them to deliver consistent dividends over time.
Portfolio positioning
The ETF invests in leading dividend-paying companies across Singapore, Indonesia, Malaysia, Thailand and the Philippines. Financial companies form more than half the portfolio, including Singapore’s three local banks, Thailand’s SCB X, Malaysia’s Maybank, and Indonesia’s Bank Mandiri and Bank Rakyat Indonesia.
The tilt towards financials supports portfolio stability and underpins a naturally strong dividend profile. The ETF is further diversified across energy, industrials, and telecommunications, providing multiple sources of income.
Performance7
The Fund declined 0.4% in May, an improvement from the 1.9% decline in April, as ASEAN markets continued to be affected by higher oil prices amid geopolitical tensions in the Middle East. Many Southeast Asian economies are net energy importers, making them more sensitive to rising energy costs.
More broadly, ASEAN equities have also lagged regional peers due to their relatively lower exposure to fast-growing AI sectors.
That said, this more defensive profile can be an advantage during periods of heightened volatility. With a stronger focus on steady, income‑generating companies and relatively lighter investor positioning, ASEAN markets may offer greater stability during market pullbacks, helping to cushion portfolios when growth-led sectors come under pressure.
1Source: Morningstar, as of 31 May 2026. Past performance is not necessarily indicative of future performance. Fund benchmark: MSCI AC Asia ex Japan
2Source: Morningstar, as of 31 May 2026. Past performance is not necessarily indicative of future performance. Fund benchmark: MSCI Golden Dragon
3Source: Morningstar, as of 31 May 2026. Past performance is not necessarily indicative of future performance. Fund is not managed with reference to a benchmark
4Source: Ping An Fund Management, as of 30 April 2026. Ping An Fund Management is the sub-manager of the United China A-Shares Innovation Fund
5Source: Morningstar, as of 31 May 2026. Past performance is not necessarily indicative of future performance. Fund benchmark: FTSE China A50 Index
6Distributions are not guaranteed. Distributions may be made out of income, capital gains and/or capital. This relates to the disclosed distribution policy as set out in the Fund’s prospectus.
7Source: Morningstar, as of 31 May 2026. Past performance is not necessarily indicative of future performance. Fund benchmark: FTSE ASEAN ex REITs Target Dividend Index
Distributions will be made in respect of the Distribution Classes of the Fund. Distributions are based on the NAV per unit of the relevant Distribution Class as at the last business day of the calendar month or quarter. The making of distributions is at the absolute discretion of UOBAM and that distributions are not guaranteed. The making of any distribution shall not be taken to imply that further distributions will be made. UOBAM reserves the right to vary the frequency and/or amount of distributions. Distributions from a fund may be made out of income and/or capital gains and (if income and/or capital gains are insufficient) out of capital. Investors should also note that the declaration and/or payment of distributions (whether out of income, capital gains, capital or otherwise) may have the effect of lowering the net asset value (NAV) of the relevant fund. Moreover, distributions out of capital may amount to a reduction of part of your original investment and may result in reduced future returns. Please refer to the Fund's prospectus for more information.
This document is for general information only. It does not constitute an offer or solicitation to deal in units in the Fund (“Units”) or investment advice or recommendation and was prepared without regard to the specific objectives, financial situation or needs of any particular person who may receive it. The information is based on certain assumptions, information, and conditions available as at the date of this document and may be subject to change at any time without notice. No representation or promise as to the performance of the Fund or the return on your investment is made. Past performance of the Fund or UOB Asset Management Ltd (“UOBAM”) and any past performance, prediction, projection or forecast of the economic trends or securities market are not necessarily indicative of the future or likely performance of the Fund or UOBAM. The value of Units and the income from them, if any, may fall as well as rise, and is likely to have high volatility due to the investment policies and/or portfolio management techniques employed by the Fund. Investments in Units involve risks, including the possible loss of the principal amount invested, and are not obligations of, deposits in, or guaranteed or insured by United Overseas Bank Limited (“UOB”), UOBAM, or any of their subsidiary, associate, or affiliate (“UOB Group”) or distributors of the Fund. The Fund may use or invest in financial derivative instruments, and you should be aware of the risks associated with investments in financial derivative instruments which are described in the Fund’s prospectus. The UOB Group may have interests in the Units and may also perform or seek to perform brokering and other investment or securities-related services for the Fund. Investors should read the Fund’s prospectus, which is available and may be obtained from UOBAM or any of its appointed agents or distributors, before investing. You may wish to seek advice from a financial adviser before making a commitment to invest in any Units, and in the event that you choose not to do so, you should consider carefully whether the Fund is suitable for you. Applications for Units must be made on the application forms accompanying the Fund’s prospectus.
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