The global credit crisis has led to one of the deepest equity bear markets in modern times. As with any crisis, the sell-down was driven mainly by fear and equity markets have been severely oversold. Although equity markets are likely to be volatile until the global economy shows signs of recovery, they nevertheless offer genuine value for longer-term investors. After all, the best investment rewards come from buying low and selling high.
While the current economic downturn in Asia is a deep one, it is however only a cyclical one. This is in contrast with the US and Europe, where problems in the banking system have created serious structural headwinds against their growth in the coming years. Therefore, there is a good chance that when the global economy recovers, Asia will bounce back strongly.
UOBAM - Your Choice Partner
For the second year running1, UOB Asset Management Ltd (“UOBAM”) has won the Best Fund Group (Overall) at The Edge-Lipper Singapore Fund Awards 2009. The award recognises consistent risk-adjustment performance across the three main asset classes – Equity, Bond and Mixed Assets. Paying equal attention to the different asset classes is something that we believe is important in order to offer investors meaningful ways to diversify their portfolios. Many investors tend to focus on returns and rarely consider the risks. However at UOBAM, we understand and strive to manage both risks and returns.
Intelligent investing is also about choosing the right partner who can offer you sound investment services to achieve your investment goals. Behind UOBAM’s success at the fund awards2 is our long-held investment philosophy and process. This philosophy is observed by all the UOBAM investment teams in Singapore and around the region. Another reason for our success is our highly disciplined investment process which is centred on rigorous research.
United Growth Fund Singapore has sound economic fundamentals. It has no external debt and the government is in a position to embark on large fiscal spending programmes to stimulate the economy. Many of Singapore’s blue chip companies also have solid fundamentals and are likely to come through the credit crisis intact and in fact, may even emerge stronger from the crisis if their competitors are weakened by the crisis. And when the market recovers, these are the companies which are likely to be rewarded.
Investment Strategy
Invests in shares of companies listed or quoted on Singapore Exchange Securities Trading Limited.
Why United Growth Fund?
For investors who see recovery potential in Singapore equity market and prefer a focused way of participation may consider the United Growth Fund.
Valuations in the Singapore equity market have reached historically low levels and such attractive valuations could signal the potential buying opportunities to position for the market’s recovery from the crisis.
Capitalise on Singapore’s stable fundamentals which should ride out the financial turmoil
Lipper Leader for Expense as at 27 February 20092.
United Asian Bond Fund Asian fixed income markets have been severely affected by the global credit crisis and have fallen to levels which imply that the default rates are worse than during the Asian Financial Crisis. However, Asian economic and corporate fundamentals are far healthier today and credit spreads are likely to be overstating the risk of corporate failure. We believe that when the financial conditions stabilise, the Asian fixed income markets could stage a strong recovery.
Investment Strategy
Invests in debt securities issued by Asian corporations, financial institutions, governments and their agencies (including money market instruments).
Why United Asian Bond Fund?
For investors seeking long-term capital growth.
A stable way to participate in the growth of Asian economies.
Asian fixed income market is likely to grow hand in hand with Asia’s economic development.
Diversification for equity investors.
Actively managed with a focus on yield at an acceptable risk premium.
To give investors the opportunity to achieve medium to long term capital appreciation and to receive regular income distributions during the investment period through investing in shares of companies listed or quoted on Singapore Exchange Securities Trading Limited (“SGX-ST”)
To provide stable current income and capital appreciation by investing in debt securities issued by Asian corporations, financial institutions, governments and their agencies (including money market instruments)
Fund Type
Open-ended
Open-ended
Fund Currency
SGD (with USD pricing)
SGD
Subscription Mode
Cash (SGD and USD)
CPF-OA and SRS (SGD)
Cash and SRS
Subscription Fee
5% (Cash and SRS)
3% (CPF-OA)
3%
Management Fee
1% p.a.
1% p.a.
Other Fees
Custodian, Registrar, Trustee, Valuation and other fees apply
Custodian, Registrar, Trustee, Valuation and other fees apply
Minimum Subscription
S$500/US$500 (initial)
S$500/ US$500 (subsequent)
S$1,000 (initial)
S$500 (subsequent)
Minimum Regular Savings Plan
S$100 per month
S$500 per quarter
S$100 per month
S$500 per quarter
Dealing Frequency
Every Business Day on Forward Pricing up till 3 pm (Singapore time)
Every Business Day on Forward Pricing up till 3 pm (Singapore time)
Notes:
1) The award for the Best Fund Group (Overall) was presented to UOBAM at The Edge-Lipper Singapore Fund Awards in both 2008 and 2009.
2) Please refer to uobam.com.sg for details of the awards presented to the Fund and the Lipper ratings received by the Fund.
Important Notice and Disclaimers:
This document is prepared by UOBAM and the views and opinions expressed or implied in the document are those of UOBAM and not necessarily those of United Overseas Bank Limited (“UOB”) and are subject to change without notice. UOBAM and UOB accept no liability whatsoever for any direct or consequential loss arising from any use of or reliance on this document. This document must not be construed as an offer or solicitation to deal in units of any collective investment scheme, including those mentioned in this document. It is published for information and general circulation only and does not have any regard to the specific investment objectives, financial situation and particular needs of any specific person who may receive this document. Investors may wish to seek advice from a financial adviser before purchasing units of any collective investment scheme managed by UOBAM, including those mentioned in this document (each, a “Fund”). In the event that the investor chooses not to seek advice from a financial adviser, he should consider carefully whether the relevant Fund is suitable for him.
Past performance of any Fund or UOBAM is not necessarily indicative of the future or likely performance of the relevant Fund or UOBAM, and any prediction, projection or forecast on the economy, the markets or the economic trends of the markets is not necessarily indicative of their future or likely performance or that of any Fund. The value of units in any Fund, and any income accruing to such units, may fall as well as rise. Investors should read the relevant prospectus, available from UOBAM or its distributors, before deciding to subscribe for or purchase units in any Fund. Applications for units of a Fund must be made on the application forms accompanying the relevant prospectus.
Investments in unit trusts are not obligations of, deposits in, or guaranteed or insured by UOBAM or any subsidiary or associate of the UOB Group or any of their affiliates, or by any distributor of any Fund, and are subject to risks, including the possible loss of the principal amount invested. UOB, UOBAM or any subsidiary or associate of the UOB Group or any of their affiliates may have interest in the units of any Fund and may also perform or seek to perform brokering and other investment or securities-related services for any Fund
UOB Asset Management Ltd Co. Reg. No.198600120Z
United Overseas Bank Ltd Co. Reg. No.193500026Z
