Interim Report (unaudited) - FSM 香港 · Indonesia (2.51%) Bank Central Asia Tbk PT 332,600...

Interim Report (unaudited)

For the period ended 30 June 2018

BEA Union Investment Capital Growth Fund

BEA Union Investment Asia Strategic Growth Fund

BEA Union Investment Global Bond Fund

BEA Union Investment Hong Kong Growth Fund

BEA Union Investment Greater China Growth Fund

BEA Union Investment Hong Kong Dollar (HK$) Bond Fund

BEA Union Investment Global Equity Fund

BEA Union Investment Asia Pacific Investment Grade Bond Fund

BEA Union Investment Core Accumulation Fund*

BEA Union Investment Age 65 Plus Fund*

(*Not available to Hong Kong retail investors)

BEA UNION INVESTMENT CAPITAL GROWTH FUNDPERIOD ENDED 30 JUNE 2018

CONTENTS PAGE(S)

INVESTMENT REPORT – INVESTMENT PORTFOLIO 1-30 – STATEMENT OF MOVEMENTS IN INVESTMENT PORTFOLIO 31-36

STATEMENT OF COMPREHENSIVE INCOME 37-38

STATEMENT OF ASSETS AND LIABILITIES 39-40

STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO UNITHOLDERS/ STATEMENT OF CHANGES IN EQUITY 41

MANAGEMENT AND ADMINISTRATION

EAM024-IT(2018)

The Fund may not obtain leverage exposure through borrowing and the use of financial derivative instruments. Leverage arising from derivatives, if any, is calculated based on commitment approach (i.e. in accordance with CSSF Circular 11/512), and factors in the market value of the equivalent positions in the underlying assets of the financial derivative instruments held by a Sub-Fund (sometimes referred to as “effective notional exposure”), after taking into account netting and hedging arrangements where the market value of underlying security positions may be offset by other commitments related to the same underlying positions.

2

A5請縮小打印70.5%

BEA UNION INVESTMENT CAPITAL GROWTH FUND

INVESTMENT REPORTAS AT 30 JUNE 2018 (UNAUDITED) (CONTINUED)

INVESTMENT PORTFOLIO (CONTINUED)


INVESTMENT REPORTAS AT 30 JUNE 2018 (UNAUDITED)

INVESTMENT PORTFOLIO

1


BEA UNION INVESTMENT ASIA STRATEGIC GROWTH FUND

Holding shares/units

Market value

% of net assets

HK$

Listed/quoted investments (97.61%)

Equities (96.86%)

China and Hong Kong (47.84%)

Agricultural Bank of China Ltd – H 4,806,000 17,638,020 0.91AIA Group Ltd 1,124,600 77,147,560 3.97ANTA Sports Products Ltd 408,000 16,952,400 0.87BOC Hong Kong Holdings Ltd 497,500 18,382,625 0.95Chailease Holding Co Ltd 380,000 9,768,534 0.50China CITIC Bank Corp Ltd – H 2,770,000 13,573,000 0.70China Construction Bank Corp – H 8,573,000 62,068,520 3.19China Gas Holdings Ltd 1,150,200 36,231,300 1.86China Mengniu Dairy Co 868,000 23,045,400 1.19China Merchants Bank – H 885,000 25,576,500 1.32China Overseas Land & Invest 264,000 6,811,200 0.35China Petroleum & Chemical Corp – H 5,100,000 35,700,000 1.84China Railway Group Ltd – H 1,655,000 9,781,050 0.50China Unicom Hong Kong Ltd 2,026,000 19,834,540 1.02China Vanke Co Ltd – H 342,600 9,387,240 0.48CK Hutchison Holdings Ltd 353,500 29,411,200 1.51CNOOC Ltd 3,170,000 42,858,400 2.20CSPC Pharmaceutical Group Ltd 1,282,000 30,319,300 1.56Galaxy Entertainment Group Ltd 307,000 18,650,250 0.96Geely Automobile Holdings Ltd 469,000 9,520,700 0.49Hong Kong Exchanges & Clearing Ltd 90,000 21,222,000 1.09Industrial & Commercial Bank of China Ltd – H 2,435,000 14,269,100 0.73Ping An Insurance Group Co of China Ltd – H 542,000 39,105,300 2.01Shimao Property Holdings Ltd 747,500 15,398,500 0.79Sino Biopharmaceutical Ltd 906,000 10,872,000 0.56Sun Art Retail Group Ltd 1,611,500 16,533,990 0.85Sun Hung Kai Properties Ltd 342,000 40,492,800 2.08Sunny Optical Technology Group Co Ltd 106,000 15,465,400 0.80Tencent Holdings Ltd 462,900 182,197,440 9.37Tingyi (Cayman Islands) Holding Corp 1,320,000 23,997,600 1.24Wharf Real Estate Investment Co Ltd 497,000 27,757,450 1.43Wynn Macau Ltd 400,400 10,110,100 0.52

Indonesia (2.51%)

Bank Central Asia Tbk PT 332,600 3,875,156 0.20Bank Mandiri Persero Tbk PT 4,831,900 17,972,735 0.93Bank Rakyat Indonesia Persero Tbk PT 2,988,000 4,625,454 0.24Indah Kiat Pulp & Paper Corp Tbk PT 732,900 7,436,626 0.38Telekomunikasi Indonesia Persero Tbk PT 7,202,800 14,735,344 0.76


Market value

% of net assets

HK$

Listed/quoted investments (97.61%) (continued)

Equities (96.86%) (continued)

Korea (19.85%)

Amorepacific Corp 2,000 4,533,116 0.23Celltrion Inc 6,206 13,236,262 0.68Coway Co Ltd 33,230 20,186,085 1.04DGB Financial Group Inc 334,192 23,994,250 1.23Hotel Shilla Co Ltd 7,326 6,342,829 0.33Hyundai Heavy Industries Co Ltd 5,000 3,589,890 0.18Hyundai Mobis Co Ltd 8,500 12,654,362 0.65Hyundai Motor Co 4,500 3,959,438 0.20ING Life Insurance Korea Ltd 40,000 11,741,052 0.60KT&G Corp 8,000 5,997,228 0.31LG Electronics Inc 11,500 6,702,536 0.34LG Household & Health Care Ltd 1,770 17,392,806 0.89Loen Entertainment Inc 15,000 9,502,650 0.49Lotte Chemical Corp 2,000 4,892,105 0.25Medy-Tox Inc 1,500 8,101,537 0.42Naver Corp 1,800 9,642,022 0.50NCSoft Corporation 8,000 20,891,752 1.07POSCO 6,000 13,873,869 0.71Samsung Biologics Co Ltd 1,427 4,188,620 0.22Samsung Electro-Mechanics Co Ltd 9,982 10,398,968 0.54Samsung Electronics Co Ltd 437,700 143,727,264 7.39SK Hynix Inc 51,030 30,747,535 1.58

Malaysia (2.75%)

British American Tobacco Bhd 126,700 8,474,826 0.44Dialog Group Bhd 2,636,700 15,823,780 0.81Genting Malaysia Bhd 297,400 2,818,719 0.15Malayan Banking Bhd 251,800 4,391,603 0.23Public Bank Bhd 198,400 8,885,708 0.46Tenaga Nasional Bhd 451,678 12,825,295 0.66

Singapore (5.10%)

CapitaLand Ltd 437,200 7,949,349 0.41DBS Group Holdings Ltd 212,600 32,551,611 1.67Keppel Corp Ltd 291,500 11,975,706 0.62Oversea-Chinese Banking Corp Ltd 309,200 20,708,890 1.07Sembcorp Marine Ltd 380,800 4,447,924 0.23Singapore Technologies Engineering Ltd 740,700 14,021,762 0.72UOL Group Ltd 166,300 7,291,411 0.38

BEA UNION INVESTMENT ASIA STRATEGIC GROWTH FUND (CONTINUED)

3 4









Market value

% of net assets

HK$



Taiwan (13.86%)

Cathay Financial Holding Co Ltd 438,000 6,063,686 0.31Chilisin Electronics Corp 567,000 26,043,633 1.34Chroma ATE Inc 390,000 16,307,909 0.84CTBC Financial Holding Co Ltd 2,550,000 14,370,259 0.74Eclat Textile Co Ltd 250,000 23,223,491 1.20Episil-Precision Inc 720,000 13,469,367 0.69Formosa Chemicals & Fibre Corp 480,000 15,007,136 0.77Globalwafers Co Ltd 33,000 4,296,796 0.22Largan Precision Co Ltd 42,000 48,201,932 2.48Taiwan Semiconductor Manufacturing Co Ltd 1,248,000 69,366,316 3.57Uni-President Enterprises Corp 701,000 13,943,693 0.72Visual Photonics Epitaxy Corp 644,000 19,057,415 0.98

Thailand (3.85%)

Advanced Info Service PCL – NVDR 157,000 6,878,088 0.35Airports of Thailand PCL – NVDR 451,200 6,704,698 0.35CP ALL PCL – NVDR 933,500 16,247,930 0.84Indorama Ventures PCL – NVDR 1,487,900 19,202,891 0.99Land & Houses Pub – NVDR 1,932,500 5,125,472 0.26PTT Exploration & Production PCL – NVDR 301,500 9,995,666 0.51PTT PCL – NVDR 945,500 10,691,319 0.55

The Philippines (0.54%)

BDO Unibank Inc 213,380 3,936,782 0.20SM Prime Holdings Inc 1,256,700 6,632,389 0.34

The United States of America (0.56%)

Baozun Inc – Sponsored ADR 15,400 6,605,247 0.34Fanhua Inc – Sponsored ADR 18,800 4,193,281 0.22

Real estate investment trust (0.75%)


Link REIT 203,000 14,544,950 0.75

Total listed/quoted investments 1,897,297,840 97.61

Total investments, at cost 1,703,115,105

Note: Investments are accounted for on a trade date basis.

BEA UNION INVESTMENT GLOBAL BOND FUND

Nominal value

Market value

% of net assets

HK$


Bonds (96.85%)

Denominated in Australian dollar (1.40%)

Australia Government Bond 4.25% 21/04/2026 7,000,000 45,794,720 0.85Bank of Montreal FRN 06/10/2022 3,000,000 17,474,653 0.33DBS Group Holdings Ltd FRN 16/03/2028 2,000,000 11,576,295 0.22

Denominated in British pound (5.55%)

Nationwide Building Society 3.25% 20/01/2028 1,000,000 11,058,030 0.21United Kingdom Gilt 1.50% 22/07/2026 9,000,000 95,829,302 1.79United Kingdom Gilt 1.50% 22/07/2047 8,000,000 78,974,266 1.47United Kingdom Gilt 2.00% 07/09/2025 4,000,000 44,179,489 0.82United Kingdom Gilt 2.75% 07/09/2024 4,000,000 45,897,843 0.86United Kingdom Gilt 3.50% 22/01/2045 1,500,000 21,493,080 0.40

Denominated in Canadian dollar (0.83%)

Canadian Government Bond 1.50% 01/06/2026 2,500,000 14,229,886 0.27Canadian Government Bond 2.25% 01/06/2025 5,000,000 30,090,498 0.56

Denominated in Euro (20.46%)

Azure Orbit II International Finance Ltd FRN 21/08/2018 2,000,000 18,346,216 0.34Bundesrepublik Deutschland Bundesanleihe 0.50%

15/02/2028 14,300,000 133,752,775 2.50Bundesrepublik Deutschland Bundesanleihe 1.25%

15/08/2048 7,500,000 73,523,918 1.37Bundesrepublik Deutschland Bundesanleihe 2.50%

15/08/2046 1,500,000 19,188,123 0.36French Republic Government Bond OAT 0.25% 25/11/2026 6,000,000 54,403,339 1.02French Republic Government Bond OAT 0.50% 25/05/2025 3,000,000 28,117,953 0.53French Republic Government Bond OAT 0.75% 25/05/2028 8,000,000 74,330,001 1.39French Republic Government Bond OAT 1.00% 25/05/2027 3,000,000 28,775,462 0.54French Republic Government Bond OAT 2.00% 25/05/2048 8,500,000 86,564,404 1.62French Republic Government Bond OAT 2.25% 25/05/2024 5,000,000 52,004,020 0.97Industrial & Commercial Bank of China Ltd/Dubai DIFC FRN

23/05/2020 2,500,000 22,931,288 0.43Italy Buoni Poliennali Del Tesoro 0.95% 01/03/2023 3,000,000 26,619,817 0.50Italy Buoni Poliennali Del Tesoro 1.25% 01/12/2026 4,000,000 33,505,561 0.63Italy Buoni Poliennali Del Tesoro 1.60% 01/06/2026 5,000,000 43,326,339 0.81Italy Buoni Poliennali Del Tesoro 2.05% 01/08/2027 5,000,000 44,100,495 0.82Italy Buoni Poliennali Del Tesoro 2.20% 01/06/2027 4,000,000 35,636,492 0.67Italy Buoni Poliennali Del Tesoro 3.75% 01/05/2021 3,000,000 29,681,815 0.55National Australia Bank Ltd FRN 19/04/2021 3,500,000 32,405,577 0.61


5 6








Nominal value

Market value

% of net assets

HK$


Bonds (96.85%) (continued)

Denominated in Euro (20.46%) (continued)

Spain Government Bond 1.45% 31/10/2027 5,000,000 47,044,924 0.88Spain Government Bond 1.50% 30/04/2027 4,000,000 37,680,073 0.70Spain Government Bond 1.60% 30/04/2025 5,000,000 48,472,250 0.91Spain Government Bond 1.95% 30/04/2026 6,500,000 63,936,468 1.19Spain Government Bond 3.80% 30/04/2024 5,500,000 59,948,313 1.12

Denominated in Hong Kong dollar (0.37%)

Bank of China Ltd/Hong Kong 2.85% 07/06/2020 20,000,000 19,969,367 0.37

Denominated in Indonesian rupiah (1.23%)

Indonesia Treasury Bond 5.625% 15/05/2023 129,500,000,000 65,802,866 1.23

Denominated in Japanese yen (14.93%)

Apple Inc 0.35% 10/06/2020 920,000,000 65,455,153 1.22China Eastern Airlines Corp Ltd 0.64% 16/03/2021 100,000,000 7,090,132 0.13China Eastern Airlines Corp Ltd 0.64% 16/03/2021 100,000,000 7,090,132 0.13Citigroup Inc 2.04% 16/09/2020 100,000,000 7,415,345 0.14Citigroup Inc 2.40% 31/10/2025 180,000,000 14,238,447 0.27Corning Inc 0.698% 09/08/2024 500,000,000 35,601,397 0.66Electricite de France SA 1.088% 26/01/2027 400,000,000 28,650,979 0.54Foxconn Far East Ltd 0.52% 20/09/2022 200,000,000 14,182,275 0.26Foxconn Far East Ltd 0.70% 20/09/2024 100,000,000 7,092,519 0.13Japan Government Ten Year Bond 0.10% 20/09/2026 600,000,000 42,939,975 0.80Japan Government Ten Year Bond 0.10% 20/09/2027 200,000,000 14,282,018 0.27Japan Government Ten Year Bond 0.10% 20/12/2027 1,050,000,000 74,906,979 1.40Japan Government Twenty Year Bond 0.40% 20/03/2036 950,000,000 67,274,340 1.26Japan Government Twenty Year Bond 0.60% 20/12/2037 800,000,000 57,812,598 1.08Japan Government Twenty Year Bond 1.00% 20/12/2035 900,000,000 70,251,779 1.31Japan Government Twenty Year Bond 1.80% 20/06/2031 900,000,000 76,964,366 1.44Japan Government Thirty Year Bond 0.30% 20/06/2046 300,000,000 19,133,028 0.36POSCO 1.35% 11/12/2018 800,000,000 56,902,425 1.06Procter & Gamble Co/The 0.275% 08/05/2020 950,000,000 67,546,542 1.26Walmart Inc 0.183% 15/07/2022 200,000,000 14,211,952 0.27Walmart Inc 0.298% 18/07/2024 300,000,000 21,404,952 0.40Walmart Inc 0.52% 16/07/2027 400,000,000 28,853,686 0.54

Nominal value

Market value

% of net assets

HK$



Denominated in Malaysian ringgit (0.55%)

Malaysia Government Bond 3.58% 28/09/2018 15,000,000 29,418,360 0.55

Denominated in Renminbi (2.28%)

Bank of China Ltd/New York NY 3.60% 12/07/2018 9,000,000 10,828,638 0.20Bank of China Ltd/Paris 4.50% 22/11/2020 4,000,000 4,761,360 0.09Busan Bank Co Ltd 4.85% 25/05/2021 15,000,000 17,836,779 0.33Export-Import Bank of Korea 4.65% 21/06/2021 10,000,000 11,878,964 0.22First Abu Dhabi Bank PJSC 4.80% 01/06/2021 7,000,000 8,358,747 0.16Hong Kong Mortgage Corp Ltd/The 4.05% 06/11/2020 12,000,000 14,522,278 0.27Industrial & Commercial Bank of China Ltd/Sydney 3.65%

27/10/2018 11,300,000 13,430,399 0.25Korea Development Bank/The 4.60% 03/07/2021 13,000,000 15,390,272 0.29QNB Finance Ltd 5.10% 14/05/2021 5,000,000 5,954,059 0.11Shimao Property Holdings Ltd 5.75% 15/03/2021 16,000,000 19,053,238 0.36

Denominated in Singapore dollar (0.21%)

CapitaLand Treasury Ltd 3.08% 19/10/2027 2,000,000 11,084,112 0.21

Denominated in United States dollar (49.04%)

ANZ New Zealand Int’l Ltd/London FRN 25/01/2022 5,000,000 39,859,845 0.74Australia & New Zealand Banking Group Ltd FRN

17/05/2021 4,000,000 31,432,610 0.59AVIC International Finance & Investment Ltd 4.375%

23/05/2021 2,000,000 15,831,488 0.30Bank of China Ltd/Hong Kong FRN 08/03/2021 1,600,000 12,579,649 0.23Bank of China Ltd/London FRN 07/06/2021 1,800,000 14,144,068 0.26Bank of China Ltd/London FRN 07/06/2023 2,700,000 21,195,907 0.40Bank of Communications Co Ltd/Hong Kong FRN

16/08/2019 2,000,000 15,786,593 0.29Beijing Capital Polaris Investment Co Ltd 4.25% 26/03/2021 4,000,000 31,669,528 0.59Bluestar Finance Holdings Ltd 3.50% 30/09/2021 5,000,000 38,605,909 0.72Central Plaza Development Ltd 3.875% 30/01/2021 3,000,000 23,440,716 0.44Charming Light Investments Ltd FRN 21/12/2020 4,300,000 33,849,800 0.63Charming Light Investments Ltd 4.375% 21/12/2027 3,500,000 25,683,569 0.48China Construction Bank Corp/Hong Kong FRN 04/12/2020 4,000,000 31,507,461 0.59China Construction Bank Corp/Hong Kong FRN 08/06/2021 4,000,000 31,416,398 0.59China Construction Bank Corp/Hong Kong FRN 08/06/2023 3,000,000 23,559,566 0.44

BEA UNION INVESTMENT GLOBAL BOND FUND (CONTINUED) BEA UNION INVESTMENT GLOBAL BOND FUND (CONTINUED)

7 8








Nominal value

Market value

% of net assets

HK$



Denominated in United States dollar (49.04%) (continued)

China Huadian Overseas Development 2018 Ltd 3.875% 17/05/2023 6,000,000 47,331,103 0.88

China Merchants Bank Co Ltd/Hong Kong FRN 01/06/2021 3,600,000 28,294,913 0.53China Overseas Finance Cayman V Ltd 5.35% 15/11/2042 2,000,000 16,573,507 0.31CNAC HK Finbridge Co Ltd 4.125% 14/03/2021 2,500,000 19,856,712 0.37CNAC HK Finbridge Co Ltd 4.625% 14/03/2023 3,500,000 27,822,081 0.52CNAC HK Finbridge Co Ltd 5.125% 14/03/2028 3,500,000 27,544,427 0.51Commonwealth Bank of Australia FRN 16/03/2023 1,800,000 14,113,890 0.26Dah Sing Bank Ltd 5.25% 29/01/2024 6,000,000 48,412,863 0.90Doosan Power Systems SA 2.50% 03/12/2045 7,000,000 54,821,371 1.02Export-Import Bank of Korea FRN 01/06/2021 2,500,000 19,665,786 0.37Export-Import Bank of Korea FRN 01/11/2022 3,500,000 27,779,612 0.52Export-Import Bank of Korea FRN 01/06/2023 1,000,000 7,866,916 0.15Far East Horizon Ltd FRN 03/07/2021 2,000,000 15,662,865 0.29Goldman Sachs Group Inc/The FRN 15/05/2026 5,000,000 38,877,208 0.73GS Caltex Corp 3.875% 27/06/2023 2,300,000 17,898,444 0.33Huarong Finance 2017 Co Ltd FRN 03/07/2021 4,500,000 35,240,035 0.66Huarong Finance 2017 Co Ltd FRN 07/11/2022 1,500,000 11,769,623 0.22Industrial & Commercial Bank of China Asia Ltd 4.50%

10/10/2023 6,680,000 53,008,635 0.99Industrial & Commercial Bank of China Ltd/Dubai DIFC FRN

05/03/2023 3,800,000 29,841,365 0.56Industrial & Commercial Bank of China Ltd/London FRN

14/06/2021 2,000,000 15,690,758 0.29ICBCIL Finance Co Ltd FRN 13/11/2018 5,000,000 39,577,942 0.74ICBCIL Finance Co Ltd FRN 15/05/2021 3,000,000 23,599,236 0.44ICBCIL Finance Co Ltd FRN 15/05/2023 3,900,000 30,686,835 0.57KEB Hana Bank FRN 13/03/2023 7,000,000 55,049,548 1.03Korea Development Bank/The FRN 12/03/2021 1,800,000 14,131,573 0.26Korea National Oil Corp FRN 16/07/2023 2,900,000 22,751,880 0.42Korea Western Power Co Ltd 3.75% 07/06/2023 2,000,000 15,666,317 0.29Mega Advance Investments Ltd 5.00% 12/05/2021 3,000,000 24,283,605 0.45Mitsubishi UFJ Financial Group Inc FRN 25/07/2022 3,500,000 27,705,520 0.52Mizuho Financial Group Inc FRN 11/09/2022 3,500,000 27,634,129 0.52Mizuho Financial Group Inc FRN 05/03/2023 3,000,000 23,589,962 0.44Mitsubishi UFJ Financial Group Inc FRN 02/03/2023 1,800,000 14,154,139 0.26Nan Fung Treasury Ltd 3.875% 03/10/2027 3,000,000 22,107,348 0.41National Australia Bank Ltd FRN 20/09/2021 2,500,000 19,624,429 0.37ONGC Videsh Ltd 4.625% 15/07/2024 4,000,000 32,090,708 0.60Oversea-Chinese Banking Corp Ltd 4.00% 15/10/2024 3,000,000 23,764,601 0.44

Nominal value

Market value

% of net assets

HK$




Pelabuhan Indonesia II PT 4.25% 05/05/2025 3,000,000 22,641,364 0.42Poly Real Estate Finance Ltd 4.50% 06/08/2018 6,500,000 51,953,036 0.97Poly Real Estate Finance Ltd 5.25% 25/04/2019 1,000,000 7,994,893 0.15QNB Finance Ltd FRN 31/05/2021 3,700,000 29,206,763 0.55Shougang Group Co Ltd 3.375% 09/12/2019 3,000,000 23,369,849 0.44Sumitomo Mitsui Financial Group Inc FRN 12/07/2022 3,000,000 23,756,051 0.44Sun Hung Kai Properties Capital Market Ltd FRN 25/02/2024 7,000,000 55,529,161 1.04United States Treasury Bill 0.00% 30/08/2018 3,000,000 23,464,595 0.44United States Treasury Bill 0.00% 13/09/2018 6,000,000 46,893,038 0.88United States Treasury Bill 0.00% 04/10/2018 3,000,000 23,420,276 0.44United States Treasury Bill 0.00% 15/11/2018 5,000,000 38,932,155 0.73United States Treasury Bill 0.00% 29/11/2018 5,000,000 38,897,203 0.73United States Treasury Bill 0.00% 28/03/2019 5,000,000 38,587,660 0.72United States Treasury Bill 0.00% 25/04/2019 7,000,000 53,920,411 1.01United States Treasury Note/Bond 2.25% 31/12/2024 2,000,000 15,167,245 0.28United States Treasury Note/Bond 2.25% 15/11/2027 4,000,000 29,888,279 0.56United States Treasury Note/Bond 2.50% 31/01/2025 8,000,000 62,231,692 1.16United States Treasury Note/Bond 2.75% 30/04/2023 6,000,000 47,313,017 0.88United States Treasury Note/Bond 2.75% 28/02/2025 7,000,000 55,191,431 1.03United States Treasury Note/Bond 2.75% 15/02/2028 18,500,000 145,234,775 2.71United States Treasury Note/Bond 2.875% 15/05/2028 33,000,000 260,131,466 4.86United States Treasury Note/Bond 3.00% 15/02/2048 5,000,000 39,730,793 0.74United States Treasury Note/Bond 3.125% 15/05/2048 14,500,000 117,199,619 2.19Wing Lung Bank Ltd 3.75% 22/11/2027 1,500,000 11,264,328 0.21




BEA UNION INVESTMENT GLOBAL BOND FUND (CONTINUED) BEA UNION INVESTMENT GLOBAL BOND FUND (CONTINUED)

9 10








BEA UNION INVESTMENT HONG KONG GROWTH FUND


Market value

% of net assets

HK$


Equities (94.20%)


Agricultural Bank of China Ltd – H 14,398,000 52,840,660 2.48AIA Group Ltd 2,421,196 166,094,046 7.79Anhui Conch Cement Co Ltd – H 935,000 42,028,250 1.97ANTA Sports Products Ltd 762,000 31,661,100 1.49BOC Hong Kong (Holdings) Ltd 592,000 21,874,400 1.03China CITIC Bank Corp Ltd – H 4,218,000 20,668,200 0.97China Construction Bank Corp – H 17,562,910 127,155,468 5.97China Gas Holdings Ltd 1,300,000 40,950,000 1.92China Life Insurance Co Ltd – H 545,000 11,009,000 0.52China Mengniu Dairy Co Ltd 1,780,000 47,259,000 2.22China Merchants Bank Co Ltd – H 1,022,000 29,535,800 1.39China Mobile Ltd 578,000 40,257,700 1.89China Overseas Land & Investment Ltd 800,000 20,640,000 0.97China Petroleum & Chemical Corp – H 8,280,000 57,960,000 2.72China Railway Group Ltd – H 5,587,000 33,019,170 1.55China Vanke Co Ltd – H 712,800 19,530,720 0.92CK Hutchison Holdings Ltd 800,000 66,560,000 3.13CNOOC Ltd 5,948,000 80,416,960 3.78CSPC Pharmaceutical Group Ltd 3,180,000 75,207,000 3.53Galaxy Entertainment Group Ltd 550,000 33,412,500 1.57Geely Automobile Holdings Ltd 1,318,000 26,755,400 1.26Henderson Land Development Co Ltd 310,800 12,898,200 0.61Hong Kong Exchanges & Clearing Ltd 362,000 85,359,600 4.00HSBC Holdings PLC 1,991,600 146,482,180 6.87Industrial & Commercial Bank of China Ltd – H 16,966,915 99,426,122 4.66PetroChina Co Ltd – H 2,555,000 15,227,800 0.72Ping An Insurance Group Co of China Ltd – H 1,160,000 83,694,000 3.93Power Assets Holdings Ltd 441,000 24,188,850 1.14Shimao Property Holdings Ltd 1,570,000 32,342,000 1.52Sino Biopharmaceutical Ltd 3,698,000 44,376,000 2.08Sun Art Retail Group Ltd 1,430,000 14,671,800 0.69Sun Hung Kai Properties Ltd 450,000 53,280,000 2.50Sunny Optical Technology Group Co Ltd 148,000 21,593,200 1.01Tencent Holdings Ltd 525,000 206,640,000 9.70Tingyi (Cayman Islands) Holding Corp 2,576,000 46,831,680 2.20Wharf Real Estate Investment Co Ltd 368,000 20,552,800 0.97Wynn Macau Ltd 828,000 20,907,000 0.98


Alibaba Group Holding Ltd – SP ADR 22,700 33,018,313 1.55


Market value

% of net assets

HK$


Real estate Investment trust (1.45%)


Link REIT 430,000 30,809,500 1.45




BEA UNION INVESTMENT HONG KONG GROWTH FUND (CONTINUED)

11 12








BEA UNION INVESTMENT GREATER CHINA GROWTH FUND


Market value

% of net assets

HK$


Equities (95.08%)


Agricultural Bank of China Ltd – H 7,675,000 28,167,250 1.49AIA Group Ltd 1,834,000 125,812,400 6.67Anhui Conch Cement Co Ltd – H 630,000 28,318,500 1.50ANTA Sports Products Ltd 570,000 23,683,500 1.26BOC Hong Kong (Holdings) Ltd 1,463,000 54,057,850 2.87China CITIC Bank Corp Ltd – H 5,501,000 26,954,900 1.43China Construction Bank Corp – H 11,417,000 82,659,080 4.38China Gas Holdings Ltd 1,254,000 39,501,000 2.09China Mengniu Dairy Co Ltd 1,361,000 36,134,550 1.92China Merchants Bank Co Ltd – H 917,000 26,501,300 1.41China Overseas Land & Investment Ltd 348,000 8,978,400 0.48China Petroleum & Chemical Corp – H 5,350,000 37,450,000 1.99China Railway Group Ltd – H 3,883,000 22,948,530 1.22China Telecom Corp Ltd – H 2,560,000 9,395,200 0.50China Unicom Hong Kong Ltd 2,268,000 22,203,720 1.18China Vanke Co Ltd – H 260,300 7,132,220 0.38CK Hutchison Holdings Ltd 448,000 37,273,600 1.98CNOOC Ltd 6,114,000 82,661,280 4.39CSPC Pharmaceutical Group Ltd 2,056,000 48,624,400 2.58Galaxy Entertainment Group Ltd 448,000 27,216,000 1.44Geely Automobile Holdings Ltd 872,000 17,701,600 0.94Hangzhou Hikvision Digital Technology Co Ltd – A 432,380 18,998,722 1.01Hong Kong Exchanges & Clearing Ltd 104,400 24,617,520 1.31Industrial & Commercial Bank of China Ltd – H 9,390,050 55,025,693 2.92Ping An Insurance Group Co of China Ltd – H 1,039,000 74,963,850 3.98Shimao Property Holdings Ltd 1,554,000 32,012,400 1.70Sino Biopharmaceutical Ltd 2,485,000 29,820,000 1.58Sun Art Retail Group Ltd 2,390,500 24,526,530 1.30Sun Hung Kai Properties Ltd 398,000 47,123,200 2.50Sunny Optical Technology Group Co Ltd 130,800 19,083,720 1.01Tencent Holdings Ltd 461,400 181,607,040 9.63Tingyi (Cayman Islands) Holding Corp 1,854,000 33,705,720 1.79Wharf Real Estate Investment Co Ltd 590,000 32,951,500 1.75Wynn Macau Ltd 648,800 16,382,200 0.87


Market value

% of net assets

HK$



Taiwan (20.03%)

Cathay Financial Holding Co Ltd 1,000,000 13,844,030 0.73Chailease Holding Co Ltd 550,000 14,138,666 0.75Chilisin Electronics Corp 565,000 25,951,769 1.38Chroma ATE Inc 397,000 16,600,615 0.88CTBC Financial Holding Co Ltd 3,318,000 18,698,243 0.99Eclat Textile Co Ltd 284,000 26,381,886 1.40Episil-Precision Inc 681,000 12,739,777 0.68Formosa Chemicals & Fibre Corp 620,000 19,384,217 1.03Globalwafers Co Ltd 60,000 7,812,357 0.41Largan Precision Co Ltd 42,000 48,201,932 2.56St Shine Optical Co Ltd 1,000 179,355 0.01Taiwan Semiconductor Manufacturing Co Ltd 2,395,325 133,136,916 7.06Uni-President Enterprises Corp 950,000 18,896,588 1.00Visual Photonics Epitaxy Co Ltd 735,000 21,750,311 1.15


Baozun Inc – SPN ADR 21,300 9,135,829 0.48Fanhua Inc – Sponsored ADR 63,091 14,072,251 0.75Yum China Holdings Inc 23,072 6,963,486 0.37



Link REIT 220,500 15,798,825 0.84




BEA UNION INVESTMENT GREATER CHINA GROWTH FUND (CONTINUED)

13 14








BEA UNION INVESTMENT HONG KONG DOLLAR (HK$) BOND FUND

Nominal value

Market value

% of net assets

HK$


Bonds (85.97%)


Airport Authority Hong Kong 2.25% 05/09/2022 5,000,000 4,871,777 0.33Bank of China Ltd/Hong Kong 2.85% 07/06/2020 15,000,000 14,977,025 1.02Bank of Communications Co Ltd/Hong Kong 2.95%

18/05/2020 20,000,000 19,939,874 1.36BOC Aviation Ltd 3.25% 27/07/2027 30,000,000 28,931,548 1.98CK Property Finance MTN Ltd 2.25% 25/08/2022 35,000,000 33,609,067 2.30CK Property Finance MTN Ltd 2.69% 01/09/2027 9,000,000 8,331,489 0.57CLP Power Hong Kong Financing Ltd 3.97% 23/03/2026 10,000,000 10,402,270 0.71Commonwealth Bank of Australia 3.36% 30/03/2027 10,000,000 9,714,341 0.66DBS Group Holdings Ltd 2.80% 13/01/2022 10,000,000 9,931,383 0.68DBS Group Holdings Ltd 3.24% 19/04/2026 20,000,000 19,775,200 1.35Hong Kong Government Bond 2.53% 22/06/2020 20,000,000 20,259,037 1.39Hong Kong Government Bond 2.44% 07/12/2020 10,000,000 10,136,312 0.69Hong Kong Government Bond 2.31% 21/06/2021 45,000,000 45,410,677 3.11Hong Kong Government Bond 0.97% 20/06/2022 10,000,000 9,595,475 0.66Hong Kong Mortgage Corp Ltd 1.92% 10/05/2022 19,000,000 18,402,987 1.26Hong Kong Mortgage Corp Ltd 1.96% 16/03/2020 4,500,000 4,485,035 0.31Hong Kong Mortgage Corp Ltd 2.18% 19/10/2020 15,000,000 14,963,091 1.02Hong Kong Mortgage Corp Ltd 4.525% 02/09/2020 26,000,000 27,195,357 1.86Hong Kong Science & Technology Parks Corp 3.20%

11/07/2024 18,000,000 18,631,679 1.27HKCG Finance Ltd 2.30% 17/06/2026 18,000,000 16,649,582 1.14HKCG Finance Ltd 2.65% 03/07/2027 10,000,000 9,486,109 0.65HKCG Finance Ltd 2.85% 10/11/2025 18,000,000 17,452,197 1.19Hong Kong Government Bond 0.50% 20/08/2018 15,000,000 15,005,291 1.03Hong Kong Government Bond 1.32% 23/12/2019 15,000,000 14,900,357 1.02Hong Kong Mortgage Corp Ltd 2.40% 27/09/2021 36,000,000 36,284,173 2.48Hong Kong Mortgage Corp Ltd 3.84% 09/03/2020 10,000,000 10,339,046 0.71Hong Kong Mortgage Corp Ltd 4.47% 18/07/2018 1,000,000 1,010,228 0.07Hong Kong Mortgage Corp Ltd 5.40% 31/05/2021 15,000,000 16,171,920 1.11Hong Kong Treasury Bill 0.00% 18/07/2018 20,000,000 19,985,980 1.37Hong Kong Treasury Bill 0.00% 01/08/2018 20,000,000 19,977,360 1.37Hong Kong Treasury Bill 0.00% 15/08/2018 20,000,000 19,965,800 1.37Hong Kong Treasury Bill 0.00% 19/09/2018 35,000,000 34,885,270 2.39Hong Kong Treasury Bill 0.00% 19/09/2018 10,000,000 9,967,220 0.68Hong Kong Treasury Bill 0.00% 14/11/2018 20,000,000 19,884,580 1.36Hong Kong Treasury Bill 0.00% 11/07/2018 10,000,000 9,995,860 0.68Hongkong Land Notes Co Ltd 4.10% 28/07/2025 10,000,000 10,708,458 0.73Hongkong Land Notes Co Ltd 2.90% 12/07/2022 1,000,000 979,768 0.07Hongkong Land Notes Co Ltd 3.86% 07/03/2022 2,000,000 2,053,631 0.14Hysan MTN Ltd 3.78% 31/08/2020 31,000,000 31,645,326 2.17

