BU China Gateway Fund ("CGF")

Dynamic allocation in Chinese equities and bonds to capture the potential growth of the new economy

Flexible allocation aiming to foster long term return

Ranked high in its own category in terms of year-to-date and past 2 years' performance 1 #

3 major investment themes for equities

Domestic consumption, new energy application, positions in cyclical stocks

Aims to provide monthly dividends

Dividends are not guaranteed, and distributions may be paid out of income and/or capital+
Annualized dividend yield as of June 2 #
USD 5.5%
HKD 5.5%
RMB hedged 7.8%

    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 China Gateway Fund (the "Predecessor Fund", with inception on 31 January 2018) 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. Source: Morningstar Asia. 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 Greater China Allocation Fund Category with performance record including 2019, 2020, year-to-date (1 January to 30 June 2021) and since inception (since launch till 30 June 2021). Past performance of the "Predecessor Fund": 2020: 34.2%, 2019: 19.8%, 2018: -20.9% (since launch till 31 December of the same year); year-to-date: 5.1%. Class A USD (Accumulating) of the "Predecessor Fund"  was launched on 31 January 2018.
    2. Source: BEA Union Investment, as of 30 June 2021.This refers to the dividend distribution of the "Predecessor Fund". 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.

China couldn't be a missing piece of your investment portfolio

Economic growth being robust for the second half of the year

  • The economy is recovering in a stable and healthy pace. GDP recorded 7.9% growth in Q2 while 12.7% for the first half of the year3 .
  • Shipping and infrastructure will be the key drivers of growth for the second half of the year.


      • 3. Source: BEA Union Investment, National Bureau of Statistics, 19 July 2021.


    Rate cut by PBOC injects liquidity into the market

  • People's Bank of China (PBOC) announced to lower the required reserve ratio in July posing positive impact to the financial market.

    • Focuses on 3 investment themes for equities

    Domestic consumption



  • The expansion of middle to high income groups in China drives the demand for mid to high-end services such as health care, cosmetic surgery, beauty products and services and white wine etc.

  • "China chic" is getting popular among youngsters and mass public in China. Its rising quality and innovativeness boosts the marketability of the national brands. Local sportswear, dairy products and beer are the key beneficiaries.

    • China Chic is getting popular among youngsters
      Source:  www.xinhuanet.com, 10 May 2021.

    The application of new energy



  • The production volume of electric vehicles in the first half of this year has recorded a 3 times YOY growth (see the chart below). More local brands are entering the market with new technologies introduced. The industry is under a high growth cycle and faces less policy risk. We are optimistic on the future growth of the industry.

    • The production volume of electric wehicles in China
      Source: https://nance.sina.com.cn, 14 June 2021.

    Positions in cyclical stocks



  • Cyclical stocks e.g. shipping, oil and commodities etc. are favoured in a gradual recovery of China and other economies in the world. Our investment team will consider to increase its holdings on attractive valuations.

    • cyclical stocks


    Fund Features

    The fund has been performing well since its launch in 2018 and its return is leading other funds in the same category1,4,#






    Timely adjusts equity and bond mix



  • The equity to bond ratio of the Fund in general: Equity：70%; Bond：30%
  • To capture the market upside in equities as well as the fixed income opportunities.

    • Invests broadly across Chinese stocks to seek alpha

      Source: BEA Union Investment. For illustration purposes only. The Fund's actual investments may differ from the above model portfolio.


  • Dynamically allocates in China A-shares, Hong Kong equities, ADR, China bond market to capture the potential growth in individual markets.

    • Investors can enjoy investment return with dividend payment



  • Through the active trades conducted by our investment professionals with the expertise in China equity and bond markets, additional return and dividend payment capacity can be achieved.
  • The Fund offers dividend yields at 5.5% (A USD distributing) and 7.8% (A RMB Hedged distributing) 2,# 

    • Dynamic allocation between China equity and bond markets to capture investment opportunities and mitigate market volatilities

    靈活游走於中國股債市場

      Source: BEA Union Investment, 30 June 2021.


      4. Source: Morningstar Asia, as of 30 June 2021. 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 31 January 2018, its full year performance in 2018 is not ranked by Morningstar Asia.

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