Ucap Hong Kong Asset Management Limited

Weekly Equity Review

30th October 2018

Equity Highlights

Performance

Total return performance on both the portfolios and the indices

ScheduleImportant Events This Week

Tuesday: EU GDP,

Wednesday: EU CPI, DOE Crude Inventories

Thursday:China Caixin, BOE Meeting, US Jobless Claims, US ISM

Manufacturing

Friday: US GDP Monthly Job Report

Monday: US ISM Services

Strategy Network Infrastructure: Cell Towers

30 October, 2018

Japanese Global Leaders2018 -10.16% vs -10.53% / 0.37% alpha

Weekly -7.50% vs -5.72% / -1.78% alpha

Since Inception 2.55% vs 1.47% / 1.08% alpha

Since August 2017 Benchmark: Topix

Next-Gen Leaders2018 12.77% vs 8.00% / 4.77% alpha

Weekly -4.38% vs -3.58% / -0.79% alpha

Since Inception 29.33% vs 18.06% / 11.27% alpha

Since July 2017 Benchmark: Nasdaq

European Global Leaders2018 -1.60% vs -7.55% / 5.95% alpha

Weekly -2.15% vs -2.36% / 0.21% alpha

Since Inception 123.16% vs 79.54% / 43.62% alpha

Since August 2011 Benchmark: EuroStoxx 50

US Global Leaders2018 7.01% vs 0.97% / 6.03% alpha

Weekly -3.80% vs -3.93% / 0.13% alpha

Since Inception 195.30% vs 153.39% / 41.91% alpha

Since August 2011 Benchmark: S&P 500

Network Infrastructure: Cell Towers

American Tower (mkt. cap. $64.1bn)

Largest cell tower operator in the world by marketcap

Delivered 24% annual dividend per share growth

since 2012; expected to continue in 2018

Overseas expansion: One of few tower REITs to

meaningfully invest in overseas footprint; sizeable

exposures in LatAm and India

4G penetration in India remains low at 23% and

should drive demand for towers

Reports 3Q results today

Dividend Yield (2017): 2.0%

Crown Castle International (mkt cap. $43bn)

Largest cell tower operator by US footprint

US pure-play, divested its only international assets

in 2004

5G expansionwill be driven by two kinds of

physical network infrastructure 1) small cells and2) dark fibre

For the past decade or so, CCI has worked to

amass as much of this infrastructure as possible.

CCI will be earliest recipient of sustained 5G

densification capex from major carriers.

7-8% long-term dividend growth

Dividend Yield (2017): 3.9%

Crown Castle International

American Tower

30 October, 2018

Investment Recommendations

30 October, 2018

Global Leaders

The Global Leaders are quality companies that we believe are fit for long-term investment.We launched this strategy in August 2011. Please check our website for a full explanation of this strategy.