Nominal value

Market value

% of net assets

HK$



Denominated in Hong Kong dollar (74.00%) (continued)

Hysan MTN Ltd 3.90% 08/03/2019 25,000,000 25,285,178 1.73Industrial & Commercial Bank of China Asia Ltd 3.00%

21/06/2020 8,000,000 8,015,935 0.55Korea National Oil Corp 4.50% 04/03/2021 6,000,000 6,303,178 0.43Malayan Banking Bhd 2.80% 29/04/2020 15,000,000 15,011,339 1.03Mizuho Bank Ltd 2.65% 22/11/2021 10,000,000 9,823,015 0.67Mizuho Bank Ltd 3.174% 25/06/2021 10,000,000 9,950,506 0.68MTR Corp CI Ltd 2.56% 02/05/2021 20,000,000 19,977,257 1.37MTR Corp CI Ltd 1.92% 26/10/2022 53,000,000 51,726,268 3.54Nan Fung Treasury Ltd 3.85% 30/01/2023 2,000,000 1,978,387 0.14Nan Fung Treasury Ltd 3.95% 08/11/2022 1,000,000 993,589 0.07Nan Fung Treasury Ltd 4.425% 29/08/2022 6,000,000 6,071,083 0.42National Australia Bank Ltd 3.73% 17/05/2026 24,000,000 23,885,727 1.63Sun Hung Kai Properties Capital Market Ltd 2.75%

30/04/2021 10,000,000 10,011,929 0.69Sun Hung Kai Properties Capital Market Ltd 2.28%









16/08/2024 10,000,000 9,482,874 0.65Swire Pacific MTN Financing Ltd 2.50% 27/04/2022 21,000,000 20,502,950 1.40Swire Pacific MTN Financing Ltd 2.85% 18/07/2022 9,000,000 8,903,405 0.61Swire Pacific MTN Financing Ltd 2.90% 24/01/2023 13,000,000 12,853,046 0.88Swire Pacific MTN Financing Ltd 3.00% 22/03/2023 7,000,000 6,913,018 0.47Swire Pacific MTN Financing Ltd 3.68% 27/05/2024 5,000,000 5,104,642 0.35Swire Pacific MTN Financing Ltd 3.78% 28/02/2022 4,000,000 4,082,969 0.28Swire Properties MTN Financing Ltd 1.80% 17/08/2021 2,000,000 1,928,179 0.13

BEA UNION INVESTMENT HONG KONG DOLLAR (HK$) BOND FUND (CONTINUED)

15 16








Nominal value

Market value

% of net assets

HK$




Swire Properties MTN Financing Ltd 2.55% 18/08/2024 10,500,000 10,012,269 0.69Swire Properties MTN Financing Ltd 2.60% 05/07/2025 9,000,000 8,553,474 0.59Swire Properties MTN Financing Ltd 2.80% 26/03/2025 7,000,000 6,656,969 0.46Swire Properties MTN Financing Ltd 3.00% 07/04/2027 10,000,000 9,527,398 0.65Swire Properties MTN Financing Ltd 3.00% 06/11/2025 10,000,000 9,631,225 0.66Swire Properties MTN Financing Ltd 3.55% 17/07/2024 6,000,000 6,078,541 0.42Swire Properties MTN Financing Ltd 2.65% 03/06/2026 12,000,000 11,179,999 0.77Tencent Holdings Ltd 2.30% 24/09/2018 8,000,000 8,001,388 0.55United Overseas Bank Ltd 3.19% 26/08/2028 20,000,000 19,216,526 1.31Victoria Power Networks Finance Pty Ltd 3.29% 24/02/2027 3,000,000 2,952,921 0.20Westpac Banking Corp 2.31% 13/10/2022 5,000,000 4,917,603 0.34Westpac Banking Corp 3.15% 14/07/2027 10,000,000 9,692,189 0.66Wharf REIC Finance BVI Ltd 3.10% 17/04/2025 10,000,000 9,875,499 0.68


Beijing Capital Polaris Investment Co Ltd 4.25% 26/03/2021 900,000 7,125,644 0.49Central Plaza Development Ltd 3.875% 30/01/2021 1,000,000 7,813,572 0.53CNAC HK Finbridge Co Ltd 4.125% 14/03/2021 500,000 3,971,342 0.27CNAC HK Finbridge Co Ltd 4.625% 14/03/2023 1,150,000 9,141,541 0.63Dah Sing Bank Ltd 4.25% 30/11/2026 1,500,000 11,692,188 0.80Far East Horizon Ltd FRN 03/07/2021 600,000 4,698,860 0.32Goldman Sachs Group Inc FRN 15/05/2026 1,500,000 11,663,163 0.80Huarong Finance II Co Ltd 2.875% 22/11/2019 800,000 6,206,867 0.42Huarong Finance 2017 Co Ltd FRN 03/07/2021 1,000,000 7,831,119 0.54Korea Resources Corp 4.00% 18/04/2023 1,100,000 8,696,484 0.60Nan Fung Treasury Ltd 3.875% 03/10/2027 1,500,000 11,053,674 0.76Sino-Ocean Land Treasure Finance I Ltd 6.00% 30/07/2024 1,000,000 8,293,427 0.57United States Treasury Note/Bond 2.875% 15/05/2028 5,000,000 39,414,323 2.70United States Treasury Note/Bond 3.125% 15/05/2048 4,600,000 37,180,569 2.54

Nominal value

Market value

% of net assets

HK$


Certificates of deposit (13.88%)


Bank of China Ltd/Hong Kong 3.00% 21/05/2021 10,000,000 9,934,752 0.68Bank of China Ltd/Hong Kong 2.59% 25/07/2022 20,000,000 19,760,844 1.35Bank of China Ltd/Hong Kong 2.59% 17/10/2022 10,000,000 9,793,767 0.67Bank of China Ltd/Macau 2.34% 15/10/2020 24,000,000 23,740,239 1.62Bank of Communications Co Ltd/Hong Kong 2.60%

01/03/2021 10,000,000 9,875,673 0.68China Development Bank Corp/Hong Kong 2.535%




05/12/2022 11,000,000 10,782,659 0.74Fubon Bank Hong Kong Ltd 2.50% 27/03/2020 10,000,000 9,944,124 0.68Hang Seng Bank Ltd 2.25% 11/05/2020 18,000,000 17,885,218 1.22Hang Seng Bank Ltd 3.00% 28/05/2021 15,000,000 14,952,721 1.02MUFG Bank Ltd/Hong Kong 2.42% 09/05/2022 10,000,000 9,804,629 0.67Sumitomo Mitsui Banking Corp/Hong Kong 2.40%

10/03/2021 37,000,000 36,481,299 2.50Sumitomo Mitsui Banking Corp/Hong Kong 2.70%

21/02/2022 12,000,000 11,823,528 0.81






17 18








BEA UNION INVESTMENT GLOBAL EQUITY FUND


Market value

% of net assets

HK$


Equities (98.14%)

Australia (1.88%)

Australia & New Zealand Banking Group Ltd 12,823 2,098,341 0.21BHP Billiton Ltd 10,586 2,080,210 0.21Commonwealth Bank of Australia 4,479 1,891,412 0.19CSL Ltd 1,354 1,511,020 0.15Macquarie Group Ltd 2,181 1,562,607 0.15National Australia Bank Ltd 10,321 1,639,260 0.16Rio Tinto Ltd 3,041 1,467,494 0.15Wesfarmers Ltd 5,517 1,575,335 0.16Westpac Banking Corp 11,248 1,907,766 0.19Woodside Petroleum Ltd 7,659 1,572,964 0.16Woolworths Group Ltd 8,732 1,533,670 0.15

Belgium (0.19%)

Anheuser-Busch InBev SA/NV 2,409 1,897,711 0.19

Brazil (0.18%)

Vale SA 17,700 1,785,171 0.18

Canada (3.45%)

Bank of Montreal 4,900 2,968,583 0.29Bank of Nova Scotia/The 4,200 1,864,664 0.18Canadian National Railway Co 4,200 2,691,037 0.27Canadian Imperial Bank of Commerce 2,200 1,499,601 0.15Enbridge Inc 7,900 2,212,585 0.22Nutrien Ltd 23,000 9,809,333 0.97Royal Bank of Canada 3,300 1,947,881 0.19Suncor Energy Inc 30,700 9,793,903 0.97Toronto-Dominion Bank/The 4,600 2,086,969 0.21


Market value

% of net assets

HK$




AIA Group Ltd 28,600 1,961,960 0.19Bank of China Ltd – H 352,000 1,365,760 0.14China Construction Bank Corp – H 243,000 1,759,320 0.18China Life Insurance Co Ltd – H 72,000 1,454,400 0.14China Mobile Ltd 20,500 1,427,825 0.14China Petroleum & Chemical Corp 204,000 1,428,000 0.14CK Asset Holdings Ltd 13,000 809,900 0.08CK Hutchison Holdings Ltd 21,000 1,747,200 0.17CNOOC Ltd 108,000 1,460,160 0.15Geely Automobile Holdings Ltd 35,000 710,500 0.07Hong Kong Exchanges & Clearing Ltd 5,800 1,367,640 0.14Ping An Insurance Group Co of China Ltd – H 20,000 1,443,000 0.14Sun Hung Kai Properties Ltd 7,000 828,800 0.08Tencent Holdings Ltd 12,400 4,880,640 0.48

Denmark (1.65%)

Ambu A/S 31,442 8,310,848 0.82AP Moller-Maersk A/S 658 6,429,549 0.64Novo Nordisk A/S – B 5,321 1,939,284 0.19

Finland (0.74%)

Wartsila OYJ Abp 48,458 7,454,873 0.74

France (5.14%)

Air Liquide SA 8,928 8,791,387 0.87Airbus SE 2,139 1,959,321 0.19AXA SA 13,344 2,568,070 0.25BNP Paribas SA 2,542 1,238,047 0.12Capgemini SE 8,119 8,559,978 0.85Danone SA 1,415 813,975 0.08Dassault Systemes SE 7,903 8,658,007 0.86L’Oreal SA 553 1,061,216 0.11LVMH Moet Hennessy Louis Vuitton SE 3,660 9,554,780 0.95Sanofi 3,101 1,949,443 0.19Schneider Electric SE 2,089 1,366,254 0.14TOTAL SA 5,235 2,503,122 0.25Vinci SA 3,684 2,775,895 0.28

BEA UNION INVESTMENT GLOBAL EQUITY FUND (CONTINUED)

19 20









Market value

% of net assets

HK$



Germany (2.90%)

Adidas AG 813 1,393,719 0.14Allianz SE – REG 1,044 1,693,803 0.17BASF SE 2,343 1,761,803 0.17Bayer AG – REG 2,068 1,791,804 0.18Daimler AG – REG 3,123 1,582,233 0.16Deutsche Telekom AG – REG 9,425 1,145,637 0.11LANXESS AG 13,088 8,010,775 0.79Muenchener Rueckver AG – REG 4,746 7,879,534 0.78SAP SE 2,345 2,125,033 0.21Siemens AG – REG 1,881 1,952,151 0.19

India (0.30%)

Housing Development Finance Corp Ltd 6,708 1,465,956 0.15Reliance Industries Ltd 13,127 1,462,824 0.15

Italy (1.07%)

Eni SpA 10,765 1,568,447 0.16Intesa Sanpaolo SpA 31,516 717,818 0.07Tenaris SA 53,886 7,756,845 0.77UniCredit SpA 5,370 703,109 0.07

Japan (8.82%)

Astellas Pharma Inc 12,600 1,505,577 0.15Bridgestone Corp 4,700 1,440,130 0.14Central Japan Railway Co 1,000 1,624,132 0.16Daikin Industries Ltd 1,600 1,503,863 0.15Denso Corp 3,900 1,492,785 0.15East Japan Railway Co 2,000 1,501,596 0.15FANUC Corp 1,500 2,333,671 0.23Fast Retailing Co Ltd 500 1,799,790 0.18Honda Motor Co Ltd 10,500 2,415,586 0.24Hoya Corp 3,300 1,471,621 0.15ITOCHU Corp 10,100 1,434,343 0.14Japan Tobacco Inc 11,100 2,430,971 0.24JXTG Holdings Inc 29,000 1,580,196 0.16Kao Corp 5,000 2,992,568 0.30KDDI Corp 7,000 1,500,817 0.15Keyence Corp 400 1,770,183 0.18


Market value

% of net assets

HK$



Japan (8.82%) (continued)

Kirin Holdings Co Ltd 7,200 1,510,294 0.15Komatsu Ltd 7,200 1,613,564 0.16Mitsubishi Corp 13,600 2,963,074 0.29Mitsubishi Electric Corp 23,400 2,438,896 0.24Mitsubishi Estate Co Ltd 12,500 1,714,086 0.17Mitsubishi UFJ Financial Group Inc 36,500 1,628,994 0.16Mitsui & Co Ltd 10,700 1,398,290 0.14Mitsui Fudosan Co Ltd 9,400 1,777,691 0.18Mizuho Financial Group Inc 202,900 2,680,267 0.27Nidec Corp 2,400 2,823,567 0.28Nintendo Co Ltd 500 1,281,669 0.13Nippon Telegraph & Telephone Corp 5,200 1,854,471 0.18Nissan Motor Co Ltd 19,700 1,502,095 0.15NTT DOCOMO Inc 14,200 2,837,825 0.28Oriental Land Co Ltd/Japan 1,900 1,563,785 0.16ORIX Corp 11,600 1,437,027 0.14Panasonic Corp 16,700 1,764,237 0.17Recruit Holdings Co Ltd 7,000 1,519,162 0.15Seven & i Holdings Co Ltd 4,400 1,503,721 0.15Shin-Etsu Chemical Co Ltd 3,800 2,654,935 0.26Shiseido Co Ltd 2,500 1,557,375 0.15SMC Corp/Japan 600 1,725,844 0.17SoftBank Group Corp 2,500 1,409,517 0.14Sony Corp 7,600 3,047,900 0.30Sumitomo Corp 11,600 1,492,487 0.15Sumitomo Mitsui Financial Group Inc 8,800 2,680,207 0.27Takeda Pharmaceutical Co Ltd 6,900 2,283,333 0.23Terumo Corp 3,200 1,436,999 0.14Tokio Marine Holdings Inc 4,000 1,469,298 0.15Toshiba Corp 64,000 1,504,996 0.15Toyota Motor Corp 5,800 2,945,536 0.29

Korea (0.77%)

Celltrion Inc 724 1,544,160 0.15POSCO 569 1,315,705 0.13Samsung Electronics Co Ltd 11,000 3,612,063 0.36SK Hynix Inc 2,158 1,300,278 0.13

BEA UNION INVESTMENT GLOBAL EQUITY FUND (CONTINUED)BEA UNION INVESTMENT GLOBAL EQUITY FUND (CONTINUED)

21 22









Market value

% of net assets

HK$



Netherlands (1.26%)

ASML Holding NV 1,275 1,979,587 0.20ING Groep NV 9,479 1,068,846 0.11Unilever NV 22,093 9,618,720 0.95

Singapore (0.46%)

DBS Group Holdings Ltd 11,000 1,684,232 0.17Oversea-Chinese Banking Corp Ltd 23,900 1,600,719 0.16United Overseas Bank Ltd 8,800 1,354,981 0.13

South Africa (0.25%)

Naspers Ltd – N SHS 1,263 2,509,320 0.25

Spain (0.43%)

Banco Santander SA 36,552 1,537,474 0.15Iberdrola SA 24,540 1,488,983 0.15Telefonica SA 19,443 1,296,372 0.13

Sweden (1.37%)

Alfa Laval AB 38,911 7,244,586 0.72Atlas Copco AB – A SHS 4,034 923,353 0.09Epiroc AB – A 4,034 330,780 0.03Investor AB – B SHS 3,760 1,202,252 0.12Nordea Bank AB 12,970 980,934 0.10Svenska Handelsbanken AB – A SHS 11,976 1,046,914 0.10Swedbank AB – A SHS 6,120 1,029,953 0.10Volvo AB – B SHS 8,816 1,107,921 0.11

Switzerland (3.03%)

ABB Ltd – REG 4,841 830,399 0.08Cie Financiere Richemont – REG 2,599 1,727,007 0.17Geberit AG – REG 225 757,150 0.08Julius Baer Group Ltd 17,346 7,987,497 0.79Nestle SA – REG 21,443 13,015,225 1.29Novartis AG – REG 4,620 2,747,979 0.27Roche Holding AG – Genusschein 1,540 2,683,003 0.27UBS Group AG -REG 6,262 758,238 0.08


Market value

% of net assets

HK$



Taiwan (0.44%)

Hon Hai Precision Industry Co Ltd 66,000 1,411,319 0.14Taiwan Semiconductor Manufacturing Co Ltd 54,000 3,001,427 0.30

The United Kingdom (4.93%)

AstraZeneca PLC 3,558 1,935,926 0.19BHP Billiton PLC 8,191 1,447,070 0.14BP PLC 43,089 2,581,042 0.26British American Tobacco PLC 4,996 1,981,709 0.20Diageo PLC 34,714 9,787,420 0.97GlaxoSmithKline PLC 12,346 1,956,304 0.19Glencore PLC 46,909 1,758,896 0.17HSBC Holdings PLC 42,794 3,150,247 0.31Lloyds Banking Group PLC 121,318 791,916 0.08Prudential PLC 4,458 800,921 0.08Reckitt Benckiser Group PLC 4,205 2,717,418 0.27RELX PLC 8,188 1,376,062 0.14Rio Tinto PLC 4,519 1,966,160 0.20Royal Dutch Shell PLC – A SHS 11,600 3,158,814 0.31Royal Dutch Shell PLC – B SHS 8,158 2,292,920 0.23Shire PLC 3,526 1,556,944 0.15Standard Chartered PLC 102,292 7,338,370 0.73Unilever PLC 4,615 2,003,865 0.20Vodafone Group PLC 56,649 1,078,483 0.11


3M Co 1,300 2,006,473 0.20Abbott Laboratories 4,300 2,057,868 0.20AbbVie Inc 3,500 2,545,190 0.25Accenture PLC – CL A 8,200 10,526,150 1.04Activision Blizzard Inc 2,700 1,616,670 0.16Adobe Systems Inc 1,200 2,293,201 0.23Aetna Inc 1,400 2,017,809 0.20Alibaba Group Holding Ltd – SP ADR 8,800 12,800,051 1.27Allergan PLC 800 1,046,775 0.10Alphabet Inc – CL A 600 5,315,419 0.53Alphabet Inc – CL C 1,800 15,753,920 1.56Altria Group Inc 4,400 1,960,396 0.19Amazon.com Inc 1,800 23,988,939 2.38Ambev SA – ADR 147,200 5,346,974 0.53

BEA UNION INVESTMENT GLOBAL EQUITY FUND (CONTINUED) BEA UNION INVESTMENT GLOBAL EQUITY FUND (CONTINUED)

23 24









Market value

% of net assets

HK$



The United States of America (56.64%) (continued)

Amdocs Ltd 14,800 7,685,522 0.76American Express Co 1,100 845,742 0.08American International Group Inc 1,700 707,011 0.07Amgen Inc 1,500 2,172,059 0.22Anthem Inc 800 1,494,092 0.15Aon PLC 7,600 8,178,250 0.81Apple Inc 11,100 15,928,678 1.58Applied Materials Inc 2,000 724,608 0.07AT&T Inc 17,336 4,367,255 0.43Automatic Data Processing Inc 1,500 1,578,471 0.16Baidu Inc – SPON ADR 1,100 2,097,182 0.21Bank of America Corp 21,300 4,712,464 0.47Bank of New York Mellon Corp/The 4,500 1,903,626 0.19Becton Dickinson and Co 1,100 2,068,703 0.21Berkshire Hathaway Inc 2,900 4,247,321 0.42Biogen Inc 700 1,594,060 0.16BlackRock Inc 700 2,742,622 0.27Boeing Co 1,300 3,422,416 0.34Booking Holdings Inc 200 3,181,074 0.32Bristol-Myers Squibb Co 5,700 2,475,208 0.25Broadcom Inc 900 1,713,617 0.17Caterpillar Inc 1,700 1,809,873 0.18Celgene Corp 1,200 747,611 0.07CF Industries Holdings Inc 25,900 9,021,984 0.89Charter Communications Inc – A 500 1,150,225 0.11Chevron Corp 3,900 3,867,200 0.38Chubb Ltd 1,900 1,893,710 0.19Cisco Systems Inc 10,800 3,645,981 0.36Citigroup Inc 5,700 2,993,504 0.30CME Group Inc 1,200 1,543,142 0.15Coca-Cola Co/The 34,400 11,837,129 1.17Colgate-Palmolive Co 2,100 1,067,777 0.11Comcast Corp – CL A 10,100 2,600,634 0.26ConocoPhillips 3,800 2,075,866 0.21Costco Wholesale Corp 1,300 2,131,310 0.21CSX Corp 18,800 9,405,753 0.93CVS Health Corp 1,500 757,167 0.08Danaher Corp 11,600 8,980,622 0.89Deere & Co 7,700 8,445,945 0.84Walt Disney Co/The 3,600 2,962,766 0.29DowDuPont Inc 5,700 2,949,232 0.29Duke Energy Corp 3,200 1,985,345 0.20


Market value

% of net assets

HK$




Eli Lilly & Co 3,100 2,075,309 0.21EOG Resources Inc 2,200 2,148,013 0.21Exxon Mobil Corp 9,300 6,042,790 0.60Facebook Inc – A 5,200 7,926,755 0.79FedEx Corp 1,100 1,959,792 0.19Fiserv Inc 15,200 8,834,132 0.88Fluor Corp 21,300 8,151,559 0.81Fortive Corp 13,900 8,409,009 0.83General Dynamics Corp 1,000 1,461,926 0.15General Electric Co 18,900 2,018,084 0.20General Motors Co 4,300 1,329,855 0.13Gilead Sciences Inc 3,400 1,889,897 0.19Goldman Sachs Group Inc/The 5,100 8,825,831 0.88Home Depot Inc/The 8,800 13,472,502 1.34Honeywell International Inc 8,700 9,832,908 0.98Intel Corp 11,000 4,290,848 0.43International Business Machines Corp 2,000 2,192,340 0.22Intuit Inc 1,000 1,602,674 0.16Intuitive Surgical Inc 500 1,875,893 0.19JPMorgan Chase & Co 18,400 15,059,297 1.49Johnson & Johnson 5,900 5,617,086 0.56Lockheed Martin Corp 700 1,623,551 0.16Lowe’s Cos Inc 1,900 1,424,903 0.14Mastercard Inc – A 2,100 3,238,259 0.32McCormick & Co Inc/MD – Non VTG SHS 9,900 9,015,958 0.89McDonald’s Corp 1,800 2,213,177 0.22Medtronic PLC 3,200 2,149,284 0.21Merck & Co Inc 6,800 3,238,299 0.32Micron Technology Inc 3,200 1,316,534 0.13Microsoft Corp 30,400 23,518,729 2.33Mondelez International Inc – A 3,500 1,126,375 0.11Moody’s Corp 6,600 8,832,139 0.88Morgan Stanley 4,700 1,747,815 0.17Netflix Inc 1,000 3,070,013 0.30NextEra Energy Inc 1,600 2,096,813 0.21NIKE Inc – CL B 18,200 11,378,749 1.13Northrop Grumman Corp 600 1,448,620 0.14NVIDIA Corp 1,400 2,601,921 0.26Occidental Petroleum Corp 3,200 2,100,830 0.21Oracle Corp 7,121 2,461,528 0.24PayPal Holdings Inc 15,900 10,388,603 1.03PepsiCo Inc 3,400 2,904,332 0.29

BEA UNION INVESTMENT GLOBAL EQUITY FUND (CONTINUED) BEA UNION INVESTMENT GLOBAL EQUITY FUND (CONTINUED)

25 26









Market value

% of net assets

HK$




Pfizer Inc 12,900 3,672,789 0.36Philip Morris International Inc 3,500 2,217,053 0.22Phillips 66 1,700 1,497,913 0.15PNC Financial Services Group Inc/The 1,800 1,908,145 0.19PRA Health Sciences Inc 11,400 8,348,183 0.83Procter & Gamble Co/The 5,600 3,429,540 0.34QUALCOMM Inc 6,000 2,642,199 0.26Raytheon Co 1,100 1,667,407 0.17S&P Global Inc 1,000 1,599,693 0.16salesforce.com Inc 2,100 2,248,247 0.22Schlumberger Ltd 18,100 9,519,889 0.94Charles Schwab Corp/The 4,500 1,803,714 0.18Starbucks Corp 4,300 1,647,981 0.16Stryker Corp 1,500 1,987,181 0.20Texas Instruments Inc 2,600 2,248,702 0.22Thermo Fisher Scientific Inc 5,700 9,264,479 0.92TJX Cos Inc/The 2,300 1,717,485 0.17Union Pacific Corp 1,900 2,112,088 0.21United Parcel Service Inc – CL B 2,300 1,917,058 0.19United Technologies Corp 2,100 2,060,096 0.20UnitedHealth Group Inc 6,900 13,285,513 1.32US Bancorp 24,200 9,494,925 0.94Valero Energy Corp 1,700 1,478,174 0.15Verizon Communications Inc 9,900 3,909,142 0.39Visa Inc – CLA 13,000 13,531,171 1.34Walgreens Boots Alliance Inc 1,600 753,291 0.07Walmart Inc 3,300 2,217,743 0.22Wells Fargo & Co 10,200 4,438,923 0.44Yum China Holdings Inc 2,100 633,812 0.06

Total listed/quoted investments 989,339,057 98.14

Total investments, at cost 934,336,486


BEA UNION INVESTMENT ASIA PACIFIC INVESTMENT GRADE BOND FUND

Nominal value

Market value

% of net assets

HK$


Bonds (99.60%)




Bank of China Ltd/Paris 4.50% 22/11/2020 6,500,000 7,737,209 0.77QNB Finance Ltd 5.10% 14/05/2021 10,000,000 11,908,118 1.19


Baosteel Financing 2015 Pty Ltd 3.875% 28/01/2020 1,000,000 7,976,486 0.80Bank of China Ltd/Dubai FRN 20/04/2020 1,000,000 7,898,293 0.79Bank of China Ltd/Hong Kong FRN 08/03/2021 300,000 2,358,684 0.24Bank of China Ltd/London FRN 07/06/2021 400,000 3,143,126 0.31Bank of China Ltd/Hong Kong FRN 08/03/2023 400,000 3,143,952 0.31Bank of China Ltd 5.00% 13/11/2024 1,000,000 8,069,045 0.80Beijing Capital Polaris Investment Co Ltd 4.25% 26/03/2021 1,100,000 8,709,120 0.87Bluestar Finance Holdings Ltd 3.50% 30/09/2021 500,000 3,860,591 0.39BOSC International BVI Ltd 3.125% 18/01/2021 1,000,000 7,833,938 0.78BOC Aviation Ltd 3.50% 31/01/2023 2,000,000 15,532,796 1.55BPRL International Singapore Pte Ltd 4.375% 18/01/2027 1,000,000 7,602,180 0.76CGNPC International Ltd 3.125% 11/12/2022 750,000 5,711,386 0.57Charming Light Investments Ltd 4.375% 21/12/2027 1,600,000 11,740,202 1.17China Cinda Finance 2017 I Ltd 3.875% 08/02/2023 250,000 1,966,787 0.20China Cinda Finance 2017 I Ltd 4.375% 08/02/2025 1,000,000 7,837,383 0.78China Construction Bank Asia Corp Ltd 4.25% 20/08/2024 1,000,000 7,973,948 0.80China Construction Bank Corp 3.875% 13/05/2025 2,500,000 19,560,079 1.95China Great Wall International Holdings III Ltd 4.375%

25/05/2023 1,650,000 13,025,230 1.30China Huadian Overseas Development 2018 Ltd 3.875%

17/05/2023 2,000,000 15,777,034 1.57China Overseas Finance Cayman III Ltd 5.375% 29/10/2023 2,200,000 18,186,859 1.81China Overseas Finance Cayman VI Ltd 5.95% 08/05/2024 500,000 4,245,657 0.42China Overseas Finance Cayman VI Ltd 6.45% 11/06/2034 642,000 5,919,460 0.59China Taiping New Horizon Ltd 6.00% 18/10/2023 2,068,000 17,598,114 1.76Chong Hing Bank Ltd 6.00% 04/11/2020 350,000 2,873,602 0.29CITIC Ltd 4.00% 11/01/2028 400,000 2,997,941 0.30CITIC Ltd 6.625% 15/04/2021 1,400,000 11,891,643 1.19CITIC Ltd 6.80% 17/01/2023 1,000,000 8,912,836 0.89Citigroup Inc FRN 24/07/2023 1,000,000 7,894,124 0.79CNAC HK Finbridge Co Ltd 3.50% 19/07/2022 2,000,000 15,384,822 1.53CNAC HK Finbridge Co Ltd 4.625% 14/03/2023 1,250,000 9,936,457 0.99Central Plaza Development Ltd 3.875% 30/01/2021 1,200,000 9,376,287 0.94


27 28








Nominal value

Market value

% of net assets

HK$




CGN New Energy Holdings Co Ltd 4.00% 19/08/2018 2,500,000 19,901,946 1.98CNAC HK Finbridge Co Ltd 5.125% 14/03/2028 1,500,000 11,803,079 1.18CNAC HK Finbridge Co Ltd 4.125% 14/03/2021 400,000 3,177,074 0.32CNOOC Finance 2013 Ltd 3.00% 09/05/2023 1,500,000 11,394,024 1.14CNOOC Finance 2015 USA LLC 4.375% 02/05/2028 1,300,000 10,328,343 1.03COSL Singapore Capital Ltd 4.50% 30/07/2025 1,000,000 7,922,244 0.79Dah Sing Bank Ltd 4.25% 30/11/2026 1,800,000 14,030,626 1.40Dah Sing Bank Ltd 5.25% 29/01/2024 2,500,000 20,172,026 2.01Dah Sing Bank Ltd 6.625% 11/02/2020 500,000 4,174,750 0.42DBS Group Holdings Ltd 4.52% 11/12/2028 1,200,000 9,510,799 0.95Doosan Power Systems SA 2.50% 03/12/2045 2,500,000 19,579,061 1.95Eastern Creation II Investment Holdings Ltd 2.75%

26/09/2020 300,000 2,317,813 0.23Export-Import Bank of Korea FRN 22/03/2023 600,000 4,704,358 0.47Export-Import Bank of Malaysia Bhd FRN 20/10/2021 500,000 3,796,469 0.38Far East Horizon Ltd FRN 03/07/2021 500,000 3,915,716 0.39FWD Ltd 5.00% 24/09/2024 3,000,000 24,357,196 2.43Goldman Sachs Group Inc/The FRN 15/05/2026 1,000,000 7,775,442 0.78GS Caltex Corp 3.875% 27/06/2023 1,300,000 10,117,103 1.01Huarong Finance II Co Ltd 2.875% 22/11/2019 700,000 5,431,009 0.54Huarong Finance II Co Ltd 3.625% 22/11/2021 500,000 3,861,767 0.39Huarong Finance II Co Ltd 5.50% 16/01/2025 500,000 4,112,082 0.41Huarong Finance 2017 Co Ltd FRN 03/07/2021 900,000 7,048,007 0.70Huarong Finance 2017 Co Ltd FRN 07/11/2022 500,000 3,923,208 0.39Industrial & Commercial Bank of China Asia Ltd 4.50%

10/10/2023 2,500,000 19,838,561 1.98Industrial & Commercial Bank of China Ltd FRN 21/09/2025 2,000,000 16,104,749 1.61Industrial & Commercial Bank of China Ltd/Dubai DIFC FRN

05/03/2023 1,300,000 10,208,888 1.02Industrial & Commercial Bank of China Ltd/London FRN

14/06/2021 1,000,000 7,845,379 0.78ICBCIL Finance Co Ltd FRN 15/05/2021 600,000 4,719,847 0.47ICBCIL Finance Co Ltd FRN 15/05/2023 700,000 5,507,893 0.55KEB Hana Bank 4.375% 30/09/2024 950,000 7,493,442 0.75KEB Hana Bank FRN 13/03/2023 1,500,000 11,796,332 1.18KEB Hana Bank 4.25% 14/10/2024 300,000 2,343,711 0.23Korea Development Bank/The FRN 12/03/2021 200,000 1,570,175 0.16Korea Development Bank/The FRN 27/02/2022 500,000 3,930,671 0.39Korea Development Bank/The FRN 30/10/2022 1,500,000 11,858,007 1.18Korea National Oil Corp FRN 16/07/2023 500,000 3,922,738 0.39Korea Resources Corp 4.00% 18/04/2023 3,900,000 30,832,990 3.07

Nominal value

Market value

% of net assets

HK$




Korea Southern Power Co Ltd 3.00% 29/01/2021 500,000 3,918,371 0.39Korea Western Power Co Ltd 3.75% 07/06/2023 400,000 3,133,263 0.31Legal & General Group PLC 5.25% 21/03/2047 500,000 3,729,949 0.37Mega Advance Investments Ltd 5.00% 12/05/2021 1,000,000 8,094,535 0.81Nan Fung Treasury Ltd 3.875% 03/10/2027 2,750,000 20,265,069 2.02National Australia Bank Ltd FRN 20/09/2021 500,000 3,924,886 0.39New World China Land Ltd 4.75% 23/01/2027 2,000,000 15,796,195 1.58Nexen Energy ULC 7.875% 15/03/2032 500,000 5,363,903 0.53Nexen Energy ULC 6.40% 15/05/2037 1,500,000 14,500,296 1.45NTPC Ltd 4.25% 26/02/2026 587,000 4,529,661 0.45NTPC Ltd 4.50% 19/03/2028 600,000 4,636,790 0.46NWD MTN Ltd 5.25% 26/02/2021 2,000,000 16,416,489 1.64ONGC Videsh Ltd 4.625% 15/07/2024 1,000,000 8,022,677 0.80Oversea-Chinese Banking Corp Ltd 4.00% 15/10/2024 1,500,000 11,882,300 1.19Pertamina Persero PT 4.30% 20/05/2023 1,300,000 10,127,901 1.01Pertamina Persero PT 4.875% 03/05/2022 1,500,000 12,045,169 1.20Pertamina Persero PT 5.625% 20/05/2043 1,300,000 9,728,493 0.97Pertamina Persero PT 6.00% 03/05/2042 1,250,000 9,851,237 0.98Perusahaan Gas Negara Persero Tbk 5.125% 16/05/2024 1,000,000 7,978,427 0.80Perusahaan Listrik Negara PT 4.125% 15/05/2027 650,000 4,719,799 0.47Perusahaan Listrik Negara PT 6.15% 21/05/2048 2,000,000 15,931,076 1.59Pelabuhan Indonesia II PT 4.25% 05/05/2025 3,900,000 29,433,772 2.94Poly Real Estate Finance Ltd 5.25% 25/04/2019 750,000 5,996,170 0.60QNB Finance Ltd FRN 31/05/2021 700,000 5,525,604 0.55Rural Electrification Corp Ltd 3.068% 18/12/2020 1,100,000 8,461,030 0.84Shanghai Commercial Bank Ltd 3.75% 29/11/2027 600,000 4,536,144 0.45Shinhan Bank Co Ltd 3.875% 07/12/2026 500,000 3,889,761 0.39Sino-Ocean Land Treasure Finance I Ltd 6.00% 30/07/2024 1,166,000 9,670,135 0.96Sino-Ocean Land Treasure Finance II Ltd 5.95% 04/02/2027 600,000 4,967,344 0.50Sinochem Offshore Capital Co Ltd 3.124% 24/05/2022 600,000 4,577,274 0.46State Grid Overseas Investment 2016 Ltd 4.25% 02/05/2028 700,000 5,535,896 0.55United States Treasury Note/Bond 3.125% 15/05/2048 3,900,000 31,522,655 3.14Vanke Real Estate Hong Kong Co Ltd 4.15% 18/04/2023 1,250,000 9,692,255 0.97Voyage Bonds Ltd 3.375% 28/09/2022 400,000 3,039,271 0.30Wing Lung Bank Ltd 3.75% 22/11/2027 1,000,000 7,509,552 0.75Woori Bank 4.75% 30/04/2024 1,822,000 14,386,923 1.43




