Docstoc

BEA Union Investment Series

Document Sample
BEA Union Investment Series Powered By Docstoc
					BEA Union Investment Series




                          ANNUAL REPORT (Audited)
                         For the year ended 31 December 2010




   Investment Manager:
BEA UNION INVESTMENT SERIES
FOR THE YEAR ENDED 31 DECEMBER 2010


CONTENTS                                              PAGE(S)

MARKET COMMENTARY                                         1-9

TRUSTEE’S REPORT                                           10

INVESTMENT REPORT                                       11-44

INDEPENDENT AUDITOR’S REPORT                            45-46

STATEMENT OF COMPREHENSIVE INCOME                       47-50

STATEMENT OF ASSETS AND LIABILITIES                     51-54

STATEMENT OF CHANGES IN EQUITY/STATEMENT OF
  CHANGES IN NET ASSETS ATTRIBUTABLE TO UNITHOLDERS     55-56

CASH FLOW STATEMENT                                     57-60

DISTRIBUTION STATEMENT                                     61

NOTES ON THE FINANCIAL STATEMENTS                      62-115

MANAGEMENT AND ADMINISTRATION




EAM17 Annual Report 2010
BEA UNION INVESTMENT SERIES


MARKET COMMENTARY


BEA Union Investment Japan Growth Fund

The MSCI Japan Index rose 4.10% (in JPY terms) in September 2010. Positive returns
in Japan could, to an extent, be attributed to the Bank of Japan’s intervention to halt
the yen’s rise, as well as the modestly positive business conditions as measured by the
Tankan survey, which came in better-than-expected at the end of 3Q10. The information
technology, consumer discretionary, materials, and industrial sectors produced
positive returns in September 2010. However, utilities, financials, healthcare, and
consumer staples lagged behind the broader market. Japanese share prices weakened
in October 2010, underperforming other markets both on a US dollar and a local
currency basis. The yen’s continued rise was the major driver behind this poor
performance, with the currency reaching its highest level against the US dollar since
1995. Despite a bullish mood amongst international investors on the back of expectations
of a further round of quantitative easing by the Federal Reserve and better-than-
expected macroeconomic data both globally and in Japan, market sentiment over
Japanese equities failed to improve.

The TOPIX index slightly underperformed global equity markets despite a rise of 4.4%
in December 2010 in local currency terms. The yen strengthened some 3.2% against the
US dollar over the month. Investors continued to find comfort from the more supportive
global economic backdrop fuelled by further quantitative easing and tax cuts in the US
as well as similar incentives domestically for individuals and corporations. Net buying
by non-domestic investors helped support the Japanese market. Mid/small cap stocks
performed particularly well as investors focused on their attractive valuations. External
demand-related sectors which had outperformed strongly in prior months had more
muted performances as export demand for these sectors slowed sharply.

On 11 March 2011, Japan was struck by the most powerful earthquake in the nation’s
recorded history. The devastating earthquake had a significant impact on the Japanese
stock market. The Nikkei 225 lost about 6.2% on 14 March 2011. Some stocks saw major
declines, including Tokyo Electric Power, East Japan Railway, Tokyo Marine Holding, and
automobile manufacturers (with Toyota down by 8%). We expect the Japanese stock
market to be very volatile in the near term if the distress situation continues. Moreover,
the damage from the massive earthquake is likely to impact Japan’s economic recovery
and development. Nevertheless, Japan has shown a great deal of solidarity in the face of
adversity. The Bank of Japan has provided emergency funding worth hundreds of billions
US dollars, and major consumer-goods companies have announced their readiness to
donate money for rebuilding.




                                            1
BEA UNION INVESTMENT SERIES


MARKET COMMENTARY (CONTINUED)


BEA Union Investment Global Themes Fund

In the beginning of 4Q10, most international stock markets posted price gains. Markets
were boosted by a good 3Q10 earnings season as well as by the prospect of another
round of quantitative easing by the Federal Reserve. In Europe, the economic upswing
continued with Germany remaining as the driving force in the eurozone. The Bank
of Japan announced to buy long-term and short-term government bonds in order to
support the sluggish Japanese economy. The Japanese stock market performed much
weaker than other developed markets in 2010, mainly due to the strong yen. In Asia
the Chinese stock exchange led the pack, increasing by about 12% despite a surprising
interest rate hike.

In December 2010 the international stock markets posted price increases with the
MSCI World index rising 5.6%. The main reasons for this upward movement included
positive economic figures, with the ISM index performing better than expected, and a
noticeable improvement in consumer confidence. The Euro Stoxx 50 advanced by 5.4%
MoM in December 2010. Especially in demand were cyclicals, meaning stocks with a high
dependence on economic growth. However, defensive industries like healthcare and
telecommunications underperformed. In Japan, the stock market continued its upward
movement in December leading the Nikkei index 2.9% higher. For the first time in six
months, industrial production was higher in November 2010 than in October 2010.
However, the anticipated economic slowdown in China is expected to have a dampening
effect on Japanese exports. Restrictive monetary taken by the People’s Bank of China
(“PBOC”), including interest rate hikes in October and December 2010 and numerous
increases of the minimum reserve ratio, had a negative impact on market development.
Investors withdrew money from the Chinese stock market to invest in South East Asia.




                                          2
BEA UNION INVESTMENT SERIES


MARKET COMMENTARY (CONTINUED)


BEA Union Investment Global Resources Fund

The international stock market suffered slight losses in November 2010 with the MSCI
World index declining by 0.5%. In US, the Fed unveiled a plan to boost the ailing
economy by buying further US Treasuries worth 600 billion dollars (in a programme
known as “QE2”). This buy programme will last until mid 2011. Investors feared that
the debt crisis in Ireland could spread to other countries in the Eurozone. In 4Q10, the
European Union and the International Monetary Fund (“IMF”) agreed on an emergency
package for Ireland worth 85 billion euros, with 17.5 billion euros paid by Irish pension
funds. Asian investors were disturbed by the repeated increase of the minimum reserve
ratio in China. The PBOC increased the ratio with an aim to curtail credit lending and
inflationary risks. The price of gold continued with its altitude flight, reaching another
all-time high this year. On the other hand, industrial metals came under selling pressure,
mainly due to a decrease in the volume of industrial metals imported by China.

In December 2010 the international stock markets posted price increases with the
MSCI World index rising 5.6%. The main reasons for this upward movement included
positive economic figures, with the ISM index performing better than expected, and a
noticeable improvement in consumer confidence. The Euro Stoxx 50 advanced by 5.4%
MoM in December 2010. Especially in demand were cyclicals, meaning stocks with a high
dependence on economic growth. However, defensive industries like healthcare and
telecommunications underperformed. In Japan, the stock market continued its upward
movement in December 2010 leading the Nikkei index 2.9% higher. For the first time in
six months, industrial production was higher in November 2010 than in October 2010.
However, the anticipated economic slowdown in China is expected to have a dampening
effect on Japanese exports. Restrictive monetary taken by PBOC, including interest rate
hikes in October and December 2010 and numerous increases of the minimum reserve
ratio, had a negative impact on market development. Investors withdrew money from
the Chinese stock market to invest in South East Asia. The price for crude oil climbed to
a record high of US$91 per barrel towards the end of 4Q10. Precious metals also headed
higher, with gold reaching another all-time high.

Given the power shortages and the shutdown of some Japanese plants subsequent to the
devastating earthquake in March 2011, regional steel and petrochemical spot prices may
increase, benefitting the steel and chemical industries in resource-rich countries.




                                            3
BEA UNION INVESTMENT SERIES


MARKET COMMENTARY (CONTINUED)


BEA Union Investment Asian Bond and Currency Fund

In 3Q10, the Bank of Japan set the target overnight call rate to a range of 0 to 0.1%.
The PBOC raised its 1-year lending and 1-year deposit rates by 25 basis points each
to 5.56% and 2.50% respectively. The Bank of Thailand maintained its policy rate at
1.75%. South Korea’s economic growth slowed sharply in 3Q10 on weaker exports and
manufacturing as prospects for the global recovery turn cloudy. The Asian Development
Bank sold RMB1.2 billion of 10-year bonds in Hong Kong. Yields rose for all maturities
in Korea and Malaysia, and most maturities in Indonesia, Singapore and Thailand, but
fell for most maturities in Hong Kong. In anticipation of a prolonged period of sluggish
global economic growth, interest rates in major markets may remain low for an extended
period.

Despite aggressive administrative price intervention and intensified monetary tightening,
China’s CPI surged 5.1% YoY in November 2010. On 25 December 2010, the PBOC
hiked policy rates for the second time in 2010, raising the 1-year benchmark deposit
and lending rates by 25 basis points each to 2.75% and 5.81% respectively in an effort
to slow a flood of liquidity which has been fanning inflation and driving up property
prices. The Bank of Korea kept its 7-day repurchase rate on hold at 2.5%. The yield
on the 3% bond due in December 2013 was 3.36%. Singapore’s industrial production
rose at the fastest pace in six months as electronics and pharmaceutical manufacturers
increased output to meet demand. In addition, Singapore’s CPI inflation accelerated to
3.8% YoY in November 2010, mainly led by housing costs. The government of Singapore
will sell SGD1.1 billion worth of seven-year bonds with a 2.5% coupon. The yield on the
benchmark five-year note due in July 2015 was 1.398%. With expectations of inflation,
interest rates in certain markets may start to go up. In addition, the market generally
expects that the RMB and other Asian currencies are going to have room for appreciation
in 1H11.




                                           4
BEA UNION INVESTMENT SERIES


MARKET COMMENTARY (CONTINUED)


BEA Union Investment Four Seasons Fund

Bonds

In the US, consumer confidence rose slightly in October 2010 (to 50.2 from a revised 48.6
in September) but still remained close to historic lows. US Treasury rates were buffeted
by mixed economic news but supported overall by the second round of quantitative
easing, which was announced in early November 2010. Until unemployment and
economic growth notably improve, rates seem likely to remain low and range-bound for
some time to come.

Although the markets are hopeful thanks to the economic recovery in the US and
the extension of the Bush tax cuts, there are still pressures from the debt problem in
Europe and escalating tensions on the Korean Peninsula. On 17 December 2010, Irish
10-year government bond yields rose 7.5 basis points to 8.522%, widening the yield
gap over German bunds, after Moody’s cut Ireland’s credit rating from Aa2 to Baa1.
On 23 December 2010, Portugal’s long-term and local currency ratings were lowered by
one notch to A-plus with a “negative” outlook. US Treasuries fell sharply, pushing yields
higher in December 2010. Investors were demanding a much higher yield upon ample
supply of government bonds from the second round of quantitative easing. The weak
economic outlook will most likely delay the exit from loose monetary policy around
the globe, and low short-dated interest rates may prevail through 2011. However,
government yield curves in major markets are likely to steepen with the long-end of the
curve moving upwards. This is a result of ample supply of long-dated government bonds
in major markets.

Subsequent to the March 2011 earthquake in Japan, there has been a transfer of wealth
bid from stocks to bonds due to safe-haven investment strategies from investors as well
as government bond purchasing activities. The Japanese government is injecting large
sums into the capital market to provide liquidity under the current distress situation.




                                           5
BEA UNION INVESTMENT SERIES


MARKET COMMENTARY (CONTINUED)


BEA Union Investment Four Seasons Fund (continued)

Equities

China’s GDP rose 9.6% YoY in 3Q10, 0.1 percentage points above expectations, and
CPI inflation was at 3.6% YoY, mainly driven by a rise in food prices. This explained the
earlier-than-expected rate hikes that began in October 2010. On 25 December 2010,
the PBOC hiked policy rates for the second time in 2010, raising the 1-year benchmark
deposit and lending rates by 25 basis points each to 2.75% and 5.81% respectively.
Despite aggressive administrative price intervention and intensified monetary tightening,
CPI rose 4.6% YoY in December 2010. Overall, CPI was up 3.3% in 2010 compared to
2009. Amid loose monetary conditions and negative real rates, inflationary pressure
is intensifying due to strong food prices and robust inflation expectations. As such,
inflation control and liquidity control are likely to become key government priorities
over the first two quarters in 2011. The outline of the 12th five-year plan focused on
adjusting income distribution and structural reform, while de-emphasising growth
targets. With the steps taken in the plan, China is also likely to emerge stronger and
more competitive in the new global environment. The 12th five-year plan’s main themes
are: (1) modernisation and urbanisation of major regional cities, aimed at closing the
gap between urban and rural incomes; (2) investment in clean energy to improve energy
efficiency; and (3) ocean energy development to avoid future resource limitations. Given
that Japan accounted for 7.7% of China’s exports and 12.7% of the latter’s imports in
2010, the impact of the March 2011 earthquake on China’s macroeconomic outlook
should be limited. The overall impact on China’s equity market is likely to be temporary
unless macro factors spike inflation in China.