European Portfolio US Portfolio

Benchmark: S&P 500Benchmark: Euro Stoxx 50*Since August 2011

Portfolio Benchmark Delta Annualized

Performance 195.30% 153.39% 41.91% 16%

Weekly Perf. -3.8% -3.9% 0.1%

Performance YTD 7.01% 0.97% 6.03%

Volatility 13.1% 13.5% -0.4%

Max DrawDown -13.1% -13.0% -0.2%

Portfolio Benchmark Delta Annualized

Performance 123.16% 79.54% 43.62% 12%

Weekly Perf. -2.2% -2.4% 0.2%

Performance YTD -1.60% -7.55% 5.95%

Volatility 14.6% 19.6% -5.0%

Max DrawDown -18.7% -27.8% 9.1%

Index Benchmark240

190

140

90

40

-10

Index Benchmark170

150

130

110

90

70

50

30

10

-10

30 October, 2018

Global Leaders – Current List

European Portfolio US Portfolio

Name Mkt Cap ($bn) Sector

Apple 904 Information Technology

Amazon 767 Consumer Discretionary

Microsoft 731 Information Technology

Alphabet 729 Information Technology

Facebook 511 Information Technology

Berkshire Hathaway 482 Financials

JP Morgan 369 Financials

Johnson & Johnson 333 Health Care

Exxon 326 Energy

Bank of America 297 Financials

Visa 262 Information Technology

Chevron 240 Energy

Verizon 199 Telecommunication Services

AT&T 197 Telecommunication Services

Citigroup 173 Financials

Merck & Co 156 Health Care

Walt Disney 152 Consumer Discretionary

Pepsico 140 Consumer Staples

Adobe 113 Information Technology

Medtronic 110 Health Care

Nike 110 Consumer Discretionary

Honeywell 107 Industrials

Accenture 103 Information Technology

Goldman Sachs 92 Financials

Costco 86 Consumer Staples

Bristol Myers 84 Health Care

Starbucks 80 Consumer Discretionary

Name Mkt Cap ($bn) Sector

Banks ETF 1080 Banks

RDSA (GBP) 295 Energy

RDSA (EUR) 295 Energy

Nestlé 239 Consumer Staples

Novartis 202 Health Care

ABInbev 197 Consumer Staples

Roche 195 Health Care

HSBC 194 Financials

LVMH 177 Consumer Discretionary

Total 165 Energy

Unilever PLC 161 Consumer Staples

Unilever NV 161 Consumer Staples

SAP 140 Information Technology

L'Oréal 133 Consumer Staples

Novo Nordisk 117 Health Care

Allianz 105 Financials

Inditex 99 Consumer Discretionary

BNP 93 Financials

Airbus 92 Industrials

Astrazeneca 89 Health Care

Daimler 85 Consumer Discretionary

ASML 84 Information Technology

Kering 73 Consumer Discretionary

BMW 71 Consumer Discretionary

AXA 66 Financials

Vinci 60 Industrials

Heineken 60 Consumer Staples

Reckitt Benckiser 55 Consumer Staples

Fresenius 43 Health Care

Philips 40 Health Care

Dassault Systemes 34 Information Technology

Essilor 30 Health Care

Ferrari 26 Consumer Discretionary

Ubisoft 11 Information Technology

30 October, 2018

Next-Gen Leaders

We have introduced a Japanese version of the Global Leaders portfolio in August 2018.Please check our website for more details.

Next-Gen Leaders

Benchmark: Nasdaq

*Since August 2018

Portfolio Benchmark Delta

Performance 29.33% 18.06% 11.27%

Performance5D -4.4% -3.6% -0.8%

PerformanceYTD 12.77% 8.00% 4.77%

Volatility 20.3% 17.6% 2.7%

Max DrawDown -17.1% -11.3% -5.8%

Index Benchmark60

50

40

30

20

10

0

-10

30 October, 2018

Japanese Global Leaders

We have introduced a Japanese version of the Global Leaders portfolio in September 2017.Please check our website for more details.

Japan Portfolio

Benchmark: Topix

*Since September 2017

Portfolio Benchmark Delta

Performance 2.55% 1.47% 1.08%

Weekly Perf. -7.5% -5.7% -1.8%

Performance YTD -10.16% -10.53% 0.37%

Volatility 17.6% 14.2% 3.4%

Max DrawDown -18.6% -14.9% -3.7%

NameMkt Cap

($bn) Sector

Toyota Motor 199.6 Consumer Discretionary

Softbank Group 107.6 Telecommunication Services

Keyence 67.4 Information Technology

Nintendo 48.2 Information Technology

Nidec 42.7 Industrials

Kao 38.8 Consumer Staples

Shiseido 27.1 Consumer Staples

Komatsu 27.0 Industrials

Terumo 21.8 Health Care

Recruit Holdings 53.6 Industrials

Fujitsu 75.5 Consumer Discretionary

Index Benchmark30

20

10

0

-10

30 October, 2018

2018 Investment Themes

The Global Leaders represent our Core investment portfolios in equities.In addition to this, we offer some Satellite trading ideas:Stock Picking, ETFs and Investment Themes

Strategy Country Name Ticker Exch Code Date Ref. Perf.

Consumer Video Games Global Activision Blizzard ATVI US 9-May-17 26.7%

Video Games Global Nintendo 7974 JT 9-May-17 22.2%

Video Games Global Ubisoft UBI FP 9-May-17 88.9%

Video Games Global Electronic Arts EA US 9-May-17 0.2%

Video Games Global Take-Two Interactive TTWO US 3-Jul-18 1.6%

Video Games Global Logitech LOGN SW 3-Jul-18 -15.7%

Digital Payment Global Paypal PYPL US 10-Apr-18 8.6%

Digital Payment Global Square SQ US 10-Apr-18 48.8%

Digital Payment Global Wirecard WDI GY 10-Apr-18 58.7%

Media Global Walt Disney DIS US 19-Jun-18 7.5%

Media Global CBS CBS US 19-Jun-18 -4.4%

Media Global Comcast CMCSA US 19-Jun-18 8.6%

Media Global Vivendi VIV FP 19-Jun-18 2.0%

Strategy Country Name Ticker Exch Code Date Ref. Perf.

