UOBAM FTSE China A50 Index ETF Annual Report 2025 – Performance, Portfolio Holdings, Dividend Income & Financial Ratios

UOBAM FTSE China A50 Index ETF: FY2025 Financial Analysis & Investor Guidance

The UOBAM FTSE China A50 Index ETF, formerly known as United SSE 50 China ETF, has released its annual report for the financial year ended 30 June 2025. The following analysis provides investors with a detailed breakdown of key financial metrics, performance trends, fund flows, and outlook, strictly based on the disclosed report.

Key Financial Metrics

Metric	FY2025	FY2024	YoY Change
Net Asset Value (NAV)	\$21,592,297	\$19,020,445	+13.5%
Net Asset Value per Unit	\$2.1269	\$1.9300	+10.2%
Total Return for Year	\$1,850,672	(\$511,609)	Strong positive reversal
Dividends (Income)	\$781,697	\$549,057	+42.4%
Expense Ratio	1.09%	0.97%	+0.12% (slight increase)
Portfolio Turnover Ratio	49.97%	15.02%	Significant increase
Subscriptions	\$1,492,460	\$362,200	+312.0%
Redemptions	\$771,280	\$199,200	+287.2%

Historical Performance Trends

The ETF posted a strong rebound in FY2025, with NAV rising 13.5% and a total return of \$1.85 million versus a deficit of \$0.51 million last year. The NAV per unit increased 10.2%, closely matching the fund’s reported annual growth. Dividends grew substantially to \$781k (+42.4% YoY). Portfolio turnover was markedly higher, indicating more active trading and perhaps sector rotation within the A-share market.

Performance vs Benchmark

Period	Fund Return	Benchmark Return	Excess Return
1 Year (FY2025)	+10.20%	+12.28%	-2.08%
3 Year (Ann. Comp.)	-7.04%	-5.66%	-1.38%
5 Year (Ann. Comp.)	-2.04%	-0.74%	-1.30%
Since Inception (2009)	-0.89%	+2.35%	-3.24%

Exceptional Earnings or Expenses

The fund absorbed certain expenses, as the Manager provided reimbursement of \$23,600, lowering total operating expenses. There was a small net realised loss on derivatives (\$341), with no outstanding positions at year-end.

Major Holdings and Sector Allocation

Top Holdings (as of 30 June 2025):
- Kweichow Moutai Co Ltd (10.39% of NAV)
- Contemporary Amperex Technology Co Ltd (6.52%)
- China Merchants Bank Co Ltd (5.57%)
- China Yangtze Power Co Ltd (4.33%)
- BYD Co Ltd (3.53%)
Sector Allocation:
- Financials: 37.65%
- Consumer Staples: 16.75%
- Industrials: 13.92%
- Information Technology: 7.71%
- Consumer Discretionary: 5.48%

Fund Flows and Unit Activity

Subscriptions (\$1.49 million) greatly exceeded redemptions (\$0.77 million), leading to net inflows and an increase in units outstanding from 9.85 million to 10.15 million. This reflects renewed investor interest and confidence after a weak prior year.

Related-Party Transactions and Fees

Management fee: \$90,374
Trustee fee: \$6,138
Audit fee: \$27,612
Custody fee: \$20,197
Auditor (PwC) total fees: \$31,011
State Street Bank and Trust Company, Singapore Branch: held cash balances and provided custody services

Macroeconomic and Market Environment

The report highlights a resilient China A-share market, supported by targeted regulatory interventions, monetary easing, and a RMB 500 billion market stabilization fund. Sector rotation was prominent, with shifts between technology, defensive plays, and cyclical sectors. The ETF changed its benchmark index in March 2025 to FTSE China A50 Index, aligning with broader market trends.

Outlook and Strategy

The tone of management commentary is cautiously optimistic, citing strong policy support, innovation in AI and renewable energy, and attractive valuations versus global peers. Risks remain, including geopolitical tensions (US-China-Taiwan), uneven stimulus impact, and possible slowdowns in macroeconomic recovery or property sector.

Chairman’s Statement

“We remain optimistic about the fundamentals and prospects of China ‘A’ shares. Firstly, China’s central government has demonstrated a strong commitment to stabilizing the economy and financial markets through a series of targeted interventions. These include interest rate reductions, liquidity injections, and the establishment of a RMB 500 billion market stabilization fund. Such measures have helped restore investor confidence and support domestic consumption and investment. The People’s Bank of China (PBoC) maintains ample room for further monetary easing, which could provide additional tailwinds to equity markets. Secondly, China’s strategic emphasis on innovation, particularly in artificial intelligence, semiconductors, and renewable energy, is fostering the emergence of globally competitive enterprises. Domestic firms are demonstrating resilience and ingenuity, even amid external constraints such as technology export controls. This positions China’s A-share market as a key beneficiary of global megatrends in digital transformation and green development. Relative to global peers, China’s A-share market offers compelling valuation opportunities. Many international investors remain underweight in Chinese equities, creating a potential for re-rating as sentiment improves. Historical patterns suggest that periods of low foreign exposure often precede strong market recoveries, particularly when fundamentals are intact. We remain mindful of key market risks, including a potential escalation in US-China-Taiwan geopolitical tensions, a less impactful-than-anticipated stimulus response from Chinese authorities, and a slower-than-expected recovery in China’s macroeconomic conditions and property sector.”

The statement’s tone is constructive, with acknowledgement of risks but an overall positive outlook.

Events and Risks

No material contingent liabilities, legal disputes, or natural disasters reported.
No share buybacks, mandates, or major asset sales/divestments disclosed.
Regulatory changes: ETF now tracks FTSE China A50 Index as of March 2025.
Soft dollar arrangements in place, but trades executed on a best execution basis.

Conclusion & Investor Recommendations

Based strictly on the report, the UOBAM FTSE China A50 Index ETF shows a strong recovery in FY2025, with robust fund flows, higher NAV, and increased dividend income. The fund’s strategic allocation to resilient sectors and its alignment with supportive policy measures in China bode well for future performance, though risks remain in the external environment and domestic policy efficacy.

For Current Holders:

The fund has demonstrated solid performance recovery and proactive management. Given increased inflows, higher NAV, and supportive outlook, current holders may consider maintaining or modestly increasing their positions, especially if seeking exposure to China’s A-share market and sectoral growth trends.

For Non-Holders:

For investors not currently holding the ETF, the positive turnaround and policy support make it a compelling option for diversified China equity exposure. However, consider the risks highlighted—geopolitical tensions and macroeconomic uncertainties—before initiating new positions.

Disclaimer: This analysis is based solely on the contents of the official annual report and does not constitute financial advice. Investors should consider their own risk tolerance and seek professional advice before making investment decisions.