BEA UNION INVESTMENT ASIA PACIFIC INVESTMENT GRADE BOND FUND (CONTINUED)


29 30








BEA UNION INVESTMENT CORE ACCUMULATION FUND


Market value

% of net assets

HK$

Approved pooled investment funds (99.95%)

Established in Hong Kong (99.95%)

BEA Union Investment Global Bond Fund – Class I 2,325,186 244,330,526 39.52Bea Union Investment Global Equity Fund – Class I 3,190,691 373,566,067 60.43

Total investments 617,896,593 99.95



BEA UNION INVESTMENT AGE 65 PLUS FUND


Market value

% of net assets

HK$



BEA Union Investment Global Bond Fund – Class I 2,941,254 309,067,015 79.28Bea Union Investment Global Equity Fund – Class I 686,983 80,431,911 20.63




32




STATEMENT OF MOVEMENTS IN INVESTMENT PORTFOLIO (CONTINUED)

31




STATEMENT OF MOVEMENTS IN INVESTMENT PORTFOLIO


% of net assetsAt

30 June 2018

At 31 December

2017

Equities:

China and Hong Kong 47.84 44.74Indonesia 2.51 1.52Korea 19.85 22.09Malaysia 2.75 1.14Singapore 5.10 5.69Taiwan 13.86 14.68Thailand 3.85 4.99The Philippines 0.54 2.33The United States of America 0.56 1.08

Real estate investment trust:

China and Hong Kong 0.75 1.29

97.61 99.55


% of net assetsAt

30 June 2018

At 31 December

2017

Bonds:

Australian dollar 1.40 3.57British pound 5.55 6.77Canadian dollar 0.83 0.90Euro 20.46 28.76Hong Kong dollar 0.37 –Indonesian rupiah 1.23 0.50Japanese yen 14.93 14.42Malaysian ringgit 0.55 0.57Renminbi 2.28 2.31Singapore dollar 0.21 0.46United States dollar 49.04 38.89

96.85 97.15

33 34

A5請縮小打印70.5% A5請縮小打印70.5%








% of net assetsAt

30 June 2018

At 31 December

2017

Equities:

China and Hong Kong 92.65 91.55The United States of America 1.55 –

Investment fund:

China and Hong Kong – 0.24



95.65 95.46


% of net assetsAt

30 June 2018

At 31 December

2017

Equities:

China and Hong Kong 73.45 71.27Taiwan 20.03 21.67The United States of America 1.60 1.77



95.92 96.23


% of net assetsAt

30 June 2018

At 31 December

2017

Bonds:

Hong Kong dollar 74.00 73.16United States dollar 11.97 10.79

Certificates of deposit:

Hong Kong dollar 13.88 15.95

99.85 99.90

35 36

A5請縮小打印70.5% A5請縮小打印70.5%








% of net assetsAt

30 June 2018

At 31 December

2017

Equities:

Australia 1.88 1.26Belgium 0.19 0.13Brazil 0.18 –Canada 3.45 2.60China and Hong Kong 2.24 2.66Denmark 1.65 0.48Finland 0.74 –France 5.14 3.40Germany 2.90 3.26India 0.30 –Italy 1.07 0.17Japan 8.82 6.67Korea 0.77 0.68Netherlands 1.26 0.57Singapore 0.46 –South Africa 0.25 0.18Spain 0.43 0.59Sweden 1.37 0.83Switzerland 3.03 3.26Taiwan 0.44 0.72The United Kingdom 4.93 5.67The United States of America 56.64 65.17

98.14 98.30


% of net assetsAt

30 June 2018

At 31 December

2017

Bonds:

Indonesian rupiah 0.91 –Renminbi 1.96 –United States dollar 96.73 99.22

99.60 99.22


% of net assetsAt

30 June 2018

At 31 December

2017

Approved pooled investment funds:

Hong Kong 99.95 100.17


% of net assetsAt

30 June 2018

At 31 December

2017


Hong Kong 99.91 100.36


STATEMENT OF COMPREHENSIVE INCOMEFOR THE PERIOD ENDED 30 JUNE 2018 (UNAUDITED) (EXPRESSED IN HONG KONG DOLLARS)

37






BEA Union Investment Hong Kong Dollar (HK$)

Bond FundBEA Union Investment

Global Equity Fund

BEA Union Investment Asia Pacific Investment

Grade Bond Fund2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017

Income

Dividend income 30,166,568 34,471,005 – – 35,276,933 49,609,494 24,488,002 22,646,137 – – 12,155,388 5,144,230 – –Interest on bank deposits 603 11,635 33,215 16,944 603 241 160 44 172 51 273 1,262 1,018 249Net (losses)/gains on investments (114,726,062) 364,193,325 (3,730,143) 222,402,459 (95,426,003) 417,250,095 (49,428,321) 291,823,625 (8,602,480) 33,514,387 (293,387) 51,406,615 (11,094,334) 19,340,740Exchange (losses)/gains (2,801,402) (1,372,706) (19,704,212) (30,615,325) (57,903) (101,100) (925,546) (378,532) (30,075) (6,516) (3,338,873) (2,369,459) (2,667,200) (1,556,440)

Total investment (loss)/income (87,360,293) 397,303,259 (23,401,140) 191,804,078 (60,206,370) 466,758,730 (25,865,705) 314,091,274 (8,632,383) 33,507,922 8,523,401 54,182,648 (13,760,516) 17,784,549

Expenses

Investment management fees 635,383 574,802 180,759 176,388 1,476,528 1,792,956 1,497,995 1,282,272 5,008,225 3,655,589 – – 1,530,948 11,752Trustee’s fees 52,949 47,900 18,076 17,639 123,044 149,413 149,800 128,227 469,727 350,786 – – 153,095 1,175Safe custody and bank charges 85,363 245,646 135,749 149,120 58,738 203,287 63,179 178,472 20,293 52,163 5,050 27,347 9,834 24,734Audit fee 25,702 25,702 25,702 25,702 32,047 31,958 25,702 25,702 32,047 31,958 25,702 25,702 25,702 25,702Registrar’s fees 272,331 244,015 452,945 484,040 332,486 303,879 257,097 223,303 212,003 185,943 127,035 106,341 178,269 115,489Pre-operating expenses – – – – – – – – – – – – – –Printing and publication expenses 8,068 9,274 20,290 25,694 10,778 13,127 7,309 7,886 5,655 5,172 3,724 2,416 3,821 2,415Legal and other professional fees 11,296 6,748 600 – – – – – – – – – 600 –Transaction costs 8,861,666 11,018,569 – – 8,179,006 10,800,694 6,814,711 7,286,443 – – 799,088 646,349 – –Other operating expenses – 23,830 – 416,418 – – – – – – – 24,816 – –

Total operating expenses 9,952,758 12,196,486 834,121 1,295,001 10,212,627 13,295,314 8,815,793 9,132,305 5,747,950 4,281,611 960,599 832,971 1,902,269 181,267

(Loss)/profit before taxation (97,313,051) 385,106,773 (24,235,261) 190,509,077 (70,418,997) 453,463,416 (34,681,498) 304,958,969 (14,380,333) 29,226,311 7,562,802 53,349,677 (15,662,785) 17,603,282

Overseas tax (3,488,024) (3,735,674) (183,080) (184,202) (1,331,096) (2,029,252) (1,886,991) (1,945,172) – – (2,927,345) (1,020,562) (7,378) –

Change in net assets attributable to unitholders from operations (100,801,075) 381,371,099 (24,418,341) 190,324,875 (71,750,093) 451,434,164 (36,568,489) 303,013,797 (14,380,333) 29,226,311 4,635,457 52,329,115 (15,670,163) 17,603,282


38


STATEMENT OF COMPREHENSIVE INCOMEFOR THE PERIOD ENDED 30 JUNE 2018 (UNAUDITED) (EXPRESSED IN HONG KONG DOLLARS) (CONTINUED)

BEA Union Investment Core Accumulation Fund (1)

BEA Union Investment Age 65 Plus Fund (1)

2018 2017 2018 2017

Income

Dividend income – – – –Interest on bank deposits – – – –Net (losses)/gains on investments 140,792 458,355 (854,197) 129,674Exchange (losses)/gains 1,629,956 (304,575) 1,737,851 (144,826)

Total investment (loss)/income 1,770,748 153,780 883,654 (15,152)

Expenses

Investment management fees – – – –Trustee’s fees – – – –Safe custody and bank charges 300 – 300 –Audit fee 6,026 5,409 6,026 2,736Registrar’s fees – – – –Pre-operating expenses 3,560 – 3,560 –Printing and publication expenses 1,433 267 922 49Legal and other professional fees – – – –Transaction costs – – – –Other operating expenses – 4,500 – –

Total operating expenses 11,319 10,176 10,808 2,785

(Loss)/profit before taxation 1,759,429 143,604 872,846 (17,937)

Overseas tax – – – –

Change in net assets attributable to unitholders from operations 1,759,429 143,604 872,846 (17,937)

(1) BEA Union Investment Core Accumulation Fund and BEA Union Investment Age 65 Plus Fund were launched on 1 April 2017.


STATEMENT OF ASSETS AND LIABILITIESAS AT 30 JUNE 2018 (UNAUDITED) (EXPRESSED IN HONG KONG DOLLARS)

39








Global Equity Fund


Grade Bond Fund30 June

201831 December

201730 June

201831 December

201730 June

201831 December

201730 June

201831 December

201730 June

201831 December

201730 June

201831 December

201730 June

201831 December

2017

Assets

Investments 1,897,297,840 2,416,962,255 5,185,456,236 5,028,292,584 2,037,134,419 3,109,496,406 1,807,880,428 1,914,866,383 1,458,689,711 1,233,335,976 989,339,057 909,123,127 998,405,118 776,987,784Derivative financial instruments – – 1,419,876 – – – – – – – 88,014 – 59,203 –Amounts due from brokers 84,227,979 19,217,515 78,789,606 – 22,115,833 – 41,594,085 – 3,138,190 5,628,474 – – 14,920,701 –Amounts receivable on subscription – 945,532 2,014,298 177,040 702,813 358,889 – – 5,000,000 – 789,650 253,894 – –Dividends and other receivables 7,798,649 1,544,414 451 12,962 13,070,075 1,043,823 13,805,644 1,100,141 1 1 1,431,353 485,184 17 101Cash at banks 62,994,476 22,271,045 248,239,763 180,456,144 74,449,502 173,699,503 64,572,780 109,798,022 17,013,722 10,534,467 16,792,776 15,565,492 20,737,094 10,262,773

Total assets 2,052,318,944 2,460,940,761 5,515,920,230 5,208,938,730 2,147,472,642 3,284,598,621 1,927,852,937 2,025,764,546 1,483,841,624 1,249,498,918 1,008,440,850 925,427,697 1,034,122,133 787,250,658

Liabilities

Derivative financial instruments – – – 7,372,691 – – – – – – – 56,064 – 8,114Amounts due to brokers 73,436,478 31,441,587 161,643,101 25,267,587 16,456,472 25,364,951 41,224,798 28,733,506 15,691,761 11,458,862 – – 31,022,837 3,887,321Amounts payable on redemption 34,147,143 1,044,322 34,134 232,164 473,374 1,265,036 – 6,485,918 6,271,213 2,510,399 51,490 293,520 – –Accruals and other payables 945,810 593,012 202,020 376,456 789,418 649,286 1,755,896 647,579 1,025,403 947,623 250,939 192,882 380,156 224,046

Total liabilities (excluding net assets attributable to unitholders) 108,529,431 33,078,921 161,879,255 33,248,898 17,719,264 27,279,273 42,980,694 35,867,003 22,988,377 14,916,884 302,429 542,466 31,402,993 4,119,481

Net assets attributable to unitholders

Financial liabilities 1,943,789,513 2,427,861,840 5,354,040,975 5,175,689,832 2,129,753,378 3,257,319,348 1,884,872,243 1,989,897,543 1,460,853,247 1,234,582,034 1,008,138,421 924,885,231 1,002,719,140 783,131,177

Equity – – – – – – – – – – – – – –

Represented by:

Adjustment from bid market prices to last traded market prices 2,926,448 2,339,899 4,282,307 5,448,135 1,851,568 1,122,625 2,252,339 1,252,358 3,676,170 3,963,341 481,314 (158,674) 1,670,382 1,518,430

Net assets attributable to unitholders (at last traded market prices) 1,946,715,961 2,430,201,739 5,358,323,282 5,181,137,967 2,131,604,946 3,258,441,973 1,887,124,582 1,991,149,901 1,464,529,417 1,238,545,375 1,008,619,735 924,726,557 1,004,389,522 784,649,607

Number of units outstanding– Class A 4,816,279.158 5,734,087.375 38,921,373.102 38,228,964.981 5,875,227.111 8,855,765.696 6,154,390.085 6,334,794.638 1,179,387.722 1,153,802.867 3,168,470.958 3,122,436.599 5,584,658.319 5,580,675.591– Class D – – – – – – – – 3,006,117.627 1,313,302.030 – – – –– Class I(3) – – 5,266,440.237 4,311,522.276 – – – – – – 4,090,892.335 3,493,168.116 – –– Class R(2) 259,258.859 263,719.170 468,192.848 384,789.650 669,679.237 732,120.300 825,388.187 888,239.576 8,241,834.128 7,719,422.420 – – 3,515,112.279 1,173,762.057

Net asset value per unit(at last traded market prices)– Class A 387.79 408.91 122.17 122.56 331.89 344.48 276.04 281.45 132.84 133.77 167.17 166.07 117.45 119.31– Class D – – – – – – – – 101.77 103.04 – – – –– Class I(3) – – 105.09 105.41 – – – – – – 117.08 116.28 – –– Class R(2) 304.82 324.02 106.84 107.68 271.29 283.86 228.08 234.45 121.56 122.92 – – 99.13 101.25


40


STATEMENT OF ASSETS AND LIABILITIESAS AT 30 JUNE 2018 (UNAUDITED) (EXPRESSED IN HONG KONG DOLLARS) (CONTINUED)



30 June 2018

31 December 2017

30 June 2018

31 December 2017

Assets

Investments 617,896,593 494,312,416 389,498,926 338,560,660Derivative financial instruments 205,823 – 260,795 –Amounts due from brokers 12,958 152,968 36,351 71,098Amounts receivable on subscription 989,068 409,041 841,360 21,893Dividends and other receivables 110,863 – 110,863 –Cash at banks – – – –

Total assets 619,215,305 494,874,425 390,748,295 338,653,651

Liabilities

Derivative financial instruments – 819,702 – 1,193,822Amounts due to brokers 989,068 409,041 841,360 21,893Amounts payable on redemption 12,958 152,968 36,351 71,098Accruals and other payables 7,585 11,031 7,371 11,031

Total liabilities (excluding net assets attributable to unitholders) 1,009,611 1,392,742 885,082 1,297,844

Net assets attributable to unitholders

Financial liabilities – – – –

Equity 618,205,694 493,481,683 389,863,213 337,355,807

Represented by:

Adjustment from bid market prices to last traded market prices – – – –

Net assets attributable to unitholders (at last traded market prices) 618,205,694 493,481,683 389,863,213 337,355,807

Number of units outstanding– Class I(3) 5,549,013.285 4,456,515.737 3,696,572.510 3,207,896.595

Net asset value per unit (at last traded market prices)

– Class I(3) 111.41 110.73 105.47 105.16


(2) Class R of BEA Union Investment Asia Pacific Grade Bond Fund was launched on 20 June 2017.

(3) Class I of BEA Union Investment Global Bond Fund, BEA Union Investment Global Equity Fund, BEA Union Investment Core Accumulation Fund and BEA Union Investment Age 65 Plus Fund were launched on 1 April 2017.

41



STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO UNITHOLDERS/STATEMENT OF CHANGES IN EQUITYFOR THE PERIOD ENDED 30 JUNE 2018 (UNAUDITED) (EXPRESSED IN HONG KONG DOLLARS)







Global Equity Fund


Grade Bond Fund2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017

Net assets attributable to unitholders at beginning of the period 2,427,861,840 1,622,066,672 5,175,689,832 4,835,202,656 3,257,319,348 2,410,517,756 1,989,897,543 1,397,704,902 1,234,582,034 1,070,557,899 924,885,231 395,340,792 783,131,177 457,989,411

Proceeds on subscription of units 24,456,850 33,960,133 681,502,198 593,715,431 67,564,962 31,888,301 13,547,745 37,025,375 367,942,891 147,822,496 102,044,787 241,490,679 235,258,126 134,089,969Payments on redemption of units (407,728,102) (39,066,477) (478,732,714) (317,830,775) (1,123,380,839) (128,359,882) (82,004,556) (37,423,083) (127,291,345) (147,799,733) (23,427,054) (705,400) – –

2,044,590,588 1,616,960,328 5,378,459,316 5,111,087,312 2,201,503,471 2,314,046,175 1,921,440,732 1,397,307,194 1,475,233,580 1,070,580,662 1,003,502,964 636,126,071 1,018,389,303 592,079,380

Change in net assets attributable to unitholders from operations (100,801,075) 381,371,099 (24,418,341) 190,324,875 (71,750,093) 451,434,164 (36,568,489) 303,013,797 (14,380,333) 29,226,311 4,635,457 52,329,115 (15,670,163) 17,603,282

Net assets attributable to unitholders at end of the period 1,943,789,513 1,998,331,427 5,354,040,975 5,301,412,187 2,129,753,378 2,765,480,339 1,884,872,243 1,700,320,991 1,460,853,247 1,099,806,973 1,008,138,421 688,455,186 1,002,719,140 609,682,662



2018 2017 2018 2017

Net assets attributable to unitholders at beginning of the period 493,481,683 – 337,355,807 –

Proceeds on subscription of units 126,393,660 310,347,361 56,595,992 58,079,405Payments on redemption of units (3,429,078) (227,144) (4,961,432) (96,060)

616,446,265 310,120,217 388,990,367 57,983,345

Change in net assets attributable to unitholders from operations 1,759,429 143,604 872,846 (17,937)

Net assets attributable to unitholders at end of the period 618,205,694 310,263,821 389,863,213 57,965,408



Trustee and registrar

Bank of East Asia (Trustees) Limited

32nd Floor, BEA TowerMillennium City 5

418 Kwun Tong RoadKwun Tong, Kowloon,

Hong Kong

Manager

BEA Union Investment Management Limited

5th Floor, The Bank of East Asia Building10 Des Voeux Road Central

Hong Kong

Auditor

KPMG

8th Floor, Prince’s Building10 Chater Road

Central, Hong Kong

Legal Adviser

Deacons

5th Floor, Alexandra House18 Chater Road

Central, Hong Kong

Annual Report (Audited)

For the year ended 31 December 2017

BEA Union Investment Capital Growth Fund








BEA Union Investment Core Accumulation Fund*

BEA Union Investment Age 65 Plus Fund*

(*Not available to Hong Kong retail investors)

CONTENTS PAGE(S)


INVESTMENT REPORT – TRUSTEE’S COMMENTARY 1-5 – INVESTMENT OBJECTIVES AND POLICIES OF THE FUND AND THE SUB-FUNDS 6-14 – INVESTMENT INCOME AND PERFORMANCE 15 – BREAKDOWN OF INCOME DERIVED FROM INVESTMENTS OTHER THAN NET GAIN/(LOSS) ON INVESTMENTS 16 – PERFORMANCE TABLE 17-22 – INVESTMENT PORTFOLIO 23-55 – STATEMENT OF MOVEMENTS IN INVESTMENT PORTFOLIO 56-59

TRUSTEE’S REPORT 60

INDEPENDENT AUDITOR’S REPORT ON THE FINANCIAL STATEMENTS 61-64

INDEPENDENT AUDITOR’S ASSURANCE REPORT 65-66

STATEMENT OF ASSETS AND LIABILITIES 67

STATEMENT OF COMPREHENSIVE INCOME 68

STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO UNITHOLDERS/STATEMENT OF CHANGES IN EQUITY 69

CASH FLOW STATEMENT 70

NOTES TO THE FINANCIAL STATEMENTS 71-117

EAM024-AN (2017)

BEA UNION INVESTMENT CAPITAL GROWTH FUNDYEAR ENDED 31 DECEMBER 2017


Trustee and registrarBank of East Asia (Trustees) Limited

32nd Floor, BEA TowerMillennium City 5

418 Kwun Tong RoadKwun Tong, Kowloon,

Hong Kong

Manager

BEA Union Investment Management Limited

5th Floor, The Bank of East Asia Building10 Des Voeux Road Central,

Hong Kong

Auditor

KPMG

8th Floor, Prince’s Building10 Chater Road

Central, Hong Kong

Legal Adviser

Deacons

5th Floor, Alexandra House18 Chater Road

Central, Hong Kong


INVESTMENT REPORTFOR THE YEAR ENDED 31 DECEMBER 2017 (CONTINUED)

TRUSTEE’S COMMENTARY (CONTINUED)

2



INVESTMENT REPORTFOR THE YEAR ENDED 31 DECEMBER 2017

TRUSTEE’S COMMENTARY

1



Analysis of the investments

The fund recorded a positive return in 2017 and outperformed its peer group average (Asia ex Japan Equity as classified by Morningstar).

Trustee’s commentary

Mainland China’s real estate sector rebounded as home prices have stabilised and the announcement of accelerated shanty town clearance programmes is expected to help absorb inventory in 2018. Data also indicates a rebound of home sales and new home starts in November.

The Stock Exchange of Hong Kong (“SEHK”) has proposed to amend its listing rules to allow: 1) dual class share structures; and 2) biotech companies to list before they have made consistent profits. These looser rules stand to benefit the SEHK by attracting more listings, and could increase the variety of listed equity investments accessible to Hong Kong investors.

In Taiwan, early consumer surveys hinted at weaker-than-expected demand for the new iPhone X and 8 models, with sales actually rising for the now-discounted iPhone 7. This led to weakness in share prices of the Apple supply chain.



The fund recorded a positive return in 2017 but underperformed its peer group average (Global Bond as classified by Morningstar).


Global bond markets performed well in USD terms this year, driven primarily by: 1) an accommodative yield environment, 2) the gradual appreciation of major developing and emerging-market currencies against the USD, and 3) strengthening economic activity in the U.S. and regions of Europe.

The strong economic data in the U.S. and eurozone will continue to support the interest rate normalisation policy implemented by central banks, which could cause some short-term volatility for global bond markets. Despite the rising yield environment, we continue to be positive on the global bond market due to 1) interest rate hikes on a gradual basis, 2) adequate global liquidity, and 3) persistently low inflation.

In developed markets, the EUR has slightly appreciated against the USD in 2017, as the market was expecting the European Central Bank to tighten its monetary policy after economic activity in the E.U. showed some signs of recovery. The GBP and AUD also strengthened against the USD in 2017. Most of the emerging markets currencies, including Asian local currencies, also recorded gains against the USD.



The fund recorded a positive return in 2017 but underperformed its peer group average (Hong Kong Equity as classified by Morningstar).



Despite the U.S. Federal Reserve continuing to raise interest rates, Hong Kong’s real estate sector remained firm and outperformed the market in December.



The fund recorded a positive return in 2017 but underperformed its peer group average (Greater China Equity as classified by Morningstar).


Mainland China’s real estate sector rebounded as home prices have stabilised and the announcement of accelerated shanty town clearance programmes is expected to help absorb inventory in 2018. Data also indicates a rebound of home sales and new home starts in November.


In Taiwan, early consumer surveys hinted at weaker-than-expected demand for the new iPhone X and 8 models, with sales actually rising for the now-discounted iPhone 7. This led to weakness in share prices of the Apple supply chain.







3 4




The fund recorded a positive return in 2017 and outperformed its peer group average (HKD Bond as classified by Morningstar).


In line with market expectation, the U.S. Federal Reserve raised the benchmark rate by 25 bps in December. In response, the Hong Kong Monetary Authority (“HKMA”) also raised its benchmark lending rate by 25 bps. To align with the Fed’s interest rate normalisation policy, the HKMA has raised its benchmark rate three times this year. The HKMA also issued exchange bills to absorb some excessive liquidity in the banking system.

HKD bonds recorded positive returns in 2017, but slightly lagged behind other Asian local bond markets due to rising local yields and a weaker Hong Kong dollar versus the U.S. dollar.

We expect the Hong Kong dollar to remain under pressure in the medium term due to the interest rate gap and because HKD government yields could continue to trend higher as a result of further interest rate hikes by the Fed.



The fund recorded a positive return in 2017 and outperformed its peer group average (Global Large-Cap Blend Equity as classified by Morningstar).


We remain our positive stance in the U.S. tax reform which President Trump signed into law in late December, as it will help to further boost growth in the coming years.

Over four months after its federal election, Germany’s political parties have yet to reach agreement on a new government. Angela Merkel’s centre-right Christian Democratic Union party looks set to finally form a coalition with the centre-left Social Democrats around the start of February, but the ongoing uncertainty has weighed on the market throughout the fourth quarter of 2017.

Encouraged by the strength of the domestic economy and the possibility of stronger-than-expected inflation, the Bank of Korea raised its benchmark interest rate. This was the first time the Bank of Korea has raised rates since 2011 and flags the start of a new rate cycle.



The fund recorded a positive return in 2017 but underperformed its peer group average (Asia Bond as classified by Morningstar).


In line with market expectation, the U.S. Federal Reserve (Fed) raised its benchmark rate by 25 bps at its December meeting, marking the third rate hike of 2017. As the market had largely priced in three rate hikes, U.S. 10-year Treasury remained range-bound throughout 2017, and closed at around 2.4% for the year. Despite the Fed’s rate hikes, the Asian investment-grade bond market continued to perform well overall due to strong liquidity flows and reduced new supply. During the first half of the year, Asian investment-grade bonds outperformed Asian high-yield bonds due to declining U.S. benchmark yields. On a full-year basis, Asian investment-grade bonds still recorded a good return, despite some small corrections for higher benchmark yields in the second half of the year.

We see a positive outlook ahead for the Asian investment-grade bond market. Although improving economic activity in the U.S. and Europe will give policy makers more room to tighten monetary policy, the pace of rate hikes should be gradual and are only likely to cause short-term volatility for global bond markets. Meanwhile, Asia’s bond markets will continue to benefit from some positive factors in 2018, including: 1) continual inflows into Asian bond markets in search of higher yields, 2) less new supply of high-quality investment grade bonds, and 3) the improving credit profiles of individual credits.



The fund recorded a positive return in 2017 and outperformed its peer group average (USD Moderate Allocation as classified by Morningstar).







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5




The fund recorded a positive return in 2017 but underperformed its peer group average (USD Cautious Allocation as classified by Morningstar).








INVESTMENT OBJECTIVES AND POLICIES OF THE FUND AND THE SUB-FUNDS (CONTINUED)

7




INVESTMENT OBJECTIVES AND POLICIES OF THE FUND AND THE SUB-FUNDS

6


BEA Union Investment Capital Growth Fund was established by the Trust Deed dated 22 September 2000, as amended. The Fund offers 9 Sub-funds with different investment policies. The Sub-funds of the Fund are BEA Union Investment Asia Strategic Growth Fund, BEA Union Investment Global Bond Fund, BEA Union Investment Hong Kong Growth Fund, BEA Union Investment Greater China Growth Fund, BEA Union Investment Hong Kong Dollar (HK$) Bond Fund, BEA Union Investment Global Equity Fund, BEA Union Investment Asia Pacific Investment Grade Bond Fund, BEA Union Investment Core Accumulation Fund and BEA Union Investment Age 65 Plus Fund.

Separate and distinct investment policies are applied in the investments of each Sub-fund. The respective investment objectives and policies are set out below.


Investment objective

To provide investors with long-term capital growth in HK dollar terms through investing in a diversified portfolio primarily consisting of securities that are either (a) listed in the Asia Pacific region or (b) issued by companies that are incorporated in the Asia Pacific region or companies which have significant operations in or derive a significant portion of revenue or profits from the Asia Pacific region but excluding Japan.

Investment policy

The Manager intends to adopt a “top-down” approach to first determine the asset allocation in each country according to the Manager’s analysis of the market and economic trends and then select suitable investments within each country by applying fundamental analysis. Corporate earnings growth and funds flow analysis will also be an integral part of the investment decision-making process.

The Manager anticipates that the maximum exposure to any one of the Singapore, Malaysia, Korea, Taiwan and China markets will not exceed 50% of the Sub-fund’s assets and the maximum exposure to any one of the Thailand, Indonesia, the Philippines and India markets will not exceed 30% of the Sub-fund’s assets.

At least 60% of the assets of the Sub-fund other than cash or deposits may be invested in equity securities, which may include securities from initial public offering. Up to 10% of the assets of the Sub-fund may be invested in other securities (as permitted under Schedule 1 to the Mandatory Provident Fund Schemes (General) Regulation). The Sub-fund’s portfolio may also include cash, deposits, fixed interest securities, instruments with floating interest rates and short-term paper such as Treasury Bills, certificates of deposit, bankers’ acceptances and short-term commercial paper. If the Manager considers that conditions so require and it is in the interests of unitholders to do so, a substantial portion of the portfolio may be held in cash or such instruments.

Subject to the restrictions imposed by the MPF Ordinance, financial futures and options contracts may be entered into for the Sub-fund for hedging purposes to protect and enhance asset value, consistent with the investment objective of the Sub-fund. Currency forward contracts may be used for the purposes of hedging into HK dollars.

The Manager expects the return of the Sub-fund over the long-term to reflect movements in the stock markets of the Asian region.



To provide investors with total investment return over the medium to long-term through investing into a diversified range of global bonds denominated in various major currencies (including but not limited to, US dollars, Euro, British pounds, Japanese yen and Hong Kong dollars).

Investment policy

The Sub-fund’s assets will normally be invested between 20% to 100% in short to long-term government bonds and 0% to 80% in short to long-term corporate bonds. Investments will be made mainly in the United States, Europe and Asia, but may include other markets. However, the actual allocation may vary as market and other conditions change.

Subject to the restrictions imposed by the MPF Ordinance, the Manager and its delegates may acquire financial futures contracts for the Sub-fund for hedging purposes to reduce risk and enhance asset value, consistent with the investment objective of the Sub-fund.

The Manager expects the return of the Sub-fund over the long-term to reflect movements in the global bond market.



To provide investors with long-term capital growth in Hong Kong dollar terms through investing in a diversified portfolio consisting primarily of securities of companies, either listed or with operations or interests principally in Hong Kong.

Investment policy

The Sub-fund’s portfolio will consist primarily of Hong Kong listed securities, and may include securities from initial public offering. Up to 100% of the assets of the Sub-fund may be invested in equity securities. Up to 10% of the assets of the Sub-fund may be invested in other securities (as permitted under Schedule 1 to the Mandatory Provident Fund Schemes (General) Regulation). Investments will be selected based on their expected long-term capital growth. The weighting of the portfolio between sectors may change according to economic circumstances.

The Sub-fund’s portfolio may also include cash, deposits, fixed interest securities, instruments with floating interest rates and short-term paper such as Treasury Bills, certificates of deposit, bankers’ acceptances and short-term commercial paper. If the Manager considers that conditions so require and it is in the interests of unitholders to do so, a substantial portion of the portfolio may be held in cash or such instruments.

The Manager intends to adopt a “top-down” approach to first determine the sector allocation of the portfolio according to the Manager’s analysis of the market and economic trends, and then select suitable investments within each sector.







8 9



Investment policy (continued)

Subject to the restrictions imposed by the MPF Ordinance, the Manager may acquire financial futures and options contracts for the Sub-fund for hedging purposes to protect and enhance asset value, consistent with the investment objective of the Sub-fund.

In addition, at least 30% of the assets of the Sub-fund will be held in Hong Kong dollar currency investments as measured by effective currency exposure (determined in accordance with Schedule 1 of the Mandatory Provident Fund Schemes (General) Regulation).

The Manager expects the Sub-fund’s return over the long-term to reflect movements in the Hong Kong stock market.



To provide investors with long-term capital growth through investing in a diversified portfolio primarily consisting of securities that are either (a) listed in Greater China or (b) issued by companies that are incorporated in Greater China or companies which have significant operations in or derive a significant portion of revenue or profits from Greater China, which includes the People’s Republic of China (PRC), Hong Kong, Macau and Taiwan.

Investment policy

Normally not less than 70% of the assets of the Sub-fund will be invested directly in equities. Up to 10% of the assets of the Sub-fund may be invested in other securities, including other collective investment schemes, China A-shares (subject to availability of investment quota) and China B-shares. Any remaining assets may be held in cash or cash equivalents. In times of extreme volatility of the markets or during severe adverse market conditions, the Sub-fund may hold a substantial portion of its assets in cash or cash equivalents, or invest in short-term money market instruments to safeguard the investment portfolio of the Sub-fund. In addition, at least 30% of the assets of the Sub-fund will be held in Hong Kong dollar currency investments as measured by effective currency exposure (determined in accordance with Schedule 1 of the Mandatory Provident Fund Schemes (General) Regulation).

Subject to the restrictions imposed by the MPF Ordinance, the Manager may enter into financial futures and options contracts for the Sub-fund for hedging purposes to reduce risk and protect or enhance asset value, consistent with the investment objective of the Sub-fund.



To provide investors with long-term capital growth in Hong Kong dollar terms through investing in a portfolio consisting primarily of Hong Kong dollar denominated interest bearing securities. If the Manager considers that conditions so require and it is in the interests of unitholders to do so, a substantial portion of the portfolio may be held in cash.

Investment policy

The Manager anticipates that a majority of the portfolio will be invested in bonds issued by governments, quasi-governmental organisations, multilateral international agencies and blue chip corporations. Investments in corporate bonds and debentures must meet the minimum required credit ratings as determined by the Mandatory Provident Fund Schemes Authority from time to time. The value of the portfolio’s holding of Hong Kong dollar denominated securities shall not be less than 70% of the net asset value of the Sub-fund.

Subject to the restrictions imposed by the MPF Ordinance, the Manager and its delegates may acquire financial futures contracts for the Sub-fund for hedging purposes to protect and enhance asset value, consistent with the investment objective of the Sub-fund.

In addition, at least 30% of the assets of the investment will be held in Hong Kong dollar currency investments as measured by effective currency exposure (determined in accordance with Schedule 1 of the Mandatory Provident Fund Schemes (General) Regulation).

The Manager expects the return of the Sub-fund over the long-term to exceed the Hong Kong inflation rate.







10 11




To provide investors with long-term capital growth through investing in a diversified global portfolio.

Investment policy

The Sub-fund’s portfolio will primarily consist of global equity securities, including but not limited to common stocks, preferred stocks, American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), International Depositary Receipts (“IDRs”), approved Exchange Traded Funds (“ETFs”), warrants, or debt securities convertible into common or preferred stocks, or ADRs, GDRs or IDRs, to the extent permitted under Schedule 1 of the Mandatory Provident Fund Schemes (General) Regulation.

In managing the asset allocation of the portfolio, the Manager will from time to time make reference to the geographic allocation by one or more global stock market indices. As an indication, the geographic allocation of the Sub-fund is expected to be:

– United States 0%-65%– Europe 0%-40%– Others 0%-50%

Please note that the above figures are for indicative purposes only. The actual allocation of the Sub-fund’s portfolio between countries and regions may vary from time to time and may be different from that as shown above according to the Manager’s perception of prevailing and anticipated global market conditions and will be decided on the basis of the Manager’s macroeconomic analysis of the global markets and economic growth, inflation and interest rate trends.

Normally not less than 70% of the Sub-fund’s assets will be invested in equities. Up to 10% of the assets of the Sub-fund may be invested in other securities (as permitted under Schedule 1 to the Mandatory Provident Fund Schemes (General) Regulation). Any remaining assets may be held in money market instruments, cash or cash equivalents. In times of extreme volatility of the markets or during severe adverse market conditions, the Sub-fund may hold a substantial portion of its assets in money market instruments, cash or cash equivalents to safeguard the investment portfolio of the Sub-fund.

Subject to the restrictions imposed by the MPF Ordinance, the Manager may enter into financial futures, options and currency forward contracts for the Sub-fund for hedging purposes to reduce risk and protect asset value, consistent with the investment objective of the Sub-fund.




To provide total investment return over the medium to long-term through investing in Asia Pacific investment grade bonds.