China China Social Networks China Momo MOMO US 20-Nov-17 -6.4%

China Social Networks China YY YY US 20-Nov-17 -49.4%

China Social Networks China Weibo WB US 20-Nov-17 -52.6%

China Educational Services China Tal Education TAL US 28-Nov-17 -1.5%

China Educational Services China New Oriental EDU US 28-Nov-17 -35.6%

China Consumer Technology China Baidu BIDU US 13-Dec-17 -19.2%

China Consumer Technology China Tencent 700 HK 13-Dec-17 -34.1%

China Consumer Technology China Alibaba BABA US 13-Dec-17 -19.0%

China Investment Bank China Citic Securities 6030 HK 6-Jun-18 -30.0%

China Investment Bank China China Intl Capital 3908 HK 6-Jun-18 -27.8%

30 October, 2018

2018 Investment Themes

The Global Leaders represent our Core investment portfolios in equities.In addition to this, we offer some Satellite trading ideas:Stock Picking, ETFs and Investment Themes

Strategy Country Name Ticker Exch Code Date Ref. Perf.

Corporate IT Engineering Software Global Ansys ANSS US 17-Oct-17 10.7%

Engineering Software Global Dassault Systemes DSY FP 17-Oct-17 23.1%

Engineering Software Global Autodesk ADSK US 17-Oct-17 5.0%

Cybersecurity US Check Point CHKP US 22-Jan-18 3.2%

Cybersecurity US Fortinet FTNT US 22-Jan-18 70.5%

Cybersecurity US Blackberry BB US 22-Jan-18 -32.5%

Cybersecurity US Palo Alto Network PANW US 22-Jan-18 20.5%

Cybersecurity US Symantec SYMC US 22-Jan-18 -29.0%

IT Services Global IBM IBM US 6-Mar-18 -18.1%

IT Services Global Cap Gemini CAP FP 6-Mar-18 2.6%

IT Services Global Accenture ACN US 6-Mar-18 -0.5%

IT Services Global DXC Technology DXC US 6-Mar-18 -16.5%

IT Services Global Cognizant CTSH US 6-Mar-18 -14.6%

Software as a Service US Servicenow NOW US 16-Apr-18 -1.6%

Software as a Service US Salesforce.com CRM US 16-Apr-18 13.5%

Software as a Service US Workday WDAY US 16-Apr-18 -4.9%

Semi. Capital Equipment Global Applied Material AMAT US 15-May-18 -39.7%

Semi. Capital Equipment Global Asml Holding ASML NA 15-May-18 -11.9%

Semi. Capital Equipment Global Lam Research LRCX US 15-May-18 -30.3%

Data Center REITs US Equinix EQIX US 21-Aug-18 -11.0%

Data Center REITs US Digital Realty Trust DLR US 21-Aug-18 -13.0%

30 October, 2018

2018 Investment Themes

The Global Leaders represent our Core investment portfolios in equities.In addition to this, we offer some Satellite trading ideas:Stock Picking, ETFs and Investment Themes

Strategy Country Name Ticker Exch Code Date Ref. Perf.

Materials Lithium-Ion Batteries Global Freeport-McMoran FCX US 27-Feb-18 -39.2%

Lithium-Ion Batteries Global Eramet ERA FP 27-Feb-18 -40.0%

Lithium-Ion Batteries Global Glencore GLEN LN 27-Feb-18 -17.7%

Lithium-Ion Batteries Global MMC Norilsk MNOD LI 27-Feb-18 -10.6%

Lithium-Ion Batteries Global Quimica SQM US 27-Feb-18 -16.8%

Lithium-Ion Batteries Global Umicore UMI BB 27-Feb-18 -8.1%

Paper & Packaging Global Westrock WRK US 21-Mar-18 -34.9%

Paper & Packaging Global International Paper IP US 21-Mar-18 -14.7%

Paper & Packaging Global Billerudkorsnas BILL SS 21-Mar-18 -12.5%

Paper & Packaging Global Mondi MNDI LN 21-Mar-18 0.2%

Paper & Packaging Global Smurfit Kappa SKG ID 21-Mar-18 -12.7%

Strategy Country Name Ticker Exch Code Date Ref. Perf.

