Offering a one-stop solution for investing in Asia

UBS Asia Allocation Opportunity Fund

Please read the important information of the fund before proceeding

UBS (HK) Fund Series – Asia Allocation Opportunity (USD)

1. The Fund, UBS (HK) Fund Series – Asia Allocation Opportunity (USD) ("UBS Asia Allocation Opportunity Fund”), invests primarily in Asia equities and Asian debt securities.

2. The asset allocation of the Fund will change according to the Manager’s views of fundamental economic and market conditions and investment trends across the globe, taking into consideration factors such as liquidity, costs, timing of execution, relative attractiveness of individual securities and issuers available in the market.

3. The Fund’s investments may be subject to risks associated with equities (including small/mid-capitalization companies risk, REITs risk), debt securities (such as credit/counterparty risk, interest rate risk, downgrading risk, valuation risk, credit rating risk, credit rating agency risk, volatility and liquidity risk, sovereign debt risk, and risk associated with debt securities rated below investment grade and/or unrated), dynamic asset allocation model, investing in Mainland China (such as regulatory risk, tax risk, RMB currency and conversion risk, China equity market risk, Stock Connect risk, CIBM risk, Bond Connect risk, QFII/RQFII risk, and SME Board, ChiNext market and/or STAR Board risk), currency and exchange rate, currency hedging, concentration and emerging markets.

4. The Fund’s investments are concentrated in Asia (including China). The value of the Fund may be more volatile than that of a fund having a more diverse portfolio of investments, and more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting Asia (including China).

5. The Fund may gain exposure by investing in ETFs and will be subject to the risks associated with the underlying ETFs such as passive investment risk, tracking error risks, underlying index related risks, counterparty risks, trading risks and termination risk. The performance of the underlying ETFs will result in a corresponding impact on the Fund.

6. The Fund may also gain exposure by investing in other collective investment schemes and will be subject to the risks associated with the underlying funds. The Fund does not have control of the investments of the underlying funds and there is no assurance that the investment objective and strategy of the underlying funds will be successfully achieved which may have a negative impact to the net asset value of the Fund.

7. The Fund may invest in debt instruments with loss-absorption features. Such instruments are subject to greater risks when compared to traditional debt instruments as such instruments are typically subject to the risk of being written down or converted to ordinary shares upon the occurrence of pre-defined trigger event(s) which are likely to be outside of the issuer’s control. Such trigger events are complex and difficult to predict and may result in a significant or total reduction in the value of such instruments.

8. The Fund may use financial derivative instruments for investment and hedging purposes. The Fund’s net derivative exposure may be up to 50% of the Fund’s net asset value. The use of financial derivative instruments may involve additional risks such as counterparty/credit risk, liquidity risk, valuation risk, volatility risk and over-the-counter transaction risk.

9. In respect of unit classes with "-mdist" in their name, dividends may be paid from capital or effectively out of capital (i.e. pay distributions out of gross income while charging/ paying all or part of the Fund’s fees and expenses to/out of the capital of the Fund, resulting in an increase in distributable income for the payment of distributions) of the Fund, at the discretion of the manager, which amount to a return or withdrawal of part of an investor's original investment or from any capital gains attributable to that original investment. Any such dividends may result in an immediate decrease of the net asset value per unit.

10. The fixed rate distribution unit classes (i.e. unit classes with "6%-mdist" in their name) continue to distribute in periods that the Fund has negative return or is making losses, which further reduces the net asset value of the Fund.

11. This investment may involve risks that could result in loss of part or entire amount of investors’ investment.

12. Investors should not invest in the Fund solely based on this document and should read the relevant offering documents for further details including risk factors.

13. Investors are responsible for their investment decisions and should seek independent financial and professional advice if required.

Asia in the pole position for attractive capital growth in the future.

Download fund brochure

Get to the top with Asia

This multi-asset Asia Fund invests across equities, Real Estate Investment Trusts (REITs), investment grade and high yield bonds. The top down asset allocation is actively managed and it taps into the UBS active traditional capabilities for security selection.

Why Asia?

1. Supply chain shifts drive foreign direct investment (FDI) growth in ASEAN and India

1) Strong Policy Support

- FDI incentives and tax incentive
- Reforming the economy through digital transformation and upskilling labour…

2) Cheap Manufacturing Cost

- Average monthly manufacturing wages of China is 2.78 times higher than the average of Indonesia, India, Philippines, Vietnam, Thailand and Malaysia¹

3) Geographical Advantage

- Neighboring the China’s pearl river delta region

Supply chain diversification is advantageous to ASEAN & India…

Semi-conductor is powering online tools and AI. UBS-AM

For illustration purpose only. The ASEAN and India exposure in MSCI Asia Ex Japan is 27.0%. Source: UBS Asset Management, As of 30 June 2023 1. Average monthly manufacturing wages: Source: ILO, Haver, National statistic agencies, UBS, As of 2019 2. Source: Haver, UBS. As of 2023.

2. Asian equity markets have evolved

Source: Bloomberg, As of 21 July 2023

3. A multi-asset approach would provide a smoother journey

Source: UBS Asset Management, Bloomberg. For illustration purpose only. Past performance is not a reliable indicator of future results. Time period: 31 December 2015 - 30 April 2023.

Available share classes

Share class	Share class	ISIN	ISIN	Distribution yield	Distribution yield
Share class	Class A USD-acc	ISIN	HK0000678273	Distribution yield	Distribution reinvested
Share class	Class A USD-mdist^{7, 8}	ISIN	HK0000678281	Distribution yield	6.1%
Share class	Class A USD-6%-mdist^{7, 8}	ISIN	HK0000678299	Distribution yield	6.0%
Share class	Class A HKD-mdist^{7, 8}	ISIN	HK0000678307	Distribution yield	5.9%
Share class	Class A HKD-6%-mdist^{7, 8}	ISIN	HK0000678315	Distribution yield	6.0%
Share class	Class A RMB hedged-mdist^{7, 8}	ISIN	HK0000678323	Distribution yield	5.3%
Share class	Class A USD-8%-mdist^{7, 8}	ISIN	HK0000959244	Distribution yield	8.0%
Share class	Class A HKD-8%-mdist^{7, 8}	ISIN	HK0000959251	Distribution yield	8.1%

Source: UBS Asset Management, 31 August 2024.

⁷ The share classes with “-mdist” aim to pay dividends on a monthly basis. Dividend is not guaranteed. Dividend may be paid out of capital. Share classes with “-mdist” in their name may also make distributions out of capital and realized capital gains, at the discretion of the Management Company, or pay distributions out of gross income while charging/paying all or part of the fund’s fees and expenses to/out of the capital of the relevant fund, resulting in an increase in distributable income for the payment of distributions by the fund and therefore, the fund may effectively pay distributions out of capital. Any distributions involving payment of dividends out of the fund’s capital or payment of dividends effectively out of the fund’s capital (as the case may be) may result in an immediate reduction of the next asset value per share/unit.

⁸ A positive distribution yield does not imply a positive return. Distribution yield = (Dividend per unit on last record date x 12 /Previous month-end NAV) x 100. The distribution yields shown here are for reference only. These share classes continue to distribute in periods that the Fund has negative return/is making losses which further reduces the NAV of the Fund. In extreme circumstances, investors may not be able to get back the original investment amount. Constant distributing share classes must not be seen as alternative to savings account or fixed-interest paying investment.