United Global Durable Equities Fund

  • United Sustainable Credit Income FundUnited Sustainable Credit Income Fund

About United Global Durable Equities Fund (the “Fund”)

The United Global Durable Equities Fund (the “Fund”), sub-managed by Wellington Management, aims to seek total return consisting of capital appreciation and income over the long term by investing primarily in equity and equity related securities of companies listed and traded on stock exchanges globally.

The Fund selects companies with stable businesses and good management practices such as cost control and skilled execution. The Fund offers good diversification benefits and risk-adjusted returns because it has a low overlap with a traditional quality-oriented portfolio. At the same time, the Fund focuses on stability for downside protection and on valuation for upside returns to navigate the challenging times ahead.



Invest in durable businesses that aims to outperform the market over time

The Fund is focused on owning a set of businesses that possess three key characteristics:

When purchased at a reasonable valuation, stable companies offer both long-term compounding and downside protection, and aims to deliver attractive returns in up and down markets.

Why Invest

Why invest in durable businesses now?

Equity investors tend to consider high returns and downside mitigation to be mutually exclusive. The pursuit of high returns often drives investors towards growth or value disciplines, both of which can be volatile. The quest for downside mitigation often leads investors to blue chips, which have historically had less volatility but also less upside optionality in strong economic or market environments.

We believe that we are in an environment of higher structural inflation, higher interest rates, shorter cycles, increasing geopolitical risk, and elevated uncertainty and hence higher volatility. These factors may lead to greater volatility in the earnings streams of companies, due to the unpredictability of input prices and more variability in economic and business cycles. With this as the backdrop, it is reasonable to conclude that investors will develop a greater appreciation for stability and consistency in earnings over the coming years. In particular, earnings that prove to be resilient, irrespective of the broader economic environment. We see investors gravitating to less “exciting” businesses that are well run and businesses that can compound their earnings consistently through prudent capital allocation.

Our research indicates that attractive long-term risk-adjusted returns are possible if management allocates capital wisely and valuation multiples do not compress. Given the comparatively low level of business risk facing many stable companies, we believe these stocks offer a compelling risk/return profile. The low overlap of characteristics with growth, value, or traditional high-quality equities also means that a portfolio of unconventional stable companies may provide diversification relative to more traditional allocations.


What are durable businesses?

1) Durability: The Fund is focused on companies that have proven to be resilient in the face of uncertainty.

2) Disciplined: The Fund's buy/sell discipline aims to ensure that we are well-positioned to achieve the potential desired outcome through a market cycle.

3) Diversification: The investment process leads to a portfolio of durable companies that may potentially provide meaningful diversification relative to more traditional global equity allocations.

More Information

About Wellington Management, sub-manager of the Fund

Wellington Management has one of the longest histories in fund management since 1928. It is one of the world’s largest sub-advisor of active mutual funds and has global investment capabilities, with total assets under management (AUM) of USD1.2 trillion as of end July 2023. Wellington Management's most distinctive strength is their commitment to rigorous, proprietary research — the foundation upon which investment approaches are built. Wellington Management's commitment to investment excellence is evidenced by their significant presence and long-term track records in nearly all sectors of the global securities markets. Wellington Management is also a trusted advisor and strategic partner to more than 2,500 clients and mutual fund sponsors in over 60 countries.

Source: Wellington Management, as of 31 July 2023


Fund Name United Global Durable Equities Fund
Investment Objective To seek total return consisting of capital appreciation and income over the long term by investing primarily in equity and equity related securities of companies listed and traded on stock exchanges globally.
Fund Manager UOB Asset Management Ltd
Sub-Manager Wellington Management
Fund Classes Available2 Class A SGD Acc
Class A SGD Dist
Class A USD Acc
Class A USD Dist
Subscription Mode Cash – Class A SGD & USD
SRS – Class A SGD
Minimum Subscription3 S$1,000/US$1,000 (initial)
S$500/US$500 (subsequent)
Subscription Fee Currently up to 5%; maximum 5%
Management Fee Currently 1.75% p.a.; maximum 2.5% p.a.
Dealing Frequency & Deadline3 Generally every business day, on a forward pricing basis up till 3pm (Singapore time).
Distribution Policy The current distribution policy is to make regular monthly distributions of up to 5.50% p.a.*

*Distributions are not guaranteed. Distributions may be made out of income, capital gains and/or capital. This relates to the disclosed distribution policy as set out in the Fund’s prospectus.

1Source: UOBAM. Analysis based on monthly United Global Durable Equities Fund returns from 5 August 2015 to 31 July 2023. Past performance of the Fund or UOBAM or Wellington Management is not necessarily indicative of future or likely performance of the Fund, UOBAM or Wellington Management. Upside/downside capture is a statistical measure of an investment manager’s overall performance relative to a broad market benchmark during periods of market strength and weakness. An upside capture over 100% indicates a fund has generally outperformed the benchmark during periods of positive returns for the benchmark. Meanwhile, a downside capture of less than 100% indicates that a fund has lost less than its benchmark in periods of negative returns for the benchmark.

2Investors should refer to the Fund’s prospectus for more details on the different classes available.

3Please refer to the Fund’s prospectus for more details.





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MSCI Data are exclusive property of MSCI. MSCI Data are provided "as is", MSCI bears no liability for or in connection with MSCI Data. MSCI full disclaimer at msci.com/notice-and-disclaimer-for-reporting-licenses.

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 Fund may use or invest in financial derivative instruments, and you should be aware of the risks associated with investments in financial derivative instruments which are described in the Fund’s prospectus. 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.

Distributions will be made in respect of the Distribution Classes of the Fund. Distributions are based on the net asset value (NAV) per unit of the relevant Distribution Class as at the last business day of the calendar quarter or month. The making of distributions is at the absolute discretion of UOBAM and that distributions are not guaranteed. 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. Distributions from a fund may be made out of income and/or capital gains and (if income and/or capital gains are insufficient) out of capital. Investors should also note that the declaration and/or payment of distributions (whether out of income, capital gains, capital or otherwise) may have the effect of lowering the NAV of the relevant fund. Moreover, distributions out of capital may amount to a reduction of part of your original investment and may result in reduced future returns. Please refer to the Fund's prospectus for more information.

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