In Hong Kong, asset inflation remains the main worry for policymakers and further
measures to promote healthier housing prices in the long term were introduced in 4Q10.
However, property prices will likely be supported by a low interest rate environment
in the near term. The RMB trade settlement business has expanded dramatically since
June 2010 when the RMB resumed flexibility. With the internationalisation of the RMB
and the mini-QFII programme which will be launched in 2011, Hong Kong is on track to
become a RMB offshore centre in the long run. To prevent the risk of an asset bubble in
the real estate market, the Hong Kong government and Hong Kong Monetary Authority
announced another batch of property cooling measures in 4Q10. These measures
include: (1) an extra stamp duty on properties resold within two years; and (2) the
tightening of loan-to-value mortgage ratios for luxury residential properties. The Hong
Kong government is currently evaluating the effects of recent tax increases and deposit
requirements on residential property in order to determine whether further tightening is
necessary.




                                           6
BEA UNION INVESTMENT SERIES


MARKET COMMENTARY (CONTINUED)


BEA Union Investment Four Seasons Fund (continued)

Equities (continued)

In Taiwan, tech companies generally reported improved 3Q10 margins and guided
for incrementally better sales in 4Q10. However, the recent appreciation of the New
Taiwan dollar (“NTD”) might have limited upsides in 4Q10. Elsewhere, the transport
and consumer sectors continued to show improved profitability in 3Q10. Foreign capital
inflows and rapid economic growth in Asia have bolstered the attractiveness of the NTD.
Though currency appreciation may boost domestic consumption power, it may also make
Taiwan’s export-related sector less competitive. Following the earthquake in Japan,
Taiwanese tech companies which rely on Japanese vendors for key components may see
short-term pressures while those compete with Japanese companies may benefit. Of
course, this all depends on the extent of the damage to these Japanese companies and
how fast they can recover.

South Korea’s GDP growth slowed to 0.7% QoQ in 3Q10 from 1.4% in 2Q10, but beat
market expectations. Factory output rose 10.4% YoY in November 2010. Total exports
on a customs-cleared basis (with ships excluded) rose 23.6% YoY in November 2010,
while imports climbed 32.7%. On 23 November 2010, North Korea fired more than 200
artillery shells at the South Korean island of Yeonpyeong. The attack’s impact on the
market was substantial. A day after the firings, South Korea’s benchmark KOSPI index
opened 2.33% lower and the won opened at a two-month low. Geopolitical tensions
between North and South Korea remained high, with North Korea threatening nuclear
war if South Korean military drills lead to a direct attack. However, as North Korea may
not have sufficient resources, financial or otherwise, to maintain a war, the probability of
war breaking out between North and South Korea is low. In general, economic growth in
South Korea is strong and steady, and as inflationary pressures have been growing, the
Bank of Korea is likely to hike rates in 1Q11.

In Singapore, 3Q10 GDP growth slowed to 10.3% YoY from a revised 19.6% in 2Q10. In
addition, the Monetary Authority of Singapore steepened and widened the band of its
currency in view of the volatility across global financial markets. Non-oil domestic exports
(“NODX”) slowed sharply to 10% YoY in November 2010 versus 34.5% in October 2010,
and the slowing of exports was broad-based. In spite of the plunge in November NODX,
industrial production surged by 39.8% YoY in November 2010. CPI inflation accelerated
to 3.8% YoY in November 2010, mainly led by housing costs.




                                             7
BEA UNION INVESTMENT SERIES


MARKET COMMENTARY (CONTINUED)


BEA Union Investment Four Seasons Fund (continued)

Equities (continued)

Malaysia’s CPI inflation decelerated to 1.8% YoY in September 2010 and remained stable
at 2% in November 2010. Low inflation suggested that Bank Negara Malaysia might keep
the overnight policy rate on hold possibly into 1H11. In October 2010, exports rose 1.3%
and import growth slowed to 12.5% YoY, while industrial production growth slowed
to 3% YoY. We expect manufacturing to slow in 1Q11. Although the bottom could be
reached sometime in 1H11 on the back of the pick-up in the ISM Purchasing Managers’
Index, given the lagged impact of MYR appreciation and structural weaknesses in
the critical electrical & electronic sector, we would expect any recovery in exports
and manufacturing to continue to lag that of Malaysia’s regional peers. Compared to
Budget 2010, Budget 2011 was less bold, with key measures including: (1) an increase
in the Employees Provident Fund’s foreign investment limits from 7% to 20%, (2) the
implementation of MYR12.5 billion of Public Private Partnership Projects in 2011 under
the 10th Malaysia Plan, (3) a new MYR40 billion mass rapid transit private investment
project to run from 2011-2020, (4) an increase in the services tax to 6% from 5%, (5) the
launch of a private pension fund, and (6) 100% mortgage loans and 50% Stamp Duty
exemptions for first time home buyers. Reconstruction efforts following the massive
destruction caused by the earthquake in Japan may be positive for timber companies in
Malaysia.

Thailand’s real GDP rose 6.7% YoY in 3Q10 on the back of easing exports and domestic
demand. The Bank of Thailand (“BOT”) raised the interest rate by 25 basis points to 2%
on 1 December 2010 in a move that surprised the market, despite CPI coming in below
market expectations at 2.8% YoY in November 2010, with core inflation at 1.2% YoY.
This showed the central bank’s concern over excess liquidity in the market. Reasons cited
by the BOT for the rate hike included: (1) decreased uncertainty over US monetary easing
combined with concrete financial support which is expected to contain sovereign debt
problems; and (2) rising demand-pull inflation in 2011. There are four risks affecting
2011’s growth outlook: (1) external headwinds; (2) capital inflows; (3) inflation; and
(4) politics. Subsequent to the earthquake in Japan, refineries have shut down. This move
may result in increased import demand from Japan for refined oil products, resulting in
a higher gross refining margin and aromatics spread, which should benefit Thailand’s
energy companies. Foreign direct investment from Japanese auto companies to Thailand
might increase over the long term as companies decide to diversify their manufacturing
bases to minimise losses in the event of future catastrophes.




                                           8
BEA UNION INVESTMENT SERIES


MARKET COMMENTARY (CONTINUED)


BEA Union Investment China A-Share Equity Fund

Sectors linked to inflation, such as agriculture and non-ferrous metals, outperformed.
The food and beverage and pharmaceutical sectors also contributed positively. However,
the real estate and financial sectors continued to perform badly. During the National
Day holiday in 2010, the Chinese government launched new policies to curb soaring real
estate prices. Overall, our outlook for the market in 4Q10 was optimistic on the back of
improved liquidity. However, there are two factors that could have a great impact on the
market: (1) the global macro-economic situation (including exchange rates and interest
rates); and (2) domestic real estate policy.

Government regulations on prices, real estate, and financing by local governments did
not appear to have had much impact on economic growth, although we might see
the economy start to slow down smoothly as monetary tightening measures continue
through 1H11. Exports grew 34.9% and imports grew 37.75% in November 2010,
showing that foreign trade benefitted from increased demand in Western countries over
the Christmas and New Year holiday season in 2010. CPI hit 5.1% in November 2010, the
highest level for the last two years, and the key driving factor was food prices. We expect
that inflation will remain relatively high in 1H11. Investments in the real estate sector
remained robust despite administrative regulations. Fixed asset investments grew 24.9%
in November 2010, almost the same rate as that was seen in October and September
2010. With the shift to a “prudent” monetary policy from a “moderately loose” stance,
the PBOC raised interest rates again by 0.25 percentage points and increased the reserve
requirement ratio (“RRR”) to 18.5% in December 2010. The Chinese government has
embarked on a path of monetary tightening and we expect to see further rate hikes
in the future. Fiscal policy will play a key role in the process of readjusting China’s
economic structure. As such, good investment opportunities will probably arise from
key government initiatives such as the acceleration of state corporate consolidation,
strategic infrastructure projects, and increasing investment in emerging industries. The
economic restructuring will take time to complete and the stock market will reflect the
corresponding changes in its composition.




                                            9
BEA UNION INVESTMENT SERIES


TRUSTEE’S REPORT TO THE UNITHOLDERS OF
BEA UNION INVESTMENT SERIES (“THE FUND”)


We hereby confirm that, in our opinion, the Manager of the Fund and its sub-funds
has in all material respects managed the Fund and its sub-funds in accordance
with the provisions of the Trust Deed, as amended, during the year/period ended
31 December 2010.




Bank of East Asia (Trustees) Limited
15 April 2011




                                       10
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 31 DECEMBER 2010
(EXPRESSED IN UNITED STATES DOLLARS)


BEA Union Investment Japan Growth Fund

Investment portfolio

                                                Holding                   Market         % of
                                                  units          Cost      value    net assets

Investment Fund


Established under the laws of Hong Kong


ipac Multi–Manager Japan Equity Fund
  – Class A                               1,084,294.72 $ 14,283,158 $ 11,200,764       100.25


Investment portfolio of the underlying fund

                                                             Holding      Market         % of
Particulars of listed investments                         shares/units     value    net assets

77 Bank Ltd                                                    12,000 $    63,621        0.18
Advantest Corp                                                  1,900      42,941        0.12
Aeon Co Ltd                                                    17,300     216,503        0.61
Aisin Seiki Co Ltd                                              2,400      84,986        0.24
Ajinomoto Co Inc                                               18,000     187,535        0.52
Alfresa Holdings Corp                                           1,300      57,783        0.16
All Nippon Airways Co Ltd                                      21,000      78,195        0.22
Amada Co Ltd                                                   10,000      81,499        0.23
Asahi Breweries Ltd                                             5,100      98,913        0.28
Asahi Glass Co Ltd                                             12,000     140,411        0.39
Asahi Kasei Corp                                               15,000      98,021        0.27
Astellas Pharma Inc                                             5,300     201,923        0.57
Bank of Kyoto Ltd                                               4,000      37,926        0.11
Bank of Yokohama Ltd                                           14,000      72,671        0.20
Benesse Holdings Inc                                              900      41,502        0.12
Bridgestone Corp                                                7,500     144,997        0.41
Brother Industries Ltd                                          2,900      43,050        0.12




                                           11
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 31 DECEMBER 2010 (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)


BEA Union Investment Japan Growth Fund (continued)

Investment portfolio of the underlying fund (continued)

                                                  Holding      Market         % of
Particulars of listed investments              shares/units     value    net assets

Canon Inc                                           13,500 $   699,926        1.96
Central Japan Railway Co                                36     301,387        0.84
Chiba Bank Ltd                                      10,000      64,978        0.18
Chubu Electric Power Co Inc                          8,100     199,342        0.56
Chugai Pharmaceutical Co Ltd                         3,000      55,114        0.15
Chugoku Electric Power Co                            3,600      73,194        0.20
Chuo Mitsui Trust Holdings                          12,000      49,861        0.14
Cosmo Oil Company Ltd                               20,000      65,594        0.18
Dai Ichi Life Insurance                                128     208,165        0.58
Dai Nippon Printing Co Ltd                          15,000     204,550        0.57
Daihatsu Motor Co Ltd                                8,000     122,804        0.34
Daiichi Sankyo Co Ltd                                8,700     190,509        0.53
Daikin Industries Ltd                                3,100     110,003        0.31
Daito Trust Construct Co Ltd                           900      61,698        0.17
Daiwa House Industry Co Ltd                          7,000      86,049        0.24
Daiwa Securities Group Inc                          22,000     113,113        0.32
Dena Co Ltd                                          1,000      35,904        0.10
Denso Corp                                           6,000     207,139        0.58
Dentsu Inc                                           2,200      68,274        0.19
East Japan Railway Co                                7,600     494,766        1.38
Eisai Co Ltd                                         3,300     119,623        0.33
Electric Power Development C                         2,700      84,757        0.24
Fanuc Corp                                           2,300     353,344        0.99
Fast Retailing Co Ltd                                  600      95,506        0.27
Fuji Heavy Industries Ltd                           18,000     139,819        0.39
Fujifilm Holdings Corp                              12,200     441,189        1.23
Fujitsu Ltd                                         44,000     306,516        0.86
Fukuoka Financial Group Inc                         19,000      82,695        0.23
Furukawa Electric Co Ltd                            10,000      44,880        0.13
GS Yuasa Corp                                        2,000      13,834        0.04
Hachijuni Bank Ltd                                  14,000      78,368        0.22
Hakuhodo DY Holdings Inc                             1,000      57,333        0.16
Hankyu Hanshin Holdings Inc                         14,000      65,076        0.18




                                       12
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 31 DECEMBER 2010 (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)


BEA Union Investment Japan Growth Fund (continued)

Investment portfolio of the underlying fund (continued)

                                                  Holding      Market         % of
Particulars of listed investments              shares/units     value    net assets

