PRESENTING UNITED ASIA CONSUMER FUND

For many years, the growth of Asian economies has been underpinned by their export sector. We believe that a long-term structural shift is underway and that consumer demand is set to play a larger part in driving Asian economies. The powerful force behind this important change in the world’s most populous continent is the growing affluence in Asia’s emerging middle class. The United Asia Consumer Fund (the “Fund”) now offers you the opportunity to take part in Asia’s compelling consumption story.

High conviction investing in high-growth and high octane sector
As a result of years of rapid economic expansion,household incomes and purchasing power across Asia have jumped by leaps and bounds when compared to a decade ago. The Asian consumer sector is poised to enter a critical phase that will potentially see its fastest expansion to date – a critical development that spells plenty of investment opportunities for those with a medium to longer-term horizon.

Besides demand for consumer staples, spending on the higher-value consumer discretionary (such as luxury goods, cars and high-end clothing) has also picked up, this is in line with changes in lifestyle and living standards. Both the Consumer Staples and Consumer Discretionary indices have outperformed the broader MSCI Asia ex Japan index over the ten-year period from 2001 to 2011. Leveraging well on the rising affluence and booming luxury demand in the region for growth, we believe that luxury goods companies are likely to sustain their growth momentum over the medium-term.

Favourable near-term prospects
Against the backdrop of this environment, we see opportunities in the luxury jewellery, automobile and gaming sectors, buoyed by robust visitation growth from the mainland Chinese, their rising affluence and the gradual Renminbi appreciation that enhances their purchasing power.

• Greater China's luxury goods demand is expected to increase by 21% over the next ten years and by 2020 it could potentially account for 44% of global luxury goods demand¹.
• • Besides the jewellery retail market, China's car market (especially the luxury and upper Sport Utility Vehicle segments) is likely to continue to race ahead in the next few years with a sustainable rise in car ownership in China
• Strong growth has also been seen in the gaming sector, driven by increased visitor arrivals from China and higher average bets per player. In the three months between December 2010 and February 2011, visitor arrivals from China grew by 10.3% while revenue growth was close to 49%².
  

That said, we believe that there is still room for these segments to grow in Asia.

Asian consumerism - the key growth driver
Many Asian countries are now undergoing a structural shift from an export-oriented model to one that is domestically-driven. This transition to a more selfsustaining economic growth model is likely to benefit consumer stocks in the region. This is helped by the fact that Asia's population is large and young which could potentially result in their having more disposable income to spend on consumption as the population moves up into the more economically active age range. Rising income levels and strong GDP growth that is well distributed across Asia with China in the lead are also fundamental drivers of consumer spending in Asia. We believe that discretionary spending kicks in at a per-capita disposable income of about US$3,000³.

Growing affluence in Asia's emerging middle class
Developing Asia's middle class has grown dramatically relative to other world regions in the last couple of decades. The growth numbers are staggering. The number of people in Asia's middle class should surpass 1 billion by 2015, constituting about 31% of the region's total population and spending is set to rise to US$5.5 trillion by 2015² As consumers graduate to the middle income group, they typically shift their consumption patterns towards higher-quality products and services. Indeed, the growing household affluence is a trend that is likely to accelerate over the coming years. Therefore, the Asian consumer sector is one segment that deserves investors' serious attention.

Why invest in United Asia Consumer Fund
The Fund captures Asia's exciting investment story through investing in consumer staples and consumer discretionary companies in Asia (excluding Japan). It adopts a dynamic sector allocation strategy which looks at economic/business cycles, market volatility, consumer spending patterns and the consumer market potential of various Asian countries. This could allow for some form of ‘hedging' for the Fund under different market conditions.

Notes
1)Source: CLSA, Asia-Pacific Markets, 4 May 2011.
2) Source: CLSA, April 2011.
3) Source: CLSA, Mr & Mrs Asia, 19 April 2010.
4) Winner of the following: two awards at the Asia Asset Management Best of The Best Awards (2009-2010); two awards at the AsianInvestor Investment Performance Awards (2010-2011); two awards at the Morningstar Singapore Fund Awards (2008-2009); 46 awards at The Edge-Lipper Singapore Fund Awards (2003-2011); 32 awards at the Singapore Standard & Poor's Investment Funds Awards (2000-2007); 23 awards at the Singapore Investment Funds Awards (1999-2002); six awards at the Singapore Fund Of The Year Awards (1997-1998) organised by The Business Times, Standard Chartered Bank and Reuters; and five out of seven awards at the inaugural Singapore Fund Of The Year Awards 1996 organised by The Business Times, Standard Chartered Bank and MoneyWorld Asia. For more details on UOBAM's awards, please visit uobam.com.sg.
5) For more details on the awards won by UOBAM's offices in Malaysia and Taiwan, please visit www.oskuob.com.my and www.uobia.com.tw respectively.
6) Investors should refer to the Fund's prospectus for further information on the other fees and charges payable by

Important Notice and Disclaimers:
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 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. 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 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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