UOBAM Ping An ChiNext ETF: Semi-Annual Financial Analysis (31 December 2025)

The UOBAM Ping An ChiNext ETF, part of United ETF Series 1, offers exposure to China’s innovation-led growth sectors through the ChiNext Index. The semi-annual report for the period ended 31 December 2025 provides insights into the fund’s performance, investment strategy, and financial position. This article analyzes key financial metrics, historical trends, exceptional items, and outlook, aiming to support informed decisions for investors.

Key Financial Metrics

Historical Performance Trends

• Fund performance for the half-year ended 31 December 2025 shows a strong rebound, with a total return of \$1,202,074, compared to \$469,697 for the same period last year and \$232,844 for the previous half-year.
• The NAV increased 8% YoY and 32% QoQ, indicating capital appreciation and positive fund flows.
• Expense ratio rose to 3.12% from 2.52% last year, mainly due to higher operating expenses amid increased activity.
• Portfolio turnover ratio surged to 14.71%, reflecting more active trading, possibly due to index changes and sector rotation.

Exceptional Items and Related-Party Transactions

• There was a net realised loss of SGD 321 on derivative contracts during the period, indicating limited but negative exposure to derivatives.
• Operating expenses were partially offset by reimbursement from the manager, totaling \$14,040, down from \$23,000 in the same period last year.
• Related-party cash balances with State Street Bank and Trust Company, Singapore Branch stood at SGD 5,720 as at 31 December 2025.
• Unusual fund flows: redemptions (\$1,046,671) outpaced subscriptions (\$540,462), potentially reflecting profit-taking after strong gains.

Market and Economic Environment

China’s A-share market demonstrated resilience amid volatility, supported by structural growth themes and policy alignment. The government’s focus on innovation, hard technology, and domestic self-sufficiency, particularly through the “AI+” framework and energy-storage expansion, contributed to long-term capital inflows. However, elevated valuations in the technology sector and concerns over global macro risks led to selective de-risking and periodic pullbacks.

Chairman’s Statement and Tone

The report’s outlook is constructive, reflecting confidence in China’s equity markets, especially as a weaker U.S. dollar is likely to support capital flows into Asia. The tone is cautiously optimistic, with warnings about potential volatility, global growth risks, and U.S.–China trade tensions. The key statement is:

“We remain constructive on China’s equity markets in the coming year, particularly as a weaker U.S. dollar is likely to support renewed investor interest and capital flows into emerging markets, especially across Asia. The AI theme is likely to remain robust over the medium to long term, continuing to benefit companies embedded in China’s domestic AI supply chain. However, much of the early upside has already been realized, and a more selective approach is warranted in the near term. … Positioning and valuations across China’s equity markets remain well below historical peaks, suggesting meaningful room for further upside.”

Investment Strategy and Forecasts

• The fund’s strategy is to remain exposed to technology-centric and innovation-led growth sectors, with a selective approach to AI and related industries.
• Expectations for further upside are supported by relatively low valuations compared to historical peaks.
• Risks include stagflationary pressures in the U.S., renewed strength of the U.S. dollar, softness in China’s domestic economy, and trade tensions.

Conclusion & Recommendations

Overall, the UOBAM Ping An ChiNext ETF’s financial performance and outlook appear strong. The fund delivered robust returns and NAV growth, benefiting from China’s policy support and innovation-driven sectors. While expense ratios and portfolio turnover increased, this reflects greater activity and repositioning. The outlook is positive, but investors should be mindful of potential volatility and macroeconomic risks.

• If you are currently holding this ETF: Consider maintaining your position, as the fund’s exposure to China’s innovation sectors and constructive outlook suggest further upside potential. However, monitor for increased volatility and be prepared to adjust if macro risks escalate.
• If you are not holding this ETF: This may be an opportune time to consider entry, given the fund’s strong performance, attractive relative valuations, and positive outlook. A selective approach is warranted, particularly in technology and AI sectors, where early gains have already materialized.

Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Please consult your financial advisor before making any investment decisions.

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