Hirose Electric Co Ltd                                 500 $    56,285        0.16
Hisamitsu Pharmaceutical Co                            900      37,895        0.11
Hitachi Construction Machine                         3,500      83,891        0.23
Hitachi Ltd                                        106,000     564,601        1.58
Hokkaido Electric Power Co                           2,400      49,122        0.14
Hokuriku Electric Power Co                           2,000      49,195        0.14
Honda Motor Co Ltd                                  19,300     765,051        2.14
Hoya Corp                                            5,300     128,865        0.36
Ibiden Co Ltd                                        1,500      47,346        0.13
Inpex Corp                                              22     128,845        0.36
Isetan Mitsukoshi Holdings Ltd                       4,700      54,646        0.15
Isuzu Motors Ltd                                    14,000      63,695        0.18
Itochu Corp                                         40,000     405,400        1.13
J Front Retailing Co Ltd                            14,000      76,641        0.21
Japan Steel Works Ltd                                4,000      41,724        0.12
Japan Tobacco Inc                                       98     362,493        1.01
Jfe Holdings Inc                                    12,800     446,000        1.25
JGC Corp                                             3,000      65,286        0.18
Joyo Bank Ltd                                        9,000      39,615        0.11
JS Group Corp                                        3,700      81,340        0.23
JSR Corp                                             2,400      44,831        0.13
JTEKT Corp                                           6,700      79,139        0.22
JX Holdings Inc                                     40,600     275,823        0.77
Kamigumi Co Ltd                                      9,000      75,680        0.21
Kaneka Corp                                         11,000      76,222        0.21
Kansai Electric Power Co Inc                        15,500     382,985        1.07
Kao Corp                                             7,000     188,755        0.53
Kawasaki Heavy Industries                           31,000     104,346        0.29
Kawasaki Kisen Kaisha Ltd                           18,000      79,231        0.22
KDDI Corp                                               68     393,219        1.10
Keikyu Corp                                          6,000      53,042        0.15
Keio Corp                                            8,000      54,645        0.15
Keisei Electric Railway Co                          10,000      66,827        0.19




                                       13
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 31 DECEMBER 2010 (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)


BEA Union Investment Japan Growth Fund (continued)

Investment portfolio of the underlying fund (continued)

                                                  Holding      Market         % of
Particulars of listed investments              shares/units     value    net assets

Keyence Corp                                           500 $   144,997        0.41
Kintetsu Corp                                       22,000      68,898        0.19
Kirin Holdings Co Ltd                               20,000     280,377        0.78
Kobe Steel Ltd                                      30,000      75,828        0.21
Komatsu Ltd                                         11,200     339,155        0.95
Konica Minolta Holdings Inc                         13,000     135,281        0.38
Kubota Corp                                         13,000     123,260        0.35
Kuraray Co Ltd                                       5,000      71,759        0.20
Kurita Water Industries Ltd                          1,500      47,291        0.13
Kyocera Corp                                         2,000     204,426        0.57
Kyowa Hakko Kirin Co Ltd                             3,000      30,923        0.09
Kyushu Electric Power Co Inc                         4,500     100,980        0.28
Lawson Inc                                           1,000      49,442        0.14
Makita Corp                                          2,900     118,710        0.33
Marubeni Corp                                       36,000     253,005        0.71
Marui Group Co Ltd                                   7,500      61,032        0.17
Mazda Motor Corp                                    38,000     108,699        0.30
Medipal Holdings Corp                                5,500      60,625        0.17
Meiji Holdings Co Ltd                                1,900      85,975        0.24
Mitsubishi Chemical Holdings                        30,500     207,207        0.58
Mitsubishi Corp                                     30,000     813,020        2.27
Mitsubishi Electric Corp                            24,000     252,118        0.71
Mitsubishi Estate Co Ltd                            14,000     259,959        0.73
Mitsubishi Heavy Industries                         36,000     135,380        0.38
Mitsubishi Materials Corp                           33,000     105,382        0.29
Mitsubishi Motors Corp                              47,000      68,381        0.19
Mitsubishi Tanabe Pharma                             2,700      45,641        0.13
Mitsubishi UFJ Financial Group Inc                 152,600     825,984        2.31
Mitsubishi UFJ Lease & Finance Co Ltd                1,810      71,860        0.20




                                        14
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 31 DECEMBER 2010 (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)


BEA Union Investment Japan Growth Fund (continued)

Investment portfolio of the underlying fund (continued)

                                                   Holding      Market         % of
Particulars of listed investments               shares/units     value    net assets

Mitsui & Co Ltd                                      37,900 $   626,643        1.75
Mitsui Chemicals Inc                                 10,000      35,756        0.10
Mitsui Engineering & Shipbuilding Co Ltd             24,000      63,325        0.18
Mitsui Fudosan Co Ltd                                10,000     199,371        0.56
Mitsui OSK Lines Ltd                                 27,000     184,428        0.52
Mizuho Financial Group Inc                          349,600     659,501        1.84
MS & AD Insurance Group Holdings                      6,900     173,042        0.48
Murata Manufacturing Co Ltd                           2,400     168,078        0.47
Namco Bandai Holdings Inc                             7,000      75,260        0.21
NEC Corp                                             62,000     186,524        0.52
NGK Insulators Ltd                                    4,000      65,199        0.18
Nidec Corp                                            1,400     141,545        0.40
Nikon Corp                                            6,700     136,057        0.38
Nintendo Co Ltd                                       1,200     351,988        0.98
Nippon Electric Glass Co Ltd                          5,000      72,129        0.20
Nippon Express Co Ltd                                20,000      90,007        0.25
Nippon Sheet Glass Co Ltd                            28,000      75,606        0.21
Nippon Steel Corp                                   133,000     477,196        1.33
Nippon Telegraph and Telephone Corp                  11,100     502,959        1.41
Nippon Yusen                                         36,000     159,793        0.45
Nishi Nippon City Bank Ltd                           21,000      63,954        0.18
Nissan Motor Co Ltd                                  63,700     607,116        1.70
Nitori Holdings Co Ltd                                  550      48,147        0.13
Nitto Denko Corp                                      2,300     108,471        0.30
Nomura Holdings Inc                                  41,900     266,056        0.74
NSK Ltd                                               5,000      45,188        0.13
NTN Corp                                             17,000      90,340        0.25
NTT Data Corp                                            17      58,815        0.16
NTT Docomo Inc                                          189     330,438        0.92




                                           15
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 31 DECEMBER 2010 (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)


BEA Union Investment Japan Growth Fund (continued)

Investment portfolio of the underlying fund (continued)

                                                  Holding      Market         % of
Particulars of listed investments              shares/units     value    net assets

Obayashi Corp                                        8,000 $    36,792        0.10
Odakyu Electric Railway Co Ltd                       8,000      74,471        0.21
OJI Paper Co Ltd                                    10,000      48,332        0.14
Olympus Corp                                         3,000      90,919        0.25
Omron Corp                                           2,700      71,607        0.20
Ono Pharmaceutical Co Ltd                            1,200      56,002        0.16
Oriental Land Co Ltd                                   700      64,904        0.18
Orix Corp                                            1,250     123,143        0.34
Osaka Gas Co Ltd                                    44,000     170,890        0.48
Panasonic Corp                                      48,600     690,904        1.93
Rakuten Inc                                             93      77,629        0.22
Resona Holdings Inc                                  6,700      40,148        0.11
Ricoh Co Ltd                                        17,000     249,011        0.70
Rohm Co Ltd                                          1,200      78,417        0.22
Sankyo Co Ltd                                          900      50,878        0.14
Santen Pharmaceutical Co Ltd                           900      31,271        0.09
SBI Holdings Inc                                       337      51,191        0.14
Secom Co Ltd                                         2,700     127,834        0.36
Sega Sammy Holdings Inc                              3,100      59,053        0.17
Seiko Epson Corp                                     4,900      89,415        0.25
Sekisui Chemical Co Ltd                             12,000      86,259        0.24
Sekisui House Ltd                                    7,000      70,686        0.20
Seven & I Holdings Co Ltd                            9,500     254,177        0.71
Sharp Corp                                          26,000     268,319        0.75
Shikoku Electric Power Co Inc                        2,400      70,664        0.20
Shimano Inc                                            900      45,663        0.13
Shin Etsu Chemical Co Ltd                            5,000     270,945        0.76
Shionogi & Co Ltd                                    3,900      77,082        0.22
Shiseido Co Ltd                                      4,100      89,628        0.25
Shizuoka Bank Ltd                                    8,000      73,781        0.21
Showa Denko KK                                      15,000      33,845        0.09
Showa Shell Sekiyu KK                                7,200      65,959        0.18




                                       16
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 31 DECEMBER 2010 (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)


BEA Union Investment Japan Growth Fund (continued)

Investment portfolio of the underlying fund (continued)

                                                  Holding      Market         % of
Particulars of listed investments              shares/units     value    net assets

SMC Corp                                               600 $   102,830        0.29
Softbank Corp                                        9,600     332,724        0.93
Sojitz Corp                                         20,400      44,520        0.12
Sony Corp                                           13,100     472,605        1.32
Sony Financial Holdings Inc                             11      44,553        0.12
Stanley Electric Co Ltd                              1,700      31,776        0.09
Sumitomo Chemical Co Ltd                            42,000     206,621        0.58
Sumitomo Corp                                       26,400     373,679        1.05
Sumitomo Electric Industries                        17,300     240,393        0.67
Sumitomo Heavy Industries                            6,000      38,469        0.11
Sumitomo Metal Industries                           44,000     107,959        0.30
Sumitomo Metal Mining Co Ltd                        13,000     227,446        0.64
Sumitomo Mitsui Financial Group Inc                 15,900     566,954        1.59
Sumitomo Realty & Development Co Ltd                 4,000      95,580        0.27
Sumitomo Trust & Banking Co                         17,000     106,899        0.30
Suzuken Co Ltd                                       2,200      67,271        0.19
Suzuki Motor Corp                                    4,200     103,414        0.29
T & D Holdings Inc                                   6,100     154,860        0.43
Taisho Pharmaceutical Co Ltd                         2,000      43,820        0.12
Takeda Pharmaceutical Co Ltd                         9,200     453,166        1.27
TDK Corp                                             1,500     104,124        0.29
Teijin Ltd                                          28,000     119,795        0.33
Terumo Corp                                          2,100     118,199        0.33
THK Co Ltd                                           1,400      32,210        0.09
Tobu Railway Co Ltd                                 11,000      61,710        0.17
Tohoku Electric Power Co Inc                         5,600     124,974        0.35
Tokio Marine Holdings Inc                           17,000     508,501        1.42
Tokuyama Corporation                                11,000      56,963        0.16
Tokyo Electric Power Co Inc                         16,900     413,201        1.16
Tokyo Electron Ltd                                   2,200     139,153        0.39
Tokyo Gas Co Ltd                                    31,000     137,599        0.39




                                       17
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 31 DECEMBER 2010 (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)


BEA Union Investment Japan Growth Fund (continued)

Investment portfolio of the underlying fund (continued)

                                                  Holding         Market          % of
Particulars of listed investments              shares/units        value     net assets

Tokyu Corp                                          14,000 $       64,040         0.18
Tokyu Land Corp                                     15,000         75,458         0.21
Tonengeneral Sekiyu KK                               3,000         32,809         0.09
Toppan Printing Co Ltd                              14,000        127,736         0.36
Toray Industries Inc                                18,000        107,638         0.30
Toshiba Corp                                        47,000        255,558         0.71
Toyo Seikan Kaisha Ltd                               4,900         93,161         0.26
Toyota Industries Corp                               2,100         65,249         0.18
Toyota Motor Corp                                   32,700      1,298,243         3.63
Toyota Tsusho Corp                                   5,500         96,770         0.27
Trend Micro Inc                                      1,500         49,473         0.14
Ube Industries Ltd                                  11,000         32,957         0.09
Unicharm Corp                                        1,500         59,737         0.17
UNY Co Ltd                                           6,500         65,637         0.18
West Japan Railway Co                                   46        171,851         0.48
Yahoo Japan Corp                                       172         66,802         0.19
Yakult Honsha Co Ltd                                 1,300         37,491         0.11
Yamada Denki Co Ltd                                  1,760        120,220         0.34
Yamaha Motor Co Ltd                                  6,400        104,240         0.29
Yamato Holdings Co Ltd                               4,700         66,932         0.19
Yokogawa Electric Corp                               8,900         70,779         0.20


Total investments                                             $ 36,003,563      100.68


Other net assets                                                 (242,855)       (0.68)


Total net assets                                              $ 35,760,708      100.00


Total investments, at cost                                    $ 35,539,497




                                       18
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 31 DECEMBER 2010 (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)


BEA Union Investment Global Themes Fund

Investment portfolio

                                               Holding       Market         % of
                                            shares/units      value    net assets

Listed/quoted investments (98.12%)


Equities (98.03%)


Australia (3.62%)
Lynas Corp Ltd                                  600,000 $ 1,259,006         3.62


Belgium (2.28%)
Omega Pharma                                     16,500     790,621         2.28


Brazil (4.15%)
SLC Agricola SA                                  53,000     686,443         1.98
Santos Brasil Participacoes SA                   55,000     752,105         2.17


Canada (1.27%)
Talisman Energy Inc                              20,000     442,354         1.27


Denmark (3.39%)
NeuroSearch A/S                                  70,000    1,179,235        3.39


Germany (7.51%)
Continental AG                                   15,000    1,182,379        3.40
Deutsche Lufthansa AG – REG                      35,000     766,409         2.21
SAP AG                                           13,000     658,345         1.90


Ireland (2.16%)
Accenture PLC – CL A                             15,500     751,285         2.16


Korea (2.18%)
Samsung Electronics Co Ltd                          900     757,727         2.18


Luxembourg (2.06%)
Evraz Group SA – GDR REG S                       20,000     717,000         2.06




                                       19
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 31 DECEMBER 2010 (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)


BEA Union Investment Global Themes Fund (continued)

Investment portfolio (continued)

                                                         Holding       Market         % of
                                                      shares/units      value    net assets

Listed/quoted investments (98.12%) (continued)


Equities (98.03%) (continued)