Investment policy

The Sub-fund’s portfolio will primarily consist of bonds, denominated in various Asian or major global currencies (e.g. USD), which are of investment grade and issued by Asia Pacific government or corporate entities. “Investment grade” for this purpose means a credit rating that satisfies the criteria prescribed by the Mandatory Provident Fund Schemes Authority (the “Authority”) from time to time. The investments of the Sub-fund may include, but are not limited to, fixed and floating rate bonds, zero coupon and discount bonds and commercial paper.

The Asia Pacific countries or regions which the Sub-fund may invest in include, but are not limited to, Australia, Hong Kong, China, Korea, Malaysia, New Zealand, Singapore and Thailand. The Sub-fund may obtain exposure to the China bond markets through investment in offshore Renminbi denominated debt securities or other securities issued or distributed outside mainland China, e.g. offshore RMB bonds issued in Hong Kong. It does not invest in debt securities or other securities issued or distributed within mainland China.

Normally no more than 30% of Sub-fund’s assets will be invested in other bonds, denominated in various major currencies (e.g. USD), (a) which are either of investment grade but not issued by Asia Pacific government or corporate entities including, but not limited to, members of the European Union (with a minimum credit rating equivalent to BBB- by Standard and Poor’s), Canada, the United States, the United Kingdom, Mexico, Russia, Brazil and Qatar, or (b) which are otherwise permitted under Schedule 1 to the Mandatory Provident Fund Schemes (General) Regulation. Investments in bonds issued by non-Asia Pacific issuers may be made to (i) manage downside risks or (ii) achieve additional investment returns by allocating assets into such bonds where the Manager considers they are attractive on a risk/return basis or (iii) benefit from diversification of the portfolio of investments.

The Sub-fund may also invest no more than 30% of its assets in money market instruments, cash or cash equivalents. In times of extreme volatility of the markets or during severe adverse market conditions, the Sub-fund may hold a substantial portion of its assets in money market instruments, cash or cash equivalents to safeguard the investment portfolio of the Sub-fund.

The target asset allocation is as follows:

Minimum (% of net asset value)

Maximum (% of net asset value)

By asset type – Debt securities 70% 100% – Money market instruments/Cash and cash equivalents 0% 30%

By geographical allocation – Asia Pacific 70% 100% – Non-Asia Pacific 0% 30%







12 13




Subject to the restrictions imposed by the MPF Ordinance, the Manager may enter into financial futures, options and currency forward contracts for the Sub-fund for hedging purposes to reduce risk and protect asset value, consistent with the investment objective of the Sub-fund.


The Sub-fund will not invest in any structured deposits or products, and will not enter into any securities lending, repurchase transactions or other similar transactions.



To achieve capital growth by investing in a globally diversified manner in two approved pool investment funds, namely the BEA Union Investment Global Equity Fund (which invests in a diversified global equity portfolio) and the BEA Union Investment Global Bond Fund (which invests in a diversified global bond portfolio) (the “Underlying Funds”), both existing Investment Funds under the Fund.

Investment policy

The Sub-fund aims to achieve the asset allocation requirements applicable to a “Core Accumulation Fund” (as defined in the MPF Ordinance). Subject to the discretion of the Manager and through an active asset allocation strategy investing in the Underlying Funds (which in turn adopt relevant active investment strategy in selecting particular global equities or global bonds), the Sub-fund will invest around 60% of its net asset value in higher risk assets*, with the remainder investing in lower risk assets#. The asset allocation to higher risk assets may vary between 55% and 65% due to differing price movements of various equity and bond markets. The Manager will from time to time rebalance the allocation between the two Underlying Funds, such that so far as practicable the asset allocation of the Sub-fund will be as follows:

The asset allocation is as follows:



Higher risk assets* (such as global equities) 55% 65%

* means such investment instruments which are identified as “higher risk assets” in the relevant guidelines issued by the Authority

Lower risk assets# (such as global bonds, cash and money market instruments) 35% 45%

The Sub-fund’s holding in cash and bank deposits will be for ancillary purposes, such as for meeting redemption requests or defraying operating expenses, or for reducing market exposure.

BEA UNION INVESTMENT CORE ACCUMULATION FUND (CONTINUED)


Subject to the restrictions imposed by the MPF Ordinance, the Manager may enter into currency forward contracts, financial future and options contracts for the Sub-fund for hedging purposes to reduce risk and protect asset value, consistent with the investment objective of the Sub-fund.



The Manager expects the return of the Sub-fund over the long-term to reflect movements between the global equity market and global bond market, with an emphasis on the asset allocation applicable to the Core Accumulation Fund, targeting to outperform the relevant MPF industry developed reference portfolio which is published by the Hong Kong Investment Funds Association and to provide a common reference point for the performance and asset allocation of the Sub-fund.



To achieve stable growth by investing in a globally diversified manner in two approved pool investment funds, namely the BEA Union Investment Global Equity Fund (which invests in a diversified global equity portfolio) and the BEA Union Investment Global Bond Fund (which invests in a diversified global bond portfolio) (the “Underlying Funds”), both existing Investment Funds under the Fund.

Investment policy

The Sub-fund aims to achieve the asset allocation requirements applicable to an “Age 65 Plus Fund” (as defined in the MPF Ordinance). Subject to the discretion of the Manager and through an active asset allocation strategy investing in the Underlying Funds (which in turn adopt relevant active investment strategy in selecting particular global equities or global bonds), the Sub-fund will invest around 20% of its net asset value in higher risk assets* and, with the remainder investing in lower risk assets#. The asset allocation to higher risk assets may vary between 15% and 25% due to differing price movements of various equity and bond markets. The Manager will from time to time rebalance the allocation between the two Underlying Funds, such that so far as practicable the asset allocation of the Sub-fund will be as follows:






14


BEA UNION INVESTMENT AGE 65 PLUS FUND (CONTINUED)


The asset allocation is as follows:



Higher risk assets* (such as global equities) 15% 25%

* means such investment instruments which are identified as “higher risk assets” in the relevant guidelines issued by the Authority

Lower risk assets# (such as global bonds, cash and money market instruments) 75% 85%

The Sub-fund’s holding in cash and bank deposits will be for ancillary purposes, such as for meeting redemption requests or defraying operating expenses, or for reducing market exposure.

Subject to the restrictions imposed by the MPF Ordinance, the Manager may enter into currency forward contracts, financial future and options contracts for the Sub-fund for hedging purposes to reduce risk and protect asset value, consistent with the investment objective of the Sub-fund.



The Manager expects the return of the Sub-fund over the long-term to reflect movements between the global equity market and global bond market, with an emphasis on the asset allocation applicable to the Age 65 Plus Fund, targeting to outperform the relevant MPF industry developed reference portfolio which is published by the Hong Kong Investment Funds Association and to provide a common reference point for the performance and asset allocation of the Sub-fund.



INVESTMENT INCOME AND PERFORMANCE

15




2017 2016 2015 2017 2016 2015HK$ HK$ HK$ HK$ HK$ HK$

Net gains/(losses) excluding capital appreciation/(depreciation) 21,375,330 4,609,710 (11,049,459) (58,142,988) 6,794,157 17,830,271Capital appreciation/(depreciation) – realised and unrealised 718,861,213 61,232,799 (146,520,470) 402,548,874 78,187,485 (133,566,446)Value of fund assets derived from investments as at 31 December 2,416,962,255 1,594,373,800 1,501,003,105 5,028,292,584 4,459,322,463 4,311,670,773



2017 2016 2015 2017 2016 2015HK$ HK$ HK$ HK$ HK$ HK$

Net gains/(losses) excluding capital appreciation/(depreciation) 63,259,038 64,623,568 60,500,275 22,061,174 16,867,795 7,003,612Capital appreciation/(depreciation) – realised and unrealised 918,235,070 (44,115,655) (285,248,223) 580,116,394 15,573,543 (89,781,408)Value of fund assets derived from investments as at 31 December 3,109,496,406 2,358,869,012 2,697,455,107 1,914,866,383 1,367,380,432 1,169,930,983



2017 2016 2015 2017 2016 2015HK$ HK$ HK$ HK$ HK$ HK$

Net gains/(losses) excluding capital appreciation/(depreciation) (9,230,115) (6,855,225) (4,411,180) 4,055,751 3,241,532 5,551,214Capital appreciation/(depreciation) – realised and unrealised 38,775,386 (4,613,721) 21,792,879 128,464,599 9,340,152 7,069,320Value of fund assets derived from investments as at 31 December 1,233,335,976 1,056,189,331 807,556,678 909,123,127 388,115,879 526,616,745


BEA Union Investment Core Accumulation Fund

2017 2016 2015 2017 2016 2015HK$ HK$ HK$ HK$ (1) HK$ HK$

Net gains/(losses) excluding capital appreciation/(depreciation) (4,386,238) (845,452) (225,016) (2,275,220) – –Capital appreciation/(depreciation) – realised and unrealised 37,823,394 21,442,859 26,543,267 29,369,984 – –Value of fund assets derived from investments as at 31 December 776,987,784 441,488,981 428,891,011 494,312,416 – –

BEA Union Investment Age 65 Plus Fund

2017 2016 2015HK$ (1) HK$ HK$

Net gains/(losses) excluding capital appreciation/(depreciation) (2,244,824) – –Capital appreciation/(depreciation) – realised and unrealised 8,124,100 – –Value of fund assets derived from investments as at 31 December 338,560,660 – –

(1) The launch date for BEA Union Investment Core Accumulation Fund and BEA Union Investment Age 65 Plus Fund was 1 April 2017.





BREAKDOWN OF INCOME DERIVED FROM INVESTMENTS OTHER THAN NET GAIN/(LOSS) ON INVESTMENTS

16


FOR THE YEAR ENDED 31 DECEMBER 2017

Interest on bonds

Interest on certificates of deposit

Dividend income

Interest on bank deposits

Other income Total

HK$ HK$ HK$ HK$ HK$ HK$

BEA Union Investment Asia Strategic Growth Fund – – 53,154,125 12,331 – 53,166,456

BEA Union Investment Global Bond Fund 110,290,412 128,318 – 135,890 – 110,554,620

BEA Union Investment Hong Kong Growth Fund – – 91,580,133 613 – 91,580,746

BEA Union Investment Greater China Growth Fund – – 45,726,354 168 – 45,726,522

BEA Union Investment Hong Kong Dollar (HK$) Bond Fund 23,030,155 5,346,454 – 197 – 28,376,806

BEA Union Investment Global Equity Fund – – 11,735,367 1,509 – 11,736,876

BEA Union Investment Asia Pacific Investment Grade Bond Fund 24,416,528 – – 1,593 – 24,418,121

BEA Union Investment Core Accumulation Fund (1) – – – – – –

BEA Union Investment Age 65 Plus Fund (1) – – – – – –


FOR THE YEAR ENDED 31 DECEMBER 2016

Interest on bonds

Interest on certificates of deposit

Dividend income

Interest on bank deposits

Other income Total

HK$ HK$ HK$ HK$ HK$ HK$

BEA Union Investment Asia Strategic Growth Fund – – 45,876,965 15,390 – 45,892,355

BEA Union Investment Global Bond Fund 101,267,966 743,868 – 27,194 31,300 102,070,328

BEA Union Investment Hong Kong Growth Fund – – 91,521,317 550 – 91,521,867

BEA Union Investment Greater China Growth Fund – – 41,650,257 429 – 41,650,686

BEA Union Investment Hong Kong Dollar (HK$) Bond Fund 15,515,751 4,465,607 – 99 – 19,981,457

BEA Union Investment Global Equity Fund – – 6,865,679 125 – 6,865,804

BEA Union Investment Asia Pacific Investment Grade Bond Fund 16,670,851 – – 334 – 16,671,185



PERFORMANCE TABLE

17


(A) TOTAL NET ASSET VALUE (AT LAST TRADED MARKET PRICES) AND NET ASSET VALUE (AT LAST TRADED MARKET PRICES) PER UNIT

As at 31 December 2017 As at 31 December 2016 As at 31 December 2015

Sub-fundsTotal net

asset valueNet asset

value per unitTotal net


value per unitTotal net


value per unit

BEA Union Investment Asia Strategic Growth Fund – Class A (HK$) HK$ 2,344,750,564 HK$ 408.91 HK$ 1,554,294,682 HK$ 281.88 HK$ 1,434,087,625 HK$ 270.96 – Class R (US$) HK$ 85,451,175 HK$ 324.02 HK$ 69,637,644 HK$ 227.02 HK$ 115,903,297 HK$ 221.81

BEA Union Investment Global Bond Fund – Class A (HK$) HK$ 4,685,209,101 HK$ 122.56 HK$ 4,798,266,640 HK$ 114.59 HK$ 4,554,130,697 HK$ 112.21 – Class I (HK$) (1) HK$ 454,496,309 HK$ 105.41 HK$ – HK$ – HK$ – HK$ – – Class R (US$) HK$ 41,432,557 HK$ 107.68 HK$ 41,906,484 HK$ 101.63 HK$ 36,336,550 HK$ 100.44

BEA Union Investment Hong Kong Growth Fund – Class A (HK$) HK$ 3,050,620,122 HK$ 344.48 HK$ 2,159,773,539 HK$ 243.07 HK$ 2,586,756,272 HK$ 242.16 – Class R (HK$) HK$ 207,821,851 HK$ 283.86 HK$ 252,762,233 HK$ 203.59 HK$ 253,571,994 HK$ 206.16

BEA Union Investment Greater China Growth Fund – Class A (HK$) HK$ 1,782,899,935 HK$ 281.45 HK$ 1,243,508,739 HK$ 195.69 HK$ 1,055,467,647 HK$ 192.30 – Class R (HK$) HK$ 208,249,966 HK$ 234.45 HK$ 155,816,550 HK$ 165.72 HK$ 158,143,935 HK$ 165.57

BEA Union Investment Hong Kong Dollar (HK$) Bond Fund – Class A (HK$) HK$ 154,347,355 HK$ 133.77 HK$ 121,997,687 HK$ 128.98 HK$ 245,571,884 HK$ 128.33 – Class D (HK$) (2) HK$ 135,317,223 HK$ 103.04 HK$ 152,119,705 HK$ 100.41 HK$ 112,323,430 HK$ 101.00 – Class R (HK$) HK$ 948,880,797 HK$ 122.92 HK$ 799,461,151 HK$ 119.50 HK$ 468,215,593 HK$ 119.89

BEA Union Investment Global Equity Fund – Class A (HK$) HK$ 518,545,293 HK$ 166.07 HK$ 395,359,136 HK$ 133.17 HK$ 534,404,698 HK$ 126.92 – Class I (HK$) (1) HK$ 406,181,264 HK$ 116.28 HK$ – HK$ – HK$ – HK$ –

BEA Union Investment Asia Pacific Investment Grade Bond Fund – Class A (HK$) HK$ 665,811,240 HK$ 119.31 HK$ 458,813,020 HK$ 112.31 HK$ 430,733,962 HK$ 107.29 – Class R (HK$) (3) HK$ 118,838,367 HK$ 101.25 HK$ – HK$ – HK$ – HK$ –


– Class I (HK$) (1) HK$ 493,481,683 HK$ 110.73 HK$ – HK$ – HK$ – HK$ –


– Class I (HK$) (1) HK$ 337,355,807 HK$ 105.16 HK$ – HK$ – HK$ – HK$ –

(1) Class I of BEA Union Investment Global Bond Fund, BEA Union Investment Global Equity Fund, BEA Union Investment Core Accumulation Fund and BEA Union Investment Age 65 Plus Fund were launched on 1 April 2017.(2) Class D of BEA Union Investment Hong Kong Dollar (HK$) Bond Fund was launched on 14 May 2015.(3) Class R of BEA Union Investment Asia Pacific Investment Grade Bond Fund was launched on 20 June 2017.(4) The launch date for BEA Union Investment Core Accumulation Fund and BEA Union Investment Age 65 Plus Fund was 1 April 2017.





PERFORMANCE TABLE (CONTINUED)

18


(B) FUND EXPENSE RATIO (“FER”)

2017

Sub-funds

Transaction costs for the period/

year ended 31 December

FER for the period/year ended

31 DecemberHK$

BEA Union Investment Asia Strategic Growth Fund – Class A (HK$) 19,650,933 0.10% – Class R (US$) 803,146 1.72%

BEA Union Investment Global Bond Fund – Class A (HK$) – 0.04% – Class I (HK$) (1) – 0.01% – Class R (US$) – 0.98%

BEA Union Investment Hong Kong Growth Fund – Class A (HK$) 17,538,566 0.08% – Class R (HK$) 1,576,538 1.71%

BEA Union Investment Greater China Growth Fund – Class A (HK$) 12,708,577 0.09% – Class R (HK$) 1,547,861 1.74%

BEA Union Investment Hong Kong Dollar (HK$) Bond Fund – Class A (HK$) – 0.06% – Class D (HK$) – 1.13% – Class R (HK$) – 0.88%

BEA Union Investment Global Equity Fund – Class A (HK$) 816,318 0.09% – Class I (HK$) (1) 210,546 0.03%

BEA Union Investment Asia Pacific Investment Grade Bond Fund – Class A (HK$) – 0.07% – Class R (HK$) (2) – 0.63%


– Class I (HK$) (1) – 0.03%


– Class I (HK$) (1) – 0.02%

(1) Class I of BEA Union Investment Global Bond Fund, BEA Union Investment Global Equity Fund, BEA Union Investment Core Accumulation Fund and BEA Union Investment Age 65 Plus Fund were launched on 1 April 2017.

(2) Class R of BEA Union Investment Asia Pacific Investment Grade Bond Fund was launched on 20 June 2017.(3) The launch date for BEA Union Investment Core Accumulation Fund and BEA Union Investment Age 65 Plus

Fund was 1 April 2017.




19


(C) HIGHEST AND LOWEST PRICES

2017 2016 2015 2014

Sub-fundsHighest issue price per unit

Lowest redemption price per unit

Net annualised investment return

Highest issue price per unit









(Note) (Note) (Note) (Note)% % % %

BEA Union Investment Asia Strategic Growth Fund – Class A (HK$) (1) HK$ 416.20 HK$ 283.55 45.07 HK$ 310.98 HK$ 240.77 4.03 HK$ 348.06 HK$ 245.19 (10.73) HK$ 329.90 HK$ 284.47 (1.26) – Class C (US$) (2) US$ – US$ – – US$ – US$ – – US$ – US$ – – US$ 33.57 US$ 30.94 N/A – Class R (US$) US$ 42.29 US$ 29.44 41.56 US$ 32.41 US$ 25.17 2.31 US$ 37.17 US$ 26.03 (12.13) US$ 35.60 US$ 30.94 (2.83)

BEA Union Investment Global Bond Fund – Class A (HK$) (1) HK$ 123.83 HK$ 113.86 6.96 HK$ 124.20 HK$ 112.43 2.12 HK$ 116.15 HK$ 110.27 (3.22) HK$ 117.20 HK$ 112.64 2.52 – Class I (HK$) (7) HK$ 106.50 HK$ 99.93 5.41 HK$ – HK$ – – HK$ – HK$ – – HK$ – HK$ – – – Class R (US$) US$ 13.97 US$ 13.02 5.03 US$ 14.25 US$ 12.95 1.16 US$ 13.53 US$ 12.79 (4.07) US$ 13.71 US$ 13.25 1.58

BEA Union Investment Hong Kong Growth Fund – Class A (HK$) HK$ 350.95 HK$ 244.59 41.72 HK$ 267.54 HK$ 201.20 0.38 HK$ 315.36 HK$ 224.38 (6.59) HK$ 270.03 HK$ 225.93 4.56 – Class R (HK$) HK$ 289.70 HK$ 204.83 39.43 HK$ 225.22 HK$ 170.97 (1.25) HK$ 271.47 HK$ 192.01 (8.10) HK$ 234.90 HK$ 198.02 2.87

BEA Union Investment Greater China Growth Fund – Class A (HK$) HK$ 291.44 HK$ 196.44 43.83 HK$ 216.60 HK$ 164.33 1.76 HK$ 249.80 HK$ 176.53 (6.28) HK$ 213.05 HK$ 181.52 4.23 – Class R (HK$) HK$ 243.20 HK$ 166.33 41.47 HK$ 184.15 HK$ 141.35 0.09 HK$ 217.49 HK$ 152.88 (7.81) HK$ 187.49 HK$ 161.26 2.53


– Class A (HK$) HK$ 135.63 HK$ 128.94 3.71 HK$ 133.89 HK$ 126.55 0.51 HK$ 128.90 HK$ 124.31 3.13 HK$ 125.25 HK$ 119.63 3.85 – Class D (HK$) (3) HK$ 104.82 HK$ 100.38 2.62 HK$ 104.67 HK$ 99.54 (0.58) HK$ 101.65 HK$ 99.59 1.00 HK$ – HK$ – – – Class R (HK$) HK$ 124.95 HK$ 119.45 2.86 HK$ 124.44 HK$ 118.18 (0.33) HK$ 120.59 HK$ 117.10 2.28 HK$ 118.07 HK$ 113.61 2.99

BEA Union Investment Global Equity Fund (4)

– Class A (HK$) HK$ 166.38 HK$ 133.82 24.71 HK$ 136.08 HK$ 114.29 4.92 HK$ 132.11 HK$ 119.26 2.56 HK$ 127.31 HK$ 114.51 1.78 – Class I (HK$) (7) HK$ 116.49 HK$ 99.57 16.28 HK$ – HK$ – – HK$ – HK$ – – HK$ – HK$ – –

BEA Union Investment Asia Pacific Investment Grade Bond Fund (5)

– Class A (HK$) HK$ 119.36 HK$ 112.35 6.23 HK$ 115.72 HK$ 107.53 4.68 HK$ 107.78 HK$ 102.90 4.42 HK$ 103.00 HK$ 99.75 2.75 – Class R (HK$) (8) HK$ 101.62 HK$ 99.43 1.25 HK$ – HK$ – – HK$ – HK$ – – HK$ – HK$ – –


– Class I (HK$) (7) HK$ 110.84 HK$ 99.86 10.73 HK$ – HK$ – – HK$ – HK$ – – HK$ – HK$ – –


– Class I (HK$) (7) HK$ 105.33 HK$ 100.04 5.16 HK$ – HK$ – – HK$ – HK$ – – HK$ – HK$ – –

(1) The denominations of Class A redeemable units of BEA Union Investment Asia Strategic Growth Fund and BEA Union Investment Global Bond Fund were changed from USD to HKD, effective from 5 July 2013.(2) With effect from 25 April 2014, Class C units were merged into Class R units.(3) Class D of BEA Union Investment Hong Kong Dollar (HK$) Bond Fund was launched on 14 May 2015.(4) The date of commencement for BEA Union Investment Global Equity Fund was 4 October 2012.(5) The date of commencement for BEA Union Investment Asia Pacific Investment Grade Bond Fund was 20 June 2014.(6) The launch date for BEA Union Investment Core Accumulation Fund and BEA Union Investment Age 65 Plus Fund was 1 April 2017.(7) Class I of BEA Union Investment Global Bond Fund, BEA Union Investment Global Equity Fund, BEA Union Investment Core Accumulation Fund and BEA Union Investment Age 65 Plus Fund were launched on 1 April 2017.(8) Class R of BEA Union Investment Asia Pacific Investment Grade Bond Fund was launched on 20 June 2017.




20


(C) HIGHEST AND LOWEST PRICES (CONTINUED)

2013 2012 2011










(Note) (Note) (Note)% % %

BEA Union Investment Asia Strategic Growth Fund – Class A (HK$) (1) HK$ 309.98 HK$ 258.26 8.10 US$ 36.71 US$ 29.72 23.29 US$ 38.83 US$ 26.36 (17.86) – Class C (US$) (2) US$ 33.86 US$ 28.39 6.31 US$ 31.57 US$ 25.78 21.32 US$ 34.31 US$ 23.12 (19.21) – Class R (US$) US$ 33.86 US$ 28.39 6.31 US$ 31.57 US$ 25.78 21.32 US$ 34.31 US$ 23.12 (19.21)

BEA Union Investment Global Bond Fund – Class A (HK$) (1) HK$ 113.33 HK$ 110.46 0.25 US$ 14.57 US$ 14.05 1.82 US$ 14.73 US$ 13.24 6.09 – Class I (HK$) (7) HK$ – HK$ – – HK$ – HK$ – – HK$ – HK$ – – – Class R (US$) US$ 13.41 US$ 13.05 (0.75) US$ 13.46 US$ 13.03 0.90 US$ 13.74 US$ 12.41 5.15

BEA Union Investment Hong Kong Growth Fund – Class A (HK$) HK$ 254.24 HK$ 202.94 8.48 HK$ 228.69 HK$ 184.19 22.80 HK$ 245.05 HK$ 162.91 (20.61) – Class R (HK$) HK$ 223.91 HK$ 180.01 6.73 HK$ 204.55 HK$ 166.21 20.82 HK$ 226.12 HK$ 148.61 (21.89)

BEA Union Investment Greater China Growth Fund – Class A (HK$) HK$ 199.15 HK$ 158.29 14.54 HK$ 171.90 HK$ 137.30 23.45 HK$ 186.73 HK$ 124.78 (21.96) – Class R (HK$) HK$ 177.45 HK$ 142.07 12.66 HK$ 155.64 HK$ 125.39 21.44 HK$ 173.40 HK$ 115.22 (23.24)

BEA Union Investment Hong Kong Dollar (HK$) Bond Fund – Class A (HK$) HK$ 122.02 HK$ 118.58 (0.81) HK$ 120.81 HK$ 115.79 4.23 HK$ 116.83 HK$ 111.30 3.59 – Class D (HK$) (3) HK$ – HK$ – – HK$ – HK$ – – HK$ – HK$ – – – Class R (HK$) HK$ 116.55 HK$ 112.93 (1.63) HK$ 115.73 HK$ 111.85 3.33 HK$ 113.10 HK$ 108.27 2.73


– Class A (HK$) HK$ 121.58 HK$ 101.12 22.23 HK$ 100.64 HK$ 93.31 (0.53) HK$ – HK$ – – – Class I (HK$) (7) HK$ – HK$ – – HK$ – HK$ – – HK$ – HK$ – –


– Class A (HK$) HK$ – HK$ – – HK$ – HK$ – – HK$ – HK$ – – – Class R (HK$) (8) HK$ – HK$ – – HK$ – HK$ – – HK$ – HK$ – –


– Class I (HK$) (7) HK$ – HK$ – – HK$ – HK$ – – HK$ – HK$ – –







21



2010 2009 2008










(Note) (Note) (Note)% % %

BEA Union Investment Asia Strategic Growth Fund – Class A (HK$) (1) US$ 36.52 US$ 26.82 17.78 US$ 30.76 US$ 15.44 69.29 US$ 36.50 US$ 14.32 (50.91) – Class C (US$) (2) US$ 32.51 US$ 24.05 15.89 US$ 27.76 US$ 14.13 66.63 US$ 34.03 US$ 13.17 (51.72) – Class R (US$) US$ 32.51 US$ 24.05 15.89 US$ 27.76 US$ 14.13 66.63 US$ 34.03 US$ 13.17 (51.72)

BEA Union Investment Global Bond Fund – Class A (HK$) (1) US$ 14.06 US$ 12.34 5.32 US$ 13.36 US$ 11.42 4.49 US$ 12.73 US$ 11.28 5.15 – Class I (HK$) (7) HK$ – HK$ – – HK$ – HK$ – – HK$ – HK$ – – – Class R (US$) US$ 13.20 US$ 11.64 4.29 US$ 12.66 US$ 10.89 3.50 US$ 12.26 US$ 10.80 4.19

BEA Union Investment Hong Kong Growth Fund – Class A (HK$) HK$ 251.99 HK$ 183.38 11.01 HK$ 218.79 HK$ 108.41 62.59 HK$ 243.89 HK$ 99.59 (46.48) – Class R (HK$) HK$ 233.28 HK$ 171.03 9.21 HK$ 205.78 HK$ 103.12 59.96 HK$ 236.44 HK$ 95.30 (47.35)

BEA Union Investment Greater China Growth Fund – Class A (HK$) HK$ 183.18 HK$ 133.81 14.34 HK$ 156.18 HK$ 80.01 72.36 HK$ 170.00 HK$ 69.52 (47.26) – Class R (HK$) HK$ 171.69 HK$ 126.37 12.47 HK$ 148.62 HK$ 77.11 69.54 HK$ 167.02 HK$ 67.39 (48.13)

BEA Union Investment Hong Kong Dollar (HK$) Bond Fund – Class A (HK$) HK$ 114.51 HK$ 108.57 2.91 HK$ 109.36 HK$ 106.39 1.65 HK$ 107.04 HK$ 99.81 6.96 – Class D (HK$) (3) HK$ – HK$ – – HK$ – HK$ – – HK$ – HK$ – – – Class R (HK$) HK$ 112.16 HK$ 107.16 1.56 HK$ 108.02 HK$ 105.50 0.83 HK$ 106.53 HK$ 100.31 6.45


– Class A (HK$) HK$ – HK$ – – HK$ – HK$ – – HK$ – HK$ – – – Class I (HK$) (7) HK$ – HK$ – – HK$ – HK$ – – HK$ – HK$ – –


– Class A (HK$) HK$ – HK$ – – HK$ – HK$ – – HK$ – HK$ – – – Class R (HK$) (8) HK$ – HK$ – – HK$ – HK$ – – HK$ – HK$ – –











22



Note: The net annualised investment return represents the percentage change in unit price during each of these years except for the net investment return in the first financial year which was calculated as the percentage change in unit price between the unit price at the year end date and the initial offer price.

BEA Union Investment Asia Strategic Growth Fund commenced to issue Class A units on 15 April 2003, Class C and Class R (formerly Class B) units on 8 September 2003. With effect from 25 April 2014, Class C units were merged into Class R units.

BEA Union Investment Global Bond Fund commenced to issue Class A and Class R (formerly Class B) units on 1 March 2004 and Class I units on 1 April 2017.

BEA Union Investment Hong Kong Growth Fund commenced to issue Class A and Class R (formerly Class B) units on 10 December 2004.

BEA Union Investment Greater China Growth Fund commenced to issue Class A units on 6 December 2006 and Class R (formerly Class B) units on 1 September 2006.

BEA Union Investment Hong Kong Dollar (HK$) Bond Fund commenced to issue Class A units on 6 November 2007, Class R (formerly Class B) units on 2 June 2008 and Class D units on 14 May 2015.

BEA Union Investment Global Equity Fund commenced to issue Class A units on 4 October 2012 and Class I units on 1 April 2017.

BEA Union Investment Asia Pacific Investment Grade Bond Fund commenced to issue Class A units on 20 June 2014 and Class R units on 20 June 2017.

BEA Union Investment Core Accumulation Fund commenced to issue Class I units on 1 April 2017.

BEA Union Investment Age 65 Plus Fund commenced to issue Class I units on 1 April 2017.


INVESTMENT REPORTAS AT 31 DECEMBER 2017 (CONTINUED)


24




INVESTMENT PORTFOLIO

23



Holding shares/units Market value % of net assets

HK$


Equities (98.26%)


AAC Technologies Holdings Inc 311,500 43,423,100 1.79AIA Group Ltd 1,228,200 81,798,120 3.37Bank of China Ltd – H 6,430,000 24,691,200 1.02BOC Hong Kong (Holdings) Ltd 677,500 26,829,000 1.11Brilliance China Automotive Holdings Ltd 1,516,000 31,608,600 1.30China Construction Bank Corp – H 9,717,000 69,962,400 2.88China Merchants Bank Co Ltd – H 1,143,500 35,562,850 1.46China Minsheng Banking Corp Ltd 3,217,500 25,128,675 1.04CNOOC Ltd 3,229,000 36,229,380 1.49Galaxy Entertainment Group Ltd 348,000 21,819,600 0.90Geely Automobile Holdings Ltd 1,485,000 40,243,500 1.66Hangzhou Hikvision Digital Technology Co Ltd – A 568,870 26,625,960 1.10Hangzhou Robam Appliances Co Ltd – A 367,131 21,194,093 0.87Henderson Land Development Co Ltd 191,000 9,807,850 0.40Hong Kong Exchanges & Clearing Ltd 259,500 62,228,100 2.56Industrial & Commercial Bank of China Ltd – H 2,763,000 17,379,270 0.72Longfor Properties Co Ltd 1,523,000 29,820,340 1.23New China Life Insurance Co Ltd – H 638,100 34,074,540 1.40Nine Dragons Paper Holdings Ltd 2,444,000 30,550,000 1.26Ping An Insurance (Group) Co of China Ltd – H 779,000 63,371,650 2.61Shimao Property Holdings Ltd 2,907,000 49,360,860 2.03Sun Art Retail Group Ltd 3,676,000 30,363,760 1.25Tencent Holdings Ltd 552,900 224,477,400 9.25Wynn Macau Ltd 1,097,600 27,165,600 1.12Zhuzhou CRRC Times Electric Co Ltd – H 440,300 22,389,255 0.92

Indonesia (1.52%)

Bank Mandiri (Persero) Tbk PT 8,126,300 36,977,916 1.52



HK$



Korea (22.09%)

Coway Co Ltd 46,627 33,229,907 1.37DGB Financial Group 518,224 39,921,956 1.64Hanssem Co Ltd 9,583 12,595,512 0.52Hugel Inc 1,710 6,987,401 0.29Hyundai Mobis Co Ltd 19,326 37,114,153 1.53ING Life Insurance Korea Ltd 147,425 57,377,309 2.36KT&G Corp 33,480 28,114,160 1.16Loen Entertainment Inc 24,376 19,953,077 0.82Medy Tox Inc 1,845 6,531,318 0.27Naver Corp 3,900 24,747,208 1.02NCSoft Corp 5,086 16,600,673 0.68S1 Corp 44,145 34,491,107 1.42Samsung Biologics Co Ltd 4,896 13,245,594 0.55Samsung Electronics Co Ltd 9,980 185,682,850 7.65Shinhan Financial Group Co Ltd 54,390 19,599,638 0.81

Malaysia (1.14%)

Genting Malaysia Bhd 549,700 5,935,579 0.24Inari Amertron Bhd 1,867,700 12,266,243 0.51Tenaga Nasional Bhd 324,778 9,560,863 0.39

Singapore (5.69%)

CapitaLand Ltd 650,500 13,394,043 0.55DBS Group Holdings Ltd 300,200 43,637,393 1.80Keppel Corporation Ltd 733,600 31,540,486 1.30Oversea-Chinese Banking Corporation Ltd 348,200 25,236,074 1.04Sembcorp Marine Ltd 1,339,300 14,415,092 0.59UOL Group Ltd 192,400 9,960,246 0.41







25 26




HK$



Taiwan (14.68%)

Accton Technology Corp 1,219,000 33,943,613 1.40Chailease Holding Co Ltd 1,431,000 32,516,534 1.34Chroma ATE Inc 842,000 35,611,188 1.47CTBC Financial Holding Co Ltd 3,606,000 19,371,690 0.80E Ink Holdings Inc 1,010,000 12,735,357 0.53GlobalWafers Co Ltd 238,000 24,852,070 1.02MediaTek Inc 435,000 33,595,808 1.38Primax Electronics Ltd 1,012,000 20,975,194 0.86Sunonwealth Electric Machine Industry Co Ltd 881,000 12,127,065 0.50Taiwan Paiho Ltd 490,000 15,575,068 0.64Taiwan Semiconductor Manufacturing Co Ltd 1,523,000 91,618,650 3.77Win Semiconductors Corp 318,000 23,599,026 0.97

Thailand (4.99%)

Advanced Info Service PCL – NVDR 158,500 7,242,604 0.30Airports of Thailand PCL – NVDR 1,743,800 28,443,045 1.17CP ALL PCL – NVDR 1,081,300 19,906,508 0.82Indorama Ventures PCL – NVDR 2,559,200 32,534,984 1.34Kasikornbank PCL – NVDR 216,100 12,025,780 0.49PTT PCL – NVDR 199,600 21,066,079 0.87

The Philippines (2.33%)

BDO Unibank Inc 1,427,670 36,598,219 1.51SM Prime Holdings Inc 3,393,500 19,874,806 0.82


Yum China Holdings Inc 83,584 26,142,666 1.08



Link REIT 433,500 31,385,400 1.29





Nominal value Market value % of net assetsHK$


Bonds (97.15%)

Denominated in Australian dollar (3.57%)

Ausgrid Finance Pty Ltd 3.75% 30/10/2024 3,000,000 18,526,140 0.36Australia and New Zealand Banking Group Ltd

