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

Flexibly invest in equities and bonds, maximising returns

Adjust the ratio of equity, bond and cash when necessary to seek long term capital growth and fixed income

Three investment themes

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

Aim to provide monthly dividends

Dividends are not guaranteed, and distributions may be paid out of income and/or capital+
Annualized dividend yield as of July 2 #
USD 4.8%
HKD 4.8%
RMB hedged 7.1%

The investment outlook for the Asia Pacific region is bullish

Strong corporate earnings in APAC

  • It is expected that the growth in corporate earnings in APAC will continue in the second half of the year, supporting the stock prices.

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

  • 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


    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 4.8% (A USD distributing) and 7.1% (A RMB Hedged distributing) in July 2 #.
  • Flexibly invest in stocks of various industries in response to market changes

    Information Technology

  • We are bullish on this sector in the long run, especially we add holdings after the pandemic.

  • Financials

  • After the pandemic, old economy stocks, especially financials, suffered, so we reduced holdings.

  • Energy

  • Oil price slumped at the beginning of 2020 so we sold off all energy stocks. Having been benefited from the policies, we gradually hold up energy stocks.

  • Consumer Discretionary

  • Chinese internet and education stocks were largely under pressure due to policy impacts. We timely sold off the stocks to avoid policy risk.