Telecoms Cell Tower Operators US Crown Castle CCI US 13-Mar-18 -4.5%

Cell Tower Operators US American Tower AMT US 13-Mar-18 4.0%

Industrials Logistics Services Global UPS UPS US 28-Mar-17 3.9%

Logistics Services Global Fedex FDX US 28-Mar-17 12.5%

Logistics Services Global Deutsche Post DPW GY 28-Mar-17 -1.3%

Factory Robotization Japan Fanuc 6954 JT 19-Sep-17 -17.3%

Factory Robotization Japan Yaskawa Electric 6506 JT 19-Sep-17 -19.1%

Factory Robotization Japan Keyence 6861 JT 19-Sep-17 -14.6%

Defense Contractors Global Northrop Grumman NOC US 18-Jul-18 -16.3%

Defense Contractors Global Raytheon RTN US 18-Jul-18 -11.8%

Defense Contractors Global Thales HO FP 18-Jul-18 -0.8%

Defense Contractors Global Leonardo LDO IM 18-Jul-18 2.3%

Financials US Regional Banks US Tracker - Equally Weighted KRE US 4-Jun-18 -18.8%

US Regional Banks US Tracker - Mkt Cap Weighted IAT US 4-Jun-18 -14.2%

30 October, 2018

2018 Stock Picking Ideas

The Global Leaders represent our Core investment portfolios in equities.

In addition to this, we offer some Satellite trading ideas: Stock Picking, ETFs and Investment Themes

Country Name Ticker Exch Code Date Ref. Perf.

Europe KBC KBC BB 21-Jul-17 -4.8%

US CVS CVS US 10-Jan-18 -6.9%

Europe Vivendi VIV FP 25-Jan-18 -4.9%

Europe Thales HO FP 8-Feb-18 30.3%

30 October, 2018

Disclaimer

30 October, 2018

Ucap Hong Kong Asset Management Ltd has issued this document for information purposes only. This document may not be distributed to the United States,Canada, Australia or to any other jurisdiction in which its distribution is unlawful. If you require investment advice or wish to discuss the suitability of any investmentdecision, you should contact your professional advisers for financial, legal or tax advice when appropriate. This document is not and should not be construed as anoffer to sell or a solicitation of an offer to purchase or subscribe for any investment or service.

Ucap Hong Kong Asset Management Ltd has based this document on information obtained from sources it believes to be reliable but which it has not independentlyverified. Ucap Hong Kong Asset Management Ltd makes no guarantees, representations or warranties, and accepts no responsibility or liability as to its accuracy orcompleteness. Expressions of opinion herein are subject to change without notice.

Members of the Ucap Hong Kong Asset Management Ltd and/or their officers, directors and employees may have positions in any securities mentioned in thisdocument (or any related investment) and may from time to time add to or dispose of any such securities (or investment).

In the case where this document is distributed in the United Kingdom by a person who is not authorized by the United Kingdom Financial Services Authority; it isonly intended for persons who (i) have professional experience in matters related to investments or (ii) are persons falling within Article 49(2)(a) to (d) ("high networth companies, unincorporated associations, etc") of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (as amended) or to whom itmay otherwise lawfully be communicated by such an unauthorized person (all such persons together being "relevant persons"). This communication must not beacted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this document relates is available only to relevantpersons and will be engaged in only with relevant persons.

Past performance is not necessarily a guide to future performance. The value of any investment or income may go down as well as up and you may not receive backthe full amount invested. When an investment is denominated in a currency other than your local or reporting currency, changes in exchange rates may have anadverse effect on the value, price or income of that investment. In the case of investments for which there is no recognized market, it may be difficult for investorsto sell their investments or to obtain reliable information about their value or the extent of the risk to which they are exposed. Investment in any market may beextremely volatile and subject to sudden fluctuations of varying magnitude due to a wide range of direct and indirect, influences. Such characteristics can lead toconsiderable losses being incurred by those exposed to such markets.

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