The growth of Asian economies has for many years been
underpinned by their export sectors. We, however, 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 steady
rise of Asia’s middle class.
Asia in demographic sweet spot
Consumer spending is closely related to the number of
people who are economically productive. Over the next 20
years, the percentage of Asia’s population between 15 and
641 years of age is expected to continue rising and we
believe consumer spending is also set to rise along
with this.
Emergence of Asian middle class
The fundamental driver of consumer spending in Asia is
likely to be the growth of household incomes. Asia’s income
levels have reached or are approaching the critical point
when mass consumption takes off. Typically, when GDP
per capita crosses US$5,0002, discretionary spending starts
to gather pace. It has been estimated that for every extra
dollar earned, 60 cents2 go towards the purchase of
discretionary items. People can afford to buy more soft
drinks, ice-cream, mobile phones, computers and cars.
Spending on consumer goods
Source: CEIC, Morgan Stanley Research, January 2009.
And investment opportunities are opening up
Some of the best investment opportunities are found when
changes take place. We believe that the emergence of the
middle class in Asia is a truly important development in the
investment landscape. This emergence of the middle class
is going hand-in-hand with the increase in urbanisation.
A shift to an urban lifestyle is typically accompanied by a
change in consumption patterns. Some of the opportunities
we see are in the food and beverage industry, retailing and
sporting goods sector. United Asia Consumer Fund captures Asia’s exciting
investment story
The United Asia Consumer Fund (the “Fund”) invests in
Asian (excluding Japanese) consumer discretionary and
consumer staples companies*, which will allow for dynamic
sector allocation between growth companies (i.e. consumer
discretionary) and income companies (i.e. consumer staples).
The manager seeks to invest in attractively-valued companies
which have dominant industry positions or possess strong
brands. These companies should also have sound financial
positions and a good track record of corporate governance.
*Consumer discretionary generally refer to products and
services which are more sensitive to the economic cycle
such as cars, luxury goods and entertainment. Consumer
staples generally refer to products which are considered
necessities, such as household products, food & beverage
and tobacco.
UOBAM - An award-winning team3
UOB Asset Management Ltd (UOBAM) is one of Singapore’s
most awarded fund managers3. For the second year running
in 2009, UOBAM has won the Best Fund Group (Overall)
at The Lipper-Edge Fund Awards4. This award recognises
consistent risk-adjustment performance across the three
main asset classes - Equity, Bonds and Mixed Asset. Apart
from our success in Singapore, UOBAM has also won
numerous awards in Malaysia and Taiwan in recent years5.
At UOBAM, we go to great lengths to bring you greater
investments.
Fund Details
Fund Name
United Asia Consumer Fund
Investment Objective
To achieve capital appreciation
through investment in equities
or equity-related securities of
Asian (excluding Japanese)
companies whose businesses
are likely to benefit from or are
related to growth in consumer
spending in Asia
Fund Type
Open-ended
Fund Currency
SGD (with USD pricing)
Subscription Mode
Cash (SGD and USD)
SRS (SGD)
Subscription Fee
5%
Management Fee
1.5% p.a.
Other Fees
Custodian, Registrar, Trustee,
Valuation and other fees apply
Notes 1) Source: United Nations Database, 28 July 2009
2) Source: CLSA Asia’s Billion Boomers, The Real Pacific Century,4th Quarter 2002
3) Winner of the following: 2 awards at the Morningstar Singapore Fund Awards (2008-2009), 34 awards at The Edge-Lipper
Singapore Fund Awards (2003-2009), 32 awards at the Singapore Standard & Poor’s Investment Funds Awards (2000-2007),
23 awards at the Singapore Investment Funds Awards (1999-2002), 6 awards at the Singapore Fund Of The Year Awards
(1997-1998) organised by The Business Times, Standard Chartered Bank and Reuters and 5 out of 7 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.
4) The award for the Best Fund Group (Overall) was presented to UOBAM at The Edge-Lipper Singapore Fund Award in both
2008 and 2009.
5) For more details on the awards won by our regional offices in Malaysia and Taiwan, please visit www.oskuob.com.my and
www.uobia.com.tw respectively.
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 UOB Asset Management Ltd (“UOBAM”) and any past performance or forecast of the economic trends or securities market are not necessarily indicative of the future or likely performance of the same. 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 investments 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.
United Overseas Bank Ltd Co. Reg. No.193500026Z
UOB Asset Management Ltd Co. Reg. No.198600120Z
