In the last ten years, China and India equities have
significantly outperformed global equity markets
as a whole1 and we believe that the two markets
will continue to outperform, driven by the triple growth
engines of investment, consumption and exports.
These growth engines make China and India
extremely dynamic economies and offer potentially
one of the most exciting investment opportunities
for investors today.
Resilience in the face of crisis
Both China and India have rebounded swiftly from the recent
financial crisis and global recession. They are expected to
enjoy higher growth as compared to developed countries
like the US, UK and Japan.
Developing engines of growth in areas of investment,
consumption and exports
We believe that one major consequence of the credit crisis
is that the developed economies are likely to suffer slow
growth until their banking sector recovers. On the other
hand, emerging economies like China and India will rise to
drive the global economy.
Known as the “World’s Factory”, China’s growth has been
driven by its exports to the world. In recent years, to
supplement its export growth, China has been adopting
accommodative monetary policies and fiscal stimulus to
boost its domestic consumption.
India, unlike most emerging economies, has traditionally
been driven by its domestic sector and this insulates the
country from global business cycles. In the recent years,
both investment spending and household consumption
have been key drivers of the economy, and these growth
drivers look set to continue into the future.
Active management may potentially raise returns
While China and India are similar in certain aspects, there
are significant differences such as economic cycles,
government policies and market structure. For instance,
India has a high concentration of Information Technology
Services, while China has a high concentration of basic
resources companies.
Because of such differences, the performances of the China
and India equity markets can be expected to perform
differently. Understanding which market and sectors to
allocate more funds to at any particular time can lead to potentially higher returns.
Tap the investment expertise of two leading fund
managers with the United China-India Dynamic
Growth Fund
Actively managed by UOB Asset Management Ltd (“UOBAM”)
and its sub-manager, UTI International (Singapore) Private
Limited (“UTIIS”), the United China-India Dynamic Growth Fund
(the “Fund”) will invest into China- and India-related equities.
•
UOBAM is one of the most awarded fund managers in
Singapore2. For the second consecutive year since 2008,
UOBAM has been named the Best Fund Group (Overall) at
The Edge-Lipper Singapore Fund Awards3. This award
recognises consistent risk-adjusted performance across the
three main asset classes – Equities, Bonds and Mixed Assets.
UOBAM will manage the China portfolio of the Fund.
•
UTIIS is a tripartite joint venture between UTI International
Limited (a wholly-owned subsidiary of UTI Asset Management
Company Limited, India (“UTI AMC”)), Shinsei Investments
III Limited (a wholly-owned subsidiary of Shinsei Bank
Limited, Japan) and Freedom Financial Services (Singapore)
Pte Ltd. UTIIS may engage UTI Asset Management Company
Limited, India (“UTI AMC”) as its investment adviser for the
India portfolio of the Fund. UTI AMC is one of the oldest
asset management companies in India and in 2009, was
awarded the “STAR FUND HOUSE OF THE YEAR” by ICRA
Limited, the leading rating agency in India4.
With in-depth knowledge of the investment markets in China
and India, UOBAM and UTIIS will actively and systemically
vary the investments to reflect prevailing market dynamics
and valuations, in order to achieve medium to long term
investment performance for investors.
At UOBAM, we go to great lengths to bring you greater
investments.
Fund Details
Fund Name
United China-India Dynamic Growth Fund
Investment Objective
To achieve medium to long-term
capital appreciation through
investing mainly in the securities
of corporations in, or corporations
listed or to be listed on stock
exchanges in, or corporations
(wherever located) which, in the
opinion of the Managers, derive
significant revenue or profits from
or have significant assets or
business interests in, the People’s
Republic of China (“China”) or
the Republic of India (“India”).
Managers
UOB Asset Management Ltd
Sub-Manager
UTI International (Singapore)
Private Limited
Fund Type
Open-ended
Fund Currency
SGD (with USD pricing)
Subscription Mode
Cash (SGD and USD) and
SRS (SGD)
Subscription Fee
Currently 5%
Management Fee
Currently 1.5% p.a.
Other Fees
Custodian, Registrar, Trustee,
Valuation and other fees apply
Notes 1 Source: 11 November 2009, Bloomberg. Calculations
based on MSCI China, MSCI India and MSCI World,
1 January 2000 – 6 November 2009. 2 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. 3 The award for the Best Fund Group (Overall) was presented
to UOBAM at The Edge-Lipper Singapore Fund Awards in
2008 and 2009. 4 Investors should note that past performance of the Manager
or any Sub-Manager or investment adviser is not necessarily
indicative of their future performance.
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, 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.
United Overseas Bank Limited Co. Reg. No.193500026Z
UOB Asset Management Ltd Co. Reg. No.198600120Z