Netherlands (4.86%)
AMG Advanced Metallurgical Group NV                       140,000 $ 1,686,754         4.86


South Africa (2.15%)
MTN Group Ltd                                              37,000     746,197         2.15


Switzerland (4.11%)
Nestle SA – REG                                            12,000     700,770         2.01
Roche Holding AG – Genusschein                              4,985     728,443         2.10


United Kingdom (7.04%)
AMEC PLC                                                   27,000     481,479         1.39
BAE Systems PLC                                             1,891       9,676         0.03
BG Group PLC                                               22,000     442,123         1.27
Lloyds Banking Group PLC                                  550,000     560,330         1.61
Royal Dutch Shell PLC – A SHS                              11,078     367,355         1.06
William Hill PLC                                          220,000     582,334         1.68


United States of America (51.25%)
Aetna Inc                                                  45,000    1,372,950        3.95
Banco Bradesco SA – ADR                                    31,000     629,300         1.81
Boston Scientific Corp                                    110,000     832,700         2.40
Chevron Corp                                                6,000     548,040         1.58
CIGNA Corp                                                 21,000     770,070         2.22
Citigroup Inc                                             150,000     709,500         2.04
Coventry Health Care Inc                                   27,000     713,070         2.05
DR Horton Inc                                              60,000     715,800         2.06
Google Inc – CL A                                           1,100     653,268         1.88
International Business Machines Corp                        5,000     733,800         2.11




                                                 20
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 31 DECEMBER 2010 (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)


BEA Union Investment Global Themes Fund (continued)

Investment portfolio (continued)

                                                         Holding         Market          % of
                                                      shares/units        value     net assets

Listed/quoted investments (98.12%) (continued)


Equities (98.03%) (continued)


United States of America (51.25%) (continued)
JPMorgan Chase & Co                                        16,000 $      679,040         1.95
Lennar Corp-A                                              45,000        843,300         2.43
Microsoft Corp                                             22,000        613,800         1.77
Noble Energy Inc                                            4,500        387,360         1.12
Northrop Grumman Corp                                      10,000        647,800         1.87
Occidental Petroleum Corp                                   6,000        588,840         1.70
Potash Corp of Saskatchewan Inc                            12,000      1,856,040         5.34
Pulte Group Inc                                            90,000        676,800         1.95
Schlumberger Ltd                                            5,000        417,700         1.20
State Street Corp                                          16,000        741,440         2.13
Toll Brothers Inc                                          36,000        684,360         1.97
UnitedHealth Group Inc                                     19,000        686,090         1.98
Wells Fargo & Co                                           20,000        619,800         1.78
WellPoint Inc                                              12,000        682,440         1.96


Total equities                                                       $ 34,051,678       98.03




                                                 21
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 31 DECEMBER 2010 (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)


BEA Union Investment Global Themes Fund (continued)

Investment portfolio (continued)

                                                         Holding         Market          % of
                                                      shares/units        value     net assets

Listed/quoted investments (98.12%) (continued)


Participatory notes (0.09%)


United States of America (0.09%)
Merrill-CW15 National Bank of Pakistan
  P-note Exp 25/02/2015                                    25,975 $       23,262         0.07
Morgan Stanley BV-Zenith Bank Ltd
  P-note 18/3/2011                                         91,150          8,995         0.02


Total participatory notes                                            $    32,257         0.09


Total investments                                                    $ 34,083,935       98.12


Total investments, at cost                                           $ 29,872,383




                                                 22
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 31 DECEMBER 2010 (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)


BEA Union Investment Global Resources Fund

Investment portfolio

                                                    Holding      Market         % of
                                                 shares/units     value    net assets

Listed/quoted investments (99.71%)


Equities (99.71%)


Australia (6.41%)
BHP Billiton Ltd                                      11,204 $   516,418        4.56
Newcrest Mining Ltd                                    5,110     210,287        1.85


Austria (6.19%)
Andritz AG                                             1,903     174,946        1.54
Schoeller-Bleckmann Oilfield Equipment AG              4,729     408,209        3.60
Voestalpine AG                                         2,468     118,587        1.05


Belgium (2.56%)
Umicore                                                5,581     290,052        2.56


Canada (8.15%)
Cameco Corp                                            1,644      66,194        0.58
Potash Corp of Saskatchewan Inc                        2,211     341,298        3.01
Teck Resources Ltd – CL B                              8,388     517,048        4.56


France (2.19%)
Alstom SA                                              1,600      76,549        0.67
Total SA                                               2,516     133,281        1.18
Vinci SA                                                 716      38,914        0.34


Germany (17.44%)
Aixtron SE                                             9,017     330,567        2.92
Aurubis AG                                             3,033     178,396        1.57
BASF SE                                                4,008     317,645        2.80
Bayer AG                                               2,179     160,057        1.41
K & S AG                                               1,684     127,365        1.12
Linde AG                                               1,641     249,825        2.21




                                            23
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 31 DECEMBER 2010 (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)


BEA Union Investment Global Resources Fund (continued)

Investment portfolio (continued)

                                                         Holding      Market         % of
                                                      shares/units     value    net assets

Listed/quoted investments (99.71%) (continued)


Equities (99.71%) (continued)


Germany (17.44%) (continued)
MAN SE                                                      1,620 $   193,104        1.70
Siemens AG – REG                                            1,596     198,538        1.75
SMA Solar Technology AG                                     1,200     109,548        0.97
ThyssenKrupp AG                                             2,700     111,969        0.99


Ireland (0.73%)
CRH PLC                                                     3,991      82,647        0.73


Italy (1.27%)
Saipem SpA                                                  2,956     144,544        1.27


Japan (10.68%)
Asahi Kasei Corp                                            8,800      57,335        0.50
Daido Steel Co Ltd                                          3,400      19,937        0.18
JFE Holdings Inc                                            1,400      48,637        0.43
JGC Corp                                                    3,400      73,771        0.65
JSR Corp                                                    6,500     121,057        1.07
Mitsubishi Chemical Holdings Corp                          10,680      72,341        0.64
Mitsubishi Heavy Industries Ltd                            20,400      70,469        0.62
Nippon Steel Corp                                          22,400      61,132        0.54
Shin-Etsu Chemical Co Ltd                                   2,500     135,071        1.19
Sumitomo Chemical Co Ltd                                   20,500      87,700        0.77
Sumitomo Metal Industries Ltd                              46,200     113,021        1.00
Sumitomo Metal Mining Co Ltd                               12,600     217,626        1.92
Tokyo Steel Manufacturing Co Ltd                           12,200     132,879        1.17


Netherlands (2.24%)
Akzo Nobel NV                                               2,235     138,805        1.22
ArcelorMittal                                               1,942      73,633        0.65
SBM Offshore NV                                             1,852      41,445        0.37

                                                 24
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 31 DECEMBER 2010 (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)


BEA Union Investment Global Resources Fund (continued)

Investment portfolio (continued)

                                                         Holding      Market         % of
                                                      shares/units     value    net assets

Listed/quoted investments (99.71%) (continued)


Equities (99.71%) (continued)


Norway (0.68%)
Frontline Ltd                                               3,000 $    76,868        0.68


Switzerland (1.75%)
ABB Ltd – REG                                               8,926     198,315        1.75


United Kingdom (10.48%)
Anglo American PLC                                         11,594     599,667        5.29
BHP Billiton PLC                                           11,420     451,744        3.99
British American Tobacco PLC                                3,574     136,528        1.20


United States of America (28.94%)
Alcoa Inc                                                     520       8,008        0.07
Cenovus Energy Inc                                          2,232      74,214        0.65
Chart Industries Inc                                        4,924     166,333        1.47
Chevron Corp                                                1,490     136,097        1.20
Covidien PLC                                                1,830      83,466        0.74
Devon Energy Corp                                           1,387     108,907        0.96
EI du Pont de Nemours & Co                                  2,993     149,321        1.32
EnCana Corp                                                 1,732      50,436        0.45
Exxon Mobil Corp                                            3,691     270,034        2.38
FedEx Corp                                                  1,755     163,233        1.44
General Electric Co                                        13,432     245,806        2.17
Halliburton Co                                              4,893     199,830        1.76
Honeywell International Inc                                 1,764      93,809        0.83
Intrepid Potash Inc                                         7,200     268,632        2.37




                                                 25
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 31 DECEMBER 2010 (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)


BEA Union Investment Global Resources Fund (continued)

Investment portfolio (continued)

                                                         Holding         Market          % of
                                                      shares/units        value     net assets

Listed/quoted investments (99.71%) (continued)


Equities (99.71%) (continued)


United States of America (28.94%) (continued)
Kinross Gold Corp                                           3,698 $       70,003         0.62
Monsanto Co                                                 1,436        100,003         0.88
Newmont Mining Corp                                         1,891        116,126         1.02
Noble Corp                                                  2,251         80,473         0.71
Praxair Inc                                                 1,316        125,639         1.11
Schlumberger Ltd                                            1,522        127,148         1.12
The Boeing Co                                               1,693        110,485         0.97
The Dow Chemical Co                                         2,636         90,046         0.79
Tyco International Ltd                                      2,730        113,104         1.00
United Parcel Service Inc – CL B                            1,478        107,303         0.95
United Technologies Corp                                    1,222         96,196         0.85
Valero Energy Corp                                          1,375         31,762         0.28
Weyerhaeuser Co                                             2,463         46,649         0.41
Yamana Gold Inc                                             3,710         47,451         0.42


Total equities                                                       $ 11,304,483       99.71


Total investments                                                    $ 11,304,483       99.71


Total investments, at cost                                           $ 10,957,290




                                                 26
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 31 DECEMBER 2010 (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)


BEA Union Investment Asian Bond and Currency Fund

Investment portfolio

                                                       Nominal      Market         % of
                                                         value       value    net assets

Listed/quoted investments (83.89%)


Debt securities (83.89%)


Denominated in Australian Dollar (1.83%)
Australia Government Bond 5.75% 15/06/2011            1,000,000 $ 1,025,688        1.83


Denominated in Hong Kong Dollar (5.56%)
Intime Department Store Group Co Ltd
  1.75% 27/10/2013                                   20,000,000   2,834,771        5.05
Sherson Ltd 0.00% 04/06/2014                          2,000,000     285,635        0.51


Denominated in Renminbi (11.26%)
China Development Bank Corp 2.70% 11/11/2013          1,000,000     158,095        0.28
Export-Import Bank of China 1.95% 02/12/2012          3,000,000     462,771        0.83
Galaxy Entertainment Group Ltd 4.625% 16/12/2013      3,000,000     456,080        0.81
Hidili Industry International Development Ltd
  1.50% 19/01/2015                                    9,000,000   1,323,799        2.36
Shui On Development Holding Ltd
  6.875% 23/12/2013                                  25,000,000   3,920,151        6.98


Denominated in Singapore Dollar (1.48%)
Yanlord Land Group Ltd 5.85% 13/07/14
  Callable – 13/07/2011                               1,000,000     832,770        1.48




                                                27
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 31 DECEMBER 2010 (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)


BEA Union Investment Asian Bond and Currency Fund (continued)

Investment portfolio (continued)

                                                         Nominal      Market         % of
                                                           value       value    net assets

Listed/quoted investments (83.89%) (continued)


Debt securities (83.89%) (continued)


Denominated in US Dollar (63.76%)
Agile Property Holdings Ltd 10.00% 14/11/2016
  Callable – 14/11/2013                                 1,000,000 $ 1,087,192        1.94
Agile Property Holdings Ltd 8.875% 28/04/2017
  Callable – 28/04/2014                                  750,000      773,996        1.38
Berau Capital Resources Pte Ltd 12.50% 08/07/2015
  Callable – 08/07/2013                                 1,000,000   1,221,609        2.18
Billion Express Investments Ltd 0.75% 18/10/2015        1,000,000   1,001,869        1.78
Bumi Investment Pte Ltd 10.75% 06/10/2017
  Callable – 06/10/2014                                 4,000,000   4,466,688        7.95
Central China Real Estate Ltd 12.25% 20/10/2015
  Callable – 20/10/2013                                  750,000      827,539        1.47
Country Garden Holdings Co 10.50% 11/08/2015            1,000,000   1,105,237        1.97
Country Garden Holdings Co 11.25% 22/04/2017
  Callable – 22/04/2014                                  500,000      557,983        0.99
Evergrande Real Estate Group Ltd 13.00% 27/01/2015      3,500,000   3,998,463        7.12
Hopson Development Holdings Ltd 8.125% 09/11/2012
  Callable – 28/01/2011                                  500,000      500,453        0.89
Lukoil International Finance BV 2.625%
  16/06/2015 Callable                                    500,000      524,743        0.93
Oversea-Chinese Banking Corp Ltd
  7.75% 06/09/2011                                      1,940,000   2,066,558        3.68
PetroBakken Energy Ltd 3.125% 08/02/2016                 500,000      483,858        0.86
Petroleum Co of Trinidad & Tobago Ltd
  9.75% 14/08/2019                                       500,000      618,177        1.10




                                                   28
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 31 DECEMBER 2010 (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)


BEA Union Investment Asian Bond and Currency Fund (continued)

Investment portfolio (continued)

                                                       Nominal        Market          % of
                                                         value         value     net assets

