About United Greater China Fund

 

The United Greater China Fund (the "Fund") aims to achieve long-term capital growth primarily through investing in companies with assets or revenues being in or derived from the People's Republic of China, Hong Kong SAR and Taiwan (“Greater China”)*.

*Greater China is a geographical area that encompasses the People’s Republic of China, Hong Kong SAR and Taiwan.

Why Invest

 

Leverage Greater China's regional interdependency

 

By investing in Greater China, investors can also harness the growth of China's most mutually dependent markets, Hong Kong and Taiwan. While China remains the main growth engine, the interdependency in the region provides a wider range of mutually beneficial opportunities.

Leverage Greater China's regional interdependency Leverage Greater China's regional interdependency

 

Ride the next wave of Greater China's growth

 

Greater China's real gross domestic product (GDP) is among the highest globally, and it is poised for a growth recovery. Meanwhile, the region's low consumer price index (CPI) indicates low inflation, which provides room for monetary support.

Ride the next wave of Greater China's growth Ride the next wave of Greater China's growth

Key engines propelling the next phase of 
Greater China’s growth

Rise of domestic consumption

Rise of domestic consumption

  • 62% of China’s urban households expected to be upper-middle and high income by 20305, rising consumer affluence bodes well for domestic economy
  • Local Chinese brands have been gaining market share overseas
  • China has the highest number of companies within the Fortune Global 5006

A sustainable future

A sustainable future

  • China aims to achieve carbon neutrality by 2060
  • Set to account for 60% of world’s new passenger EV sales7
  • Manufactures 80% of global solar panel production8

An innovation-led economy

An innovation-led economy

Save more with US$38 outward telegraphic transfer fees and low trade financing fees.

Total innovation patents filed Total innovation patents filed

Here are the potential sectors benefitting from the economic dynamism within Greater China:

Potential sectors benefitting Potential sectors benefitting

 

Greater China offers diversification and high returns at lower risk11

 

The Greater China market reduces concentration risk, provides investors with a diversified portfolio, and offers the potential of higher returns at a lower risk.12

Greater China offers diversification and high returns at lower risk Greater China offers diversification and high returns at lower risk

Investors can also enjoy diversification benefits due to the region’s relatively low correlation with major broad market indexes and alternative asset classes. It can be used as a satellite component in a core-satellite portfolio.

5-Year returns correlation15

Index Correlation MSCI All Country World Index S&P 500 Index EURO STOXX 50 Index Nikkei 225 Index Straits Times Index Bloomberg Global Aggregate Bond Index Bloomberg Commodity Index
MSCI Golden Dragon Index 0.57 0.47 0.55 0.40 0.42 0.57 0.31

Award-winning and highly rated9

Strong outperformance

 

Over the past 10 years, the Fund has outperformed its benchmark, peers and other related markets18.

Over the past 10 years, the Fund has outperformed its benchmark Over the past 10 years, the Fund has outperformed its benchmark

 

Powered by AI-Augmentation@UOBAM

 

The United Greater China Fund applies UOBAM’s proprietary artificial intelligence (AI)-Augmentation capabilities. The Fund was launched in 1997 but revised its approach in 2021 to incorporate insights generated by a unique AI model.

 

How our investment process creates value:

 

Data-driven and objective

 

The process has allowed the Fund to deliver significant outperformance from stock selection. Besides higher long-term returns, it has lower downside risk19, providing strong downside protection in periods of volatility20.

Weighted average returns of the Fund's stocks vs Benchmark Weighted average returns of the Fund's stocks vs Benchmark
Downside protection during periods of volatility Downside protection during periods of volatility

More Information

Fund Name United Greater China Fund
Investment Objective Aims to achieve long-term capital growth primarily through investment in companies with assets or revenues being in or derived from the People’s Republic of China, Hong Kong SAR and Taiwan.
Fund Classes Available23 Class A SGD Acc
Class A SGD Acc (Ref. USD)
Subscription Mode24 SGD: Cash and SRS
USD: Cash
Minimum Subscription24 S$1,000/US$1,000 (initial); S$500/US$500 (subsequent)
Subscription Fee24 Currently up to 5%; maximum 5%
Management Fee24 Currently 1.5% p.a.; maximum 1.5% p.a.
Dealing Frequency & Deadline24 Generally every business day, on a forward pricing basis up till 3pm (Singapore time)

1Source: CNBC, These charts show why Hong Kong is important to China, 18 June 2020.
2Source: Global Times, China set to remain world’s largest trading nation in goods in 2023 as stable foreign trade growth is ensured: official, 13 July 2023.
3Source: The Economist, Taiwan’s dominance of the chip industry makes it more important, 6 March 2023.
4Source: IMF, World Economic Outlook, April 2024.
5Source: China consumption: Start of a new era, McKinsey & Company, November 2023. Note: Upper-middle and high income characterised by annual household income above RMB 160,000.
6Source: CSIS and Fortune Global 500, 2023.
7Source: How China Beat Everyone to Be World Leader in Electric Vehicles, Bloomberg, 18 July 2023.
8Source: China’s dominance of solar poses difficult choices for the west, Financial Times, 22 June 2023.
9Source: World Intellectual Property Organisation (WIPO), Global Innovation Index 2022023 – Innovation in the face of uncertainty, September 2023.
10Source: WIPO Statistics Database, March 2024.
11Source: MSCI, UOBAM, as of 31 March 2024.
12Source: Morningstar, as of 31 March 2024. Benchmark: MSCI Golden Dragon Index. 3Y Annualised Volatility – Fund 17.7%, Benchmark 21.9%.
13ADR is the abbreviation for "American Depository Receipt". Note: Listed securities here are with at least US$1 billion market cap and US$1 million turnover per day.
14Source: Morningstar, as of 31 March 2024. All returns are in USD. Greater China – MSCI Golden Dragon Index, All China– MSCI China All Shares Index, China A-shares – MSCI China A Index, China H-shares – MSCI China H Index.
15Source: Bloomberg, as of 31 March 2024. Note: A perfect positive correlation means that the correlation coefficient is exactly 1. This implies that as one security moves, either up or down, the other security moves in lockstep, in the same direction. A perfect negative correlation means that two assets move in opposite directions, while a zero correlation implies no linear relationship at all.
16Please refer to uobam.com.sg/awards for the latest list of UOBAM awards.
17Source: Morningstar, as of 31 March 2024. Category: Greater China Equity. Rankings are out of 217 investments.
18Source: Morningstar, 10-year performance as of 31 March 2024, SGD basis. Returns for United Greater China Fund are annualised and exclude charges. Past performance is not necessarily indicative of future performance.
19Source: Morningstar, as of 31 March 2024. Peer category: Greater China Equity in SGD.
20Source: Morningstar, as of 31 March 2024.
21Source: Factset, as of 31 March 2024. 5 years performance attribution in SGD. Benchmark is MSCI Golden Dragon Index.
22Source: Morningstar, as of 31 March 2024.
23Investors should refer to the Fund’s prospectus for more details on the different classes available. Please check with our distributor(s) on the availability of the Fund classes.
24Please check with the distributor(s) or refer to the Fund’s prospectus for more details.

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How to Purchase

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Investing for Institutions

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Investing for Businesses

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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. Please see complete MSCI disclaimer here.

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 inves tment 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, and is likely to have high volatility due to the investment policies and/or portfolio management techniques employed by the Fund. 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.

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