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UOBAM Announces Splitting of Units in the GEMs Sub-Fund

With effect from the last lodged prospectus (as at 27th June 2003) of the United Global Emerging Markets Portfolios (GEMs), unit holders will receive an annual income distribution of S$4.22 per 100 units (ie: 3%p.a. dividend payout). In addition, the Managers of GEMs investments S$ (the "Sub-Fund") will be undertaking an exercise to sub-divide the units (i.e.: splitting the units) of the Sub-Fund with effect from 25th July 2003 (the "Effective Date"). Unit holders of the Sub-Fund have been provided the 21 days' notice of the sub-division of units, as of 2nd July 2003.

Each of the units in the Sub-Fund (including fractions) will be sub-divided into 1 1/3 units accordingly (ie: 3 units into 4 units). The sub-division of units will lower the market price per unit of the Sub-Fund. However, this will not affect the total value of the investments in any way.

To illustrate this, please refer to the numerical example provided: If a unit holder has 9,000 units, each worth about $1.40, the total value before the spilt will be $12,600 (9,000 units * $1.40). After the split, the total number of units held will be exactly 12,000 (ie: 3 units into 4 units). The post split price from $1.40 should be exactly $1.40 * 3/4= $1.05. So the 12,000 units will have a value of 12,000 * $1.05 = $12,600 (i.e.: no change in total value).

With a lower unit price, this will improve the affordability of the Sub-Fund. Further, a lower market price may also attract more investors to the Sub-Fund, resulting in a wider asset base. A larger fund size would normally provide better economies of scale for the Sub-Fund, leading to potentially higher returns for the unit holders.

The sub-division of units does not prejudice unit holders of their existing rights in the Sub-Fund. The sub-division exercise will be effected for all units of the Sub-Fund issued prior to the Effective Date.

Why re-launch Global Emerging Markets (GEMs)?

Undoubtedly, this may be a new and unfamiliar asset class, appearing unpredictable to the untrained eye, but UOBAM believes that investments in emerging markets are likely to continue to yield positive results in the long term. Launched in August 2001, GEMs, a 5-star Mercer rated fund has shown an impressive annualized return of 20.03%¹.

GEMs is largely based on the S&P AAA-rated Emerging Markets Liquid Investment Portfolio (EMLIP), which invests in emerging countries' sovereign debts. EMLIP has recorded an annualized return of 21.04% p.a². Over the last 10 years despite trying times like the 1994 Tequila Crisis in Latin America, 1998 Russian Debt and Asian financial crisis and the Argentinean debt crisis in 2001.

Subscription Details

GEMs Investments

Investors can invest in the Singapore Dollar denominated Sub-Fund with a minimum initial investment of S$1,000. The subsequent investment amount required is S$500. Alternatively, one can choose to invest via the UOBAM Regular Savings Plan which requires monthly investments of S$100 after the minimum initial investment amount of S$1,000.

During this re-launch, there are special sales charge discounts available:
•$10,000 - $49,999 :20% discount off sales charge (4% sales charge)
•$50,000 - $99,999 : 30% discount off sales charge (3.5% sales charge)
•$100,000 & above : 40% discount off sales charge (3% sales charge)

Complimentary Insurance Coverage

UOBAM has arranged with UOB Life Assurance to provide free life insurance coverage. Its protection in the event of death or total and permanent disability is 25% of your investment's market value, up to $125,000. For instance, if the value of your investment is S$100,000, your coverage is S$25,000.

The United Global Emerging Market Portfolios will be retailed at all United Overseas Bank (UOB) Group branches and Invest Shops, UOB Kay Hian, ABN-AMRO Bank, American Express Bank, DollarDex, GK Goh, DMG, Finatiq, Fundsupermart, First Independent, iFAST Financial, Philip Securities & Standard Chartered Bank*.

* Terms and conditions apply for various distributors

For more information, please call 1800 22 22 228. Alternatively, interested investors can visit the Fund's web site at www.uobam.com.sg

FACT SHEET

GEMs is brought to you by Singapore's most awarded fund manager, UOB Asset Management, in collaboration with UK based award winning fund manager specializing in emerging markets, Ashmore Investment Management Limited.

About UOB Asset Management

UOB Asset Management Ltd (UOBAM) is a wholly-owned subsidiary of UOB Group. Established in 1986, UOBAM managed over S$18.1 billion in clients' funds as of 31st May 2003. UOBAM is one of the largest unit trust managers in Singapore in terms of assets under management.

UOBAM has been managing collective investment schemes and discretionary funds in Singapore for 16 years.

UOBAM offers global investment management expertise to institutions, corporations and individuals, through customised portfolio management services and unit trusts. Currently the company has 37 unit trusts (with a total of 53 funds and sub-funds altogether) in Singapore and 7 unit trusts in Malaysia, with total assets of about S$2.19 billion under management as of 31 May 2003.

About Ashmore Investment Management

Established in 1992, UK based Ashmore Investment Management Limited (Ashmore) is a dedicated fund manager which specialises in emerging market debt. Ranked amongst the first 3 in Nelson's Top Money Managers, Ashmore is arguably the world's leader in emerging market bonds. As of 31 March 2003, Ashmore managed approximately US$2.4 billion in emerging market debt investments.

Ashmore is regulated by the Investment Management Regulatory Organisation (IMRO).

Notes to Editors

UOBAM maintains its standing as Singapore's most awarded fund manager for the seventh year running, bringing its total number of awards won to 51 since 1996. This stellar achievement is attributed to a research intensive approach, and sticking to fundamentals to uncover values in the market.

Graph 1 - Total number of awards won from the Singapore Investment Fund Awards and the Singapore Standard & Poor's Investment Fund Awards from 1996 to present.

Footnotes:

1. Source: S&P Micropal. Based on bid-bid, in S$ from 31 August 2001 to 30 May 2003. Returns are calculated net of fees with dividends reinvested.
2. Source: S&P Micropal. Based on bid-bid, in S$ from 30 November 1992 to 30 May 2003. Returns are calculated net of fees with dividends reinvested.

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