Listed/quoted investments (83.89%) (continued)


Debt securities (83.89%) (continued)


Denominated in US Dollar (63.76%) (continued)
PT Adaro Indonesia 7.625% 22/10/2019
  Callable – 22/10/2014                                200,000 $      221,081         0.39
Shanghai Industrial Urban Development Group
  Ltd 9.75% 23/07/2014 Callable – 23/07/2011          4,000,000     4,491,167         8.00
Shimao Property Holdings Ltd 8.00% 01/12/2016
  Callable – 01/12/2011                               1,000,000       994,249         1.77
Shimao Property Holdings Ltd 9.65% 03/08/2017
  Callable – 03/08/2014                               2,000,000     2,122,972         3.78
Sigma Capital Ltd 9.00% 30/04/2015
  Callable – 30/04/2013                               2,000,000     2,148,000         3.83
Sino-Forest Corp 9.125% 17/08/2011                      13,000         13,901         0.03
Standard Chartered Bank Perpetual
  Callable – 24/12/2014                               2,250,000     2,454,782         4.37
The Development Bank of Singapore Ltd
  7.125% 15/05/2011                                   2,670,000     2,750,725         4.90
TownGas China Co Ltd 8.25% 23/09/2011                  791,000        844,140         1.50
Yanlord Land Group Ltd 9.50% 04/05/2017
  Callable – 04/05/2014                                500,000        533,166         0.95


Total debt securities                                             $ 47,108,308       83.89


Total investments                                                 $ 47,108,308       83.89


Total investments, at cost                                        $ 45,157,560




                                                 29
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 31 DECEMBER 2010 (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)


BEA Union Investment Four Seasons Fund

Investment portfolio

                                                      Holding
                                                  shares/units/
                                                      nominal     Market         % of
                                                         value     value    net assets

Listed/quoted investments (76.15%)


Equities (34.85%)


Hong Kong (22.68%)
Air China Ltd – H                                     200,000 $   224,083        1.14
Angang Steel Co Ltd – H                               200,000     304,609        1.55
BOC Hong Kong (Holdings) Ltd                          128,000     434,685        2.21
Belle International Holdings Ltd                      175,000     296,248        1.51
BYD Co Ltd – H                                          20,000    105,095        0.53
CNOOC Ltd                                             220,000     519,585        2.64
China Construction Bank Corp – H                      481,500     431,089        2.19
China Life Insurance Co Ltd – H                         90,000    366,418        1.86
China Oilfield Services Ltd – H                       160,000     344,126        1.75
Haitong International Securities Group Ltd            230,000     170,121        0.86
Hang Seng Bank Ltd                                       6,100    100,282        0.51
Hutchison Whampoa Ltd                                   32,000    329,719        1.68
Kerry Properties Ltd                                    35,000    182,341        0.93
Lee & Man Paper Manufacturing Ltd                     240,000     181,530        0.92
Lenovo Group Ltd                                      250,000     160,151        0.81
Swire Pacific Ltd ‘A’                                   19,000    312,353        1.59




                                             30
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 31 DECEMBER 2010 (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)


BEA Union Investment Four Seasons Fund (continued)

Investment portfolio (continued)

                                                          Holding
                                                      shares/units/
                                                          nominal         Market         % of
                                                             value         value    net assets

Listed/quoted investments (76.15%) (continued)


Equities (34.85%) (continued)


Indonesia (1.54%)
PT Astra International Tbk                                  50,000 $     303,526         1.54


Korea (4.80%)
Duksan Hi-Metal Co Ltd                                      15,000       270,426         1.38
Samsung Electronics Co Ltd                                     800       673,535         3.42


Singapore (1.80%)
United Overseas Bank Ltd                                    25,000       354,859         1.80


Taiwan (2.68%)
Acer Inc                                                    70,000       215,280         1.09
Hon Hai Precision Industry Co Ltd                           78,400       313,099         1.59


Thailand (1.35%)
PTT PCL – NVDR                                              25,000       266,481         1.35


Total equities                                                        $ 6,859,641       34.85




                                                 31
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 31 DECEMBER 2010 (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)


BEA Union Investment Four Seasons Fund (continued)

Investment portfolio (continued)

                                                            Holding
                                                        shares/units/
                                                            nominal         Market         % of
                                                               value         value    net assets

Listed/quoted investments (76.15%) (continued)


Debt securities (35.16%)


Denominated in US Dollar (35.16%)
CITIC Bank International Ltd 6.875% 24/06/2020              300,000 $      313,809         1.59
Citic Pacific Finance 2001 Ltd 7.625% 01/06/2011            500,000        512,416         2.60
Hana Bank 6.50% 09/04/2012                                  500,000        534,238         2.72
ICICI Bank Ltd/Singapore 5.875% 20/10/2011                  500,000        521,399         2.65
National Agricultural Cooperative
  Federation 4.25% 28/01/2016                               300,000        306,066         1.56
Oversea-Chinese Banking Corp Ltd
  7.75% 06/09/2011                                          500,000        532,618         2.71
Standard Chartered Bank Perpetual
  Callable – 24/12/2014                                     500,000        545,507         2.77
TownGas China Co Ltd 8.25% 23/09/2011                       500,000        533,591         2.71
US Treasury Note 2.375% 30/09/2014                        1,000,000       1,041,849        5.29
US Treasury Note 2.375% 31/10/2014                        1,000,000       1,039,224        5.28
US Treasury Note 2.375% 28/02/2015                        1,000,000       1,038,538        5.28


Total debt securities                                                   $ 6,919,255       35.16




                                                   32
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 31 DECEMBER 2010 (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)


BEA Union Investment Four Seasons Fund (continued)

Investment portfolio (continued)

                                                          Holding
                                                      shares/units/
                                                          nominal         Market          % of
                                                             value         value     net assets

Listed/quoted investments (76.15%) (continued)


Investment fund (6.14%)


Hong Kong (6.14%)
BEA Union Investment Asia Strategic
  Growth Fund – Class A                                33,343.402 $ 1,208,032             6.14


Total investment fund                                                 $ 1,208,032         6.14


Total investments                                                     $ 14,986,928       76.15


Total investments, at cost                                            $ 14,208,804




                                                 33
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 31 DECEMBER 2010 (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)


BEA Union Investment China A-Share Equity Fund

Investment portfolio

                                                       Holding        Market         % of
                                                    shares/units       value    net assets

Listed/quoted investments (100.56%)


Equities (100.56%)


China (100.56%)
Beijing Gehua CATV Network Co Ltd – A                   121,700 $    230,803         0.55
Beijing Urban Construction Investment
  & Development Co Ltd – A                              189,120      350,056         0.83
Changsha Zoomlion Heavy Industry Science and
  Tech Development Co Ltd – A                           566,500     1,214,458        2.88
Chengdu B-Ray Media Co Ltd – A                          179,984      533,852         1.27
China Aerospace Times Electronics Co Ltd – A            193,800      394,885         0.94
China Construction Bank Corp – A                      1,985,614     1,379,752        3.27
China Life Insurance Co Ltd – A                         316,950     1,023,781        2.43
China Merchants Bank Co Ltd – A                         702,500     1,365,325        3.24
China United Network Communications Ltd – A             352,600      286,205         0.68
China Resources Sanjiu Medical
  & Pharmaceutical Co Ltd – A                           206,064      798,792         1.89
China Vanke Co Ltd – A                                  559,200      697,396         1.65
Chongqing Department Store – A                          104,412      696,701         1.65
Dashang Group Co Ltd – A                                 87,444      623,679         1.48
Dongfang Electric Corp Ltd – A                          391,986     2,069,024        4.90
Financial Street Holding Co Ltd – A                     710,800      712,836         1.69
Fuyao Glass Industry Group Co Ltd – A                   215,200      334,662         0.79
GD Midea Holding Co Ltd – A                             360,000      950,369         2.25
Gemdale Corp – A                                        727,500      682,122         1.62
GRG Banking Equipment Co Ltd – A                        124,600     1,023,285        2.42
Henan Pinggao Electric Co Ltd – A                     1,099,907     2,274,534        5.39
Huaxia Bank Co Ltd – A                                  635,000     1,051,088        2.49
Hubei Yihua Chemical Industry Co Ltd – A                124,000      354,440         0.84
Hunan TV & Broadcast Intermediary Co Ltd – A             94,100      348,068         0.82
Inner Mongolia Yili Industrial – A                       90,000      521,338         1.24
Jiangsu Hengrui Medicine Co Ltd – A                      93,090      841,763         1.99




                                               34
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 31 DECEMBER 2010 (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)


BEA Union Investment China A-Share Equity Fund (continued)

Investment portfolio (continued)

                                                          Holding        Market         % of
                                                       shares/units       value    net assets

Listed/quoted investments (100.56%) (continued)


Equities (100.56%) (continued)


China (100.56%) (continued)
Keda Industrial Co Ltd – A                                 263,700 $    952,599         2.26
Liaoning Huajin Tongda Chemicals Co Ltd – A                216,300      380,347         0.90
Neusoft Corp – A                                           125,670      305,827         0.72
Ping An Insurance Group Co of China Ltd – A                147,310     1,255,162        2.97
Poly Real Estate Group Co Ltd – A                          351,000      675,254         1.60
Qingdao Haier Co Ltd – A                                    98,300      421,619         1.00
Qinghai Salt Lake Potash Co – A                            138,000     1,386,884        3.29
RiseSun Real Estate Development Co Ltd – A                 413,500      851,953         2.02
Shandong Gold Mining Co Ltd – A                            148,100     1,184,149        2.81
Shanghai Jahwa United Co Ltd – A                            57,945      326,248         0.77
Shanghai Siyuan Electric Co Ltd – A                         68,100      271,320         0.64
Shanxi Guoyang New Energy Co Ltd – A                       202,000      878,964         2.08
Shanxi Lanhua Sci-Tech Venture Co Ltd – A                   86,000      614,032         1.46
Shanxi Lu’an Environmental Energy
  Development Co Ltd – A                                    81,902      740,596         1.76
Shanxi Xinghuacun Fen Wine Factory Co Ltd – A              137,700     1,432,964        3.40
Shanxi Xishan Coal And Electricity Power Co Ltd – A         90,600      366,874         0.87
Shenzhen Laibao Hi-tech Co Ltd – A                          60,900      611,761         1.45
Shenzhen Zhongjin Lingnan Nonfemet Co Ltd – A              131,300      448,216         1.06
Sinoma International Engineering Co – A                    195,700     1,204,285        2.85
Suning Appliance Co Ltd – A                                129,900      258,179         0.61
Time Publishing and Media Co Ltd – A                        90,400      227,950         0.54
Tsinghua Tongfang Co Ltd – A                               227,100      912,380         2.16
Tsingtao Brewery Co Ltd – A                                104,400      548,838         1.30




                                                  35
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 31 DECEMBER 2010 (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)


BEA Union Investment China A-Share Equity Fund (continued)

Investment portfolio (continued)

                                                          Holding         Market          % of
                                                       shares/units        value     net assets

Listed/quoted investments (100.56%) (continued)


Equities (100.56%) (continued)


China (100.56%) (continued)
UFIDA Software Co Ltd – A                                  254,000 $      896,363         2.12
Wolong Electric Group Co Ltd – A                           204,900        521,644         1.24
Xinjiang Tianshan Cement Co Ltd – A                        182,800        875,571         2.07
Yantai Changyu Pioneer Wine Co Ltd – A                      30,000        436,542         1.03
Yanzhou Coal Mining Co Ltd – A                             211,000        908,842         2.15
Yunnan Baiyao Group Co Ltd – A                              64,090        587,311         1.39
Zhongjin Gold Co Ltd – A                                   195,880      1,198,558         2.84


Total equities                                                        $ 42,440,446      100.56


Total investments                                                     $ 42,440,446      100.56


Total investments, at cost                                            $ 35,774,067




                                                  36
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 31 DECEMBER 2010 (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)


Statement of movements in portfolio holdings

BEA Union Investment Japan Growth Fund

                                   Holdings as at                            Holdings as at
                                    31 December                               31 December
                                            2009      Additions    Disposals          2010
                                           Units          Units        Units         Units

ipac Multi-Manager Japan
 Equity Fund – Class A                 1,672,874.23          –    588,579.51 1,084,294.72




                                        37
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 31 DECEMBER 2010 (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)


Statement of movements in portfolio holdings (continued)

BEA Union Investment Global Themes Fund

                                                        % of net assets
                                                        At                     At
                                               31 December            31 December
                                                      2010                   2009
Equities
Australia                                             3.62                   0.62
Austria                                                  –                   2.78
Belgium                                               2.28                   0.96
Brazil                                                4.15                   2.52
Canada                                                1.27                      –
Denmark                                               3.39                      –
France                                                   –                   0.49
Germany                                               7.51                   7.36
Greece                                                   –                   0.17
Hong Kong                                                –                   1.14
Israel                                                   –                   0.93
Ireland                                               2.16                      –
Italy                                                    –                   0.39
Japan                                                    –                   8.88
Korea                                                 2.18                   2.05
Luxembourg                                            2.06                      –
Malaysia                                                 –                   0.29
Mexico                                                   –                   0.00
Netherlands                                           4.86                   1.06
Russia                                                   –                   1.47
Singapore                                                –                   0.12
South Africa                                          2.15                   0.36
Spain                                                    –                   0.51
Switzerland                                           4.11                   2.99
Thailand                                                 –                   0.84
Turkey                                                   –                   0.04
United Kingdom                                        7.04                   9.48
United States of America                             51.25                  47.04