4.75% 07/09/2032 2,500,000 15,850,703 0.30Australia Government Bond 4.25% 21/04/2026 7,000,000 48,480,122 0.94Bank of China Ltd – Sydney FRN 20/04/2022 3,000,000 18,494,843 0.36Bank of Montreal FRN 06/10/2022 3,000,000 18,501,318 0.36Challenger Life Co Ltd FRN 24/11/2042 3,000,000 18,635,486 0.36HSBC Holdings PLC FRN 16/02/2024 2,000,000 12,315,759 0.24HSBC Holdings PLC 3.35% 16/02/2024 3,000,000 18,447,013 0.36Sumitomo Mitsui Financial Group Inc FRN

07/03/2023 2,500,000 15,303,900 0.29

Denominated in British pound (6.77%)

Nationwide Building Society 3.25% 20/01/2028 1,000,000 11,810,331 0.23United Kingdom Gilt 1.25% 22/07/2018 2,000,000 21,372,409 0.41United Kingdom Gilt 1.50% 22/07/2026 10,000,000 109,937,997 2.12United Kingdom Gilt 1.50% 22/07/2047 7,000,000 70,144,891 1.36United Kingdom Gilt 2.00% 07/09/2025 4,000,000 45,679,228 0.88United Kingdom Gilt 2.75% 07/09/2024 4,000,000 47,670,831 0.92United Kingdom Gilt 3.50% 22/01/2045 3,000,000 43,817,549 0.85

Denominated in Canadian dollar (0.90%)

Canadian Government Bond 1.50% 01/06/2026 2,500,000 14,982,612 0.29Canadian Government Bond 2.25% 01/06/2025 5,000,000 31,794,186 0.61







27 28


BEA UNION INVESTMENT GLOBAL BOND FUND (CONTINUED)




Denominated in Euro (28.76%)

Azure Orbit II International Finance Ltd FRN 21/08/2018 2,000,000 18,843,271 0.36

Bundesrepublik Deutschland Bundesanleihe 0.25% 15/02/2027 4,500,000 41,939,577 0.81





Eastern Creation II Investment Holdings Ltd 1.00% 19/03/2018 2,500,000 23,690,797 0.46

French Republic Government Bond OAT 0.25% 25/11/2026 6,000,000 54,905,389 1.06







HSBC Holdings PLC FRN 27/09/2022 2,500,000 23,825,058 0.46Huarong Universe Investment Holding Ltd 1.625%

05/12/2022 3,000,000 27,751,727 0.54





Denominated in Euro (28.76%) (continued)

Industrial & Commercial Bank of China Ltd/Dubai DIFC FRN 23/05/2020 2,500,000 23,564,850 0.46

Italy Buoni Poliennali Del Tesoro 0.35% 15/06/2020 3,000,000 28,344,840 0.55Italy Buoni Poliennali Del Tesoro 0.65% 15/10/2023 6,000,000 55,012,932 1.06Italy Buoni Poliennali Del Tesoro 1.25% 01/12/2026 7,000,000 62,655,439 1.21Italy Buoni Poliennali Del Tesoro 1.50% 01/06/2025 1,000,000 9,353,415 0.18Italy Buoni Poliennali Del Tesoro 1.60% 01/06/2026 6,000,000 55,581,775 1.07Italy Buoni Poliennali Del Tesoro 2.20% 01/06/2027 6,000,000 57,576,765 1.11Italy Buoni Poliennali Del Tesoro 2.45% 01/09/2033 4,000,000 37,033,274 0.72Italy Buoni Poliennali Del Tesoro 3.50% 01/03/2030 2,000,000 21,256,690 0.41Italy Buoni Poliennali Del Tesoro 3.75% 01/05/2021 6,000,000 63,054,975 1.22Mizuho Financial Group Inc 0.956% 16/10/2024 1,500,000 14,104,035 0.27Morgan Stanley 1.342% 23/10/2026 500,000 4,701,518 0.09National Australia Bank Ltd FRN 19/04/2021 3,500,000 33,368,021 0.64Shougang Group Co Ltd 1.35% 07/08/2020 1,500,000 14,283,143 0.28Spain Government Bond 0.40% 30/04/2022 6,000,000 56,832,875 1.10Spain Government Bond 0.45% 31/10/2022 3,000,000 28,255,595 0.55Spain Government Bond 1.50% 30/04/2027 5,000,000 47,599,334 0.92Spain Government Bond 1.60% 30/04/2025 5,000,000 49,561,882 0.96Spain Government Bond 1.95% 30/07/2030 3,000,000 28,439,950 0.55Spain Government Bond 3.80% 30/04/2024 3,500,000 39,920,736 0.77State Grid Overseas Investment 2016 Ltd 1.25%

19/05/2022 1,500,000 14,483,608 0.28Talent Yield Euro Ltd 1.435% 07/05/2020 1,000,000 9,643,745 0.19









29 30






Denominated in Japanese yen (14.42%)

Apple Inc 0.35% 10/06/2020 920,000,000 64,271,417 1.24Citigroup Inc 2.04% 16/09/2020 100,000,000 7,310,970 0.14Citigroup Inc 2.40% 31/10/2025 180,000,000 14,089,854 0.27Corning Inc 0.698% 09/08/2024 500,000,000 34,618,869 0.67Electricite de France SA 1.088% 26/01/2027 400,000,000 28,154,963 0.54Foxconn (Far East) Ltd 0.52% 20/09/2022 200,000,000 13,900,358 0.27Foxconn (Far East) Ltd 0.70% 20/09/2024 100,000,000 6,953,614 0.13Japan Government Ten Year Bond 0.10%

20/09/2026 1,000,000,000 69,945,617 1.35Japan Government Ten Year Bond 0.10%

20/09/2027 200,000,000 13,960,671 0.27Japan Government Twenty Year Bond 0.40%




20/06/2031 900,000,000 75,525,774 1.46Japan Government Thirty Year Bond 0.30%

20/06/2046 300,000,000 18,268,003 0.35Japan Government Thirty Year Bond 0.80%

20/03/2046 850,000,000 59,488,676 1.15POSCO 1.35% 11/12/2018 800,000,000 55,934,526 1.08Procter & Gamble Co/The 0.275% 08/05/2020 950,000,000 66,188,612 1.28Wal-Mart Stores Inc 0.183% 15/07/2022 200,000,000 13,933,525 0.27Wal-Mart Stores Inc 0.298% 18/07/2024 300,000,000 21,005,435 0.41Wal-Mart Stores Inc 0.52% 16/07/2027 400,000,000 28,163,668 0.54

Denominated in Malaysian ringgit (0.57%)

Malaysia Government Bond 3.58% 28/09/2018 15,000,000 29,391,934 0.57






Bank of China Ltd – New York 3.60% 12/07/2018 9,000,000 10,935,656 0.21Bank of China Ltd – Paris 4.50% 22/11/2020 4,000,000 4,837,380 0.09BOC Aviation Ltd 4.50% 17/10/2020 20,000,000 24,338,837 0.47Hong Kong Mortgage Corp Ltd 4.05% 06/11/2020 35,000,000 41,943,863 0.81Industrial & Commercial Bank of China Ltd/Sydney

3.65% 27/10/2018 11,300,000 13,571,574 0.26Korea Development Bank 4.50% 10/11/2020 10,000,000 12,084,681 0.23Royal Bank of Canada 4.25% 29/09/2020 10,000,000 12,127,947 0.24

Denominated in Singapore dollar (0.46%)

CapitaLand Treasury Ltd 3.08% 19/10/2027 2,000,000 11,834,958 0.23Manulife Financial Corp 3.00% 21/11/2029 2,000,000 11,720,137 0.23


Alibaba Group Holding Ltd 4.20% 06/12/2047 2,500,000 20,301,723 0.39ANZ New Zealand Int’l Ltd/London FRN 25/01/2022 5,000,000 39,745,305 0.77Bank of China Ltd – Paris FRN 22/11/2022 3,000,000 23,507,190 0.45Beijing Capital Polaris Investment Co Ltd 2.875%

01/04/2018 500,000 3,932,183 0.08Bharti Airtel International Netherlands BV 5.35%

20/05/2024 2,500,000 21,141,820 0.41CGNPC International Ltd 3.75% 11/12/2027 3,800,000 29,625,431 0.57Charming Light Investments Ltd FRN 21/12/2020 4,300,000 33,640,486 0.65Charming Light Investments Ltd 4.375%

21/12/2027 5,000,000 39,356,138 0.76China CITIC Bank Corp Ltd FRN 14/12/2022 2,750,000 21,472,637 0.41China CITIC Bank Corp Ltd 2.875% 14/12/2020 3,700,000 28,756,564 0.56China Construction Bank Asia Corp Ltd 4.25%

20/08/2024 7,500,000 60,324,066 1.17China Construction Bank Corp/Hong Kong FRN

04/12/2020 4,000,000 31,337,438 0.61China Overseas Finance Cayman V Ltd 5.35%

15/11/2042 2,000,000 18,120,968 0.35China Overseas Finance Cayman VI Ltd 5.95%

08/05/2024 4,000,000 35,784,578 0.69China State Construction Finance Cayman II Ltd

3.875% 29/11/2027 3,000,000 23,189,417 0.45Chinalco Finance Holdings Ltd 3.625% 11/12/2019 2,000,000 15,786,680 0.30COSCO Finance 2011 Ltd 4.00% 03/12/2022 6,000,000 48,527,348 0.94Dah Sing Bank Ltd 4.25% 30/11/2026 4,350,000 34,590,247 0.67Dah Sing Bank Ltd 5.25% 29/01/2024 6,000,000 48,812,784 0.94







31 32







Doosan Power Systems SA 2.50% 03/12/2045 7,000,000 54,568,299 1.05Eastern Creation II Investment Holdings Ltd 2.75%

26/09/2020 1,900,000 14,860,596 0.29Export-Import Bank of India FRN 21/08/2022 3,000,000 23,608,392 0.46Export-Import Bank of Korea FRN 01/11/2022 3,500,000 27,543,413 0.53Export-Import Bank of Korea 3.00% 01/11/2022 2,000,000 15,635,119 0.30Huarong Finance 2017 Co Ltd FRN 07/11/2022 1,500,000 11,746,549 0.23Huarong Finance 2017 Co Ltd 4.95% 07/11/2047 7,500,000 58,242,100 1.13Hyundai Capital America 2.75% 27/09/2026 2,000,000 14,488,170 0.28ICBCIL Finance Co Ltd FRN 13/11/2018 5,000,000 39,534,017 0.76Industrial & Commercial Bank of China Asia Ltd

4.50% 10/10/2023 6,680,000 53,193,890 1.03Industrial & Commercial Bank of China Ltd/

Luxembourg FRN 12/02/2018 3,000,000 23,553,113 0.46Jiaxing City Investment & Development Group Co

Ltd 4.40% 03/01/2021 3,250,000 25,340,504 0.49JIC Zhixin Ltd 3% 24/11/2022 2,100,000 16,304,970 0.31Korea Development Bank FRN 27/02/2022 4,000,000 31,201,973 0.60Korea Development Bank FRN 30/10/2022 4,500,000 35,287,065 0.68Korea Housing Finance Corp 3.00% 31/10/2022 2,100,000 16,410,035 0.32Korean Air Lines Co Ltd 2.50% 25/11/2045 6,000,000 46,771,681 0.90Mitsubishi UFJ Financial Group Inc FRN 25/07/2022 3,500,000 27,551,481 0.53Mizuho Financial Group Inc FRN 11/09/2022 3,500,000 27,508,368 0.53Nan Fung Treasury Ltd 3.875% 03/10/2027 5,000,000 38,045,444 0.74NWD MTN Ltd 4.375% 30/11/2022 4,000,000 32,341,754 0.62Oversea-Chinese Banking Corp Ltd 4.00%

15/10/2024 8,100,000 64,820,039 1.25Poly Real Estate Finance Ltd 4.50% 06/08/2018 6,500,000 52,108,588 1.01Poly Real Estate Finance Ltd 5.25% 25/04/2019 1,000,000 8,071,818 0.16Reliance Holding USA Inc 5.40% 14/02/2022 2,000,000 17,280,041 0.33Reliance Industries Ltd 3.667% 30/11/2027 4,500,000 34,826,102 0.67Rural Electrification Corp Ltd 3.068% 18/12/2020 3,000,000 23,493,201 0.45Shenzhen Expressway Co Ltd 2.875% 18/07/2021 2,000,000 15,591,301 0.30Shimao Property Holdings Ltd 4.75% 03/07/2022 4,000,000 31,861,106 0.62Shougang Group Co Ltd 3.375% 09/12/2019 3,000,000 23,513,009 0.45






SSE PLC 4.75% 16/09/2077 2,000,000 16,430,519 0.32Sumitomo Mitsui Financial Group Inc FRN


25/02/2024 7,000,000 55,657,146 1.08Tewoo Group No 4 Ltd 3.15% 01/12/2020 3,900,000 30,574,610 0.59United Overseas Bank Ltd 3.75% 19/09/2024 3,000,000 23,954,199 0.46United States Treasury Note/Bond 0.00%

26/04/2018 2,000,000 15,567,077 0.30United States Treasury Note/Bond 0.00%





15/08/2047 3,000,000 23,732,220 0.46Vanke Real Estate Hong Kong Co Ltd 3.975%

09/11/2027 6,300,000 49,251,200 0.95Wing Lung Bank Ltd 3.75% 22/11/2027 3,500,000 27,197,363 0.53Wing Lung Bank Ltd FRN 07/11/2022 1,000,000 7,909,096 0.15Woori Bank 4.75% 30/04/2024 4,700,000 38,718,800 0.75










33 34




HK$


Equities (91.55%)


AAC Technologies Holdings Inc 438,000 61,057,200 1.87AIA Group Ltd 3,721,196 247,831,654 7.61Bank of China Ltd – H 6,250,000 24,000,000 0.74BOC Hong Kong (Holdings) Ltd 1,328,000 52,588,800 1.61Brilliance China Automotive Holdings Ltd 3,806,000 79,355,100 2.44China Construction Bank Corp – H 24,965,910 179,754,552 5.52China Life Insurance Co Ltd – H 1,628,000 39,967,400 1.23China Merchants Bank Co Ltd – H 1,280,000 39,808,000 1.22China Mobile Ltd 1,250,000 99,062,500 3.04CK Asset Holdings Ltd 867,000 59,216,100 1.82CK Hutchison Holdings Ltd 486,500 47,701,325 1.46CK Infrastructure Holdings Ltd 828,000 55,600,200 1.71CNOOC Ltd 7,780,000 87,291,600 2.68Galaxy Entertainment Group Ltd 1,239,000 77,685,300 2.38Geely Automobile Holdings Ltd 4,018,000 108,887,800 3.34Hang Seng Bank Ltd 87,200 16,916,800 0.52Henderson Land Development Co Ltd 1,348,400 69,240,340 2.13Hong Kong Exchanges & Clearing Ltd 830,000 199,034,000 6.11HSBC Holdings PLC 2,745,200 219,478,740 6.74Industrial & Commercial Bank of China Ltd – H 41,119,915 258,644,265 7.94Longfor Properties Co Ltd 2,105,000 41,215,900 1.26MTR Corp Ltd 182,000 8,326,500 0.26New China Life Insurance Co Ltd – H 148,000 7,903,200 0.24New World Development Co Ltd 1,488,000 17,439,360 0.53Nine Dragons Paper Holdings Ltd 1,848,000 23,100,000 0.71PetroChina Co Ltd – H 2,870,000 15,641,500 0.48Ping An Insurance (Group) Co of China Ltd – H 2,618,000 212,974,300 6.54Power Assets Holdings Ltd 399,000 26,314,050 0.81Shimao Property Holdings Ltd 1,998,000 33,926,040 1.04Sun Art Retail Group Ltd 968,000 7,995,680 0.25



HK$



China and Hong Kong (91.55%) (continued)

Sun Hung Kai Properties Ltd 1,018,000 132,441,800 4.07Sunny Optical Technology Group Co Ltd 550,000 54,945,000 1.69Tencent Holdings Ltd 760,800 308,884,800 9.48Wynn Macau Ltd 2,741,600 67,854,600 2.08

Investment fund (0.24%)


HKT Trust & HKT Ltd 800,000 7,952,000 0.24



Link REIT 1,650,000 119,460,000 3.67










35 36




HK$


Equities (94.71%)


AAC Technologies Holdings Inc 321,500 44,817,100 2.25AIA Group Ltd 1,643,000 109,423,800 5.50Bank of China Ltd – H 9,381,000 36,023,040 1.81BOC Hong Kong (Holdings) Ltd 1,642,000 65,023,200 3.27Brilliance China Automotive Holdings Ltd 2,210,000 46,078,500 2.32China Construction Bank Corp – H 11,417,000 82,202,400 4.13China Merchants Bank Co Ltd – H 1,240,000 38,564,000 1.94China Minsheng Banking Corp Ltd 3,833,500 29,939,635 1.50China Mobile Ltd 187,000 14,819,750 0.74CK Asset Holdings Ltd 232,500 15,879,750 0.80CK Infrastructure Holdings Ltd 435,500 29,243,825 1.47CNOOC Ltd 5,235,000 58,736,700 2.95Galaxy Entertainment Group Ltd 445,000 27,901,500 1.40Geely Automobile Holdings Ltd 1,616,000 43,793,600 2.20Hangzhou Hikvision Digital Technology Co Ltd – A 828,380 38,772,326 1.95Hangzhou Robam Appliances Co Ltd – A 432,270 24,954,501 1.25Henderson Land Development Co Ltd 459,500 23,595,325 1.19Hong Kong Exchanges & Clearing Ltd 300,500 72,059,900 3.62Industrial & Commercial Bank of China Ltd – H 10,871,050 68,378,905 3.44Longfor Properties Co Ltd 1,628,500 31,886,030 1.60MTR Corp Ltd 395,000 18,071,250 0.91New China Life Insurance Co Ltd – H 752,200 40,167,480 2.02Nine Dragons Paper Holdings Ltd 2,622,000 32,775,000 1.65Ping An Insurance (Group) Co of China Ltd – H 1,035,000 84,197,250 4.23Shimao Property Holdings Ltd 3,051,000 51,805,980 2.60Sun Art Retail Group Ltd 3,700,500 30,566,130 1.54Sun Hung Kai Properties Ltd 148,000 19,254,800 0.97

BEA UNION INVESTMENT GREATER CHINA GROWTH FUND (CONTINUED)


HK$



China and Hong Kong (71.27%) (continued)

Tencent Holdings Ltd 460,300 186,881,800 9.39Wynn Macau Ltd 1,337,600 33,105,600 1.66Zhuzhou CRRC Times Electric Co Ltd 380,000 19,323,000 0.97

Taiwan (21.67%)

Accton Technology Corp 1,141,000 31,771,668 1.60Chailease Holding Co Ltd 1,494,000 33,948,078 1.71Chroma ATE Inc 722,000 30,535,960 1.53CTBC Financial Holding Co Ltd 6,766,960 36,352,595 1.83E Ink Holdings Inc 1,115,000 14,059,329 0.71GlobalWafers Co Ltd 248,000 25,896,276 1.30MediaTek Inc 563,000 43,481,471 2.18Primax Electronics Ltd 1,028,000 21,306,819 1.07St Shine Optical Co Ltd 1,000 256,126 0.01Sunonwealth Electric Machine Industry Co Ltd 966,000 13,297,099 0.67Taiwan Paiho Ltd 559,000 17,768,292 0.89Taiwan Semiconductor Manufacturing Co Ltd 2,357,325 141,808,886 7.13Win Semiconductors Corp 279,000 20,704,806 1.04


Yum China Holdings Inc 112,574 35,209,901 1.77



Link REIT 417,500 30,227,000 1.52










37 38





Bonds (83.95%)


BOC Aviation Ltd 3.25% 27/07/2027 30,000,000 29,943,555 2.43CK Property Finance MTN Ltd 2.25% 25/08/2022 35,000,000 33,832,209 2.74CK Property Finance MTN Ltd 2.69% 01/09/2027 9,000,000 8,729,322 0.71CLP Power Hong Kong Financing Ltd 3.97%

23/03/2026 10,000,000 10,785,537 0.87Commonwealth Bank of Australia 3.36%

30/03/2027 10,000,000 9,929,163 0.80DBS Group Holdings Ltd 2.80% 13/01/2022 10,000,000 10,219,815 0.83DBS Group Holdings Ltd 3.24% 19/04/2026 20,000,000 20,088,575 1.63HKCG Finance Ltd 2.30% 17/06/2026 28,000,000 26,707,777 2.16HKCG Finance Ltd 2.65% 03/07/2027 10,000,000 9,759,202 0.79HKCG Finance Ltd 2.85% 10/11/2025 18,000,000 17,989,079 1.46Hong Kong Government Bond 0.50% 20/08/2018 15,000,000 14,973,765 1.21Hong Kong Government Bond 0.97% 20/06/2022 10,000,000 9,715,665 0.79Hong Kong Government Bond 1.32% 23/12/2019 15,000,000 15,001,930 1.22Hong Kong Government Bond 2.31% 21/06/2021 45,000,000 46,166,285 3.74Hong Kong Government Bond 2.44% 07/12/2020 10,000,000 10,287,381 0.83Hong Kong Government Bond 2.53% 22/06/2020 20,000,000 20,546,049 1.66Hong Kong Government Bond Programme 2.13%

16/07/2030 10,000,000 10,297,198 0.83Hong Kong Mortgage Corp Ltd 1.92% 10/05/2022 19,000,000 18,912,909 1.53Hong Kong Mortgage Corp Ltd 1.96% 16/03/2020 4,500,000 4,563,640 0.37Hong Kong Mortgage Corp Ltd 2.40% 27/09/2021 16,000,000 16,216,997 1.31Hong Kong Mortgage Corp Ltd 3.84% 09/03/2020 10,000,000 10,701,096 0.87Hong Kong Mortgage Corp Ltd 4.47% 18/07/2018 1,000,000 1,024,802 0.08Hong Kong Mortgage Corp Ltd 4.525%

02/09/2020 26,000,000 27,668,322 2.24Hong Kong Mortgage Corp Ltd 5.40% 31/05/2021 15,000,000 17,007,153 1.38Hong Kong Science & Technology Parks Corp 3.20%

11/07/2024 18,000,000 19,222,448 1.56Hong Kong Treasury Bill 0.00% 07/02/2018 15,000,000 14,987,205 1.21Hong Kong Treasury Bill 0.00% 07/02/2018 5,000,000 4,995,735 0.40Hong Kong Treasury Bill 0.00% 07/03/2018 13,000,000 12,978,004 1.05Hong Kong Treasury Bill 0.00% 17/01/2018 16,000,000 15,995,024 1.30Hong Kong Treasury Bill 0.00% 21/02/2018 10,000,000 9,987,500 0.81Hongkong Electric Finance Ltd 2.55% 01/08/2028 10,000,000 9,637,650 0.78






Hongkong Land Notes Co Ltd 2.90% 07/12/2022 1,000,000 997,618 0.08Hongkong Land Notes Co Ltd 3.86% 07/03/2022 2,000,000 2,081,908 0.17Hongkong Land Notes Co Ltd 4.10% 28/07/2025 20,000,000 21,614,552 1.75Hysan MTN Ltd 3.78% 31/08/2020 31,000,000 31,720,067 2.57Hysan MTN Ltd 3.90% 08/03/2019 25,000,000 25,454,135 2.06IFC Development Corporate Treasury Ltd 3.40%

26/03/2020 10,000,000 10,158,858 0.82Korea National Oil Corp 4.50% 04/03/2021 6,000,000 6,505,222 0.53Mizuho Bank Ltd 2.65% 22/11/2021 10,000,000 10,039,541 0.81MTR Corp CI Ltd 1.92% 26/10/2022 37,000,000 36,245,658 2.94MTR Corp CI Ltd 4.90% 25/06/2018 6,500,000 6,767,089 0.55Nan Fung Treasury Ltd 3.85% 30/01/2023 2,000,000 2,001,918 0.16Nan Fung Treasury Ltd 3.95% 08/11/2022 1,000,000 1,006,167 0.08Nan Fung Treasury Ltd 4.425% 29/08/2022 6,000,000 6,159,430 0.50National Australia Bank Ltd 3.73% 17/05/2026 24,000,000 24,234,447 1.96Sun Hung Kai Properties Capital Market Ltd 2.28%









24/02/2021 8,000,000 8,343,508 0.68







39 40







Swire Pacific MTN Financing Ltd 2.50% 27/04/2022 11,000,000 10,892,096 0.88Swire Pacific MTN Financing Ltd 2.85% 18/07/2022 9,000,000 9,046,083 0.73Swire Pacific MTN Financing Ltd 3.00% 22/03/2023 7,000,000 7,026,858 0.57Swire Pacific MTN Financing Ltd 3.68% 27/05/2024 5,000,000 5,224,419 0.42Swire Pacific MTN Financing Ltd 3.78% 28/02/2022 4,000,000 4,163,824 0.34Swire Properties MTN Financing Ltd 2.55%

18/08/2024 5,000,000 4,885,581 0.40Swire Properties MTN Financing Ltd 2.60%







17/07/2024 6,000,000 6,246,581 0.51Tencent Holdings Ltd 2.30% 24/09/2018 8,000,000 7,998,337 0.65United Overseas Bank Ltd 3.19% 26/08/2028 20,000,000 19,802,926 1.60Victoria Power Networks Finance Pty Ltd 3.29%

24/02/2027 3,000,000 3,130,028 0.25Westpac Banking Corp 2.31% 13/10/2022 5,000,000 4,956,195 0.40Westpac Banking Corp 2.55% 27/01/2021 15,000,000 15,471,413 1.25Westpac Banking Corp FRN 14/07/2027 10,000,000 9,947,652 0.81






Alibaba Group Holding Ltd 4.00% 06/12/2037 750,000 6,054,349 0.49CGNPC International Ltd 3.75% 11/12/2027 900,000 7,016,549 0.57Charming Light Investments Ltd FRN 21/12/2020 1,000,000 7,823,369 0.63Charming Light Investments Ltd 4.375%

21/12/2027 1,100,000 8,658,350 0.70China CITIC Bank Corp Ltd FRN 14/12/2022 900,000 7,027,408 0.57China CITIC Bank Corp Ltd 2.875% 14/12/2020 1,000,000 7,772,045 0.63China State Construction Finance Cayman II Ltd

3.875% 29/11/2027 800,000 6,183,845 0.50EFG International (Guernsey) Ltd 5.00% 05/04/2027 600,000 4,902,797 0.40Huarong Finance 2017 Co Ltd FRN 07/11/2022 500,000 3,915,516 0.32Huarong Finance 2017 Co Ltd 4.95% 07/11/2047 2,100,000 16,307,788 1.32Indonesia Government International Bond 6.625%

17/02/2037 500,000 5,095,644 0.41Jiaxing City Investment & Development Group Co

Ltd 4.40% 03/01/2021 750,000 5,847,809 0.47JIC Zhixin Ltd 3.00% 24/11/2022 800,000 6,211,417 0.50Korea Development Bank FRN 30/10/2022 1,000,000 7,841,570 0.64Nan Fung Treasury Ltd 3.875% 03/10/2027 1,500,000 11,413,633 0.92QBE Insurance Group Ltd FRN 02/12/2044 700,000 6,232,138 0.51Reliance Industries Ltd 3.667% 30/11/2027 1,000,000 7,739,134 0.63SSE PLC 4.75% 16/09/2077 500,000 4,107,630 0.33Wing Lung Bank Ltd 3.75% 22/11/2027 400,000 3,108,270 0.25







41 42





Certificates of deposit (15.95%)


Bank of China Ltd – Hong Kong 2.59% 17/10/2022 10,000,000 9,991,009 0.81Bank of China Ltd – Hong Kong 2.59% 25/07/2022 20,000,000 20,108,208 1.63Bank of China Ltd – Macau 2.34% 15/10/2020 24,000,000 23,888,877 1.94Bank of Tokyo-Mitsubishi UFJ Ltd – Hong Kong

2.05% 17/03/2021 16,000,000 15,819,461 1.28Bank of Tokyo-Mitsubishi UFJ Ltd – Hong Kong

2.42% 09/05/2022 10,000,000 9,995,924 0.81China Development Bank Corp 2.535% 17/09/2020 11,000,000 11,107,937 0.90China Development Bank Corp 2.625% 03/04/2020 5,000,000 5,067,648 0.41China Development Bank Corp 3.20% 05/12/2022 11,000,000 11,248,040 0.91China Development Bank Corp 3.91% 18/05/2020 2,000,000 2,120,594 0.17Fubon Bank Hong Kong Ltd 2.50% 27/03/2020 10,000,000 10,149,381 0.82Hang Seng Bank Ltd 2.25% 11/05/2020 18,000,000 18,117,550 1.47Sumitomo Mitsui Banking Corp – Hong Kong 2.20%

11/06/2020 10,000,000 9,927,748 0.80Sumitomo Mitsui Banking Corp – Hong Kong 2.40%

10/03/2021 37,000,000 37,338,580 3.02Sumitomo Mitsui Banking Corp – Hong Kong 2.70%

21/02/2022 12,000,000 12,079,739 0.98






HK$


Equities (98.30%)

Australia (1.26%)

Australia and New Zealand Banking Group Ltd 12,823 2,250,193 0.24BHP Billiton Ltd 16,371 2,957,883 0.32Commonwealth Bank of Australia 4,695 2,304,003 0.25National Australia Bank Ltd 10,321 1,864,780 0.20Westpac Banking Corp 11,885 2,274,530 0.25

Belgium (0.13%)

Anheuser-Busch Inbev SA/NV 1,424 1,242,477 0.13

Canada (2.60%)

Agrium Inc 1,600 1,440,091 0.15Bank of Nova Scotia 5,800 2,935,125 0.32Barrick Gold Corp 9,800 1,109,754 0.12Canadian National Railway Co 2,100 1,357,779 0.15Enbridge Inc 2,900 889,476 0.10Potash Corp of Saskatchewan Inc 9,200 1,478,624 0.16Royal Bank of Canada 4,900 3,138,190 0.34Suncor Energy Inc 29,317 8,439,589 0.91Toronto-Dominion Bank 7,100 3,262,536 0.35


AIA Group Ltd 42,600 2,837,160 0.31China Construction Bank Corp – H 842,000 6,062,400 0.65China Mobile Ltd 15,000 1,188,750 0.13CK Asset Holdings Ltd 13,000 887,900 0.10Geely Automobile Holdings Ltd 35,000 948,500 0.10Sun Hung Kai Properties Ltd 7,000 910,700 0.10Tencent Holdings Ltd 28,900 11,733,400 1.27







43 44




HK$



Denmark (0.48%)

AP Moller – Maersk A/S – B 103 1,403,788 0.15Novo Nordisk A/S – B 7,217 3,041,807 0.33

France (3.40%)

Air Liquide SA 1,912 1,885,440 0.20Airbus SE 8,439 6,574,241 0.71BNP Paribas SA 12,752 7,437,184 0.81Capgemini SE 1,635 1,516,518 0.17Danone SA 1,415 928,857 0.10Dassault Systemes SE 1,044 865,347 0.09L’Oreal SA 553 960,082 0.10LVMH Moet Hennessy Louis Vuitton SE 2,502 5,763,559 0.62Sanofi 1,728 1,165,465 0.13Schneider Electric SE 4,477 2,975,847 0.32Total SA 3,223 1,393,066 0.15

Germany (3.26%)

Adidas AG 5,892 9,244,810 1.00Allianz SE – REG 1,961 3,528,812 0.38BASF SE 1,202 1,035,236 0.11Bayer AG – REG 2,791 2,718,171 0.30Daimler AG – REG 1,585 1,052,205 0.11Deutsche Telekom AG 9,425 1,306,302 0.14LANXESS AG 10,710 6,640,353 0.72SAP SE 1,586 1,388,888 0.15Siemens AG – REG 2,949 3,212,542 0.35



HK$



Italy (0.17%)

Intesa Sanpaolo SpA 31,516 818,891 0.09UniCredit SpA 5,370 785,363 0.08

Japan (6.67%)

Astellas Pharma Inc 19,000 1,892,055 0.20FANUC Corp 3,500 6,571,186 0.71Japan Tobacco Inc 7,100 1,787,039 0.19Keyence Corp 800 3,503,060 0.38Mitsubishi Electric Corp 54,500 7,074,282 0.77Mitsubishi Estate Co Ltd 6,000 816,085 0.09Mitsubishi UFJ Financial Group Inc 189,100 10,836,639 1.17Mitsui Fudosan Co Ltd 4,700 822,893 0.09Nintendo Co Ltd 1,400 4,001,732 0.43Nippon Steel & Sumitomo Metal Corp 9,100 1,825,335 0.20Seven & i Holdings Co Ltd 6,100 1,981,935 0.21Shin-Etsu Chemical Co Ltd 2,600 2,064,987 0.22SoftBank Group Corp 4,400 2,723,004 0.30Takeda Pharmaceutical Co Ltd 3,900 1,731,558 0.19Toyota Motor Corp 28,000 14,011,406 1.52

Korea (0.68%)

Samsung Electronics Co Ltd 338 6,288,658 0.68

Netherlands (0.57%)

ASML Holding NV 1,039 1,408,841 0.15ING Groep NV 9,479 1,363,615 0.15Unilever NV 5,634 2,480,646 0.27







45 46




HK$



South Africa (0.18%)

Naspers Ltd – N SHS 782 1,703,953 0.18

Spain (0.59%)

Banco Bilbao Vizcaya Argentaria SA 28,341 1,891,798 0.21Banco Santander SA 68,958 3,545,974 0.38

Sweden (0.83%)

Atlas Copco AB – A SHS 4,034 1,361,155 0.15Investor AB – B SHS 3,760 1,339,783 0.15Nordea Bank AB 12,970 1,226,590 0.13Svenska Handelsbanken AB – A SHS 11,976 1,276,089 0.14Swedbank AB – A SHS 6,120 1,151,710 0.12Volvo AB – B SHS 8,816 1,281,125 0.14

Switzerland (3.26%)

ABB Ltd – REG 4,841 1,014,342 0.11Geberit AG – REG 225 774,312 0.08Julius Baer Group Ltd 15,567 7,436,403 0.80Nestle SA – REG 10,749 7,221,528 0.78Novartis AG – REG 18,029 11,909,992 1.29Roche Holding AG – Genusschein 471 930,975 0.10UBS Group AG – REG 6,262 900,678 0.10

Taiwan (0.72%)

Taiwan Semiconductor Manufacturing Co Ltd 110,000 6,617,237 0.72



HK$



The United Kingdom (5.67%)

AstraZeneca PLC 3,040 1,645,317 0.18BAE Systems PLC 26,587 1,609,609 0.17BP PLC 40,784 2,251,745 0.24British American Tobacco PLC 3,077 1,629,549 0.18Diageo PLC 3,804 1,094,372 0.12GlaxoSmithKline PLC 8,924 1,243,800 0.13Glencore PLC 118,704 4,881,161 0.53HSBC Holdings PLC 20,008 1,620,932 0.18Informa PLC 61,766 4,712,610 0.51Lloyds Banking Group PLC 121,318 869,950 0.09Prudential PLC 4,458 897,128 0.10RELX PLC 8,188 1,504,885 0.16Rio Tinto PLC 13,665 5,693,529 0.62Royal Dutch Shell PLC – A SHS 9,186 2,407,152 0.26Royal Dutch Shell PLC – B SHS 7,596 2,011,384 0.22St James’s Place PLC 104,455 13,531,347 1.46Unilever PLC 7,836 3,417,345 0.37Vodafone Group PLC 56,649 1,406,885 0.15


3M Co 6,500 11,980,598 1.30Abbott Laboratories 3,200 1,428,882 0.15AbbVie Inc 1,700 1,287,216 0.14Accenture PLC – CL A 912 1,091,654 0.12Adobe Systems Inc 800 1,096,239 0.12Affiliated Managers Group Inc 6,785 10,890,286 1.18Allergan PLC 800 1,023,444 0.11Alphabet Inc – CL A 600 4,940,862 0.53Alphabet Inc – CL C 2,747 22,470,594 2.43







