BU Asia Pacific Flexi Allocation Fund ("AFA")

Strategically Invest in APAC Equities and Bonds, Capturing the Appreciation Potentials for Blue Chips

★★★★
Morningstar Overall Rating 1

Positions in Asia stock market to capture the potential growth

Asia Pacific is a high growth region which supports the potential appreciation of its stock market

Three investment themes

Select industry leading stocks, avoid policy risk, hedge inflationary risk

Aim to provide monthly dividends

Yields are not guaranteed and dividends may be paid out of capital+
Annualized dividend yield as of November 2 #
USD 4.9%
HKD 4.9%
RMB hedged 7.1%

    Investments in the fund are subject to investment risks, including the possible loss of the principal amount invested. For full details and risk factors of the fund, please refer to the prospectus of the fund. Investors should also read the prospectus of the fund for detailed information prior to any subscription. The information contained herein is only a brief introduction to the fund. Investors should be aware that the price of shares may go down as well as up as the investments of the fund are subject to market fluctuations and to the risks inherent in all investments. Past performance is not indicative of future performance. The information contained in this document is based upon information which BEA Union Investment Management Limited considers reliable and is provided on an “as is” basis. This document does not constitute an offer, recommendation or solicitation to buy or sell any securities or financial instruments. The fund has been authorized by the Securities and Futures Commission (“SFC”) in Hong Kong. SFC authorization is not a recommendation or endorsement of a scheme nor does it guarantee the commercial merits of a scheme or its performance. It does not mean the scheme is suitable for all investors, nor is it an endorsement of its suitability for any particular investor or class of investors. This material and company website have not been reviewed by the SFC in Hong Kong.
    # The Fund was launched on 30 September 2021 upon the restructuring of BEA Union Investment Series - BEA Union Investment Asia Pacific Flexi Allocation Fund (the "Predecessor Fund", with inception on 6 February 2015) to the Fund. The performance / the dividend record / Morningstar rating (if applicable) shown on or before the date of the restructuring has been simulated based on the respective information of a unit class of "Predecessor Fund" with the same investment objectives, risk profiles, and materially the same fee structures and investment policies of the respective share class of the Fund.
    + The directors may at its discretion make distributions from income and/or capital in respect of the distributing classes of the Fund. Distributions paid out of capital amount to a return or withdrawal of part of the shareholder's original investment or from any capital gains attributable to that original investment. Such distribution may result in an immediate reduction of the net asset value per share.
    1. ©2021 Morningstar. Data as of 30 November 2021. The rating is for Class A (Accumulating) of the "Predecessor Fund" and is for reference only and should not be construed as buy and sell recommendation of investment. Past performance of the "Predecessor Fund" : 2020: 24.5%; 2019: 12.2%; 2018: -13.8%; 2017: 24.0%; 2016: 0.2%; year-to-date (as of 31 December 2021): 6.8%; performance is calculated in Class A USD (Accumulating) of the "Predecessor Fund" on a NAV to NAV basis. Gross income is re-invested. Class A USD (Accumulating) of the "Predecessor Fund" was launched on 6 February 2015.
    2. Source: BEA Union Investment, the dividend yield indicated is for November 2021. Annualized dividend yield = (dividend of the current month x 12) /last month end NAV x 100%. Please refer to dividend notice available on website for dividend composition information and details. Dividend only applies to distributing classes and is not guaranteed. Past dividend record is not indicative of future dividend likely to be achieved. Please note that a positive distribution yield does not imply a positive return.

The investment outlook for the Asia Pacific region is bullish

Asia Pacific continues to be the fastest growing region in the world

  • It is expected the growth in Asia Pacific will exceed those of western countries in 2022.



      • Source: International Monetary Fund, as of 12 October 2021.


  • The valuation of APAC stocks is attractive, with the appreciation potentials.



      • Source: Bloomberg, data as of 19 November 2021.

    The Fund strictly picks the blue chips with relatively stable profits. There are many investment opportunities in the APAC markets, helping to diversify risks and provide growth opportunities

    investment opportunities in the APAC markets


    Fund Features

    The fund has been performing well since its launch in 2015 3 #





    Timely adjusts equity and bond mix



  • The equity to bond ratio of the Fund in general: Equity：80% ; Bond and Cash：20%
  • Capture the market upside in equities as well as the fixed income opportunities, seeking ideal returns.

    • Three investment themes

  • Focus on industry leaders and build a strong foundation for the portfolio
    • - Select multiple APAC blue chips and industry leaders, effectively withstand market volatility, maintain steady corporate growth and defend the portfolio.
    - Adopt the investment strategy of High Conviction that high quality corporates will be benefited from economic recovery, providing stable returns in the long term.

  • Strategically pick stocks to avoid policy risk
    • -  Chinese authorities imposed regulations and penalties across a number of sectors in recent months, impacting many industries. The Fund will avoid these sectors and buy those policy favoured stocks.

  • Add cyclical stocks in response to market changes to hedge inflationary risk
    • - The Fund will timely buy cyclical stocks, such as shipping. Also, the portfolio will include Silver ETF to hedge inflation.

    Enjoy investment return with dividend payment

  • The investment team actively manages the portfolio through the bottom-up approach, seeking alpha and improving the ability to pay dividend.
  • The Fund offers dividend yields at 4.9% (A USD distributing) and 7.1% (A RMB Hedged distributing) in November 2 #.

    • Flexibly invest in stocks of various industries in response to market changes

    Information Technology

  • Valuation of techs is on the high side and we sold part of it in mid last year to lock in profit.


    • Financials

  • We increase our weightings in financials which will benefit from the rate hikes.


    • Energy

  • We add more weights in energy stocks in view of market reopening and supply chain bottleneck which provides strong support to oil price.


    • Consumer Discretionary

  • The regulatory issues dragged relevant stocks down, we added back some quality ones and those being oversold.

      • Source: BEA Union Investment, data as of 31 October 2021.
      3. Source: Morningstar Asia, as of 30 November 2021. The mentioned performance ranking refers to that of the “Predecessor Fund”, which compares against the annualized performance (total return is calculated in USD) of funds authorized by SFC (authorization does not imply recommendation) which are categorized under the Morningstar Asian Allocation Fund Category. Quartile ranking is based on the percentile ranking greater than 0 and less than or equal to 25 as the first quartile, greater than 25 and less than or equal to 50 as the second quartile, and so on. Class A USD (Accumulating) of the “Predecessor Fund” was launched on 6 February 2015.

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