Investment fund
United States of America                                   –                 1.54

Participatory notes
Luxembourg                                               –                   0.65
United Kingdom                                           –                   1.27
United States of America                              0.09                      –

                                                     98.12                  95.95




                                       38
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 31 DECEMBER 2010 (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)


Statement of movements in portfolio holdings (continued)

BEA Union Investment Global Resources Fund

                                                        % of net assets
                                                        At                     At
                                               31 December            31 December
                                                      2010                   2009

Equities
Australia                                             6.41                   5.47
Austria                                               6.19                   4.42
Belgium                                               2.56                   1.82
Canada                                                8.15                   5.85
France                                                2.19                   3.31
Germany                                              17.44                  19.65
Greece                                                   –                   1.17
Ireland                                               0.73                   1.04
Italy                                                 1.27                   1.09
Japan                                                10.68                  11.32
Netherlands                                           2.24                   3.04
Norway                                                0.68                   0.90
Switzerland                                           1.75                   1.65
United Kingdom                                       10.48                   9.11
United States of America                             28.94                  28.35


                                                     99.71                  98.19


BEA Union Investment Asian Bond and Currency Fund

                                                        % of net assets
                                                        At                     At
                                               31 December            31 December
                                                      2010                   2009

Debt securities
Australian Dollar                                     1.83                  18.87
Euro                                                     –                  11.38
Hong Kong Dollar                                      5.56                   1.50
Renminbi                                             11.26                   1.31
Singapore Dollar                                      1.48                   2.18
United States Dollar                                 63.76                  57.95


                                                     83.89                  93.19




                                       39
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 31 DECEMBER 2010 (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)


Statement of movements in portfolio holdings (continued)

BEA Union Investment Four Seasons Fund

                                                       % of net assets      At 23
                                                     At 31                October
                                                 December            2009 (date of
                                                     2010           establishment)

Equities
Hong Kong                                            22.68                      –
Indonesia                                             1.54                      –
Korea                                                 4.80                      –
Singapore                                             1.80                      –
Taiwan                                                2.68                      –
Thailand                                              1.35                      –


Debt securities
United States Dollar                                 35.16                      –


Investment fund
Hong Kong                                             6.14                      –


                                                     76.15                      –


BEA Union Investment China A-Share Equity Fund

                                                       % of net assets       At 8
                                                     At 31                   June
                                                 December            2010 (date of
                                                     2010           establishment)

Equities
China                                               100.56                      –




                                       40
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 31 DECEMBER 2010 (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)


Performance table

(a) Price record

                                                                                                       2010

                                                                                             Lowest              Highest
                                                                                       redemption             issue price
    Sub-funds                                                     Class of units      price per unit             per unit
    BEA Union Investment Japan Growth Fund                            Class A                $ 6.48               $ 7.76
    BEA Union Investment Global Themes Fund                           Class A                   6.85                 9.09
    BEA Union Investment Global Resources Fund                        Class A                   0.63                 0.88
    BEA Union Investment Asian Bond and Currency Fund         Class A Accumulating            11.10                13.44
                                                               Class A Distributing           10.35                12.29
    BEA Union Investment Four Seasons Fund (1)                        Class A                   9.82               11.02
    BEA Union Investment China A-Share Equity Fund (2)                Class A                   9.52               10.10
                                                                      Class I                   9.09               13.04
                                                                      Class P                   9.09               13.03


    (1)   The date of commencement for BEA Union Investment Four Seasons Fund was 23 October 2009.


    (2)   The date of commencement for BEA Union Investment China A-Share Equity Fund was 8 June 2010.




                                                         41
                 2009                                  2008                                   2007                                  2006

       Lowest              Highest           Lowest              Highest            Lowest              Highest           Lowest              Highest
 redemption             issue price    redemption             issue price     redemption             issue price    redemption             issue price
price per unit             per unit   price per unit             per unit    price per unit             per unit   price per unit             per unit
       $ 5.02               $ 7.32           $ 5.82               $ 9.95            $ 9.30              $ 11.09           $ 9.05              $ 11.27
          4.25                 7.67             4.48               10.36               9.69               11.33                 –                    –
          0.42                 0.78             0.43                 1.15                 –                    –                –                    –
          9.88               11.48              9.52               10.03                  –                    –                –                    –
          9.86               10.93              9.49               10.03                  –                    –                –                    –
             –                    –                –                    –                 –                    –                –                    –
             –                    –                –                    –                 –                    –                –                    –
             –                    –                –                    –                 –                    –                –                    –
             –                    –                –                    –                 –                    –                –                    –




                                                                        42
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 31 DECEMBER 2010 (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)


Performance table (continued)

(b) Total net asset value

                                                As at 31       As at 31      As at 31      As at 31
                                               December       December      December      December
    Sub-funds                                      2010           2009          2008          2007

    BEA Union Investment Japan
      Growth Fund                            $ 11,172,416   $ 15,346,997 $ 15,587,821   $ 26,613,651


    BEA Union Investment Global
      Themes Fund                              34,737,217     38,112,745   28,378,339     62,365,062


    BEA Union Investment Global
      Resources Fund                           11,337,491     13,505,516   10,331,355              –


    BEA Union Investment Asian Bond and
      Currency Fund                            56,157,135     33,342,483   24,284,827              –


    BEA Union Investment Four Seasons Fund     19,679,675              –            –              –


    BEA Union Investment China
      A-Share Equity Fund                      42,202,656              –            –              –




                                                43
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 31 DECEMBER 2010 (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)


Performance table (continued)

(c)   Net asset value per unit

                                                                              As at 31    As at 31    As at 31    As at 31
                                                                             December    December    December    December
      Sub-Funds                                        Class of units            2010        2009        2008        2007

      BEA Union Investment Japan Growth Fund                 Class A            $ 7.76      $ 6.93      $ 6.78      $ 9.63


      BEA Union Investment Global Themes Fund                Class A              9.08        7.62        5.39       10.29


      BEA Union Investment Global Resources Fund             Class A              0.88        0.76        0.53           –


      BEA Union Investment Asian Bond and                    Class A             13.39       11.37        9.82           –
       Currency Fund                                   Accumulating
                                                             Class A             12.25       10.83        9.79           –
                                                        Distributing


      BEA Union Investment Four Seasons Fund                 Class A             10.73           –           –           –


      BEA Union Investment China A-Share Equity Fund         Class A              9.71           –           –           –
                                                              Class I            11.81           –           –           –
                                                             Class P             11.79           –           –           –




                                                                        44
BEA UNION INVESTMENT SERIES

INDEPENDENT AUDITOR’S REPORT TO THE UNITHOLDERS OF
BEA UNION INVESTMENT SERIES (“THE FUND”)




Report on the financial statements

We have audited the financial statements of the sub-funds within the Fund (“the
Sub-funds”) set out on pages 47 to 115 which comprise the statement of assets and
liabilities as at 31 December 2010, and the statement of comprehensive income,
statement of changes in equity, statement of changes in net assets attributable to
unitholders, cash flow statement, distribution statement for the year/period then
ended 31 December 2010, and a summary of significant accounting policies and other
explanatory information.

Manager’s and Trustee’s responsibility for the financial statements

The Manager and the Trustee are responsible for the preparation of financial statements
that give a true and fair view in accordance with Hong Kong Financial Reporting
Standards issued by the Hong Kong Institute of Certified Public Accountants and for such
internal control as the Manager and the Trustee determine is necessary to enable the
preparation of financial statements that are free from material misstatements, whether
due to fraud or error.

In addition, the Manager and the Trustee also have a responsibility to ensure that the
financial statements comply with the relevant disclosure provisions of the Trust Deed, as
amended, and the relevant disclosure requirements set out in Appendix E to the Hong
Kong Code on Unit Trusts and Mutual Funds issued by the Hong Kong Securities and
Futures Commission (“the Code”).

Auditor’s responsibility

Our responsibility is to express an opinion on these financial statements based on our
audit. This report is made solely to you, as a body, 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 audit in accordance with Hong Kong Standards on Auditing issued by
the Hong Kong Institute of Certified Public Accountants. Those standards require that we
comply with ethical requirements and plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material misstatement.




                                           45
BEA UNION INVESTMENT SERIES

INDEPENDENT AUDITOR’S REPORT TO THE UNITHOLDERS OF
BEA UNION INVESTMENT SERIES (“THE FUND”) (CONTINUED)




Report on the financial statements (continued)

Auditor’s responsibility (continued)

An audit involves performing procedures to obtain audit evidence about the amounts
and disclosures in the financial statements. The procedures selected depend on the
auditor’s judgement, including the assessment of the risks of material misstatement of
the financial statements, whether due to fraud or error. In making those risk assessments,
the auditor considers internal control relevant to the entity’s preparation of the financial
statements that give a true and fair view 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 entity’s internal control. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of accounting
estimates made by the Manager and the Trustee, as well as evaluating the overall
presentation of the financial statements.

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

Opinion

In our opinion, the financial statements give a true and fair view of the financial position
of the Sub-funds as at 31 December 2010 and of their transactions and cash flows for the
year/period then ended in accordance with Hong Kong Financial Reporting Standards.

Report on disclosure requirements under the Code

We report that the financial statements have been properly prepared in accordance
with the relevant disclosure provisions of the Trust Deed, as amended, and the relevant
disclosure requirements set out in the Code.




Certified Public Accountants
8th Floor, Prince’s Building
10 Chater Road
Central, Hong Kong

15 April 2011


                                            46
BEA UNION INVESTMENT SERIES

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR/PERIOD ENDED 31 DECEMBER 2010
(EXPRESSED IN UNITED STATES DOLLARS)



                                                                           BEA Union Investment
                                                                            Japan Growth Fund
                                                               Note           2010              2009


Income


Dividend income                                                        $          –    $           –
Interest on bank deposits                                                         8                7
Other income                                                                      –                –


                                                                       $          8    $           7


Expenses


Investment management fees                                      6(c)   $     60,102    $      66,933
Trustee’s fees                                                  6(d)         16,622           18,456
Safe custody and bank charges                                                     –                –
Auditors’ remuneration                                                       11,591           12,820
Registrar’s fees                                                6(e)          6,649            7,382
Printing and publication expenses                                             6,435            4,305
Regulatory fees                                                                 861              580
Pre-operating expenses                                                            –                –
Legal and professional fees                                                  13,320              738
Transaction costs                                                                 –                –
Other operating expenses                                                      4,007                –


                                                                       $    119,587    $     111,214


Net (losses)/gains for the year/period before gains
  on investments and exchange                                          $   (119,579)   $    (111,207)



(1)      The date of commencement for BEA Union Investment Four Seasons Fund was 23 October
         2009.

(2)      The date of commencement for BEA Union Investment China A-Share Equity Fund was 8
         June 2010.




                                                      47
                                                                                                                                   BEA Union
                                                                                                             BEA Union             Investment
    BEA Union Investment             BEA Union Investment                  BEA Union Investment           Investment Four         China A-Share
     Global Themes Fund              Global Resources Fund             Asian Bond and Currency Fund        Seasons Fund (1)       Equity Fund (2)
       2010              2009           2010               2009               2010                2009               2010                  2010




$   589,147     $     737,231    $   251,536     $      258,017    $             –     $            –     $        79,329     $         172,669
        460             1,244             22                 31              1,952                157                 265                 7,728
          –                 2             41              1,222             36,500                  –                   –                     –


$   589,607     $     738,477    $   251,599     $      259,270    $        38,452     $          157     $        79,594     $         180,397




$   508,280     $     483,416    $   173,859     $      172,246    $       356,890     $      208,719     $      477,211      $         349,768
     59,299            56,399         20,283             20,095             59,482             34,787             47,721                 39,202
     52,924            91,244         10,764              7,262             20,892              9,870             11,922                 22,653
     17,897            11,298          6,872             11,659             15,733             14,239             14,163                 11,584
     16,943            16,114          5,795              5,742             23,706             13,915             13,635                 11,201
      6,184             4,305          6,435              4,305              7,650              6,058              4,222                  1,909
      1,441                 –          1,441                  –                859                580                860                    161
          –                 –              –                  –                  –                  –             19,403                176,231
      4,618             2,560         19,757                738              1,096                989                  –                 23,061
    180,386           257,606          2,760              5,692                  –                  –             32,704                108,401
        404               355          4,000                  –                  –                  –                 43                      –


$   848,376     $     923,297    $   251,966     $      227,739    $       486,308     $      289,157     $      621,884      $         744,171



$   (258,769)   $    (184,820)   $      (367)    $       31,531    $      (447,856)    $      (289,000)   $      (542,290)    $         (563,774)




                                                              48
BEA UNION INVESTMENT SERIES

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR/PERIOD ENDED 31 DECEMBER 2010 (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)



                                                                             BEA Union Investment
                                                                              Japan Growth Fund
                                                                 Note           2010              2009


Net gains on investments and exchange


Net realised (losses)/gains on investments                              $   (2,087,218)   $   (374,788)
Net movement in unrealised gains on investments                              3,663,912         792,946
Exchange (losses)/gains                                                            (11)            (10)


                                                                        $   1,576,683     $    418,148


Profit before finance costs                                             $   1,457,104     $    306,941

Distribution to unitholders                                                          –               –


Profit before tax                                                       $   1,457,104     $    306,941

Taxation                                                          7                  –               –


Profit and total comprehensive income for the year/period               $   1,457,104     $    306,941



(1)     The date of commencement for BEA Union Investment Four Seasons Fund was 23 October
        2009.

