BEA Union Investment China Gateway Fund ("CGF")

Dynamic Allocation in Chinese Equities and Bonds To Capture Opportunities in Economic Recovery

Flexible allocation aiming to foster long term return

Ranked high in its own category in the past 2 years1

3 major investment themes

Domestic consumption, new energy application, tactically positions in sector rotation

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 March2
USD 4.5%
HKD 4.5%
RMB hedge 6.8%

    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 explanatory memorandum of the fund. Investors should also read the explanatory memorandum 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 units 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 manager 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 unitholder’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 unit.
    1. Source: Morningstar Asia, Performance ranking is based on the annualized performance (total return is calculated in USD) of funds authorized by Securities and Futures Commission of Hong Kong (“SFC”) which are categorized under the Morningstar Greater China Allocation Fund category and with performance recorded from 1 January to 31 December 2019 and 1 January to 31 December 2020. Past performance of the Fund (as of 31 March 2021): 2020: 34.2%; 2019: 19.8%; 2018: -20.9% (since launch till 31 December of the same year): Year-to-date: -3.6% (as of 31 March 2021), performance in Class A USD (Accumulating), NAV to NAV, with dividend reinvested. Class A USD (Accumulating) was launched on 31 January 2018. 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.
    2. Source: BEA Union Investment, as of 31 March 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. Investors should not make any investment decision solely based on the information as contained herein. You should read the relevant offering documents (including key facts statement) of the fund for further details including the risk factors.

China: Taking the lead in global economic recovery

“First-in-first-out”: China was the first country to recover from the pandemic

  • China’s anti-epidemic results were remarkable. Last year, the country’s GDP grew by 2.3%3 and the fourth quarter GDP up 6.5% year-on-year3, while GDP topped 100 trillion yuan for the first time3. It will likely be the only major economy with positive economic growth last year.
    “First-in-first-out”: China was the first country to recover from the pandemic
      • *Estimated figure
      Source: BEA Union Investment, International Monetary Fund, January 2021

    US-China tension likely eases with Biden taking the office

  • Joe Biden takes the office while Democrats take control of both the Senate and the House of Representatives. China policy of the new office is yet to be implemented in the first quarter. US-China tension likely eases in the near term where the economic recovery of China is believed not to be inhibited.


    • Strong RMB supports related asset price

  • RMB was up 6% last year. The inclusion of China into global bond and equity indexes and the continuation of its economic recovery is supportive to RMB and the price of related assets.

    • Focuses on 3 investment themes to capture opportunities in economic recovery

    1. Domestic consumption

  • China’s "internal circular” economy aims to boosts local supply chain by driving domestic demand. Consumption upgrading is expected to continue with rising per capita income and expansion of middle-class population. The leading domestic companies, like beer, dairy-products and sportswear, are the expected key beneficiaries.
  • The pandemic gave rise to “stay-at-home economy”. More consumers are now moving their shopping online. Last year, China's online sales of physical goods accounted for 24.9%3 of the total. The change in consumption pattern is gradually trending.Total retail sales of consumer goods and growth rate (quarterly gures)
      • Source: National Bureau of Statistics, January 2021

    2. The application of new energy

  • China further promotes the use of new energy in response to climate change and low-carbon transformation. As of 2018, China was the top supplier of wind, solar and hydropower in the world.
  • Following the resumption of work in provinces coupled with the promotion of green transformation, the production and sales of electric vehicles in China soared last year. It is expected to be on another growth cycle when the economy fully revives.
    • New energy continues to replace the use of traditional energy


      Source: The State Council Information Office of PRC, December 2020

    3.Tactically positions in sector rotation

  • Small scale outbreaks of COVID are found in certain regions despite the deployment of vaccines. We expect the sector rotation between old and new economies will continue. Old economies like oil, aviation and property will probably chase up when valuation is becoming attractive with pandemic fading. While new economies, with strong fundamentals, are expected to outperform in the longer term. The Fund will tactically position in sector rotation to capture alpha opportunities.

    • The production and sales volume of electric vehicle in China

      Source: China's Passenger Car Association (CPCA), November 2020
      3. Source: National Bureau of Statistics, January 2021.

    Dynamic allocation in China equities and bonds to boost the return of the portfolio

    Apart from equity markets, the Fund also invests in onshore and offshore bond markets which are rapidly growing in China to diversify the portfolio risk. We prefer China property names in the bond sector. Last year, the cumulative sales of commercial properties in China surged to 14.1 trillion yuan, up 7% year-on-year3. The new funding rules implemented by China government are expected to deleverage property developers and pave the way for a more steady development of the industry in longer term.

    Real Estate Climate Index

      Source: National Bureau of Statistics, January 2021.
      3. Source: National Bureau of Statistics, January 2021.

    The Fund frequently adjusts the mix of China A-shares, Hong Kong equities, American Depository Receipts (ADR), onshore and offshore bonds and cash through dynamic allocation in response to market movement. It aims to capture the investment opportunities across markets and maximize the return of the overall portfolio.

    Dynamic allocation in China equities and bonds to boost the return of the portfolio

      Source: BEA Union Investment, December 2020

    The investment team of BEA Union Investment consists of 18 seasoned investment professionals with the expertise in managing assets in retail, institutional and MPF sectors. The team specializes in investment and research in Hong Kong, China A-shares as well as Asian equity markets, and provide clients with stable and sustainable portfolio performance.


      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 explanatory memorandum of the fund. Investors should also read the explanatory memorandum 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 units may go down as well as up as the investments of the fund are subject to market fl¬uctuations 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.

    A China mixed-asset fund with investment in Hong Kong stocks, A-shares, ADRs, and Chinese bonds

    Uses integrated channels, including the Shanghai and Shenzhen Stock Connects (northbound) and Bond Connect, to access China onshore securities

    Aims to provide a monthly dividend (dividend is not guaranteed and distributions may be paid out of income and/or capital)*

    Multiple currencies available (USD, HKD, AUD, and RMB)

    Click here to check more on leaflet

    Main Distributors (In no particular order):


      *Dividend only applies to distributing classes and is not guaranteed. Past dividend record is not indicative of future dividend likely to be achieved. The manager may at its discretion make distributions from income and/or capital in respect of the distributing classes of the fund. Investors should note that the distributions paid out of capital amount to a return or withdrawal of part of the unitholder'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 unit. Please note that a positive distribution yield does not imply a positive return. Investors should not make any investment decision solely based on the information above. You should read the relevant offering document (including the key facts statement) of the fund for further details including the risk factors.


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