In recent times, we have seen great market volatility that has confounded many investors. However, history has shown that even in such uncertain times, there can be exceptional opportunities if investors pick the right asset classes and stay invested.

The United G Strategic Fund (the “Fund”) offers you the opportunity to invest in a portfolio comprising primarily of exchange-traded funds (ETFs) across the major global exchanges. The Fund addresses the trend of increasingly shorter investment cycles and higher volatility in markets with a flexible asset allocation strategy which enables the fund manager to adapt to both bull and bear markets.

Importance of asset allocation
Asset allocation is a fundamental investment decision. Deciding how much a portfolio to invest in different asset classes can significantly affect the return of a portfolio. Empirical studies have shown that the asset allocation decision accounts for about 90%¹ of the variation in returns between different portfolios. Hence, the first decision we make in the management of a portfolio is the asset allocation.

What drives asset allocation decisions
We believe that different asset classes have a high likelihood of outperforming at different stages of an economic cycle. Financial markets are forward-looking and move in anticipation of what lies ahead, although uncertainty often causes volatility in markets, especially so in the current environment. In asset allocation, we do not attempt to trade these spikes and dips but concentrate on identifying the critical turning points in markets through monitoring a wide range of economic and financial indicators.

Managing risks through balanced and dynamic management
The current global economic environment contains threats from inflation and deflation, confusing interest rate outlooks and questionable growth prospects. Even safe options like government bonds and cash can perform poorly if inflation and rising interest rates take hold. The current highly leveraged world economy has the potential to suffer more severe cycles than in the past. In this challenging environment, investors need to be more agile in balancing their asset classes to diversify risks and have their portfolios dynamically managed in and out of asset classes throughout an investment cycle.

Using ETFs opportunistically
ETFs have become an increasingly popular investment vehicle in recent years. At the end of May 2010, the global ETF industry had 2,218 ETFs with 4,478 listings, assets of US$1,044.1 billion, from 131 providers on 42 exchanges around the world². Many ETFs are widely known for their liquidity, transparency and market accessibility. The Fund strategically allocates the Fund’s assets into various asset classes through ETFs across the major global exchanges. The asset allocation between equities, bonds, cash and other asset classes will be determined by the Managers with a view to seeking the best strategic or long-term returns.

How the Fund adds value
The Fund’s dynamic strategy seeks to maximise potential returns during stronger growth and recovery periods, while minimising risks during difficult stages in an economic cycle. The Fund will seek to reduce risks when the investment climate sours. In extreme market conditions, the Fund may move to a more conservative position where a higher percentage of the Fund (up to 100%) may be allocated into cash or money market instruments³ with the aim of capital preservation.

Why invest in the Fund?
Some investors may not have the kind of experience and knowledge to diversify their investments across regions, sectors and asset classes, as well as to continually adjust their asset allocation to adapt to varying market conditions. The Fund is designed to be an “all-weather” fund - able to adapt to changing economic conditions so as to take advantage of bull markets as well as being able to move to full cash positions if necessary to seek to protect capital. The Fund comprises the following characteristics:

• Worldwide geographical asset allocation amongst the major economic regions to capitalise on the different economic cycles.
• Ability to invest in a wide range of asset classes, ranging from equities to bonds, commodities, and money markets instruments, to manage risks and improve potential returns.
• Flexibility of a broad mandate to shift in and out of asset classes throughout the cycle to react swiftly to major trend changes.
• Ability to partially hedge risks through exposure to exchange-traded index futures.
• Potentially greater diversification of risk than investing in individual securities since a typical ETF holds a broad basket of securities that track an index.

UOBAM and GYC – Your Choice Partners
Actively managed by UOB Asset Management Ltd (“UOBAM”), and together with its investment adviser, GYC Financial Advisory Pte Ltd (“GYC”), the Fund aims to construct a diversified portfolio with constant monitoring and adjustment of the Fund’s asset allocation in light of market conditions.

• UOBAM is one of the most awarded fund managers in Singapore⁴. It has been named the Best Onshore Fund House (Singapore) at the AsianInvestor 2010 Investment Performance Awards and the Best Retail House (Singapore) at the Asia Asset Management Best of Best Awards 2009. And for two consecutive years in 2008 and 2009, UOBAM was named the Best Fund Group (Overall) at The Edge-Lipper Singapore Fund Awards. This award recognises consistent risk-adjusted performance across three main asset classes – Equities, Bonds and Mixed Assets. Apart from its success in Singapore, UOBAM’s regional offices in Malaysia and Taiwan have also won numerous awards in recent years⁵.
• GYC is a licensed financial adviser and an established wealth manager offering investment advice, investment management solutions and management of discretionary mandates for high net worth individuals as well as its own private equity funds. It is also the external asset manager for some of the top private banks in Singapore. One of GYC’s key strengths is in advising on investment portfolios. Since 2004, it has established portfolios of funds with varying allocations into equities, fixed income and alternatives⁶.

Backed by years of experience and in-depth knowledge of investment markets, the Fund will be actively managed with the aim of achieving medium to long-term investment performance for investors.

To find out more, call GYC at 6349 1441 or visit www.gyc.com.sg.

At UOBAM, we go to great lengths to bring you greater investments.

Notes
1) Source: Ibbotson Associates, The Role of Asset Allocation in Portfolio Management, 1 June 1994
2) Source: BlackRock, ETF Landscape Industry Highlights, end May 2010
3) Any allocation by the Managers to cash or money market instruments may be invested into the United SGD Fund, an open-ended collective investment scheme authorised in Singapore which is also managed by the Managers.
4) Winner of the following: One award at the AsianInvestor 2010 Investment Performance Awards; one award at the Asia Asset Management Best of Best Awards 2009; two awards at the Morningstar Singapore Fund Awards (2008-2009); 40 awards at The Edge-Lipper Singapore Fund Awards (2003-2010); 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.
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) Source: GYC Financial Advisory Pte Ltd
7) For further information on the other fees payable, please refer to the Fund’s prospectus.

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 or GYC Financial Advisory Pte Ltd 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 or GYC Financial Advisory Pte Ltd. 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.

UOB Asset Management Ltd Co. Reg. No.198600120Z
GYC Financial Advisory Pte Ltd Co. Reg. No. 199806191K