(2)     The date of commencement for BEA Union Investment China A-Share Equity Fund was 8
        June 2010.

The notes on pages 62 to 115 form part of these financial statements.




                                                            49
                                                                                                                                      BEA Union
                                                                                                                BEA Union             Investment
     BEA Union Investment               BEA Union Investment                  BEA Union Investment           Investment Four         China A-Share
      Global Themes Fund                Global Resources Fund             Asian Bond and Currency Fund        Seasons Fund (1)       Equity Fund (2)
        2010              2009             2010               2009               2010                2009               2010                  2010




$   4,826,868    $      (37,882)   $    (450,893)   $     (670,947)   $     7,694,010     $     2,221,437    $     1,126,231     $          978,043
    1,753,778        10,983,803        2,220,331         4,271,216            633,141           1,953,680            683,816              5,683,132
     (386,244)          898,504          (96,311)          614,816            167,362              66,598           (213,901)             1,203,600


$   6,194,402    $   11,844,425    $   1,673,127    $    4,215,085    $     8,494,513     $     4,241,715    $     1,596,146     $        7,864,775


$   5,935,633    $   11,659,605    $   1,672,760    $    4,246,616    $     8,046,657     $     3,952,715    $     1,053,856     $        7,301,001

            –                 –                –                 –          (1,459,982)        (1,063,225)                 –                      –


$   5,935,633    $   11,659,605    $   1,672,760    $    4,246,616    $     6,586,675     $     2,889,490    $     1,053,856     $        7,301,001

     (123,296)         (143,540)         (52,175)          (54,278)                  –                  –             (9,534)              (885,153)


$   5,812,337    $   11,516,065    $   1,620,585    $    4,192,338    $     6,586,675     $     2,889,490    $     1,044,322     $        6,415,848




                                                                 50
BEA UNION INVESTMENT SERIES

STATEMENT OF ASSETS AND LIABILITIES
AT 31 DECEMBER 2010
(EXPRESSED IN UNITED STATES DOLLARS)



                                                                                         BEA Union Investment
                                                                                          Japan Growth Fund
                                                                            Note            2010              2009


Assets


Investments                                                                  3     $   11,200,764   $    15,290,070
Amount receivable from foreign currency forward contracts                   3(b)                –                 –
Dividend receivables                                                                            –                 –
Amounts receivable from sale of investments                                               961,000            24,000
Amounts receivable on subscription                                                              –                 –
Bank interest receivables                                                                       4                 3
Other receivables                                                                               –                 –
Bank balances                                                               6(a)           76,909            61,525


Total assets                                                                       $   12,238,677   $    15,375,598


Liabilities


Amounts payable on redemption                                                      $    1,037,522   $        7,440
Amounts payable for purchase of investments                                                     –                –
Taxation                                                                     7                  –                –
Deferred tax liabilities                                                     7                  –                –
Accruals and other payables                                                                28,739           21,161


Total liabilities (excluding net assets attributable to unitholders)               $    1,066,261   $       28,601


Net assets attributable to unitholders


Financial liabilities                                                        5     $            –   $             –


Equity                                                                       5     $   11,172,416   $    15,346,997




                                                                       51
                                                                                                                                     BEA Union
                                                                                                                BEA Union           Investment
      BEA Union Investment               BEA Union Investment                  BEA Union Investment          Investment Four       China A-Share
       Global Themes Fund                Global Resources Fund             Asian Bond and Currency Fund        Seasons Fund         Equity Fund
         2010              2009             2010               2009               2010                2009              2010                2010




$   34,083,935   $    36,570,616   $   11,304,483    $   13,261,117    $    47,108,308     $    31,072,737   $   14,986,928    $      42,440,446
             –                 –                –                 –            167,514              12,850                –                    –
        27,741            25,149            5,337             3,908                  –                   –                –                    –
             –         1,121,502          214,147                 –                  –                   –                –                    –
             –                 –                –                 –             52,492                   –                –                    –
            21                13                6                10                 91                  72               71                   40
             –                 –                –                 –                  –                   –                –               50,761
       753,462         1,186,748          360,003           292,001          9,538,209           2,336,439        4,741,957            2,847,259


$   34,865,159   $    38,904,028   $   11,883,976    $   13,557,036    $    56,866,614     $    33,422,098   $   19,728,956    $      45,338,506




$      60,409    $       27,760    $     507,289     $       18,903    $       645,954     $        35,435   $            –    $       2,000,000
            –           671,115                –                  –                  –                   –                –                    –
        3,015             4,667            1,368              1,036                  –                   –                –              120,264
            –                 –                –                  –                  –                   –                –              742,279
       64,518            87,741           37,828             31,581             63,525              44,180           49,281              273,307


$     127,942    $      791,283    $     546,485     $       51,520    $       709,479     $        79,615   $       49,281    $       3,135,850




$            –   $             –   $            –    $            –    $    56,157,135     $    33,342,483   $            –    $      42,202,656


$   34,737,217   $    38,112,745   $   11,337,491    $   13,505,516    $             –     $             –   $   19,679,675    $               –




                                                                  52
BEA UNION INVESTMENT SERIES

STATEMENT OF ASSETS AND LIABILITIES
AT 31 DECEMBER 2010 (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)



                                                                                                       BEA Union Investment
                                                                                                        Japan Growth Fund
                                                                                        Note              2010              2009


Number of units in issue – Class A                                                       4         1,439,642.39       2,213,029.17

Net asset value per unit (1) – Class A                                                         $           7.76   $           6.93

Number of units in issue – Class A Accumulating                                          4                   –                  –

Net asset value per unit (1) – Class A Accumulating                                            $             –    $             –

Number of units in issue – Class A Distributing                                          4                   –                  –

Net asset value per unit (1) – Class A Distributing                                            $             –    $             –

Number of units in issue – Class I                                                       4                   –                  –

Net asset value per unit (1) – Class I                                                         $             –    $             –

Number of units in issue – Class P                                                       4                   –                  –

Net asset value per unit (1) – Class P                                                         $             –    $             –


(1)     The net asset value per unit is rounded down to 2 decimal places in accordance with the
        Explanatory Memorandum.

Approved and authorised for issue by the Trustee and the Manager on 15 April 2011

                                                      )
                                                      ) For and on behalf of
                                                      ) Bank of East Asia (Trustees) Limited
                                                      )

                                                      )
                                                      ) For and on behalf of
                                                      ) BEA Union Investment Management Limited
                                                      )

The notes on pages 62 to 115 form part of these financial statements.




                                                                       53
                                                                                                                                                BEA Union
                                                                                                                          BEA Union            Investment
        BEA Union Investment                   BEA Union Investment                     BEA Union Investment           Investment Four        China A-Share
         Global Themes Fund                    Global Resources Fund                Asian Bond and Currency Fund         Seasons Fund          Equity Fund
           2010              2009                 2010               2009                  2010                2009               2010                 2010


    3,825,605.60       4,997,491.67       12,865,753.95        17,734,971.07                  –                   –        1,833,745.99          151,159.18

$           9.08   $           7.62   $            0.88    $            0.76    $             –     $             –    $         10.73    $            9.71

              –                  –                   –                    –          638,365.19          442,787.62                  –                    –

$             –    $             –    $              –     $              –     $         13.39     $         11.37    $             –    $               –

              –                  –                   –                    –         3,885,426.77        2,611,767.47                 –                    –

$             –    $             –    $              –     $              –     $         12.25     $         10.83    $             –    $               –

              –                  –                   –                    –                   –                   –                  –         2,623,854.98

$             –    $             –    $              –     $              –     $             –     $             –    $             –    $           11.81

              –                  –                   –                    –                   –                   –                  –           825,874.30

$             –    $             –    $              –     $              –     $             –     $             –    $             –    $           11.79




                                                                           54
BEA UNION INVESTMENT SERIES

STATEMENT OF CHANGES IN EQUITY/STATEMENT OF CHANGES IN NET
ASSETS ATTRIBUTABLE TO UNITHOLDERS
FOR THE YEAR/PERIOD ENDED 31 DECEMBER 2010
(EXPRESSED IN UNITED STATES DOLLARS)



                                                     BEA Union Investment                       BEA Union Investment
                                                      Japan Growth Fund                          Global Themes Fund
                                                        2010                     2009              2010                     2009


Balance at 1 January/date of commencement      $   15,346,997    $          15,587,821    $   38,112,745    $          28,378,339


Transactions with owners/recorded directly
  in equity/transaction with unitholders


Subscription of units during the year/period   $       80,988    $              15,856    $       90,674    $             133,833
Redemption of units during the year/period         (5,712,673)                (563,621)       (9,278,539)              (1,915,492)


Total transactions with owners/unitholders     $   (5,631,685)   $            (547,765)   $   (9,187,865)   $          (1,781,659)


Profit and total comprehensive income
  for the year/period                          $    1,457,104    $            306,941     $    5,812,337    $          11,516,065


Balance at 31 December                         $   11,172,416    $          15,346,997    $   34,737,217    $          38,112,745



(1)     The date of commencement for BEA Union Investment Four Seasons Fund was 23 October
        2009.

(2)     The date of commencement for BEA Union Investment China A-Share Equity Fund was 8
        June 2010.

The notes on pages 62 to 115 form part of these financial statements.




                                                            55
                                                                                                                          BEA Union
                                                                                                  BEA Union               Investment
      BEA Union Investment                          BEA Union Investment                       Investment Four           China A-Share
      Global Resources Fund                     Asian Bond and Currency Fund                    Seasons Fund (1)         Equity Fund (2)
         2010                      2009                2010                        2009                      2010                     2010


$   13,505,516     $          10,331,355    $    33,342,483     $          24,284,827      $                    –    $                  –




$      761,696     $           2,316,923    $    39,363,520     $           21,057,686     $           45,847,733    $         39,512,747
    (4,550,306)               (3,335,100)       (23,135,543)               (14,889,520)               (27,212,380)             (3,725,939)


$   (3,788,610)    $          (1,018,177)   $    16,227,977     $              6,168,166   $          18,635,353     $         35,786,808



$    1,620,585     $           4,192,338    $     6,586,675     $              2,889,490              $1,044,322     $          6,415,848


$   11,337,491     $          13,505,516    $    56,157,135     $          33,342,483      $          19,679,675     $         42,202,656




                                                          56
BEA UNION INVESTMENT SERIES

CASH FLOW STATEMENT
FOR THE YEAR/PERIOD ENDED 31 DECEMBER 2010
(EXPRESSED IN UNITED STATES DOLLARS)



                                                           BEA Union Investment                      BEA Union Investment
                                                            Japan Growth Fund                         Global Themes Fund
                                                              2010                   2009               2010                      2009


Operating activities


Profit before tax                                     $    1,457,104    $          306,941    $     5,935,633    $           11,659,605
Net realised losses/(gains) on sale of investments         2,087,218               374,788         (4,826,868)                   37,882
Net movement in unrealised gains on investments           (3,663,912)             (792,946)        (1,753,778)              (10,983,803)
Interest on bank deposits                                         (8)                   (7)              (460)                   (1,244)
Dividend income                                                    –                     –           (589,147)                 (737,231)
Exchange losses/(gains) on investments                             –                     –            353,116                (1,025,728)
Distribution to unitholders                                        –                     –                  –                         –
Increase in other receivables                                      –                     –                  –                         –
Increase/(decrease) in accruals and other payables             7,578                  (266)           (23,223)                   22,487


Net cash outflow from operating activities            $    (112,020)    $         (111,490)   $     (904,727)    $           (1,028,032)


Investing activities


Purchase of investments                               $           –     $               –     $   (59,029,024)   $          (60,840,903)
Sale of investments                                       4,729,000               705,000          68,193,622                62,040,535
Settlement of foreign currency forward contracts                  –                     –                   –                         –
Interest received from bank deposits                              7                    37                 452                     1,314
Dividend received net of withholding tax                          –                     –             461,607                   620,728


Net cash inflow/(outflow) from investing activities   $   4,729,007     $         705,037     $    9,626,657     $           1,821,674



(1)     The date of commencement for BEA Union Investment Four Seasons Fund was 23 October
        2009.

(2)     The date of commencement for BEA Union Investment China A-Share Equity Fund was 8
        June 2010.