47 48




HK$




Altria Group Inc 1,800 1,005,245 0.11Amazon.com Inc 2,600 23,769,530 2.57Ambev SA – ADR 17,000 857,170 0.09Amdocs Ltd 29,413 15,055,881 1.63American Express Co 1,100 854,058 0.09American International Group Inc 1,700 791,918 0.09Amgen Inc 900 1,223,490 0.13Aon PLC 11,166 11,697,499 1.26Apple Inc 17,500 23,159,412 2.50Applied Materials Inc 2,000 799,400 0.09Aramark 22,100 7,382,158 0.80AT&T Inc 13,600 4,135,678 0.45Bank of America Corp 8,200 1,892,934 0.20Berkshire Hathaway Inc – CL B 7,679 11,926,009 1.29Boeing Co/The 400 922,444 0.10Bristol-Myers Squibb Co 2,200 1,054,416 0.11Broadcom Ltd 500 1,005,738 0.11Caterpillar Inc 800 985,733 0.11CBRE Group Inc – A 19,400 6,569,742 0.71Celgene Corp 1,200 979,073 0.11Charter Communications Inc – A 500 1,313,897 0.14Chevron Corp 7,900 7,743,694 0.84Chubb Ltd 800 914,502 0.10Cisco Systems Inc 4,200 1,258,152 0.14Citigroup Inc 1,600 930,825 0.10Coca-Cola Co/The 4,600 1,651,988 0.18Colgate-Palmolive Co 2,100 1,239,437 0.13Comcast Corp – CL A 6,000 1,879,441 0.20ConocoPhillips 13,500 5,793,810 0.63



HK$




Costco Wholesale Corp 900 1,310,027 0.14CVS Health Corp 1,500 850,720 0.09Danaher Corp 17,831 12,939,641 1.40DowDuPont Inc 24,799 13,826,227 1.49Eli Lilly and Co 1,600 1,057,027 0.11Exxon Mobil Corp 13,700 8,973,687 0.97Facebook Inc – A 7,878 10,870,964 1.18Fiserv Inc 9,370 9,606,519 1.04Fortive Corp 16,121 9,122,812 0.99General Electric Co 7,600 1,037,922 0.11General Motors Co 4,300 1,378,194 0.15Gilead Sciences Inc 2,200 1,232,245 0.13Goldman Sachs Group Inc/The 5,857 11,674,533 1.26Home Depot Inc 13,399 19,872,096 2.15Honeywell International Inc 9,300 11,171,981 1.21Intel Corp 6,000 2,166,024 0.23International Business Machines Corp 800 960,030 0.10Itau Unibanco Holding SA – ADR 62,600 6,361,739 0.69Johnson & Johnson 5,049 5,519,439 0.60Jones Lang LaSalle Inc 5,600 6,519,274 0.70JPMorgan Chase & Co 17,903 15,001,623 1.62Kraft Heinz Co/The 16,712 10,161,423 1.10Las Vegas Sands Corp 26,800 14,556,359 1.57Lockheed Martin Corp 400 1,004,307 0.11Lowe’s Cos Inc 1,900 1,380,430 0.15Mastercard Inc – A 1,000 1,186,826 0.13McCormick & Co Inc/MD – Non VTG SHS 15,400 12,268,619 1.33McDonald’s Corp 1,000 1,346,534 0.15Medtronic PLC 2,141 1,352,006 0.15







49 50




HK$




Merck & Co Inc 2,000 880,700 0.10Microsoft Corp 40,800 27,298,662 2.95Mondelez International Inc – A 3,500 1,171,035 0.13Moody’s Corp 8,997 10,384,590 1.12Morgan Stanley 2,200 902,385 0.10Netflix Inc 1,000 1,500,848 0.16NextEra Energy Inc 11,700 14,287,389 1.54NIKE Inc – CL B 3,000 1,467,625 0.16Northrop Grumman Corp 3,228 7,749,714 0.84NVIDIA Corp 800 1,210,247 0.13Oracle Corp 58,521 21,634,119 2.34PayPal Holdings Inc 1,600 920,818 0.10PepsiCo Inc 1,500 1,406,298 0.15Pfizer Inc 4,800 1,360,215 0.15Philip Morris International Inc 1,105 912,620 0.10PNC Financial Services Group Inc/The 800 902,870 0.10PRA Health Sciences Inc 15,400 10,960,015 1.18Priceline Group Inc 100 1,358,448 0.15Procter & Gamble Co/The 24,900 17,911,820 1.94Qualcomm Inc 2,100 1,051,633 0.11Salesforce.com Inc 1,100 879,340 0.10Schlumberger NV 11,600 6,119,152 0.66Starbucks Corp 2,400 1,077,478 0.12Texas Instruments Inc 1,500 1,224,897 0.13Thermo Fisher Scientific Inc 8,859 13,157,507 1.42Time Warner Inc 1,600 1,145,457 0.12TopBuild Corp 14,700 8,703,638 0.94Union Pacific Corp 1,100 1,154,251 0.12United Parcel Service Inc – CL B 1,200 1,117,909 0.12



HK$




United Technologies Corp 1,000 998,116 0.11UnitedHealth Group Inc 9,161 15,809,620 1.71US Bancorp 2,200 921,991 0.10Verizon Communications Inc 9,900 4,103,298 0.44Visa Inc – CL A 27,731 24,769,539 2.68Walgreens Boots Alliance Inc 1,600 908,186 0.10Wal-Mart Stores Inc 1,900 1,468,508 0.16Walt Disney Co/The 1,700 1,432,470 0.15Wells Fargo & Co 4,500 2,136,709 0.23Yum China Holdings Inc 2,100 656,819 0.07










51 52





Bonds (99.22%)


ABN AMRO Bank NV FRN 27/03/2028 1,200,000 9,754,323 1.25Adani Ports & Special Economic Zone Ltd 4.00%

30/07/2027 1,000,000 7,908,562 1.01Agricultural Bank of China Ltd/New York FRN

21/05/2018 500,000 3,920,807 0.50Alibaba Group Holding Ltd 4.00% 06/12/2037 500,000 4,036,233 0.52Baidu Inc 3.625% 06/07/2027 1,500,000 11,814,771 1.51Bank of China Ltd – Hong Kong FRN 11/07/2022 500,000 3,928,690 0.50Bank of China Ltd – Paris FRN 22/11/2022 1,000,000 7,835,730 1.00Baosteel Financing 2015 Pty Ltd 3.875%

28/01/2020 1,000,000 8,047,301 1.03Beijing Capital Polaris Investment Co Ltd 2.875%

01/04/2018 1,500,000 11,796,549 1.51Bharti Airtel International Netherlands BV 5.125%

11/03/2023 1,000,000 8,413,472 1.07Bharti Airtel International Netherlands BV 5.35%

20/05/2024 1,500,000 12,685,092 1.62Bluestar Finance Holdings Ltd 3.50% 30/09/2021 1,400,000 11,048,195 1.41Canara Bank (London Branch) 3.25% 10/08/2022 1,000,000 7,873,134 1.01CGN New Energy Holdings Co Ltd 4.00%

19/08/2018 2,500,000 19,910,662 2.54CGNPC International Ltd 3.75% 11/12/2027 600,000 4,677,700 0.60Charming Light Investments Ltd FRN 21/12/2020 700,000 5,476,358 0.70Charming Light Investments Ltd 4.375%

21/12/2027 1,400,000 11,019,719 1.41China CITIC Bank Corp Ltd FRN 14/12/2022 600,000 4,684,939 0.60China CITIC Bank Corp Ltd 2.875% 14/12/2020 600,000 4,663,227 0.60China Construction Bank Corp 3.875% 13/05/2025 2,500,000 19,790,470 2.53China Overseas Finance Cayman III Ltd 5.375%

29/10/2023 900,000 7,792,319 1.00China Overseas Finance Cayman VI Ltd 5.95%

08/05/2024 500,000 4,473,072 0.57China Overseas Finance Cayman VI Ltd 6.45%

11/06/2034 1,642,000 16,074,625 2.05China State Construction Finance Cayman II Ltd

3.875% 29/11/2027 600,000 4,637,883 0.59






China Taiping New Horizon Ltd 6.00% 18/10/2023 2,068,000 18,097,554 2.31Chong Hing Bank Ltd 6.00% 04/11/2020 350,000 2,933,471 0.37CITIC Ltd 6.80% 17/01/2023 1,000,000 9,258,275 1.18Citigroup Inc FRN 24/07/2023 2,000,000 15,811,425 2.02CNAC HK Finbridge Co Ltd 3.50% 19/07/2022 2,000,000 15,778,332 2.02CNAC HK Finbridge Co Ltd 4.125% 19/07/2027 1,000,000 7,955,946 1.02CNOOC Finance 2013 Ltd 3.00% 09/05/2023 1,000,000 7,775,685 0.99Dah Sing Bank Ltd FRN 30/11/2026 300,000 2,385,534 0.30Dah Sing Bank Ltd FRN 29/01/2024 2,500,000 20,338,659 2.60Dah Sing Bank Ltd 6.625% 11/02/2020 500,000 4,252,484 0.54Doosan Power Systems SA FRN 03/12/2045 2,500,000 19,488,678 2.49Eastern Creation II Investment Holdings Ltd 2.75%

26/09/2020 300,000 2,346,410 0.30Export-Import Bank of Korea FRN 01/11/2022 700,000 5,508,683 0.70Export-Import Bank of Korea 3.00% 01/11/2022 650,000 5,081,414 0.65Export-Import Bank of Malaysia Bhd 2.48%

20/10/2021 500,000 3,883,691 0.50Franshion Brilliant Ltd 3.60% 03/03/2022 2,000,000 15,753,473 2.01FWD Ltd 5.00% 24/09/2024 3,000,000 25,075,606 3.20Gohl Capital Ltd 4.25% 24/01/2027 1,000,000 8,169,767 1.04Huarong Finance 2017 Co Ltd FRN 07/11/2022 500,000 3,915,516 0.50Huarong Finance 2017 Co Ltd 4.95% 07/11/2047 2,100,000 16,307,788 2.08Huarong Finance II Co Ltd 3.625% 22/11/2021 500,000 3,947,738 0.50Huarong Finance II Co Ltd 5.50% 16/01/2025 1,000,000 8,649,857 1.10Hyundai Capital America 2.75% 27/09/2026 800,000 5,795,268 0.74ICICI Bank Ltd/Dubai 4.00% 18/03/2026 1,000,000 7,982,852 1.02Industrial & Commercial Bank of China (Asia) Ltd

FRN 10/10/2023 2,500,000 19,907,893 2.54Industrial & Commercial Bank of China Ltd 4.875%

21/09/2025 2,000,000 16,757,557 2.14







53 54







Jiaxing City Investment & Development Group Co Ltd 4.40% 03/01/2021 500,000 3,898,539 0.50

JIC Zhixin Ltd 3.00% 24/11/2022 500,000 3,882,136 0.50Kasikornbank PCL/Hong Kong 2.375% 06/04/2022 500,000 3,831,223 0.49KEB Hana Bank 4.25% 14/10/2024 300,000 2,435,723 0.31KEB Hana Bank 4.375% 30/09/2024 950,000 7,779,431 0.99King Power Capital Ltd 5.625% 03/11/2024 914,000 8,060,689 1.03Korea Development Bank FRN 27/02/2022 500,000 3,900,247 0.50Korea Development Bank FRN 30/10/2022 2,500,000 19,603,925 2.50Legal & General Group PLC 5.25% 21/03/2047 500,000 4,189,591 0.54Lembaga Pembiayaan Ekspor Indonesia 3.875%

06/04/2024 1,000,000 8,028,700 1.03Majapahit Holding BV 7.875% 29/06/2037 1,000,000 10,552,421 1.35Mitsubishi UFJ Financial Group Inc FRN 25/07/2022 500,000 3,935,926 0.50Mizuho Financial Group Inc FRN 11/09/2022 1,000,000 7,859,534 1.00Nan Fung Treasury Ltd 3.875% 03/10/2027 2,750,000 20,924,993 2.67New World China Land Ltd 4.75% 23/01/2027 2,000,000 16,553,768 2.11Nexen Energy Ulc 7.875% 15/03/2032 500,000 5,642,301 0.72NWD MTN Ltd 5.25% 26/02/2021 500,000 4,189,145 0.54Oversea-Chinese Banking Corp Ltd FRN 15/10/2024 2,500,000 20,006,185 2.55Pelabuhan Indonesia II (Persero) Pt 4.25%

05/05/2025 1,500,000 12,061,247 1.54Pertamina (Persero) Pt 6.00% 03/05/2042 1,750,000 15,653,933 2.00Poly Real Estate Finance Ltd 5.25% 25/04/2019 750,000 6,053,864 0.77QBE Insurance Group Ltd FRN 02/12/2044

Callable-02/12/2024 600,000 5,341,832 0.68Reliance Industries Ltd 3.667% 30/11/2027 850,000 6,578,264 0.84Republic of Indonesia 6.625% 17/02/2037 1,500,000 15,286,932 1.95Rural Electrification Corp Ltd 3.068% 18/12/2020 500,000 3,915,533 0.50Shanghai Commercial Bank Ltd FRN 29/11/2027 600,000 4,665,692 0.60Shanghai Pudong Development Bank Co Ltd/Hong

Kong FRN 13/07/2022 1,000,000 7,844,609 1.00






Shimao Property Holdings Ltd 4.75% 03/07/2022 1,000,000 7,964,495 1.02Siam Commercial Bank PCL/Cayman Islands 2.75%

16/05/2023 500,000 3,838,766 0.49Sino-Ocean Land Treasure Finance I Ltd 6.00%

30/07/2024 666,000 5,878,251 0.75Sino-Ocean Land Treasure Finance II Ltd 5.95%

04/02/2027 600,000 5,332,115 0.68SSE PLC 4.75% 16/09/2077 500,000 4,107,630 0.52United States Treasury Bill 0.00% 08/02/2018 1,000,000 7,807,483 1.00Vanke Real Estate Hong Kong Co Ltd 3.975%

09/11/2027 700,000 5,472,356 0.70Voyage Bonds Ltd 3.375% 28/09/2022 400,000 3,120,766 0.40Wing Lung Bank Ltd FRN 22/11/2027 1,000,000 7,770,675 0.99Woori Bank 4.75% 30/04/2024 922,000 7,595,475 0.97









55




HK$



BEA Union Investment Global Bond Fund – Class I 1,761,079 185,635,334 37.62BEA Union Investment Global Equity Fund – Class I 2,654,602 308,677,082 62.55






HK$



BEA Union Investment Global Bond Fund – Class I 2,550,443 268,842,229 79.69BEA Union Investment Global Equity Fund – Class I 599,574 69,718,431 20.67







57




STATEMENT OF MOVEMENTS IN INVESTMENT PORTFOLIO

56



% of net assets2017 2016

Equities:

China and Hong Kong 44.74 44.96Indonesia 1.52 2.70Korea 22.09 18.12Malaysia 1.14 1.86Singapore 5.69 4.24Taiwan 14.68 18.78Thailand 4.99 3.44The Philippines 2.33 2.36The United States of America 1.08 –

Investment fund:

China and Hong Kong – 1.83


China and Hong Kong 1.29 –

99.55 98.29



Bonds:

Australian dollar 3.57 1.50British pound 6.77 6.30Canadian dollar 0.90 1.37Euro 28.76 23.59Hong Kong dollar – 0.36Indonesian rupiah 0.50 –Japanese yen 14.42 11.60Korean won – 0.93Malaysian ringgit 0.57 –Renminbi 2.31 –Singapore dollar 0.46 –United States dollar 38.89 46.22

Certificate of deposit:

Canadian dollar – 0.36

97.15 92.23



Equities:


Investment fund:




95.46 97.86



Equities:

China and Hong Kong 71.27 69.78Taiwan 21.67 28.05The United States of America 1.77 –



96.23 97.83







58 59




Bonds:

Hong Kong dollar 73.16 75.99United States dollar 10.79 –

Certificates of deposit:

Hong Kong dollar 15.95 22.67

99.90 98.66



Equities:

Australia 1.26 –Belgium 0.13 –Canada 2.60 2.00China and Hong Kong 2.66 –Denmark 0.48 –France 3.40 6.54Germany 3.26 5.89Italy 0.17 –Japan 6.67 –Korea 0.68 –Netherlands 0.57 1.53South Africa 0.18 –Spain 0.59 –Sweden 0.83 –Switzerland 3.26 5.12Taiwan 0.72 –The United Kingdom 5.67 4.24The United States of America 65.17 60.74

Approved index-tracking funds:

The United Kingdom – 8.27The United States of America – 3.84

98.30 98.17



Bonds:

United States dollar 99.22 96.40


% of net assets2017


Hong Kong 100.17


% of net assets2017


Hong Kong 100.36




REPORT OF THE TRUSTEE TO THE UNITHOLDERS OFBEA UNION INVESTMENT CAPITAL GROWTH FUND (“THE FUND”)

60


We hereby confirm that:

(1) In our opinion, the Manager of the Fund and its sub-funds (“the Sub-funds”) has in all material respects managed the Fund and the Sub-funds in accordance with the provisions of the Trust Deed dated 22 September 2000, as amended, for the year ended 31 December 2017.

(2) We have not become aware of any failures by the Custodian, the Manager or their delegates to comply with the obligations imposed on them with respect to the Fund for the year ended 31 December 2017, except to the extent that such failures have been previously reported to the Hong Kong Mandatory Provident Fund Schemes Authority (“the Authority”);

(3) We are not aware of any events of a significant nature relating to the Fund and the Sub-funds that occurred during the year ended 31 December 2017 which have not been reported to the Authority;

(4) The provisions of the constitutive documents, the Hong Kong Mandatory Provident Fund Schemes Ordinance, the Hong Kong Mandatory Provident Fund Schemes (General) Regulation, the Hong Kong Code on MPF Investment Funds, the Hong Kong Code on Unit Trusts and Mutual Funds and other relevant guidelines issued by the Authority have been complied with in all material respects in respect of the Fund for the year ended 31 December 2017, except to the extent that any non-compliance has been previously reported to the Authority;

(5) There are no material changes which have not been reported to the Authority during the year ended 31 December 2017; and

(6) We have supervised, and exercised proper control over all persons appointed or engaged for the purposes of the Fund and the Sub-funds during the year ended 31 December 2017.

For and on behalf ofBank of East Asia (Trustees) Limited東亞銀行（信託）有限公司

12 April 2018


INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEE OF BEA UNION INVESTMENT CAPITAL GROWTH FUND (“THE FUND”) (CONTINUED)

62



INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEE OF BEA UNION INVESTMENT CAPITAL GROWTH FUND (“THE FUND”)

61


REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS

Opinion

We have audited the financial statements of the sub-funds within the Fund (“the Sub-funds”) set out on pages 67 to 117, which comprise the statement of assets and liabilities as at 31 December 2017, the statement of comprehensive income, the statement of changes in net assets attributable to unitholders and cash flow statement for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the financial statements give a true and fair view of the financial position of the Sub-funds as at 31 December 2017 and of their financial transactions and cash flows for the year then ended in accordance with Hong Kong Financial Reporting Standards (“HKFRSs”) issued by the Hong Kong Institute of Certified Public Accountants (“HKICPA”).

Basis for opinion

We conducted our audit in accordance with Hong Kong Standards on Auditing (“HKSAs”) and with reference to Practice Note 860.1 (Revised), The Audit of Retirement Schemes issued by the HKICPA. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Fund in accordance with the HKICPA’s Code of Ethics for Professional Accountants (“the Code”) and we have fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Information other than the financial statements and auditor’s report thereon

The Manager and the Trustee of the Fund are responsible for the other information. The other information comprises all the information included in the annual report, other than the financial statements and our auditor’s report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS (CONTINUED)

Responsibilities of Manager and Trustee for the financial statements

The Manager and the Trustee of the Fund are responsible for the preparation of financial statements that give a true and fair view in accordance with HKFRSs issued by the HKICPA and for such internal control as the Manager and the Trustee of the Fund determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Manager and the Trustee of the Fund are responsible for assessing the Sub-funds’ ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Manager and the Trustee either intend to liquidate the Sub-funds or to cease operations, or have no realistic alternative but to do so.

In addition, the Manager and the Trustee of the Fund are required to ensure that the financial statements have been properly prepared in accordance with the relevant disclosure provisions of the Trust Deed of the Fund dated 22 September 2000, as amended (“the Trust Deed”), the Mandatory Provident Fund Schemes Ordinance (“the MPFSO”), the Mandatory Provident Fund Schemes (General) Regulation (“the General Regulation”), the Code on MPF Investment Funds (“the MPF Code”), and Guidelines II.5 issued by the Mandatory Provident Fund Schemes Authority (“the MPFA”) and the Code on Unit Trusts and Mutual Funds (“the SFC Code”) issued by the Hong Kong Securities and Futures Commission (“the SFC”).

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether, the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. This report is made solely to you, in accordance with section C2.2 of the MPF Code issued by the MPFA and section 102 of the General Regulation, and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report.

Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with HKSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. In addition, we are required to assess whether the financial statements of the Fund have been properly prepared, in all material respects, in accordance with the relevant disclosure provisions of the Trust Deed of the Fund, the MPFSO, the General Regulation, the MPF Code and Guidelines II.5 issued by the MPFA and the SFC Code issued by the SFC.





63 64



Auditor’s responsibilities for the audit of the financial statements (continued)

As part of an audit in accordance with HKSAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Manager and the Trustee of the Fund.

• Conclude on the appropriateness of the Manager’s and the Trustee’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Sub-funds’ ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Sub-funds to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the Manager and the Trustee of the Fund regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.


Report on matters under the relevant disclosure provisions of the Trust Deed, the MPFSO, the General Regulation, the MPF Code, and Guidelines II.5 issued by the MPFA and the SFC Code issued by the SFC

(a) In our opinion, the financial statements have been properly prepared, in all material respects, in accordance with the relevant provisions of the Trust Deed, the MPFSO, the General Regulation, the MPF Code and Guidelines II.5 issued by the MPFA and the SFC Code issued by the SFC; and

(b) We have obtained all the information and explanations which, to the best of our knowledge and belief, are necessary for the purpose of our audit.

KPMGCertified Public Accountants

8th Floor, Prince’s Building10 Chater RoadCentral, Hong Kong

12 April 2018


INDEPENDENT AUDITOR’S ASSURANCE REPORT TO THE TRUSTEE OF BEA UNION INVESTMENT CAPITAL GROWTH FUND (“THE FUND”) (CONTINUED)

66



INDEPENDENT AUDITOR’S ASSURANCE REPORT TO THE TRUSTEE OF BEA UNION INVESTMENT CAPITAL GROWTH FUND (“THE FUND”)

65


We have audited the financial statements of the sub-funds within the Fund (“the Sub-funds”) for the year ended 31 December 2017 in accordance with Hong Kong Standards on Auditing and with reference to Practice Note 860.1 (Revised), The Audit of Retirement Schemes issued by the Hong Kong Institute of Certified Public Accountants (“HKICPA”), and have issued an unqualified auditor’s report thereon dated 12 April 2018.

Pursuant to Guidelines II.5 and Code on MPF Investment Funds (“MPF Code”) issued by the Mandatory Provident Fund Schemes Authority (“the MPFA”), we are required to report whether the Sub-funds complied with certain requirements of the Mandatory Provident Fund Schemes Ordinance (“the MPFSO”) and the Mandatory Provident Fund Schemes (General) Regulation (“General Regulation”), which are made applicable to the Sub-funds through the MPF Code.

Trustee’s responsibility

The General Regulation requires the Trustee to ensure that:

(a) proper accounting and other records are kept in respect of the assets of the Sub-funds and all financial transactions entered into in relation to the Sub-funds;

(b) the requirements specified in the guidelines made by the MPFA under section 28 of the MPFSO with respect to forbidden investment practices and the requirements of sections 37(2), 51 and 52 of, and Schedule 1 to, the General Regulation, which are made applicable to the Sub-funds through the Code on MPF Investment Funds, are complied with; and

(c) the assets of the Sub-funds are not subject to any encumbrance, otherwise than as permitted by Section 65 of the General Regulation.

Our independence and quality control

We have complied with the independence and other ethical requirements of the Code of Ethics for Professional Accountants issued by the HKICPA, which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behavior.

The firm applies Hong Kong Standard on Quality Control 1 and accordingly maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

Auditor’s responsibility

Our responsibility is to report solely to you, on the Sub-funds’ compliance with the above requirements based on the results of the procedures performed by us, in accordance with section C2.2 of the MPF Code issued by the MPFA and section 102 of the General Regulation, and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report.

We conducted our engagement in accordance with Hong Kong Standard on Assurance Engagements 3000 (Revised) Assurance Engagement Other Than Audits or Reviews of Historical Financial Information and with reference to Practice Note 860.1 (Revised) The Audit of Retirement Schemes (“PN 860.1 (Revised)”) issued by the HKICPA. We have planned and performed our work to obtain reasonable assurance about whether the Sub-funds have complied with the above requirements.

We have planned and performed such procedures as we considered necessary with reference to the procedures recommended in PN 860.1 (Revised), which included reviewing, on a test basis, evidence obtained from the Administrator regarding the Subfunds’ compliance with the above requirements.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Opinion

Based on the foregoing:

1 in our opinion:

(a) proper accounting and other records have been kept during the year ended 31 December 2017 in respect of the assets of the Sub-funds and all financial transactions entered into in relation to the Sub-funds; and

(b) the requirements specified in the guidelines made by the MPFA under section 28 of the MPFSO with respect to forbidden investment practices and the requirements of sections 37(2), 51 and 52 of, and Schedule 1 to, the General Regulation, which are made applicable to the Sub-Funds through the Code on MPF Investment Funds, have been complied with, in all material respects, as at 30 June 2017, 30 September 2017 and 31 December 2017.

2 as at 31 December 2017, the assets of the Sub-funds were not subject to any encumbrance, otherwise than as permitted by section 65 of the General Regulation, which are made applicable to the Sub-funds through the MPF Code.

Intended users and purpose

This report is intended solely for submission by the Trustee to the MPFA and is not intended to be, and should not be, used by anyone for any other purpose.

KPMGCertified Public Accountants

8th Floor, Prince’s Building10 Chater RoadCentral, Hong Kong

12 April 2018


STATEMENT OF ASSETS AND LIABILITIES AS AT 31 DECEMBER 2017 (EXPRESSED IN HONG KONG DOLLARS)

67








BEA Union Investment Asia Pacific Investment Grade Bond

Fund

BEA Union Investment Core

Accumulation Fund (1)


Note 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2017

Assets

Investments 6(a), 7 2,416,962,255 1,594,373,800 5,028,292,584 4,459,322,463 3,109,496,406 2,358,869,012 1,914,866,383 1,367,380,432 1,233,335,976 1,056,189,331 909,123,127 388,115,879 776,987,784 441,488,981 494,312,416 338,560,660Derivative financial instruments 8 – – – 3,622,464 – – – – – – – 78,506 – – – –Amounts due from brokers 19,217,515 73,428,416 – – – 46,238,327 – 11,842,106 5,628,474 – – – – – 152,968 71,098Amounts receivable on subscription 945,532 – 177,040 – 358,889 3,659,488 – – – 8,000,000 253,894 – – – 409,041 21,893Dividends and other receivables 1,544,414 686,402 12,962 791 1,043,823 634,018 1,100,141 276,481 1 1 485,184 382,689 101 – – –Cash at banks 10(d) 22,271,045 72,292,526 180,456,144 372,508,616 173,699,503 128,692,360 109,798,022 46,729,639 10,534,467 14,794,676 15,565,492 6,873,975 10,262,773 16,625,525 – –

Total assets 2,460,940,761 1,740,781,144 5,208,938,730 4,835,454,334 3,284,598,621 2,538,093,205 2,025,764,546 1,426,228,658 1,249,498,918 1,078,984,008 925,427,697 395,451,049 787,250,658 458,114,506 494,874,425 338,653,651

Liabilities

Derivative financial instruments 8 – – 7,372,691 – – – – – – – 56,064 – 8,114 35,888 819,702 1,193,822Amounts due to brokers 31,441,587 118,342,143 25,267,587 – 25,364,951 126,496,192 28,733,506 27,932,847 11,458,862 – – – 3,887,321 – 409,041 21,893Amounts payable on redemption 1,044,322 – 232,164 – 1,265,036 492,949 6,485,918 131,352 2,510,399 7,600,514 293,520 – – – 152,968 71,098

Accruals and other payables10(a), 10(b),

10(c) 593,012 372,329 376,456 251,678 649,286 586,308 647,579 459,557 947,623 825,595 192,882 110,257 224,046 89,207 11,031 11,031

Total liabilities (excluding net assets attributable to unitholders) 33,078,921 118,714,472 33,248,898 251,678 27,279,273 127,575,449 35,867,003 28,523,756 14,916,884 8,426,109 542,466 110,257 4,119,481 125,095 1,392,742 1,297,844

Net assets attributable to unitholdersFinancial liabilities 2,427,861,840 1,622,066,672 5,175,689,832 4,835,202,656 3,257,319,348 2,410,517,756 1,989,897,543 1,397,704,902 1,234,582,034 1,070,557,899 924,885,231 – 783,131,177 – – –

Equity – – – – – – – – – – – 395,340,792 – 457,989,411 493,481,683 337,355,807

Represented by:

Adjustment from bid market prices to last traded market prices 4 2,339,899 1,865,654 5,448,135 4,970,468 1,122,625 2,018,016 1,252,358 1,620,387 3,963,341 3,020,644 (158,674) 18,344 1,518,430 823,609 – –Net assets attributable to unitholders (at last traded market prices) 4 2,430,201,739 1,623,932,326 5,181,137,967 4,840,173,124 3,258,441,973 2,412,535,772 1,991,149,901 1,399,325,289 1,238,545,375 1,073,578,543 924,726,557 395,359,136 784,649,607 458,813,020 493,481,683 337,355,807

Number of units outstanding 4 – Class A 5,734,087.375 5,514,040.282 38,228,964.981 41,872,496.785 8,855,765.696 8,885,432.303 6,334,794.638 6,354,610.198 1,153,802.867 945,898.880 3,122,436.599 2,968,725.595 5,580,675.591 4,085,245.431 – – – Class D – – – – – – – – 1,313,302.030 1,514,911.910 – – – – – – – Class C – – – – – – – – – – – – – – – – – Class I (3) – – 4,311,522.276 – – – – – – – 3,493,168.116 – – – 4,456,515.737 3,207,896.595 – Class R (2) 263,719.170 306,745.028 384,789.650 412,361.998 732,120.300 1,241,522.278 888,239.576 940,216.204 7,719,422.420 6,690,226.321 – – 1,173,762.057 – – –

Net asset value per unit (at last traded market prices) 4 – Class A 408.91 281.88 122.56 114.59 344.48 243.07 281.45 195.69 133.77 128.98 166.07 133.17 119.31 112.31 – – – Class D – – – – – – – – 103.04 100.41 – – – – – – – Class C – – – – – – – – – – – – – – – – – Class I (3) – – 105.41 – – – – – – – 116.28 – – – 110.73 105.16 – Class R (2) 324.02 227.02 107.68 101.63 283.86 203.59 234.45 165.72 122.92 119.50 – – 101.25 – – –(1) The launch date for BEA Union Investment Core Accumulation Fund and BEA Union Investment Age 65 Plus Fund was 1 April 2017.(2) Class R of BEA Union Investment Asia Pacific Investment Grade Bond Fund was launched on 20 June 2017.(3) Class I of BEA Union Investment Global Bond Fund, BEA Union Investment Global Equity Fund, BEA Union Investment Core Accumulation Fund and BEA Union Investment Age 65 Plus Fund were launched on 1 April 2017.

Approved and authorised for issue by the Trustee and the Manager on 12 April 2018

)) For and on behalf of) Bank of East Asia (Trustees) Limited) 東亞銀行（信託）有限公司)

)) For and on behalf of) BEA Union Investment Management Limited) 東亞聯豐投資管理有限公司)

The notes on pages 71 to 117 form part of these financial statements.


STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2017 (EXPRESSED IN HONG KONG DOLLARS)

68









Fund




Note 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2017

Income

Dividend income 53,154,125 45,876,965 – – 91,580,133 91,521,317 45,726,354 41,650,257 – – 11,735,367 6,865,679 – – – –Interest on bank deposits 12,331 15,390 135,890 27,194 613 550 168 429 197 99 1,509 125 1,593 334 – –Other income – – – 31,300 – – – – – – – – – – – –Net gains/(losses) on investments 9 718,861,213 61,232,799 402,548,874 78,187,485 918,235,070 (44,115,655) 580,116,394 15,573,543 38,775,386 (4,613,721) 128,464,599 9,340,152 37,823,394 21,442,859 29,369,984 8,124,100Exchange (losses)/gains (2,840,790) (7,014,027) (54,818,160) 9,856,504 (118,343) (132,388) (834,278) (1,739,307) 2,735 – (3,897,993) (1,192,668) (3,281,068) (489,596) (2,258,949) (2,228,942)

Total investment income/(loss) 769,186,879 100,111,127 347,866,604 88,102,483 1,009,697,473 47,273,824 625,008,638 55,484,922 38,778,318 (4,613,622) 136,303,482 15,013,288 34,543,919 20,953,597 27,111,035 5,895,158

Expenses

Investment management fees 10(a) 1,191,044 1,402,992 354,269 335,585 3,473,864 3,675,281 2,789,987 2,332,869 7,835,274 5,760,243 – – 602,511 – – –Trustee’s fees 10(b) 99,254 116,916 35,427 33,559 289,489 306,273 278,999 233,287 752,620 543,979 – – 60,251 – – –Safe custody and bank charges 848,982 821,209 1,075,998 784,111 779,190 673,933 650,024 574,987 174,672 112,043 153,178 83,104 91,314 48,941 – –Audit fee 51,530 51,207 51,529 51,207 63,994 63,491 51,529 51,206 63,995 63,492 51,529 51,207 51,529 51,207 11,031 11,031Registrar’s fees 10(c) 522,250 460,583 969,556 955,840 648,166 617,986 471,704 416,713 384,679 341,807 227,267 201,278 282,280 225,357 – –Pre-operating expenses – – 1,350 – – – – – – – 1,350 – – – – –Printing and publication expenses 9,458 10,388 25,810 30,826 13,447 17,492 7,998 8,334 5,281 6,570 2,468 2,734 2,578 3,756 316 65Legal and other professional fees 91,340 45,211 – – 9,840 2,010 63,176 – – – 22,518 – – – – –Transaction costs 20,454,079 24,570,853 – – 19,115,104 17,636,485 14,256,438 15,021,353 – – 1,026,864 725,402 – – – –Other operating expenses 40,799 72,445 18,502 29,613 17,516 28,370 16,782 72,294 16,526 27,190 39,690 26,882 16,300 26,929 4,924 4,786

Total operating expenses 23,308,736 27,551,804 2,532,441 2,220,741 24,410,610 23,021,321 18,586,637 18,711,043 9,233,047 6,855,324 1,524,864 1,090,607 1,106,763 356,190 16,271 15,882

Profit/(loss) before taxation 745,878,143 72,559,323 345,334,163 85,881,742 985,286,863 24,252,503 606,422,001 36,773,879 29,545,271 (11,468,946) 134,778,618 13,922,681 33,437,156 20,597,407 27,094,764 5,879,276

Overseas tax 13 (5,641,600) (6,716,814) (928,277) (900,100) (3,792,755) (3,744,590) (4,244,433) (4,332,541) – – (2,258,268) (1,340,997) – – – –

Change in net assets attributable to unitholders from operations 740,236,543 65,842,509 344,405,886 84,981,642 981,494,108 20,507,913 602,177,568 32,441,338 29,545,271 (11,468,946) 132,520,350 12,581,684 33,437,156 20,597,407 27,094,764 5,879,276




STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO UNITHOLDERS/STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2017 (EXPRESSED IN HONG KONG DOLLARS)

69






2017 2016 2017 2016 2017 2016 2017 2016

Net assets attributable to unitholders at beginning of the year 1,622,066,672 1,547,800,853 4,835,202,656 4,585,943,597 2,410,517,756 2,836,069,743 1,397,704,902 1,212,154,154

Proceeds on subscription of units 151,760,260 148,165,665 1,089,186,557 837,202,318 322,930,360 249,600,751 132,915,564 177,448,890Payments on redemption of units (86,201,635) (139,742,355) (1,093,105,267) (672,924,901) (457,622,876) (695,660,651) (142,900,491) (24,339,480)

1,687,625,297 1,556,224,163 4,831,283,946 4,750,221,014 2,275,825,240 2,390,009,843 1,387,719,975 1,365,263,564Change in net assets attributable to unitholders from operations 740,236,543 65,842,509 344,405,886 84,981,642 981,494,108 20,507,913 602,177,568 32,441,338

Net assets attributable to unitholders at end of the year 2,427,861,840 1,622,066,672 5,175,689,832 4,835,202,656 3,257,319,348 2,410,517,756 1,989,897,543 1,397,704,902




BEA Union Investment Core Accumulation

Fund (1)BEA Union Investment

Age 65 Plus Fund (1)

2017 2016 2017 2016 2017 2016 2017 2017

Net assets attributable to unitholders at beginning of the year 1,070,557,899 823,229,034 395,340,792 534,361,504 457,989,411 429,690,509 – –

Proceeds on subscription of units 372,828,140 518,827,149 409,722,405 22,948,772 306,055,402 7,703,513 470,300,208 338,447,412Payments on redemption of units (238,349,276) (260,029,338) (12,698,316) (174,551,168) (14,350,792) (2,018) (3,913,289) (6,970,881)

1,205,036,763 1,082,026,845 792,364,881 382,759,108 749,694,021 437,392,004 466,386,919 331,476,531Change in net assets attributable to unitholders from operations 29,545,271 (11,468,946) 132,520,350 12,581,684 33,437,156 20,597,407 27,094,764 5,879,276

Net assets attributable to unitholders at end of the year 1,234,582,034 1,070,557,899 924,885,231 395,340,792 783,131,177 457,989,411 493,481,683 337,355,807




CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2017 (EXPRESSED IN HONG KONG DOLLARS)

70









Fund

BEA Union Investment

Core Accumulation

Fund (1)

BEA Union Investment

Age 65 Plus Fund (1)

2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2017

Operating activities

Profit/(loss) before taxation 745,878,143 72,559,323 345,334,163 85,881,742 985,286,863 24,252,503 606,422,001 36,773,879 29,545,271 (11,468,946) 134,778,618 13,922,681 33,437,156 20,597,407 27,094,764 5,879,276

Adjustments for: Interest on bank deposits (12,331) (15,390) (135,890) (27,194) (613) (550) (168) (429) (197) (99) (1,509) (125) (1,593) (334) – – Dividend income (53,154,125) (45,876,965) – – (91,580,133) (91,521,317) (45,726,354) (41,650,257) – – (11,735,367) (6,865,679) – – – – Other income – – – (31,300) – – – – – – – – – – – –

Operating profit/(loss) before working capital changes 692,711,687 26,666,968 345,198,273 85,823,248 893,706,117 (67,269,364) 560,695,479 (4,876,807) 29,545,074 (11,469,045) 123,041,742 7,056,877 33,435,563 20,597,073 27,094,764 5,879,276

Net (increase)/decrease in investments (822,588,455) (93,370,695) (568,970,121) (147,651,690) (750,627,394) 338,586,095 (547,485,951) (197,449,449) (177,146,645) (248,632,653) (521,007,248) 138,500,866 (335,498,803) (12,597,970) (494,312,416) (338,560,660)Net decrease/(increase) in amounts due from brokers 54,210,901 (28,319,215) – – 46,238,327 29,925,506 11,842,106 10,242,763 (5,628,474) – – 800,986 – – (152,968) (71,098)Net increase in other receivables – – (12,631) – – – – – – – (10,617) – – – – –Net change in derivative financial instruments – – 10,995,155 (153,661) – – – – – – 134,570 (85,487) (27,774) 71,132 819,702 1,193,822Net (decrease)/increase in amounts due to brokers (86,900,556) 68,533,065 25,267,587 – (101,131,241) 85,359,321 800,659 14,139,844 11,458,862 – – (1,601,646) 3,887,321 – 409,041 21,893Net increase/(decrease) in accruals and other payables 180,561 (83,001) 124,778 6,374 62,978 32,816 188,022 40,725 122,028 286,459 33,470 11,431 134,839 14,090 11,031 11,031

Cash (used in)/generated from operations (162,385,862) (26,572,878) (187,396,959) (61,975,729) 88,248,787 386,634,374 26,040,315 (177,902,924) (141,649,155) (259,815,239) (397,808,083) 144,683,027 (298,068,854) 8,084,325 (466,130,846) (331,525,736)

Dividend received, net of withholding tax 46,478,373 40,306,499 – – 87,377,574 87,142,743 40,658,261 37,041,236 – – 9,434,377 5,781,963 – 559 – –Interest received, net of withholding tax 12,331 15,622 (468,324) (866,101) 612 551 168 535 197 112 1,508 180 1,492 – – –Overseas tax refund/(paid) 216,262 (1,108,930) (323,603) – – – – – – – – – – – – –Other income received – – – 31,300 – – – – – – – – – – – –

Net cash (used in)/generated from operating activities (115,678,896) 12,640,313 (188,188,886) (62,810,530) 175,626,973 473,777,668 66,698,744 (140,861,153) (141,648,958) (259,815,127) (388,372,198) 150,465,170 (298,067,362) 8,084,884 (466,130,846) (331,525,736)

Financing activities

Proceeds on subscription of units 150,814,728 148,165,665 1,089,009,517 837,202,318 326,230,959 246,341,351 132,915,564 177,448,890 380,828,140 511,069,100 409,468,511 22,948,772 306,055,402 7,703,513 469,891,167 338,425,519Payments on redemption of units (85,157,313) (139,878,579) (1,092,873,103) (672,924,901) (456,850,789) (695,167,702) (136,545,925) (24,220,596) (243,439,391) (252,428,824) (12,404,796) (174,551,168) (14,350,792) (2,018) (3,760,321) (6,899,783)

Net cash generated from/(used in) financing activities 65,657,415 8,287,086 (3,863,586) 164,277,417 (130,619,830) (448,826,351) (3,630,361) 153,228,294 137,388,749 258,640,276 397,063,715 (151,602,396) 291,704,610 7,701,495 466,130,846 331,525,736

Net (decrease)/increase in cash and cash equivalents (50,021,481) 20,927,399 (192,052,472) 101,466,887 45,007,143 24,951,317 63,068,383 12,367,141 (4,260,209) (1,174,851) 8,691,517 (1,137,226) (6,362,752) 15,786,379 – –

Cash and cash equivalents at beginning of the year 72,292,526 51,365,127 372,508,616 271,041,729 128,692,360 103,741,043 46,729,639 34,362,498 14,794,676 15,969,527 6,873,975 8,011,201 16,625,525 839,146 – –

Cash and cash equivalents at end of the year 22,271,045 72,292,526 180,456,144 372,508,616 173,699,503 128,692,360 109,798,022 46,729,639 10,534,467 14,794,676 15,565,492 6,873,975 10,262,773 16,625,525 – –

Supplemental cash flow information:

Proceeds from sale of investments 3,595,038,030 4,011,237,678 11,944,385,143 4,883,475,628 4,168,083,501 3,416,201,411 2,648,081,196 2,397,994,831 1,432,663,926 512,442,393 617,896,286 519,081,786 1,708,533,865 710,380,935 6,777,708 8,994,861

Payments for purchase of investments (3,731,454,828) (4,140,227,854) (12,194,777,680) (5,054,731,652) (4,055,368,739) (3,006,446,144) (2,602,807,988) (2,555,488,130) (1,591,001,251) (783,662,520) (1,010,438,936) (372,041,427) (2,023,178,836) (718,108,496) (471,464,067) (339,480,626)




NOTES TO THE FINANCIAL STATEMENTS(EXPRESSED IN HONG KONG DOLLARS UNLESS OTHERWISE INDICATED) (CONTINUED)

72



NOTES TO THE FINANCIAL STATEMENTS(EXPRESSED IN HONG KONG DOLLARS UNLESS OTHERWISE INDICATED)

71


1 TheFund

BEA Union Investment Capital Growth Fund (“the Fund”) was established by the Trust Deed dated 22 September 2000 and supplemental trust deeds dated 11 September 2003, 11 August 2006, 3 June 2010, 6 April 2011, 24 May 2013, 24 May 2013, 11 November 2013, 17 April 2015 (“the Trust Deed, as amended”).

The Fund is an umbrella fund which offers nine investment funds (collectively “the Sub-funds”) with different investment objectives and policies. As at 31 December 2017, the investment funds offered four classes of units, Class A, Class D, Class I and Class R. There is a minimum amount for initial investment and subsequent holding for Class D, Class I and Class R units. The Sub-funds of the Fund are:

– BEA Union Investment Asia Strategic Growth Fund – launched on 15 April 2003

– BEA Union Investment Global Bond Fund – launched on 1 March 2004

– BEA Union Investment Hong Kong Growth Fund – launched on 10 December 2004

– BEA Union Investment Greater China Growth Fund – launched on 1 September 2006

– BEA Union Investment Hong Kong Dollar (HK$) Bond Fund – launched on 6 November 2007

– BEA Union Investment Global Equity Fund – launched on 4 October 2012

– BEA Union Investment Asia Pacific Investment Grade Bond Fund

– launched on 20 June 2014

– BEA Union Investment Core Accumulation Fund – launched on 1 April 2017

– BEA Union Investment Age 65 Plus Fund – launched on 1 April 2017

The Fund and the Sub-funds are authorised by the Hong Kong Securities and Futures Commission (“the SFC”) under Section 104 of the Hong Kong Securities and Futures Ordinance (“the SFO”) and approved by the Mandatory Provident Fund Schemes Authority (“the MPFA”) under Section 6 of the Mandatory Provident Fund Schemes (General) Regulation (“the General Regulation”) as approved pooled investment funds (“APIFs”).

The Trust Deed, as amended, does not contain any requirement that a combined set of financial statements for the Fund itself be prepared. These financial statements are prepared for the Sub-funds only.

2 Summaryofsignificantaccountingpolicies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been applied consistently and are consistent with those used in the previous year, unless otherwise stated.

(a) Statementofcompliance

These financial statements have been prepared in accordance with all applicable Hong Kong Financial Reporting Standards (“HKFRSs”), which collective term includes all applicable individual Hong Kong Financial Reporting Standards, Hong Kong Accounting Standards (“HKASs”) and Interpretations issued by the Hong Kong Institute of Certified Public Accountants (“HKICPA”), accounting principles generally accepted in Hong Kong, the relevant provisions of the Trust Deed, as amended, the Hong Kong Mandatory Provident Fund Schemes Ordinance (“the Ordinance”), the General Regulation, the Code on Unit Trusts and Mutual Funds and other relevant guidelines issued by the MPFA. A summary of the significant accounting policies adopted by the Sub-funds is set out below.

The HKICPA has issued certain new and revised HKFRSs that are first effective or available for early adoption for the current accounting year of the Sub-funds. Note 3 provides information on any changes in accounting policies resulting from initial application of these developments to the extent that they are relevant to the Sub-funds for the current and prior accounting years reflected in these financial statements.

(b) Basisofpreparationofthefinancialstatements

The measurement basis used in the preparation of the financial statements is the historical cost basis except that financial instruments classified as designated at fair value through profit or loss are stated at their value as explained in the accounting policies set out below.

The preparation of financial statements in conformity with HKFRSs requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.





73 74


2 Summaryofsignificantaccountingpolicies(continued)

(c) Investments

All investments have been classified by the Sub-funds as “financial assets at fair value through profit or loss” at inception.

Purchases and sales of investments are accounted for on the trade date basis. Investments are initially recognised at fair value, excluding transaction costs which are expensed as incurred, and are subsequently re-measured at fair value. “Fair value” is the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date in the principal or, in its absence, the most advantageous market to which the Sub-funds have access at that date.

When available, the Sub-funds measure the fair value of an investment using the quoted price in an active market for that investment. A market is regarded as “active” if transactions for the asset take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair values of the Sub-funds’ investments are measured on the following bases:

– Investments that are listed or traded on an exchange are fair valued based on quoted bid prices.

– Investments which are not listed on an exchange are valued by using quoted bid prices from brokers.

– Debt securities are fair valued based on quoted bid prices.

Realised and unrealised gains and losses on investments are included in profit or loss in the year in which they arise. Investments are derecognised when the rights to receive cash flows from the investments have expired or the Sub-funds have transferred substantially all risks and rewards of ownership.

(d) Forwardforeignexchangecontracts

Outstanding forward foreign exchange contracts are valued at the year end date by reference to the forward rate of exchange applicable to the outstanding term of the contracts. Unrealised gains and losses on outstanding contracts and realised gains and losses on closed contracts are included in profit or loss under the heading “exchange (losses)/gains”.

(e) Incomeandexpenses

Interest income is recognised as it accrues using the effective interest method. Dividend income is recognised when the underlying securities are quoted ex-dividend. Dividend is presented gross of any non-recoverable withholding taxes, which are separately disclosed in profit or loss. Interest income on debt securities is included in gains on investments. All other income and expenses are accounted for on an accruals basis.


(f) Unitsinissue

The Sub-funds classify capital instruments as financial liabilities or equity instruments in accordance with the substance of the contractual terms of the instruments.

A puttable financial instrument is classified as an equity instrument if it has all of the following features:

– It entitles the holder to a pro rata share of the sub-fund’s net assets in the event of the sub-fund’s liquidation.

– The instrument is in the class of instruments that is subordinate to all other classes of instruments.

– All financial instruments in the class of instruments that is subordinate to all other classes of instruments have identical features.

– The instrument does not include any contractual obligation to deliver cash or another financial asset other than the holder’s rights to a pro rata share of the sub-fund’s net assets.

– The total expected cash flows attributable to the instrument over the life of the instrument are based substantially on the profit or loss, the change in the recognised net assets or the change in the fair value of the recognised and unrecognised net assets of the sub-fund over the life of the instrument.

In addition to the instrument having all the above features, the sub-fund must have no other financial instrument or contract that has:

– Total cash flows based substantially on the profit or loss, the change in the recognised net assets or the change in the fair value of the recognised and unrecognised net assets of the sub-fund; and

– The effect of substantially restricting or fixing the residual return to the puttable instrument holders.

BEA Union Investment Asia Strategic Growth Fund, BEA Union Investment Hong Kong Growth Fund, BEA Union Investment Greater China Growth Fund and BEA Union Investment Asia Pacific Investment Grade Bond Fund have four classes of redeemable units: Class A, Class D, Class I and Class R. Class A and Class R units were in issue.

BEA Union Investment Global Bond Fund has four classes of redeemable units: Class A, Class D, Class I and Class R. Class A, Class I and Class R units were in issue.

BEA Union Investment Hong Kong Dollar (HK$) Bond Fund has four classes of redeemable units: Class A, Class D, Class I and Class R. Class A, Class D and Class R units were in issue.





75 76



(f) Unitsinissue(continued)

BEA Union Investment Global Equity Fund has four classes of redeemable units: Class A, Class D, Class I and Class R. Class A and Class I units were in issue.

BEA Union Investment Core Accumulation Fund and BEA Union Investment Age 65 Plus Fund have one class of redeemable unit in issue, which was Class I.

All redeemable units issued by the Sub-funds provide the investors with the right to require redemption for cash at a value proportionate to the investor’s share in the corresponding sub-fund’s net assets at each daily redemption date and also in the event of the corresponding sub-fund’s liquidation.

Consequently, except for BEA Union Investment Core Accumulation Fund and BEA Union Investment Age 65 Plus Fund, all the Sub-funds have issued multiple classes of units, which rank pari passu in all material respects but have different terms and conditions as set out in the Explanatory Memorandum, which include minimum investment amounts, management fees, preliminary charges, realisation charges, switching fees, holders’ servicing fees and distribution policy. Those redeemable units are the most subordinate classes of financial instruments in the Sub-funds. However, as the different classes of redeemable units do not have identical features, they do not meet the criteria for equity classification and therefore are classified as financial liabilities. They are measured at the redemption amounts.

Redeemable units of BEA Union Investment Core Accumulation Fund and BEA Union Investment Age 65 Plus Fund meet the definition of puttable instruments and being classified as equity instruments as at 31 December 2017.

Prior to 1 April 2017, BEA Union Investment Global Equity Fund and BEA Union Investment Asia Pacific Investment Grade Bond Fund meet the definition of puttable instruments and classified as equity instruments. Along with the launching of Class I for BEA Union Investment Global Equity Fund on 1 April 2017 and Class A for BEA Union Investment Asia Pacific Investment Grade Bond Fund on 20 June 2017, the multi-classes of redeemable units do not meet the criteria for equity classification and are reclassified as financial liabilities.

The Trustee continuously assesses the classification of the redeemable units. If the redeemable units cease to have all the features or meet all the conditions set out in paragraphs 16A and 16B of HKAS 32, the Trustee will reclassify them as financial liabilities and measure them at fair value at the date of the reclassification, with any differences from the previous carrying amount recognised in equity. If the redeemable units subsequently have all the features and meet the conditions set out in paragraphs 16A and 16B of HKAS 32, the Trustee will reclassify them as equity instruments and measure them at the carrying amount of the liabilities at the date of the reclassification.


(g) Foreigncurrenciestranslation

(i) Functional and presentation currency

Items included in the Sub-funds’ financial statements are measured using the currency of the primary economic environment in which they operate (“the functional currency”).

The financial statements of the Sub-funds are presented in Hong Kong dollars (“HKD”), which is these sub-funds’ functional and presentation currency.

(ii) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.

(h) Cashandcashequivalents

Cash and cash equivalents comprise cash at banks and on hand and demand deposits with banks and other financial institutions that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value, having been within three months of maturity at acquisition.

(i) Financialassetsandliabilitiesnotatfairvalue

Financial assets that are classified as loans and receivables include amounts due from brokers, amounts receivable on subscription and dividends and other receivables, which are initially recognised at fair value and subsequently stated at amortised cost using the effective interest method, less impairment losses, if any.

Financial liabilities that are not at fair value through profit or loss include amounts due to brokers, amounts payable on redemption and accruals and other payables, which are initially recognised at fair value and subsequently stated at amortised cost using the effective interest method.

(j) Offsetting

Financial assets and financial liabilities are offset and the net amount presented in the statement of assets and liabilities when, and only when, the Sub-funds have a legal right to offset the amounts and it intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.

Income and expenses are presented on a net basis for gains and losses from financial instruments at fair value through profit or loss and foreign exchange gains and losses.





77 78



(k) Relatedparties

(a) A person, or a close member of that person’s family, is related to the Sub-funds if that person:

(i) has control or joint control over the Sub-funds;

(ii) has significant influence over the Sub-funds; or

(iii) is a member of the key management personnel of the Sub-funds or the Sub-funds’ parent.

(b) An entity is related to the Sub-funds if any of the following conditions applies:

(i) The entity and the Sub-funds are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others).

(ii) One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member).

(iii) Both entities are joint ventures of the same third party.

(iv) One entity is a joint venture of a third entity and the other entity is an associate of the third entity.

(v) The entity is a post-employment benefit plan for the benefit of employees of an entity related to the Sub-funds.

(vi) The entity is controlled or jointly controlled by a person identified in (a).

(vii) A person identified in (a)(i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity).

(viii) The entity, or any member of a group which it is a part, provides key management personnel services to the Sub-funds or to the Sub-fund’s parent.

Close members of the family of a person are those family members who may be expected to influence, or be influenced by, that person in their dealings with the entity.

(l) Segmentreporting

Operating segments are reported in a manner consistent with the internal reporting used by the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as BEA Union Investment Management Limited (“the Manager”).

3 Changesinaccountingpolicies

The HKICPA has issued a number of amendments to HKFRSs that are first effective for the current accounting period of the Sub-funds. None of these developments have had a material effect on how the Sub-funds’ results and financial position for the current or prior periods have been prepared or presented.

The Sub-funds have not applied any new standard or interpretation that is not yet effective for the current accounting period.

4 Capitalmanagementandunitsinissue

The Sub-funds’ capital is represented by the net assets attributable to unitholders. The Sub-funds have no restrictions on the subscription and redemption of units. Subscriptions and redemptions of units during the year are shown on the statement of changes in net assets attributable to unitholders. In order to achieve the investment objectives, the Sub-funds endeavor to invest subscriptions received in accordance with the investment policies as outlined in the investment report. Redemptions are met by disposals of investments where necessary.

In accordance with the provisions of the Trust Deed, as amended, listed investments and investments with prices quoted in over-the-counter markets or by market makers are stated at the last traded price on the valuation day for the purpose of determining net asset value per unit for subscriptions and redemptions and for various fee calculations. However, as stated in note 2(c), the accounting policy of the Sub-funds for the purpose of financial statements preparation is to value their investments at the relevant bid market prices on the year end date. The difference between the valuation of these investment positions as disclosed in note 2(c), and the valuation methodology indicated in the Fund’s Trust Deed, as amended, resulted in a decrease/(increase) in value of investments of the Sub-funds as at the year end reported in the financial statements, as follows:

2017 2016

BEA Union Investment Asia Strategic Growth Fund HK$ 2,339,899 HK$ 1,865,654

BEA Union Investment Global Bond Fund HK$ 5,448,135 HK$ 4,970,468

BEA Union Investment Hong Kong Growth Fund HK$ 1,122,625 HK$ 2,018,016

BEA Union Investment Greater China Growth Fund HK$ 1,252,358 HK$ 1,620,387

BEA Union Investment Hong Kong Dollar (HK$) Bond Fund HK$ 3,963,341 HK$ 3,020,644

BEA Union Investment Global Equity Fund HK$ (158,674) HK$ 18,344

BEA Union Investment Asia Pacific Investment Grade Bond Fund HK$ 1,518,430 HK$ 823,609

BEA Union Investment Core Accumulation Fund (1) HK$ – HK$ –

BEA Union Investment Age 65 Plus Fund (1) HK$ – HK$ –




79


4 Capitalmanagementandunitsinissue(continued)

Movementofunitsinissue








Fund




2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2017Units Units Units Units Units Units Units Units Units Units Units Units Units Units Units Units

ClassA

Balance at the beginning of the year 5,514,040.282 5,292,645.667 41,872,496.785 40,587,304.078 8,885,432.303 10,682,013.434 6,354,610.198 5,488,637.525 945,898.880 1,913,585.717 2,968,725.595 4,210,590.437 4,085,245.431 4,014,802.838 – –Units issued 404,070.257 541,447.453 5,352,331.565 7,000,172.185 874,748.593 749,263.670 308,748.029 951,959.326 221,665.680 148,709.032 180,057.035 177,544.417 1,616,533.889 70,461.105 – –Units redeemed (184,023.164) (320,052.838) (8,995,863.369) (5,714,979.478) (904,415.200) (2,545,844.801) (328,563.589) (85,986.653) (13,761.693) (1,116,395.869) (26,346.031) (1,419,409.259) (121,103.729) (18.512) – –

Balance at the end of the year 5,734,087.375 5,514,040.282 38,228,964.981 41,872,496.785 8,855,765.696 8,885,432.303 6,334,794.638 6,354,610.198 1,153,802.867 945,898.880 3,122,436.599 2,968,725.595 5,580,675.591 4,085,245.431 – –

ClassD

Balance at the beginning of the year – – – – – – – – 1,514,911.910 1,112,160.577 – – – – – –Units issued – – – – – – – – 397,688.222 924,102.943 – – – – – –Units redeemed – – – – – – – – (599,298.102) (521,351.610) – – – – – –

Balance at the end of the year – – – – – – – – 1,313,302.030 1,514,911.910 – – – – – –

ClassI

Balance at the beginning of the year – – – – – – – – – – – – – – – –Units issued – – 4,407,101.817 – – – – – – – 3,570,668.942 – – – 4,492,781.282 3,274,793.753Units redeemed – – (95,579.541) – – – – – – – (77,500.826) – – – (36,265.545) (66,897.158)

Balance at the end of the year – – 4,311,522.276 – – – – – – – 3,493,168.116 – – – 4,456,515.737 3,207,896.595

ClassR

Balance at the beginning of the year 306,745.028 522,545.335 412,361.998 361,759.847 1,241,522.278 1,229,961.257 940,216.204 955,169.053 6,690,226.321 3,905,407.349 – – – – – –Units issued 30,577.823 4,662.020 17,219.233 80,784.139 166,466.053 418,640.294 236,426.119 26,063.924 2,466,824.622 3,309,941.115 – – 1,173,762.057 – – –Units redeemed (73,603.681) (220,462.327) (44,791.581) (30,181.988) (675,868.031) (407,079.273) (288,402.747) (41,016.773) (1,437,628.523) (525,122.143) – – – – – –

Balance at the end of the year 263,719.170 306,745.028 384,789.650 412,361.998 732,120.300 1,241,522.278 888,239.576 940,216.204 7,719,422.420 6,690,226.321 – – 1,173,762.057 – – –




80


4 Capitalmanagementandunitsinissue(continued)

Netassetsattributabletounitholdersasat31December(Expressed in Hong Kong dollars)








Fund




2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2017

Netassetsattributabletounitholders(atlasttradedprice)

Class A units 2,344,750,564 1,554,294,682 4,685,209,101 4,798,266,640 3,050,620,122 2,159,773,539 1,782,899,935 1,243,508,739 154,347,355 121,997,687 518,545,293 395,359,136 665,811,240 458,813,020 – –

Class D units – – – – – – – – 135,317,223 152,119,705 – – – – – –

Class I units – – 454,496,309 – – – – – – – 406,181,264 – – – 493,481,683 337,355,807

Class R units 85,451,175 69,637,644 41,432,557 41,906,484 207,821,851 252,762,233 208,249,966 155,816,550 948,880,797 799,461,151 – – 118,838,367 – – –

Netassetsattributabletounitholders(atlasttradedprice)perunit

Class A units 408.91 281.88 122.56 114.59 344.48 243.07 281.45 195.69 133.77 128.98 166.07 133.17 119.31 112.31 – –

Class D units – – – – – – – – 103.04 100.41 – – – – – –

Class I units – – 105.41 – – – – – – – 116.28 – – – 110.73 105.16

Class R units 324.02 227.02 107.68 101.63 283.86 203.59 234.45 165.72 122.92 119.50 – – 101.25 – – –

As a result of the ability to issue and redeem units, the capital of the Sub-funds can vary depending on the demand for subscriptions and redemptions to the Sub-funds. The Sub-funds are not subject to externally imposed capital requirements and restrictions on the issuance and redemption of units.

The Sub-funds’ objectives for managing capital are:

– To safeguard capital while achieve returns by investing in accordance with the Sub-funds’ investment objectives, descriptions, risk exposures and expected returns indicated in the Explanatory Memorandum.

– To maintain sufficient liquidity to meet the expenses of the Sub-funds and to meet redemption requests as they arise.

– To maintain sufficient size to make the operation of the Sub-funds cost-efficient.

The Manager manages the capital of the Sub-funds in accordance with the Sub-funds’ investment objectives and policies. With a view to protecting the interests of unitholders, the Manager is entitled at its discretion and with the approval of the Trustee to limit the number of units in any sub-fund redeemed on any dealing day to 10% of the total number of units of that sub-fund in issue.






81 82


5 Criticalaccountingestimatesandassumptions

Bank of East Asia (Trustees) Limited (“the Trustee”) makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. Estimates are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are outlined below.

Fairvalueofinvestments

Certain sub-funds hold a number of unlisted debt securities that are valued by reference to broker quotes. In determining the fair value of such investments, the Trustee exercises judgments and estimates on the sources of brokers and the quantity and quality of quotes used. Such quotes adopted to fairly value the investments may be indicative only and not executable or legally binding. As such, broker quotes do not necessarily indicate the price at which the security could actually be traded as of 31 December 2017. Actual transacted prices may differ from the quotes provided by the brokers. The Trustee considers that in the absence of any other reliable market sources, the broker quotes available to them reflect the best estimate of fair value.

6 Financialriskmanagement

Strategyinusingfinancialinstruments

The investment objective of BEA Union Investment Asia Strategic Growth Fund is to provide investors with long-term capital growth in HK dollar terms through investing in a diversified portfolio primarily consisting of listed securities of companies that conduct a significant portion of their business activities in, or derive or are expected to derive a significant portion of their revenues from the Asia Pacific region but excluding Japan.

The investment objective of BEA Union Investment Global Bond Fund is to provide investors with total investment return over the medium to long-term through investing in a diversified range of global bonds denominated in various major currencies.

The investment objective of BEA Union Investment Hong Kong Growth Fund is to provide investors with long-term capital growth in HK dollar terms through investing in a diversified portfolio consisting primarily of securities of companies, either listed or with operations or interests principally in Hong Kong.

The investment objective of BEA Union Investment Greater China Growth Fund is to provide investors with long-term capital growth through investing in a diversified portfolio primarily consisting of listed securities of companies that conduct a significant portion of their business activities in, or derive or are expected to derive a significant portion of their revenues from Greater China, which includes the People’s Republic of China (“PRC”), Hong Kong, Macau and Taiwan.

6 Financialriskmanagement(continued)

Strategyinusingfinancialinstruments(continued)

The investment objective of BEA Union Investment Hong Kong Dollar (HK$) Bond Fund is to provide investors with long-term capital growth in HK dollar terms through investing in a portfolio consisting primarily of HK dollar denominated interest bearing securities.

The investment objective of the BEA Union Investment Global Equity Fund is to provide investors with long-term capital growth through investing in a diversified global portfolio.

The investment objective of BEA Union Investment Asia Pacific Investment Grade Bond Fund is to provide total investment return over the medium to long-term through investing in Asia Pacific investment grade bonds.

The investment objective of BEA Union Investment Core Accumulation Fund is to achieve capital growth by investing in a globally diversified manner in two approved pool investment funds, namely the BEA Union Investment Global Equity Fund (which invests in a diversified global equity portfolio) and the BEA Union Investment Global Bond Fund (which invests in a diversified global bond portfolio) (the “Underlying Funds”), both existing Investment Funds under the Fund.

The investment objective of BEA Union Investment Age 65 Plus Fund is to achieve stable growth by investing in a globally diversified manner in two approved pool investment funds, namely the BEA Union Investment Global Equity Fund (which invests in a diversified global equity portfolio) and the BEA Union Investment Global Bond Fund (which invests in a diversified global bond portfolio) (the “Underlying Funds”), both existing Investment Funds under the Fund.

The Sub-funds’ activities expose them to a variety of financial risks: market risk (including currency risk, fair value and cash flow interest rate risk and price risk), credit risk and liquidity risk. The risks and the financial risk management policies and practices used by the Manager to manage these risks are discussed below.

(a) Market risk

Market risk embodies the potential for both losses and gains and includes currency risk, interest rate risk and price risk. The Sub-funds’ strategies on the management of market risk are driven by the Sub-funds’ investment objectives.

The Sub-funds’ market risk is managed on a regular basis by the Manager in accordance with policies and procedures in place. The Sub-funds’ overall market position is monitored on a yearly basis by the Trustee. Details of the nature of the Sub-funds’ investment portfolios at the reporting date are disclosed in the investment report.





83 84




(a) Market risk (continued)

(i) Currency risk

The Sub-funds hold assets and liabilities denominated in currencies other than their functional currencies and are therefore exposed to currency risk that the exchange rate of its currency relative to other foreign currencies may change in a manner that has an adverse effect on the fair value of the Sub-funds’ assets and liabilities denominated in currencies other than HKD.

The fluctuations in the rate of exchange between the currency in which the asset or liability is denominated and the functional currency could result in an appreciation or depreciation in the fair value of that asset or liability. The Manager monitors all the Sub-funds’ foreign currency positions on a daily basis. BEA Union Investment Hong Kong Dollar (HK$) Bond Fund did not hold any assets denominated in currencies other than HKD and/or United States dollars (“USD”). In view of the pegging of HKD to USD, the sub-fund do not expect any significant movement in USD/HKD exchange rate.

Sensitivity analysis

Each sub-fund’s net direct exposure to each currency other than HKD at the reporting date and their estimated impact to the net assets attributable to unitholders and the change in net assets attributable to unitholders from operations for the year had the HKD weakened by 5% (2016: 5%) are illustrated below. The analysis is performed on the same basis as 2016.

As at 31 December 2017 As at 31 December 2016

Net direct exposure

Estimated increase had

the HKD weakened

by 5%Net direct exposure


the HKD weakened

by 5%HK$ HK$ HK$ HK$

BEAUnionInvestmentAsiaStrategicGrowthFund

Australian dollar 86 4 142,383 7,119Indian rupee 6,425 321 – –Indonesian rupiah 36,977,916 1,848,896 41,789,215 2,089,461Korean won 536,206,575 26,810,329 299,743,549 14,987,177Malaysian ringgit 27,845,663 1,392,283 30,249,643 1,512,482New Taiwan dollar 356,532,598 17,826,630 303,703,234 15,185,162Philippine peso 56,519,974 2,825,999 38,274,844 1,913,742Renminbi 47,820,162 2,391,008 23,817,081 1,190,854Singapore dollar 141,793,960 7,089,698 73,994,119 3,699,706Thai baht 117,792,000 5,889,600 35,169,052 1,758,453




(i) Currency risk (continued)

Sensitivity analysis (continued)


Net direct exposure


the HKD weakened



the HKD weakened


BEAUnionInvestmentGlobalBondFund

Australian dollar 136,729,553 6,836,478 52,411,014 2,620,551British pound 280,107,462 14,005,373 114,265,633 5,713,282Canadian dollar 35,709,770 1,785,489 48,628,813 2,431,441Danish krone 1,021 51 909 45Euro 1,499,911,047 74,995,552 1,004,291,669 50,214,583Indonesian rupiah 27,422,766 1,371,138 894,605 44,730Japanese yen 754,697,619 37,734,881 651,236,678 32,561,834Korean won 1,411,871 70,594 2,945,254 147,263Malaysian ringgit 30,111,167 1,505,558 2,094,935 104,747New Zealand dollar 281,859 14,093 511,638 25,582Norwegian krone 6,121,504 306,075 5,769,118 288,456Renminbi 124,511,741 6,225,587 92,491 4,625Singapore dollar 25,637,361 1,281,868 13,937,278 696,864

BEAUnionInvestmentHongKongGrowthFund

Renminbi 106 5 34,203,152 1,710,158

BEAUnionInvestmentGreaterChinaGrowthFund

New Taiwan dollar 426,211,554 21,310,578 401,727,264 20,086,363Renminbi 63,727,002 3,186,350 31,988,233 1,599,412





85 86








Net direct exposure


the HKD weakened



the HKD weakened


BEAUnionInvestmentGlobalEquityFund

Australian dollar 11,844,922 592,246 82 4British pound 52,555,302 2,627,765 49,448,965 2,472,448Canadian dollar 24,129,810 1,206,491 7,967,460 398,373Danish krone 4,445,720 222,286 35 2Euro 75,170,337 3,758,517 55,269,081 2,763,454Japanese yen 61,680,282 3,084,014 2,678,074 133,904Korean won 6,288,658 314,433 – –New Taiwan dollar 6,617,237 330,862 – –South African rand 1,705,128 85,256 – –Swedish krona 7,636,547 381,827 – –Swiss franc 30,189,032 1,509,452 20,243,732 1,012,187

BEAUnionInvestmentAsiaPacificInvestmentGradeBondFund

Australian dollar 17,638 882 – –Renminbi 3,152 158 2,917 146Singapore dollar 11,799 590 – –






As at 31 December 2017

Net direct exposure


the HKD weakened

by 5%HK$ HK$

BEAUnionInvestmentCoreAccumulationFund(1)

Australian dollar 4,498,800 224,940British pound 18,594,035 929,702Canadian dollar 9,334,031 466,702Danish krone 1,483,780 74,189Euro 30,501,337 1,525,067Indonesian rupiah 983,566 49,178Japanese yen 23,900,991 1,195,050Korean won 2,149,456 107,473Malaysian ringgit 1,079,991 54,000New Taiwan dollar 2,208,479 110,424New Zealand dollar 10,109 505Norwegian krone 219,559 10,978Renminbi 4,465,835 223,292Singapore dollar 919,530 45,977South African rand 569,080 28,454Swedish krona 2,548,670 127,434Swiss franc 10,075,480 503,774

A 5% appreciation of HKD against the above currencies would have resulted in an equal but opposite effect on the financial statements, on the basis that all other variables remain constant.






87 88







As at 31 December 2017

Net direct exposure


the HKD weakened

by 5%HK$ HK$

BEAUnionInvestmentAge65PlusFund(1)

Australian dollar 1,644,707 82,235British pound 5,491,857 274,593Canadian dollar 3,673,802 183,690Danish krone 335,174 16,759Euro 13,080,940 654,047Indonesian rupiah 1,424,428 71,221Japanese yen 9,242,124 462,106Korean won 547,380 27,369Malaysian ringgit 1,564,072 78,204New Taiwan dollar 498,811 24,941New Zealand dollar 14,641 732Norwegian krone 317,971 15,899Renminbi 6,467,546 323,377Singapore dollar 1,331,688 66,584South African rand 128,534 6,427Swedish krona 575,648 28,782Swiss franc 2,275,668 113,783

A 5% appreciation of HKD against the above currencies would have resulted in an equal but opposite effect on the financial statements, on the basis that all other variables remain constant.





