AIA Regional Equity Fund

[Pages:2]AIA Regional Equity Fund

November 2022

Investment Objective

This fund is managed to provide long-term capital appreciation by investing in equity securities of Asian (ex Japan) companies. The fund may invest in listed equities, warrants, options, convertible bonds and other equity-linked instruments.

Key Fund Facts

Launch Date Launch Price Manager of ILP Sub-Fund

Name of Underlying Fund(s)

Manager(s) of Underlying Fund(s) Risk Classification

(As of 30 November 2022)

2 September 1997

Subscription

SGD 1.000

Sales Charge (For Cash and

FIL Investment Management (Singapore) SRS)

Limited

Sales Charge (for CPF OA or

Fidelity Funds ? Sustainable Asia Equity SA)

II Fund

Pricing Frequency

FIL Fund Management Limited

Management Fees

Bid

Higher Risk

Offer

Fund Size

Cash, CPF(OA) and SRS Up to 5%*

0% (wef 1 Oct 2020)

Daily 1.25% p.a. of Net Asset Value SGD 6.737 SGD 7.092 SGD 1,401.6M

Performance

Period

Fund (bid-to-bid) Benchmark

1 Month

14.73% 15.05%

3 Months

-2.25% -4.41%

6 Months

-4.66% -8.23%

1 Year

-18.13% -18.47%

3 Year^

-0.01% 0.81%

5 Year^

0.24% 0.27%

(As of 30 November 2022)

10 Year^

6.41% 5.04%

Since Inception^

8.08% 4.22%

AIA Regional Equity Fund

1020 790 560 330

Notes (1) Performance of the fund is in SGD on a bid to bid basis with net dividends reinvested, without taking into consideration the fees and charges payable through deduction of premium or cancellation of units (2) ^ denotes annualised returns (3) Current Manager: FIL Investment Management (Singapore) Limited (wef 27 June 2011) (4) Current benchmark: MSCI All Country Asia ex Japan Index (w.e.f 1 October 2014) (5) Previous benchmark: MSCI All Country Far East Free ex Japan DTR Net Index (Inception to 30 September 2014)

Past Performance is not necessarily indicative of future performance.

100

-130 Sep-9S7ep-9S8ep-9S9ep-0S0ep-0S1ep-0S2ep-0S3ep-0S4ep-0S5ep-0S6ep-0S7ep-0S8ep-0S9ep-1S0ep-S11ep-1S2ep-1S3ep-1S4ep-1S5ep-1S6ep-1S7ep-1S8ep-1S9ep-2S0ep-2N1ov-22

AIA Regional Equity Fund

Benchmark

Source: AIA Singapore

Sector Allocation (%)

(As of 30 November 2022) Country Allocation (%)

(As of 30 November 2022)

FINANCIALS INFORMATION TECHNOLOGY CONSUMER DISCRETIONARY

Uninvested Cash INDUSTRIALS

CONSUMER STAPLES MATERIALS

REAL ESTATE HEALTH CARE COMMUNICATION SERVICES

ENERGY UTILITIES

6.80 5.90 5.20 3.40 2.70 1.60 1.10 0.80 0.50

32.50 22.60 16.70

CHINA INDIA HONG KONG KOREA (SOUTH) TAIWAN Uninvested Cash SINGAPORE THAILAND INDONESIA UNITED KINGDOM PHILIPPINES Others

17.20 13.70 12.30 10.00 6.80 3.80 3.50 2.30 1.70 0.50 0.40

27.80

0

10

20

30

40

Source: FIL Investment Management (Singapore) Limited, Information from the underlying Fidelity

Funds ? Sustainable Asia Equity II Fund

0

10

20

30

Top Holdings

(As of 30 November 2022)

SAMSUNG ELECTRONICS CO LTD TAIWAN SEMICONDUCTOR MFG CO LTD AIA GROUP LTD ICICI BANK LTD AXIS BANK LTD MEITUAN UNITED OVERSEAS BANK LTD HDFC BANK LTD CHINA RES LD LTD ALIBABA GROUP HOLDING LTD

TOTAL

Holdings (%) 9.30 8.20 7.90 6.10 4.80 3.30 3.00 2.70 2.70 2.60

50.60

Source: FIL Investment Management (Singapore) Limited, Information from the underlying Fidelity Funds ? Sustainable Asia Equity II Fund

Manager's Commentary

Market Review:

(As of 30 November 2022)

Equities rebounded sharply in November, ending the month in positive territory. Foreign inflows into the Chinese, Hong Kong and Taiwanese markets were strong, reversing the record sales last month. Risky assets gained after the US Federal Reserve (Fed) signalled a slowdown in its ultraaggressive interest rate hikes, following lower-than-expected US inflation data in October.

