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%

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.

  • 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

    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.