Despite the market volatility and uncertain investment landscape in 2016, UOBAM’s assets under management (AUM) grew to a record $30.4 billion as at 31 December 2016. UOBAM is one of the largest unit trust managers in Asia in terms of AUM.

Capitalising on the growth opportunities in Southeast Asia and Greater China, UOBVM’s AUM grew 12 per cent to more than $1 billion in 2016.

The global economy is expected to pick up in 2017 with macroeconomic indicators showing signs of moderate and sustained growth globally even amid geopolitical uncertainties.

This is likely to lead to the return of inflation to normal target levels. In such an environment, UOBAM is optimistic about the performance of growth assets such as global equities, while returns from fixed income will likely be at lower levels. We will continue to strengthen our investment capabilities and to enhance our product offerings to support the long-term investment goals of our clients.

With Asia remaining a bright spot in the global economy, UOBVM sees significant investment opportunities in the region. We have refined our investment focus across five key themes, namely well-being, happiness, energy and logistics, industry 4.0 and technology, where we see attractive growth prospects regionally. We continue to deepen our access to high quality companies by evaluating more than 500 potential investees annually and maintaining a strong pipeline of deals.

Deepening Our Support of Clients Through Our Regional Network

As part of our strategy to grow our presence in existing and new geographies, in 2016, UOBAM became the first fully foreign-owned fund management company since 2001 to be awarded the SITE licence in Taiwan. The licence enables UOBAM (Taiwan) to develop and to offer onshore funds, and to provide fund management services for domestic retail and institutional investors. In August 2016, we launched our first Renminbi (RMB) fund in Taiwan to provide retail customers with the opportunity to invest in RMB-denominated investment-grade bonds in the currency’s offshore market.

Through UOBAM (Taiwan), we develop and offer onshore funds, as well as provide fund management services for domestic retail and institutional investors in Taiwan.

We continued to widen our third-party distribution network with insurance and independent financial advisers, and mid-tier regional banks. One example is our landmark distribution channel agreement with Siam Commercial Bank in Thailand for the exclusive distribution rights of UOBAM (Thailand)’s new fixed income fund. This collaboration adds to our existing partnerships with Wellington Management Singapore and UTI International (India), as well as joint ventures, Ping An-UOB Fund Management Company (China) and UOB-SM Asset Management (Singapore), to expand the range of our services to our clients.

To provide UOB clients with greater access to a wider range of investment solutions, UOBAM services are now offered as part of the Bank’s core product and service offerings for corporates.

The retail demand for income-generating funds has grown as investors look for lower risk investments that provide a steady income in their retirement. To cater to this demand, in 2016 UOBAM developed and launched the United Income Focus Trust fund, customised for UOB’s retail customers in Southeast Asia.

UOBAM also launched the Asian Income Solutions programme in Singapore to help provide investors with a regular income stream amid inflation and the low interest rate environment. Under this programme, individuals can choose to invest in Asian and Singapore assets through four different funds, including the award-winning United SGD Fund and the United Asian High Yield Bond Fund.

UOBAM (Thailand) and UOBAM (Malaysia) also introduced new income-based funds. In Thailand, the United Global Macro Opportunities Fund provides investors with opportunities to diversify into global assets, while the United Flexible Income Fund aims to provide investors with stable income through property assets. In Malaysia, the United Global Quality Equity Fund enables investors to invest in global high-quality, growth- oriented companies, while the United Golden Opportunity Fund focuses on providing long-term capital appreciation to investors.

UOBAM’s strong performance during the year continued to garner industry awards and accolades. At the AsianInvestor Asset Management Awards 2016, we were named Asia Fund House of the Year, while UOBAM (Malaysia) received the Best Institutional Product/Strategy award.

In Singapore, we won a total of 12 awards including those for the United Emerging Markets Bond Fund and United SGD Fund at the Fundsupermart Choice Awards 2016. Our investment team’s expertise was recognised at The Asset Benchmark Research Awards 2016, where three of our fund managers were honoured for being among the ‘Most Astute Investors’ in the region.

UOBAM (Thailand) was also ranked second among the Top 5 Investment Houses 2016 at The Asset Benchmark Research Awards 2016. It rounded up the year by winning World Finance’s Best Investment Management Company in Thailand.

UOBAM’s strong performance continues to be recognised by the industry.

Investing Responsibly to Facilitate the Development of Economies and Communities

UOBVM is committed to investing responsibly, and we have incorporated environmental, social and governance (ESG) assessments in our investment evaluation process since 2004 with the launch of the ASEAN China Investment Fund (ACIF).

The ACIF invests in privately-held companies that capitalise on growth opportunities in trade, knowledge transfer and capital flows between ASEAN and China. In 2016, we closed the ASEAN China Investment Fund III successfully, quadrupling the size of the ACIF with many repeat investors. Our team of experienced investment professionals in Singapore, Indonesia and China continue to identify and to assist promising entrepreneurs in revenue and profit margin expansion, and to provide them with advisory on enhancing their ESG practices.

In 2016, we also started deploying the Asia Impact Investment Fund, which invests in socially-responsible, high-growth companies that play a part in helping to improve the living standards of certain communities in Southeast Asia and China. Target companies come from sectors including education, healthcare, energy, financial services, water, housing and agriculture.

The Asia Impact Investment Fund combines the institutional expertise of UOBVM and Credit Suisse AG to offer high-net-worth and institutional investors opportunities to bring about social and environmental improvement through social impact investing.

In 2016, we entered into a partnership with three Chinese companies to set up and to manage a Sino-Singapore private equity fund, the Sino-Singapore Connectivity Private Equity Fund. The three Chinese companies are Chongqing Yufu Asset Management Group Co. Ltd., a state-owned capital investment company focused on financial holdings; Ping An Insurance (Group) Company of China, Ltd., a comprehensive financial services group; and Tus-Holdings Co., Ltd., which operates and manages the Tsinghua University Science Park.

The private equity fund, with a target size of up to RMB100 billion, invests primarily in Chongqing-based projects, such as financial services firms that are developing their Sino-Singapore capabilities, as well as aviation companies exploring travel between Chongqing and Singapore and other Southeast Asian countries. The fund also invests in enterprises tapping Sino-Singapore expertise and experience to enhance the transportation logistics and info- communications infrastructure in Chongqing and other parts of western China.

During the year, we also partnered ORIX Corporation, a global financial services group, to invest US$25 million each in one of Vietnam’s largest privately-owned hydropower companies, Bitexco Power Corporation. By investing in Bitexco Power, which owns and operates 18 hydropower plants in Vietnam with a gross power capacity of around one gigawatt, we are able to participate in the growth of Vietnam’s renewable energy sector and to play a role in the country’s economic transformation.

Through UOBVM’s investment in Bitexco Power, we are able to contribute to the infrastructural development in Vietnam.