Active asset allocation can potentially enhance overall returns
UOBAM actively monitors the ever-changing market conditions and adjusts the portfolio to maximise overall returns. Such active asset allocation requires skill and in-depth market knowledge.
Backed by more than 20 years of expertise in researching on the Asian markets, UOBAM’s team of Asian investment specialists are equipped with the necessary capabilities to manage funds in both equities and fixed-income securities. The combination of a global perspective and local knowledge has been a key strength that enables UOBAM to deliver consistent performance in Asian investments.
Active asset allocation requires knowledge and skill
Tactical or active adjustment of assets is not a simple task. As markets are forward looking, the ability to access and interpret a wide set of market and economic data is crucial. The global economy is constantly evolving and no two cycles are ever the same. And that’s why the Fund Manager will be actively involved in monitoring and adjusting the portfolio to achieve the optimum returns.
What’s more, the active adjustment of assets in emerging markets presents an added challenge. In Asia, both equity and bond markets are expanding swiftly, in tandem with the region’s strong economic growth and the development of its financial markets. But, as with many emerging markets, volatility is high because the dynamics of the markets are not only determined by the domestic economy and political conditions but also by the market’s mercurial appetite for risk. The global business cycle can also be a big factor.
Asian equities are enjoying long-term growth
Asia is the most populous continent in the world with an emerging middle-class. This means that the region is generating its own stabilising domestic demand and is becoming less dependent on the cyclical export sector. In addition, the region’s economies are currently underpinned by investment demand, with key drivers such as the on-going urbanisation of China and India. Infrastructure spending is also recovering in countries like Indonesia and Malaysia.
Asian bonds are benefiting from sound economic and corporate fundamentals
Generally, inflation is low in Asia, current accounts are in healthy surplus and currencies are appreciating – key features which government bond investors look out for. Asian companies are also in good health with strong balance sheets and healthy cash flows. The diverse economies within Asia thus offer a wide set of investment opportunities.
Enjoy potential quarterly distributions1
The Fund aims to provide you with a potential dividend of 5.0% p.a. of the net asset value per unit of the Fund by way of regular quarterly distribution1 in Units, plus the potential for capital gains.
Allocation scenarios across the economic cycle
The above asset allocation is for guidance purpose only and may not reflect the true portfolio asset allocation in relation to the economic cycle.
For allocation consideration, Asian equities are divided into large capitalisation companies (“large caps”) and small capitalisation companies (“small caps”). Small caps stocks typically out-perform in a bull market and a higher allocation of small caps can significantly boost returns.
The Fund will feed primarily into three Asia-focused funds that are managed by UOBAM – United Asia Fund, United Asian Growth Opportunities Fund and UOB Optimix Asian Bond Fund.
United Asia Fund
It invests in shares listed or traded on the stock exchanges of Hong Kong SAR, Taiwan, Indonesia, Malaysia, Thailand, the Philippines, Singapore and other Asian countries.
United Asian Growth Opportunities Fund
It invests in small capitalisation stocks and stock-related securities issued by corporations in the Asia-Pacific region (excluding Japan).
UOB Optimix Asian Bond Fund
It invests in high-yielding debt securities issued by Asian corporations, financial institutions, governments and their agencies.
Fund Details:
Fund Name
United Asia Active Allocation Fund
Investment Objective
To invest in Asian large capitalisation equities, Asian small capitalisation equities and Asian fixed-income and money market instruments by investing all or substantially all of the assets of the Fund into collective investment schemes
Fund Type
Open-ended
Fund Currency
SGD (with USD pricing)
Subscription Mode
Cash and Supplementary Retirement Scheme (SRS)
Subscription Fee
5%
Management Fee
1.5% p.a.
Other Fees
Custodian, Registrar, Trustee, valuation and other fees apply
Every business day on Forward Pricing up till 3 pm
+ minimum amount varies among distributors.
For more information on the United Asia Active Allocation Fund, please read the prospectus. (PDF: 178KB)
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Notes:
1) Distributions, which are at the absolute discretion of UOBAM, are not guaranteed and the making of any distribution shall not be taken to imply that further distributions will be made. UOBAM reserves the right to vary the frequency and/or amount of distributions and the discretion to determine whether distributions will be paid out or reinvested. The declaration and/or payment of distributions whether out of income and/or capital may have the effect of lowering the net asset value of the Fund. Please refer to the Prospectus for details.
Important Notice and Disclaimers:
The information above must not be construed as an offer or solicitation to deal in units in the Fund (“Units”) and is strictly for your information only. The information is based on certain assumptions, information and conditions applicable at a certain time and may be subject to change at any time without notice. Past performance of the Fund or of UOBAM is not necessarily indicative of the future or likely performance of the Fund or of UOBAM and any prediction, projection or forecast on the economy, stock market, bond market or the economic trends of the markets is not necessarily indicative of their future or likely performance or that of the Fund. The value of Units and the income from them, if any, may fall as well as rise. Investments in unit trusts are subject to risks, including the possible loss of the principal amount invested, and are not obligations of, deposits in, or guaranteed or insured by UOB, UOBAM, or any subsidiary or associate of the UOB Group or any of their affiliates or distributors of the Fund. No representation or promise as to the performance of the Fund or the return on your investment is made. UOB, UOBAM or any subsidiary or associate of the UOB Group or any of their affiliates 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 before investing. A copy of the prospectus may be obtained from UOBAM or any of its appointed agents or distributors. This document does not constitute investment advice or a recommendation and was prepared without regard to the specific objectives, financial situation or needs of any particular person who may receive it. You may wish to seek advice from a financial adviser before making a commitment to invest in any Units, and in the event you choose not to do so, you should consider whether the Fund is suitable for you. Applications for Units must be made on the application forms accompanying the Fund’s prospectus.