(ii) Interest rate risk

Interest rate risk arises from change in interest rates which may inversely affect the value of debt instruments and therefore result in potential gain or loss to the Sub-funds.

All Sub-funds did not have any interest-bearing liabilities as at year end and except for the BEA Union Investment Global Bond Fund, BEA Union Investment Hong Kong Dollar (HK$) Bond Fund and BEA Union Investment Asia Pacific Investment Grade Bond Fund, interest-bearing assets were limited to bank deposits; accordingly it is considered that they did not have significant direct interest rate risk exposure.

The Manager monitors all the Sub-funds’ direct exposure to interest rate risk at least on a monthly basis.

The following table illustrates the interest rate risk exposure of BEA Union Investment Global Bond Fund, BEA Union Investment Hong Kong Dollar (HK$) Bond Fund and BEA Union Investment Asia Pacific Investment Grade Bond Fund. It includes their interest rate sensitivity gaps and the year in which the interest rates of interest bearing assets and interest bearing liabilities reprice (the earlier of contractual re-pricing or maturity date) as at year end.


Asat31December2017

Up to 1 year 1 – 5 years Over 5 yearsNon-interest

bearing TotalHK$ HK$ HK$ HK$ HK$

Assets

Investments 486,155,017 1,377,325,927 3,164,811,640 – 5,028,292,584Cash at banks 180,456,144 – – – 180,456,144Other assets – – – 190,002 190,002

Total assets 666,611,161 1,377,325,927 3,164,811,640 190,002 5,208,938,730

Liabilities(excludingnetassetsattributabletounitholders)

Other liabilities – – – 33,248,898 33,248,898

Totalinterestsensitivitygap 666,611,161 1,377,325,927 3,164,811,640





89 90





(ii) Interest rate risk (continued)

BEA Union Investment Global Bond Fund (continued)

Asat31December2016



Assets

Investments 285,879,794 1,280,443,864 2,892,998,805 – 4,459,322,463Cash at banks 372,508,616 – – – 372,508,616Other assets – – – 3,623,255 3,623,255

Total assets 658,388,410 1,280,443,864 2,892,998,805 3,623,255 4,835,454,334


Other liabilities – – – 251,678 251,678

Totalinterestsensitivitygap 658,388,410 1,280,443,864 2,892,998,805

At year end, should the relevant market interest rates have been increased by a certain percentage with all other variables held constant, the estimated impact on the net assets attributable to unitholders and the change in net assets attributable to unitholders from operations for the year are shown in the table below.

% possible reasonable shift

Estimated increase/

(decrease)

Estimated increase/

(decrease)2017 2016HK$ HK$

BEA Union Investment Global Bond Fund +0.25% (77,230,808) (74,168,201)

Due to current market conditions, the Manager does not anticipate that the interest rates will decrease any further and considers the downward impact will be minimal.






Asat31December2017



Assets

Investments 89,707,461 690,821,051 452,807,464 – 1,233,335,976Cash at banks 10,534,467 – – – 10,534,467Other assets – – – 5,628,475 5,628,475

Total assets 100,241,928 690,821,051 452,807,464 5,628,475 1,249,498,918



Totalinterestsensitivitygap 100,241,928 690,821,051 452,807,464

Asat31December2016



Assets

Investments 152,744,047 492,228,039 411,217,245 – 1,056,189,331Cash at banks 14,794,676 – – – 14,794,676Other assets – – – 8,000,001 8,000,001

Total assets 167,538,723 492,228,039 411,217,245 8,000,001 1,078,984,008








91 92






BEA Union Investment Hong Kong Dollar (HK$) Bond Fund (continued)

At year end, should the relevant market interest rates have been increased by a certain percentage with all other variables held constant, the estimated impact on the net assets attributable to unitholders and the change in net assets attributable to unitholders from operations for the year are shown in the table below.


Estimated increase/

(decrease)

Estimated increase/


BEA Union Investment Hong Kong Dollar (HK$) Bond Fund +0.25% (13,209,320) (10,613,334)



Asat31December2017



Assets

Investments 43,435,501 196,958,728 536,593,555 – 776,987,784Cash at banks 10,262,773 – – – 10,262,773Other assets – – – 101 101

Total assets 53,698,274 196,958,728 536,593,555 101 787,250,658








BEA Union Investment Asia Pacific Investment Grade Bond Fund (continued)

Asat31December2016



Assets

Investments 15,566,113 158,678,547 267,244,321 – 441,488,981Cash at banks 16,625,525 – – – 16,625,525

Total assets 32,191,638 158,678,547 267,244,321 – 458,114,506


Other liabilities – – – 125,095 125,095


At year end, should the relevant market interest rates have been increased by a certain percentage with all other variables held constant, the estimated impact on the net assets attributable to unitholders and the change in net assets attributable to unitholders from operation for the year are shown in the table below.


Estimated increase/

(decrease)

Estimated increase/


BEA Union Investment Asia Pacific Investment Grade Bond Fund +0.25% (9,252,214) (4,797,132)






93 94





(iii) Other price risk

Other price risk is the risk that the fair value of the financial instrument will fluctuate as a result of changes in market prices (other than those arising from interest rate risk or currency risk), whether caused by factors specific to an individual investment or its issuer or factors affecting all instruments traded in the market.

The breakdown of investments held by the Sub-funds is shown in the investment report.

Each sub-fund’s market risk is managed through (i) deliberate securities selection and (ii) diversification of the investment portfolio. The Manager monitors all Sub-funds’ market positions on a daily basis.

Sensitivity analysis

The Manager projects the possible movement of the underlying benchmark indices (“the potential movement”) based on historical experience. If the underlying benchmark indices had changed by the following percentages, which are based on the Manager’s best estimate of the potential movement as at the reporting date, with all other variables held constant, it is estimated that the net assets attributable to unitholders and the change in net assets attributable to unitholders from operations would have changed accordingly as shown below.

Relevant benchmark index

% possible reasonable

shiftEstimated impact

increase/(decrease)2017 2016

+/– HK$ HK$


MSCI AC Far East ex Japan ex ADRs (NR) 5% 125,034,885 81,914,367




(iii) Other price risk (continued)


Relevant benchmark index

% possible reasonable

shiftEstimated impact

increase/(decrease)2017 2016

+/– HK$ HK$


8% HSBC Holdings PLC + 92% MSCI Zhong Hua ex ADRs 5% 156,351,329 106,062,781


MSCI AC Golden Dragon Index ex ADRs (NR) 5% 98,499,928 70,584,098


Direct investments in equities and approved index-tracking fund 5% 46,244,262 19,767,040

An equal change in the opposite direction would have changed the net assets attributable to unitholders and the change in net assets attributable to unitholders from operations for the year by an equal but opposite amount.

(b) Credit risk

Credit risk is the risk that a counterparty will be unable to pay amounts in full when due. All transactions in listed securities are settled on a delivery versus payment basis using approved brokers. The risk of default is considered minimal, as delivery of securities sold is only made when the Sub-funds’ custodians have received payments.

For purchase, payments are made once securities have been received by the Sub-funds’ custodians. The trade will fail if either party fails to meet their obligation.

The Manager monitors the Sub-funds’ credit position on a monthly basis. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the statement of assets and liabilities.





95 96




(b) Credit risk (continued)

At the reporting date, only BEA Union Investment Global Bond Fund, BEA Union Investment Hong Kong Dollar (HK$) Bond Fund and BEA Union Investment Asia Pacific Investment Grade Bond Fund held debt securities. As at 31 December 2017 and 2016, the Sub-funds invested in debt investments with the following credit ratings equivalent to which provided by Standard & Poor’s credit rating services expressed as a percentage of debt investments:

31 December 2017

31 December 2016

% %


Portfolio by rating category of debt securities

Rating

AAA 11.63 16.35AA+ 2.44 8.01AA 19.66 10.66AA- 5.54 14.52A+ 20.10 22.56A 5.35 6.75A- 5.23 5.31BBB+ 11.19 12.13BBB 16.19 2.57BBB- 2.67 1.14

100.00 100.00

Portfolio by rating category of the issue of certificates of deposit

Rating

AA- – 100.00




31 December 2017

31 December 2016

% %

BEAUnionInvestmentHongKongDollar(HK$)BondFund


Rating

AAA – 25.64AA+ 33.22 18.27AA 2.37 3.21AA- 1.97 –A+ 24.56 22.07A 17.15 18.94A- 13.15 11.87BBB+ 2.49 –BBB 3.64 –BBB- 1.45 –

100.00 100.00

Portfolio by rating category of the issue of certificates of deposit

Rating

AA – 7.38AA- 9.20 16.01A+ 15.00 50.60A 70.65 9.46BBB+ 5.15 16.55

100.00 100.00





97 98





31 December 2017

31 December 2016

% %



Rating

AAA 1.00 1.56AA 4.39 0.88AA- 2.51 15.39A+ 11.82 19.29A 11.44 10.42A- 15.60 15.56BBB+ 15.82 21.80BBB 20.51 12.55BBB- 16.37 2.55N/A 0.54 –

100.00 100.00

The Sub-funds’ investments are held by the custodians and the majority of the Sub-funds’ cash is deposited with The Bank of East Asia, Limited and Citibank. Bankruptcy or insolvency of the custodians and the Banks may cause to Sub-funds’ execution of their rights with respect to the assets held by the custodians and the Banks to be delayed or limited. The Manager monitors the credit quality of the custodians and the Banks on an on-going basis.

Other than the outlined above, there were no significant concentrations of credit risk at 31 December 2017 and 2016.



(c) Liquidity risk

Liquidity risk arises from the risk that the Sub-funds may not be able to convert investments into cash to meet liquidity needs in a timely manner. The Sub-funds’ exposure to liquidity risk arises because of the possibility that the Sub-funds could be required to pay their liabilities or redeem their units earlier than expected. The Sub-funds are exposed to daily cash redemption of their redeemable units. Units are redeemable at the holders’ option based on the Sub-funds’ net asset value per unit at the time of redemption.

The Sub-funds’ policy is to regularly monitor current and expected liquidity requirements to ensure that they maintain sufficient reserves of cash and readily realisable marketable securities to meet their liquidity requirements in the short and long-term.

The Sub-funds invest the majority of assets in investments that are traded in an active market, and can be readily disposed of. The Manager monitors the Sub-funds’ liquidity position on a daily basis.

As at 31 December 2017 and 2016, all the financial liabilities of the Sub-funds are repayable on demand or due within three months.

(d) Fair value estimation

As at 31 December 2017 and 2016, the carrying values of assets and liabilities are a reasonable approximation of their fair values.





99 100


7 Financialinstrumentsatfairvaluethroughprofitorloss

(a) Breakdownofinvestments

The breakdown of the Sub-funds’ investments by investment type is illustrated below.

As at 31 December 2017 As at 31 December 2016HK$ % of net assets HK$ % of net assets


Listed/quoted investments – Equities 2,385,576,855 98.26 1,564,667,300 96.46 – Investment fund – – 29,706,500 1.83 – Real estate investment trust 31,385,400 1.29 – –

2,416,962,255 99.55 1,594,373,800 98.29


Listed/quoted investments – Bonds 5,028,292,584 97.15 4,441,800,850 91.87 – Certificates of deposit – – 17,521,613 0.36

5,028,292,584 97.15 4,459,322,463 92.23


Listed/quoted investments – Equities 2,982,084,406 91.55 2,303,968,512 95.58 – Investment fund 7,952,000 0.24 54,900,500 2.28 – Real estate investment trust 119,460,000 3.67 – –

3,109,496,406 95.46 2,358,869,012 97.86


Listed/quoted investments – Equities 1,884,639,383 94.71 1,367,380,432 97.83 – Real estate investment trust 30,227,000 1.52 – –

1,914,866,383 96.23 1,367,380,432 97.83

7 Financialinstrumentsatfairvaluethroughprofitorloss(continued)

(a) Breakdownofinvestments(continued)

As at 31 December 2017 As at 31 December 2016HK$ % of net asset HK$ % of net asset

BEAUnionInvestmentHongKongDollar(HK$)BondFund

Listed/quoted investments – Bonds 1,036,375,280 83.95 813,525,550 75.99 – Certificates of deposit 196,960,696 15.95 242,663,781 22.67

1,233,335,976 99.90 1,056,189,331 98.66


Listed/quoted investments – Equities 909,123,127 98.30 340,236,024 86.06 – Ap proved index-tracking

funds – – 47,879,855 12.11

909,123,127 98.30 388,115,879 98.17


Listed/quoted investments – Bonds 776,987,784 99.22 441,488,981 96.40

BEAUnionInvestmentCoreAccumulationFund (1)

Approved pooled investment funds 494,312,416 100.17 – –

BEAUnionInvestmentAge65PlusFund (1)

Approved pooled investment funds 338,560,660 100.36 – –




101



(b) Fairvaluehierarchy

The following table presents the fair value of the Sub-funds’ investments measured at the end of the reporting periods on a recurring basis, categorised into the three-level fair value hierarchy as defined in HKFRS 13, Fair value measurement.

Asat31December2017

Financial assets/(financial liabilities)

BEA Union Investment Asia

Strategic Growth Fund

BEA Union Investment Global

Bond Fund

BEA Union Investment Hong

Kong Growth Fund

BEA Union Investment Greater

China Growth Fund


Kong Dollar (HK$) Bond Fund


Equity Fund


Pacific Investment Grade Bond Fund



BEA Union Investment Age 65

Plus Fund (1)

HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$

Level 1 2,416,962,255 – 3,109,496,406 1,914,866,383 – 909,123,127 – 494,312,416 338,560,660Level 2 – 5,020,919,893 – – 1,233,335,976 (56,064) 776,979,670 (819,702) (1,193,822)Level 3 – – – – – – – – –

2,416,962,255 5,020,919,893 3,109,496,406 1,914,866,383 1,233,335,976 909,067,063 776,979,670 493,492,714 337,366,838

Asat31December2016

Financial assets


Strategic Growth Fund


Bond Fund


Kong Growth Fund

BEA Union Investment Greater

China Growth Fund


Kong Dollar (HK$) Bond Fund


Equity Fund


Pacific Investment Grade Bond Fund

HK$ HK$ HK$ HK$ HK$ HK$ HK$

Level 1 1,594,373,800 – 2,358,869,012 1,367,380,432 – 388,115,879 –Level 2 – 4,462,944,927 – – 1,056,189,331 78,506 441,453,093Level 3 – – – – – – –

1,594,373,800 4,462,944,927 2,358,869,012 1,367,380,432 1,056,189,331 388,194,385 441,453,093

During the year ended 31 December 2017 and 31 December 2016, there were no transfer between Level 1 and Level 2 or transfer into Level 3.






102 103



(b) Fairvaluehierarchy(continued)

The Sub-funds measure fair values using the following fair value hierarchy that reflects the significance of the inputs used in making the measurements:

Level 1: Inputs that are quoted market prices (unadjusted) in active markets for identical instruments.

Level 2: Inputs other than quoted prices included within Level 1 that are observable either directly (i.e. as prices) or indirectly (i.e. derived from prices). This category includes instruments valued using: quoted market prices in active markets for similar instruments; quoted prices for identical or similar instruments in markets that are considered less than active; or other valuation techniques in which all significant inputs are directly or indirectly observable from market data

Level 3: Inputs that are unobservable. This category includes all instruments for which the valuation technique includes inputs not based on observable data and the unobservable inputs have a significant effect on the instrument’s valuation. This category includes instruments that are valued based on quoted prices for similar instruments but for which significant unobservable adjustments or assumptions are required to reflect differences between the instruments.

When fair values of listed and quoted investments at the reporting date are based on quoted market prices or binding dealer price quotations in an active market, without any deduction for transaction costs, the instruments are included within Level 1 of the hierarchy. When fair values of fixed income instruments at the reporting date represent quoted prices on markets that are considered less than active, those fixed income instruments are included within Level 2 of the hierarchy.

For investment funds that are not listed, transactions may or may not occur on a regular basis and they are valued by the Sub-funds based on the net asset value (“NAV”) per unit published by the administrators of those underlying investment funds. Such NAV is adjusted when necessary, to reflect the effect of the time passed since the calculation date, liquidity risk, limitations on redemptions and other factors. Depending on the fair value level of the underlying investment funds’ assets and liabilities and whether adjustments are needed, the Sub-funds classify the fair value of those underlying investment funds as either Level 1 or Level 2.

Over-the-counter (“OTC”) derivative contracts include forward contracts related to foreign currencies. Depending on the product and the terms of the transaction, the fair value of the OTC derive products can be modelled taking into account the counterparties’ creditworthiness and using a series of techniques, including simulation models. Many pricing models do not entail material subjectivity because the methodologies employed do not necessitate significant judgements and the pricing inputs are observed from actively quoted markets. Forward foreign exchange contracts valued by the Sub-funds using pricing models fall into this category and are categorised with Level 2 of the fair value hierarchy.

8 Derivativefinancialinstruments

Derivative financial instruments represent outstanding forward foreign exchange contracts as at the year end date as follows:


Asat31December2017

Expiration Underlying

Notional amount of contracts outstanding Fair value

HK$ HK$

11 January 2018 Buy Euro/sell Hong Kong dollars 49,776,660 935,750

11 January 2018 Buy Euro/sell Hong Kong dollars 27,606,000 567,561

11 January 2018 Buy Hong Kong dollars/sell Canadian dollars 24,420,020 (534,384)

11 January 2018 Buy Hong Kong dollars/sell Euro 101,602,600 (1,700,457)

11 January 2018 Buy Hong Kong dollars/sell Japanese yen 6,963,788 22,255

11 January 2018 Buy Japanese yen/sell Hong Kong dollars 6,910,611 30,923

16 January 2018 Buy British pound/sell Hong Kong dollars 31,266,000 465,012

16 January 2018 Buy Hong Kong dollars/sell Australian dollars 29,327,500 (1,233,305)

16 January 2018 Buy Hong Kong dollars/sell British pound 31,412,400 (318,612)

16 January 2018 Buy Hong Kong dollars/sell United States dollars 250,000,000 (929,729)

18 January 2018 Buy Hong Kong dollars/sell United States dollars 350,000,000 (1,109,268)

25 January 2018 Buy Hong Kong dollars/sell United States dollars 300,000,000 (1,048,289)

31 January 2018 Buy Hong Kong dollars/sell British pound 83,325,600 (1,305,712)

9 February 2018 Buy Hong Kong dollars/sell United States dollars 400,000,000 (571,704)

20 February 2018 Buy Hong Kong dollars/sell Australian dollars 17,943,450 (379,023)

6 March 2018 Buy Hong Kong dollars/sell United States dollars 300,000,000 (125,771)


(7,372,691)





104 105


8 Derivativefinancialinstruments(continued)

BEAUnionInvestmentGlobalBondFund(continued)

Asat31December2016



HK$ HK$

9 January 2017 Buy Hong Kong dollars/sell Australian dollars 23,028,800 579,312


20 January 2017 Buy Hong Kong dollars/sell Korean won 44,391,440 1,387,691


23 January 2017 Buy Hong Kong dollars/sell Canadian dollars 52,141,500 101,016

23 January 2017 Buy Hong Kong dollars/sell British pound 212,102,000 1,226,522

6 February 2017 Buy Hong Kong dollars/sell Euro 41,257,500 297,585

6 February 2017 Buy Hong Kong dollars/sell Euro 41,870,000 910,085

14 February 2017 Buy Hong Kong dollars/sell United States dollars 200,000,000 (110,937)

21 February 2017 Buy Hong Kong dollars/sell United States dollars 200,000,000 2,143

21 February 2017 Buy Hong Kong dollars/sell United States dollars 200,000,000 12,463

21 February 2017 Buy Hong Kong dollars/sell Euro 73,150,200 (621,306)


3,622,464



Asat31December2017



HK$ HK$

31 January 2018 Buy Hong Kong dollars/sell United Stated dollars 298,353,460 (56,064)

Asat31December2016



HK$ HK$

25 January 2017 Buy Hong Kong dollars/sell United States dollars 147,366,470 78,506


Asat31December2017



HK$ HK$


Asat31December2016



HK$ HK$






106



BEAUnionInvestmentCoreAccumulationFund

Asat31December2017



HK$ HK$

31 January 2018 Buy Hong Kong dollars/sell Australian dollars 4,272,061 (86,388)

31 January 2018 Buy Hong Kong dollars/sell Euro 47,772,076 (611,395)


31 January 2018 Buy Hong Kong dollars/sell British pound 556,190 (3,381)

31 January 2018 Buy Hong Kong dollars/sell Japanese yen 23,700,710 (52,442)

(819,702)

BEAUnionInvestmentAge65PlusFund

Asat31December2017



HK$ HK$

31 January 2018 Buy Hong Kong dollars/sell Australian dollars 6,224,481 (125,869)

31 January 2018 Buy Hong Kong dollars/sell Euro 69,604,909 (890,815)


31 January 2018 Buy Hong Kong dollars/sell British pound 727,880 (4,424)

31 January 2018 Buy Hong Kong dollars/sell Japanese yen 34,532,422 (76,411)

(1,193,822)



107


9 Netgains/(losses)oninvestments





2017 2016 2017 2016 2017 2016 2017 2016HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$

Net movement in unrealised gains/(losses) on investments 467,078,330 14,513,804 326,998,632 (100,747,517) 514,976,829 61,899,548 344,643,446 21,504,927Realised gains/(losses) on investments 251,782,883 46,718,995 75,550,242 178,935,002 403,258,241 (106,015,203) 235,472,948 (5,931,384)

718,861,213 61,232,799 402,548,874 78,187,485 918,235,070 (44,115,655) 580,116,394 15,573,543




Fund



BEA Union Investment Age 65

Plus Fund (1)

2017 2016 2017 2016 2017 2016 2017 2017HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$

Net movement in unrealised gains/(losses) on investments 9,203,632 (33,156,155) 82,206,835 10,158,397 8,864,083 (2,246,050) 29,131,496 8,023,128Realised gains/(losses) on investments 29,571,754 28,542,434 46,257,764 (818,245) 28,959,311 23,688,909 238,488 100,972

38,775,386 (4,613,721) 128,464,599 9,340,152 37,823,394 21,442,859 29,369,984 8,124,100


10 TransactionswiththeManager,theTrusteeandConnectedPersons

The following is a summary of significant related party transactions or transactions entered into during the year between the Sub-funds and the Manager, the Trustee and their Connected Persons. Connected Persons are those as defined in the Code on Unit Trusts and Mutual Funds issued by the SFC. All transactions during the year between the Sub-funds and the Manager and its Connected Persons were entered into in the ordinary course of business and under normal commercial terms. No investment management fee, trustee fee and registrar’s fee will be levied on Class I units of BEA Union Investment Core Accumulation Fund and BEA Union Investment Age 65 Plus Fund. To the best of the knowledge of the Manager and the Trustee, the Sub-funds did not have any other transactions with Connected Persons except for those disclosed below.

(a) Investmentmanagementfees

The Manager is entitled to receive a management fee in respect of each class of units calculated as a percentage of the net asset value of that part of the relevant sub-fund relating to the relevant class of units as follows:

Class A Class D Class I Class R% p.a. % p.a. % p.a. % p.a.

BEA Union Investment Asia Strategic Growth Fund Nil 1.75 0.40 1.50BEA Union Investment Global Bond Fund Nil 1.10 Nil 0.85BEA Union Investment Hong Kong Growth Fund Nil 1.75 0.40 1.50BEA Union Investment Greater China Growth Fund Nil 1.75 0.40 1.50BEA Union Investment Hong Kong Dollar (HK$) Bond Fund Nil 1.00 0.30 0.75BEA Union Investment Global Equity Fund Nil 1.75 Nil 1.50BEA Union Investment Asia Pacific Investment Grade Bond Fund Nil 1.25 0.30 1.00





108 109


10 Transactionswith theManager, the Trustee and Connected Persons(continued)

(a) Investmentmanagementfees(continued)

Same rates have been applied for 2017 and 2016. The fee is calculated and accrued on each dealing day and is paid monthly in arrears.

The investment management fees charged for the year for each sub-fund are disclosed in the statement of comprehensive income. As at 31 December, the investment management fees payable for each sub-fund is as below:

2017 2016HK$ HK$

BEA Union Investment Asia Strategic Growth Fund 107,050 89,593

BEA Union Investment Global Bond Fund 29,662 30,134

BEA Union Investment Hong Kong Growth Fund 262,061 323,377

BEA Union Investment Greater China Growth Fund 264,384 200,234

BEA Union Investment Hong Kong Dollar (HK$) Bond Fund 720,160 637,768

BEA Union Investment Global Equity Fund – –

BEA Union Investment Asia Pacific Investment Grade Bond Fund 100,841 –


(b) Trustee’sfees

The Trustee is entitled to receive a trustee fee in respect of each class of units calculated as a percentage of the net asset value of that part of the relevant sub-fund relating to the relevant class of units as follows:

Class A Class D Class I Class R% p.a. % p.a. % p.a. % p.a.

BEA Union Investment Asia Strategic Growth Fund Nil 0.125 0.125 0.125

BEA Union Investment Global Bond Fund Nil 0.085 Nil 0.085

BEA Union Investment Hong Kong Growth Fund Nil 0.125 0.125 0.125

BEA Union Investment Greater China Growth Fund Nil 0.150 0.150 0.150

BEA Union Investment Hong Kong Dollar (HK$) Bond Fund Nil 0.075 0.075 0.075

BEA Union Investment Global Equity Fund Nil 0.150 Nil 0.150

BEA Union Investment Asia Pacific Investment Grade Bond Fund Nil 0.100 0.100 0.100






110 111



(b) Trustee’sfees(continued)

The trustee’s fees charged for the year for each sub-fund are disclosed in the statement of comprehensive income. As at 31 December, trustee’s fees payable for each sub-fund is as below:

2017 2016HK$ HK$






BEA Union Investment Global Equity Fund – –

BEA Union Investment Asia Pacific Investment Grade Bond Fund 10,084 –

(c) Registrar’sfees

During 2017 and 2016, the Trustee has delegated the registrar function of the Sub-funds to the Manager and agreed the Manager to receive the full registrar fee from the Sub-funds directly. The registrar fee is calculated as a percentage of the net asset value of the Sub-funds at the following rates (except Class I units of BEA Union Investment Global Bong Fund and BEA Union Investment Global Equity Fund). No registrar’s fee will be levied on Class I units of BEA Union Investment Global Bond Fund and Bea Union Investment Global Equity Fund:

For the first HK$390 million of NAV 0.050%For the next HK$78 million of NAV 0.045%For the next HK$78 million of NAV 0.040%For the next HK$78 million of NAV 0.035%For the next HK$78 million of NAV 0.030%For the next HK$78 million of NAV 0.025%For the remaining balance of NAV 0.015%



(c) Registrar’sfees(continued)

The registrar’s fees charged for the year for each sub-fund are disclosed in the statement of comprehensive income. As at 31 December, registrar’s fees payable for each sub-fund is as below:

2017 2016HK$ HK$






BEA Union Investment Global Equity Fund 21,123 16,671

BEA Union Investment Asia Pacific Investment Grade Bond Fund 28,201 19,105

(d) Bankbalances

Bank accounts are maintained with The Bank of East Asia, Limited which is the ultimate holding company of the Manager and the Trustee. The balances of these accounts are set out below:

2017 2016HK$ HK$

Asat31December


BEA Union Investment Global Bond Fund 155,371 21,609,142




BEA Union Investment Global Equity Fund 12,707 12,792

BEA Union Investment Asia Pacific Investment Grade Bond Fund 9,476 1,439

BEA Union Investment Core Accumulation Fund (1) – –

BEA Union Investment Age 65 Plus Fund (1) – –






112 113


11 Transactionswithassociates

All the transactions with associates as defined in the Hong Kong Mandatory Provident Fund Schemes Ordinance and the “Guidelines on Annual Statements of Approved Pooled Investment Funds” Annex A section I(E)(2) issued by the MPFA have been included in transaction with the Manager, the Trustee and Connected Persons as set out in note 10.

12 Bankloans,overdraftsandotherborrowings

The Sub-funds had no bank loans, overdrafts or other borrowings as at 31 December 2017 and 31 December 2016.

13 Taxation

No provision for Hong Kong profits tax has been made as dividend income, interest on bank deposits and realised gains and disposal of investments of the Sub-funds are excluded from the charge to profits tax under sections 14, 26 or 26A of the Hong Kong Inland Revenue Ordinance.

Non-recoverable overseas withholding tax was charged on certain dividend and interest income received during the year.

Non-recoverable capital gain tax was charged on certain capital appreciation of investments during the year.

14 Softcommissionarrangements

During the years ended 31 December 2017 and 2016, the Manager and its delegates did not enter into any soft commission arrangements with brokers relating to dealings in the assets of the Sub-funds.

15 Securitylendingarrangements

During the years ended 31 December 2017 and 2016, the Sub-funds did not enter into any security lending arrangements.

16 Negotiabilityofassets

As at 31 December 2017, there were no statutory or contractual requirements restricting the negotiability of the assets of the Sub-funds (2016: HK$Nil).

17 Commitments

As at 31 December 2017, the Sub-funds had no commitments (2016: HK$Nil).

18 Contingentliabilitiesandcapitalcommitment

As at 31 December 2017, there were no contingent liabilities or capital commitments outstanding (2016: HK$Nil).

19 Involvementwithunconsolidatedstructuredentities

The Sub-funds have concluded that listed real estate investment trusts, listed and unlisted open-ended investment funds and exchange-traded open-ended index-tracking funds in which they invest but are not consolidated by the Sub-funds meet the definition of structured entities because:

– the voting rights in the investment funds are not dominant rights in deciding who controls them as they relate to administrative tasks only;

– each investment fund’s activities are restricted by its prospectus; and

– the investment funds have narrow and well-defined objectives to provide investment opportunities to investors.

The table below describes the types of structured entities that the Sub-funds do not consolidate but in which they hold an interest.

Type of structured entity Nature and purposeInterest held by the Sub-funds

Investment funds To manage assets on behalf of third party investors and generate fees for the investment manager.

These vehicles are financed through the issues of units to investors.

Investments in units issued by the Sub-funds

The table below sets out interests held by the Sub-funds in unconsolidated structured entities. The maximum exposure to loss is the carrying amount of the financial assets held.

Asat31December2017

Number of investee funds Total net assets

Carrying amount included in

“investments”HK$

(in million)HK$

(in million)


Investment in listed real estate investment trust – Long position 1 158,753 31


Investment in listed open-ended investment fund

– Equity long 1 75,415 8








114 115


19 Involvementwithunconsolidatedstructuredentities(continued)

Asat31December2016

Number of investee funds Total net assets

Carrying amount included in

“investments”HK$

(in million)HK$

(in million)








Investment in exchange-traded open-ended index-tracking funds

– Equity long 2 162,561 48

During the year, the Sub-funds did not provide financial support to unconsolidated structured entities and have no intention of providing financial or other support.

20 Segmentinformation

The Manager makes the strategic resource allocation on behalf of the Sub-funds and determines the operating segments based on the internal reporting used to make strategic decisions. The Manager’s asset allocation decisions for each Sub-fund are based on one single, integrated investment strategy, and the Sub-funds’ performance is evaluated on an overall basis. Accordingly the Manager considers that each Sub-fund has one single operating segment which is investing in a portfolio of financial instruments to generate investment returns in accordance with the investment objective stipulated in the Explanatory Memorandum. The investment objectives and the investment portfolios of each Sub-fund are presented in the investment report.

There were no changes in the operating segment during the year.

The internal reporting provided to the Manager is the same as that disclosed in the statement of comprehensive income and the statement of assets and liabilities.

21 Possible impact of amendments, new standards and interpretationsissuedbutnotyeteffectivefortheyearended31December2017

Up to the date of issue of these financial statements, the HKICPA has issued a number of amendments and new standards which are not yet effective for the year ended 31 December 2017 and which have not been adopted in these financial statements. These include the following which may be relevant to the Sub-funds.

Effective for accounting periods

beginning on or after

HKFRS 9, Financial instruments 1 January 2018

HKFRS 15, Revenue from contracts with customers 1 January 2018

HK(IFRIC) 22, Foreign currency transactions and advance consideration 1 January 2018

HKFRS 16, Leases 1 January 2019

HK(IFRIC) 23, Uncertainty over income tax treatments 1 January 2019

The Manager and the Trustee are in the process of making an assessment of what the impact of these amendments and new standards is expected to be in the period of initial application. So far the Company has concluded that the adoption of them is unlikely to have a significant impact on the financial statements except for the following:

HKFRS9,Financialinstruments

HKFRS 9 replaces HKAS 39 Financial Instruments: Recognition and Measurement. It includes revised guidance on the classification and measurement of financial instruments and a new expected credit loss model for calculating impairment on financial assets. It also carries forward the guidance on recognition and derecognition of financial instruments from HKAS 39.

Classification of financial assets and financial liabilities

HKFRS 9 contains a new classification and measurement approach for financial assets that reflects the business model in which assets are managed and their cash flow characteristics.

The standard includes three principal classification categories for financial assets: measured at amortised cost, fair value through other comprehensive income (FVOCI) and fair value through profit or loss (FVTPL). It eliminates the existing HKAS 39 categories of held to maturity, loans and receivables and available for sale.





116 117


21 Possible impact of amendments, new standards and interpretationsissued but not yet effective for the year ended 31 December 2017(continued)

HKFRS9,Financialinstruments(continued)

Classification of financial assets and financial liabilities (continued)

Based on the Fund’s assessment, this standard is not expected to have a material impact on the classification of financial assets of the Fund. This is because:

– financial instruments currently classified as FVTPL under HKAS 39 are designated into this category because they are managed on a fair value basis in accordance with a documented investment strategy. Accordingly, these financial instruments will be mandatorily measured at FVTPL under HKFRS 9; and

– financial instruments currently measured at amortised cost are: amounts receivable on subscription of units, amounts receivable on sale of investments, interest receivable, amounts payable on purchase of investments, amounts payable on redemption of units and accrued expenses and other payables. These instruments meet the solely payments of principal and interest (SPPI) criterion and are held in a held-to-collect business model. Accordingly, they will continue to be measured at amortised cost under HKFRS 9.

Impairment of financial assets

HKFRS 9 replaces the “incurred loss” model in HKAS 39 with a forward-looking “expected credit loss” (ECL) model. This will require considerable judgement about how changes in economic factors affect ECLs, which will be determined on a probability-weighted basis.

The new impairment model will apply to financial assets measured at amortised cost or FVOCI, except for investments in equity instruments.

Under HKFRS 9, loss allowances will be measured on either of the following bases:

– 12-month ECLs: these are ECLs that result from possible default events within the 12 months after the reporting date; and

– lifetime ECLs: these are ECLs that result from all possible default events over the expected life of a financial instrument.

Based on the Fund’s assessment, changes to the impairment model are not expected to have a material impact on the financial assets of the Fund. This is because:

– the majority of the financial assets are measured at FVTPL and the impairment requirements do not apply to such instruments; and

– the financial assets at amortised cost are short-term (i.e. no longer than 12 months) and of high credit quality. Accordingly, the ECLs on such assets are expected to be small.

21 Possible impact of amendments, new standards and interpretationsissued but not yet effective for the year ended 31 December 2017(continued)

HKFRS9,Financialinstruments(continued)

Hedge accounting

The Fund does not apply hedge accounting; therefore, HKFRS 9 hedge accounting-related changes do not have an impact on the financial statements of the Fund.

Disclosures

HKFRS 9 will require extensive new disclosures, in particular about credit risk and ECLs. The Fund has completed an analysis to identify data gaps against current processes and is designing the system and controls changes that they believe will be necessary to capture the required data.

Transition

Changes in accounting policies resulting from the adoption of HKFRS 9 will generally be applied retrospectively, except as described below.

– The Fund will take advantage of the exemption allowing them not to restate comparative information for prior periods with respect to classification and measurement (including impairment) changes. Differences in the carrying amounts of financial assets and financial liabilities resulting from the adoption of HKFRS 9 will be adjusted to net assets attributable to unitholders as at 1 January 2018.

– The following assessments have to be made by the Fund on the basis of the facts and circumstances that exist at the date of initial application.

– The determination of the business model within which a financial asset is held.

– The designation and revocation of previous designations of certain financial assets and financial liabilities as measured at FVTPL.

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