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UOB AM preps A-shares fund in Singapore

The asset management arm of the Singapore-based bank will promote a consumption-related A-shares fund to retail investors.

UOB Asset Management has filed an application with the Monetary Authority of Singapore (MAS) to launch its United China A-shares Consumption Upgrade Fund, according to the regulator’s website.

Once approved, it will be available to retail investors in the Lion City.

The Singapore-domiciled fund is denominated in Singapore dollars. It aims to “achieve long-term capital appreciation investing primarily in A-shares of companies listed in the Shanghai Stock Exchange and Shenzhen Stock Exchange which are beneficiaries of consumption upgrade arising from structural changes to wealth and demographics”, according to the prospectus.

The managers can invest in A-shares through the firm’s RQFII (RMB qualified foreign institutional investor) license and/0r the Shanghai or Shenzhen-Hong Kong Stock Connect.

FSA contacted UOB AM for more information but it declined to comment.

A-Shares Innovation Fund

The firm has another A-shares-focused fund, the United China A-Shares Innovation Fund. The product was launched in 2019, and it is available to accredited investors in Singapore, according to FE Fundinfo.

The Singapore-domiciled fund invests in A-share companies “which are beneficiaries of technology, innovation and trends”, according to the fund’s prospectus.

The new consumption upgrade product as well as the innovation fund are both sub-funds of the United China Onshore series of funds. They are managed by UOB AM, with Ping An Fund Management acting as the sub-manager, according to the prospectus.

In January this year, UOB AM also filed an application with the MAS for the United Sustainable Credit Income Fund, which has received approval from the regulator already, according to MAS records.

The product is a fund of funds aiming for capital growth and income through allocation to fixed income, the prospectus noted. It will invest primarily in the RobecoSAM SDG Credit Income Fund, FSA previously reported.

In Singapore, UOB AM manages 49 funds for accredited investors and 46 for retail investors, FE Fundinfo shows. Last year, the firm completed its acquisition of a 75% stake in Jakarta-headquartered PG Asset Management.

UOB AM has S$36bn ($25.8bn) in assets under management as of the end of last year, according to its website.

The United China A-Shares Innovation Fund vs category average since inception

Source: FE Fundinfo. In US dollars. Note: the fund does not have a benchmark.

Part of Mark Allen.