Performance Review:

The fund delivered strong positive returns but lagged the index over the month. Equities in China and Hong Kong rebounded sharply as foreign investors re-entered the market following months of declining flows. Markets also reacted positively to signs that China was inching away from its zero COVID-19 strategy. Investors recognised the extremely discounted valuations on Chinese stocks, which have suffered on account of negative sentiment, and are now seeing a revival in investor confidence. As a result, gains were observed across the board, with significant outperformance from Chinese stocks. Companies affiliated to the real estate sector, including China Resources Land, gained after the People's Bank of China and the China Banking and Insurance Regulatory Commission released 16 measures to support financing for the property market. The exposure to China Merchants Bank also proved rewarding. It is a leading retail-oriented bank in China with customer stickiness from its retail clients. The stock has suffered from concerns around its property exposure, which we think is overdone and will ease with more accommodative property policies. AIA Group and Hong Kong Exchanges and Clearing rose in line with the broader Hong Kong equity market. AIA Group reported a modest rise in the value of new business, particularly in mainland China as pandemic containment measures eased and it achieved healthy levels of new agent recruitments. Hong Kong Exchanges and Clearing experienced a rise in daily turnover over the month, which saw significant investor interest in the equity market. Conversely, following months of outperformance, conviction positions in high-quality Indian private lenders, including Axis Bank and ICICI Bank. Axis Bank faced headwinds after Unit Trust of India (one of its largest shareholders) announced its plan to sell its stake in the bank. However, the promising long-term growth prospects of Axis Bank stand out, with encouraging asset quality trends, healthy interest margin expansion and high provision buffers. ICICI Bank is ahead of the curve versus other corporate lenders when it comes to recognizing stressed assets and provisioning, and is expected to perform well as investors become more cognisant of this fact.

Outlook:

The general macroeconomic backdrop is quite challenging given all the macro concerns and potential impact on earnings growth in the near term. Nevertheless, a lot of these seem priced in given the very weak sentiment and cheap valuations. We are in fact seeing many high quality & resilient companies where the stocks prices have come down along with the markets. This presents an improving opportunity set for bottom-up stock pickers to capitalize on the current market environment.

Source: FIL Investment Management (Singapore) Limited

*Please refer to the Product Summary applicable to the investment-linked policy which you have purchased or intend to purchase for these applicable fees and charges.

AIA Regional Equity Fund is an investment-linked policy (ILP) fund offered by AIA Singapore Private Limited ("AIA Singapore") and is only available under AIA Investment-Linked Policies. AIA Singapore is the product provider. This fact sheet is prepared by AIA Singapore and the information presented is for informational use only. Investments are subject to investment risks including the possible loss of the principal amount invested. Past performance, as well as the prediction, projection or forecast on the economy, securities markets or the economic trends of the markets are not necessarily indicative of the future or likely performance of the ILP funds. The performance of the ILP funds is not guaranteed and the value of the units in the ILP funds and the income accruing to the units, if any, may fall or rise. A product summary relating to the ILP funds is available and may be obtained from your AIA Financial Services Consultant. A potential investor should read the product summary before deciding whether to subscribe for units in the ILP funds. AIA Singapore does not warrant or make any representations regarding the use or the results of the use of the figures generated in terms of their correctness, accuracy, reliability, or otherwise.

E. & O. E.

AIA Singapore Private Limited (Reg No.201106386R) 1 Robinson Road, AIA Tower, Singapore 048542 Monday - Friday: 8.45am -5.30pm AIA Customer Care Hotline: 1800 248 8000 .sg

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