                                                                   57
                                                                                                                           BEA Union
                                                                                                   BEA Union               Investment
     BEA Union Investment                          BEA Union Investment                         Investment Four           China A-Share
     Global Resources Fund                     Asian Bond and Currency Fund                      Seasons Fund (1)         Equity Fund (2)
        2010                      2009                2010                         2009                       2010                     2010




$    1,672,760    $           4,246,616    $      6,586,675    $               2,889,490    $            1,053,856    $           7,301,001
       450,893                  670,947          (7,694,010)                  (2,221,437)               (1,126,231)                (978,043)
    (2,220,331)              (4,271,216)           (633,141)                  (1,953,680)                 (683,816)              (5,683,132)
           (22)                     (31)             (1,952)                        (157)                     (265)                  (7,728)
      (251,536)                (258,017)                  –                            –                   (79,329)                (172,669)
        90,212                 (611,906)           (477,139)                     (21,774)                   77,212               (1,205,591)
             –                        –           1,459,982                    1,063,225                         –                        –
             –                        –                   –                            –                         –                  (50,761)
         6,247                    4,757              19,345                        8,243                    49,281                  273,307


$    (251,777)    $           (218,850)    $       (740,240)   $               (236,090)    $            (709,292)    $           (523,616)




$   (1,034,780)   $          (3,761,338)   $   (279,901,223)   $          (54,511,143)      $          (70,216,699)   $         (46,851,284)
     4,456,493                3,761,647         271,966,390                49,313,302                   56,902,453               12,277,604
             –                        –             548,888                   (15,847)                      60,153                        –
            26                       84               1,933                       711                          194                    6,955
       198,264                  207,340                   –                         –                       69,795                  150,792


$   3,620,003     $            207,733     $     (7,384,012)   $              (5,212,977)   $          (13,184,104)   $         (34,415,933)




                                                          58
BEA UNION INVESTMENT SERIES

CASH FLOW STATEMENT
FOR THE YEAR/PERIOD ENDED 31 DECEMBER 2010 (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)



                                                            BEA Union Investment                    BEA Union Investment
                                                             Japan Growth Fund                       Global Themes Fund
                                                               2010                   2009             2010                     2009


Financing activities


Proceeds on subscription of units                      $       80,988    $           15,856    $       90,674    $            133,833
Payments on redemption of units                            (4,682,591)             (616,162)       (9,245,890)             (1,891,382)
Payments on distribution                                            –                     –                 –                       –


Net cash (outflow)/inflow from financing activities    $   (4,601,603)   $         (600,306)   $   (9,155,216)   $         (1,757,549)


Net increase/(decrease) in cash and cash equivalents   $      15,384     $           (6,759)   $    (433,286)    $          (963,907)


Cash and cash equivalents at the beginning
  of the year/period                                          61,525                68,284         1,186,748               2,150,655


Cash and cash equivalents at the end
  of the year/period                                   $      76,909     $          61,525     $     753,462     $         1,186,748



(1)     The date of commencement for BEA Union Investment Four Seasons Fund was 23 October
        2009.

(2)     The date of commencement for BEA Union Investment China A-Share Equity Fund was 8
        June 2010.

The notes on pages 62 to 115 form part of these financial statements.




                                                                    59
                                                                                                                          BEA Union
                                                                                                  BEA Union               Investment
     BEA Union Investment                          BEA Union Investment                        Investment Four           China A-Share
     Global Resources Fund                     Asian Bond and Currency Fund                     Seasons Fund (1)         Equity Fund (2)
        2010                      2009                2010                        2009                       2010                     2010




$      761,696    $           2,316,923    $    39,311,028     $           21,057,686      $           45,847,733    $         39,512,747
    (4,061,920)              (3,316,197)       (22,525,024)               (14,869,088)                (27,212,380)             (1,725,939)
             –                        –         (1,459,982)                (1,063,225)                          –                       –


$   (3,300,224)   $           (999,274)    $    15,326,022     $              5,125,373    $          18,635,353     $         37,786,808


$      68,002     $          (1,010,391)   $     7,201,770     $               (323,694)   $           4,741,957     $          2,847,259



      292,001                1,302,392           2,336,439                    2,660,133                         –                       –



$     360,003     $            292,001     $     9,538,209     $              2,336,439    $           4,741,957     $          2,847,259




                                                         60
BEA UNION INVESTMENT SERIES

DISTRIBUTION STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2010
(EXPRESSED IN UNITED STATES DOLLARS)

                                                                BEA Union Investment
                                                            Asian Bond and Currency Fund
                                                                 2010                   2009

Amount available for distribution to unitholders
  at the beginning of the year                          $      284,427         $      204,648
Profit for the year available for distribution               2,040,043              1,143,004
Distributions to unitholders                                (1,459,982)            (1,063,225)

Undistributed income carried forward                    $     864,488          $     284,427


Distribution history:

0.11364 per unit on 2,140,480.50 units
  on 14 January 2009                                    $            –         $     243,244
0.13472 per unit on 2,033,838.99 units
  on 14 April 2009                                                   –               273,999
0.11788 per unit on 2,180,122.97 units
  on 14 July 2009                                                    –               256,993
0.10512 per unit on 2,749,132.17 units
  on 14 October 2009                                                 –               288,989
0.13975 per unit on 2,647,538.76 units
  on 14 January 2010                                          369,993                       –
0.09755 per unit on 3,095,814.48 units
  on 14 April 2010                                            301,997                       –
0.09843 per unit on 3,474,563.03 units
  on 14 July 2010                                             342,001                       –
0.12306 per unit on 3,624,175.95 units
  on 14 October 2010                                          445,991                       –

                                                        $   1,459,982          $   1,063,225


The notes on pages 62 to 115 form part of these financial statements.




                                                   61
BEA UNION INVESTMENT SERIES

NOTES ON THE FINANCIAL STATEMENTS
(EXPRESSED IN UNITED STATES DOLLARS)

1   The Fund
    BEA Union Investment Series (“the Fund”) is an umbrella unit trust established
    in Hong Kong pursuant to a trust deed dated 18 January 2002 and supplemental
    trust deeds dated 17 February 2006, 30 January 2007, 8 January 2008, 3 July 2008,
    4 July 2008, 4 September 2009 and 3 June 2010 (“Trust Deed, as amended”). There
    were six sub-funds created under the Fund (collectively “the Sub-funds”) as at
    31 December 2010. These Sub-funds were established on the date set out below:

    Name of Sub-funds                                               Establishment date
    BEA Union Investment Japan Growth Fund                            20 February 2006
    BEA Union Investment Global Themes Fund                              15 March 2007
    BEA Union Investment Global Resources Fund                            5 March 2008
    BEA Union Investment Asian Bond and Currency Fund                   25 August 2008
    BEA Union Investment Four Seasons Fund                             23 October 2009
    BEA Union Investment China A-Share Equity Fund                          8 June 2010

    As at 31 December 2010, two different classes of units, namely Class A and Class
    B had been created for BEA Union Investment Japan Growth Fund, BEA Union
    Investment Global Themes Fund and BEA Union Investment Global Resources Fund.
    Only Class A had been subscribed and was in issue as at 31 December 2010 for these
    sub-funds.

    As at 31 December 2010, one class of units, namely Class A had been created,
    subscribed and was in issue for BEA Union Investment Four Seasons Fund.

    As at 31 December 2010, three different classes of units, namely Class A, Class B
    and Class I had been created for BEA Union Investment Asian Bond and Currency
    Fund while the sub-fund had further separated its units into accumulating units
    and distributing units. Only Class A had been subscribed and was in issue as at
    31 December 2010 for this sub-fund.

    As at 31 December 2010, four different classes of units, namely Class A, Class B,
    Class I and Class P had been created for BEA Union Investment China A-Share Equity
    Fund. Only Class A, Class I and Class P had been subscribed and was in issue as at
    31 December 2010 for this sub-fund.

    The Sub-funds are authorised by the Hong Kong Securities and Futures Commission
    (“the HKSFC”) under Section 104 of the Hong Kong Securities and Futures Ordinance
    (“the HKSFO”). They are governed by the relevant provisions of the Hong Kong
    Code on Unit Trusts and Mutual Funds.

    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 BEA Union Investment Japan Growth Fund, BEA Union Investment
    Global Themes Fund, BEA Union Investment Global Resources Fund, BEA Union
    Investment Asian Bond and Currency Fund, BEA Union Investment Four Seasons Fund
    and BEA Union Investment China A-Share Equity Fund only.

                                          62
BEA UNION INVESTMENT SERIES

NOTES ON THE FINANCIAL STATEMENTS (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

2   Significant accounting policies
    (a) Statement of compliance

        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, and the relevant provisions of the Hong Kong Code on
        Unit Trusts and Mutual Funds issued by the Hong Kong Securities and Futures
        Commission. 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 period. There have
        been no significant changes to the accounting policies applied in these financial
        statements for the years presented as a result of these developments.

        The Sub-funds have not applied any new standard or interpretation that is not
        yet effective for the current accounting period (see note 15).

    (b) Basis of preparation of the financial statements

        The financial statements are presented in United States dollars (“USD”) and
        rounded to the nearest dollar.

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



                                           63
BEA UNION INVESTMENT SERIES

NOTES ON THE FINANCIAL STATEMENTS (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

2   Significant accounting policies (continued)
    (c)   Income and expenses

          Interest income is recognised as it accrues using effective interest method.
          Interest income on bank deposits is disclosed separately on the face of profit
          or loss. Interest income on debt securities is included in net gains/(losses) on
          investments and exchange. Dividend income is recognised when the underlying
          securities are quoted ex-dividend. Dividend is presented gross of any non-
          recoverable withholding taxes, which are presented separately in profit or loss.
          All other income and expenses are account for on an accrual basis.

    (d) Financial instruments

          (i)   Classification

                The Sub-funds have designated all investments into the financial assets at
                fair value through profit or loss category upon initial recognition.

                All derivatives are classified as held for trading. Derivatives in a net
                receivable position (positive fair value) are reported as financial assets. All
                derivatives in a net payable position (negative fair value) are reported as
                financial liabilities.

                Financial assets that are classified as loans and receivables include dividend
                receivables, amounts receivable from sale of investments, amounts
                receivable on subscription, bank interest receivables and other receivables.

                Financial liabilities that are not at fair value through profit or loss include
                amounts payable on redemption, amounts payable for purchase of
                investments and accruals and other payables.

          (ii) Recognition

                The Sub-funds recognise financial assets and financial liabilities on the date
                they become a party to the contractual provisions of the instrument.

                A regular way purchase of financial assets is recognised using trade date
                accounting. From this date any gains and losses arising from changes in fair
                value of the financial assets or financial liabilities are recorded.

                Financial liabilities are not recognised unless one of the parties has
                performed its obligations under the contract or the contract is a derivative
                contract not exempted from the scope of HKAS 39.




                                               64
BEA UNION INVESTMENT SERIES

NOTES ON THE FINANCIAL STATEMENTS (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

2   Significant accounting policies (continued)
    (d) Financial instruments (continued)
        (iii) Measurement
            Financial instruments are measured initially at fair value (transaction price).
            Transactions costs on financial assets and financial liabilities at fair value
            through profit or loss are expensed immediately.
            Subsequent to initial recognition, all instruments classified at fair value
            through profit or loss are measured at fair value with changes in their fair
            value recognised in profit or loss.
            Financial assets classified as receivables are carried at amortised cost using
            the effective interest method, less impairment losses, if any.
            Financial liabilities other than those at fair value through profit or loss are
            measured at amortised cost using the effective interest method. Financial
            liabilities arising from the redeemable units issued by certain sub-funds are
            carried at the redemption amount representing the unitholders’ right to a
            residual interest in these sub-funds’ assets.
        (iv) Fair value measurement principles
            Fair value is the amount for which an asset could be exchanged, or a
            liability settled, between knowledgeable, willing parties in an arm’s length
            transaction on the measurement date.
            When available, the Sub-funds measure the fair value of an instrument
            using quoted prices in an active market for that instrument. A market is
            regarded as active if quoted prices are readily and regularly available and
            represent actual and regularly occurring market transactions on an arm’s
            length basis.
            If a market for a financial instrument is not active, the Sub-funds establish
            fair value using a valuation technique. Valuation techniques include using
            recent arm’s length transactions between knowledgeable, willing parties (if
            available), reference to the current fair value of other instruments that are
            substantially the same, discounted cash flow analyses and option pricing
            models. The chosen valuation technique makes maximum use of market
            inputs, relies as little as possible on estimates specific to the Sub-funds,
            incorporates all factors that market participants would consider in setting a
            price, and is consistent with accepted economic methodologies for pricing
            financial instruments. Inputs to valuation techniques reasonably represent
            market expectations and measures of the risk-return factors inherent in the
            financial instrument. The Sub-funds calibrate valuation techniques and test
            them for validity using prices from observable current market transactions
            in the same instrument or based on other available observable market
            data.


                                            65
BEA UNION INVESTMENT SERIES

NOTES ON THE FINANCIAL STATEMENTS (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

2   Significant accounting policies (continued)
    (d) Financial instruments (continued)

        (iv) Fair value measurement principles (continued)

             Assets and long positions are measured at a bid price; liabilities and short
             positions are measured at an asking price.

             Gains and losses on investments are included in profit or loss. Realised gains
             and losses on investments included net gains or losses on contracts which
             have been setting or for which offsetting contracts have been entered into.

        (v) Impairment

             Financial assets that are stated at cost or amortised cost are reviewed at
             each date of the statement of assets and liabilities to determine whether
             there is objective evidence of impairment. If any such indication exists, an
             impairment loss is recognised in profit or loss as the difference between
             the asset’s carrying amount and the present value of estimated future cash
             flows discounted at the financial asset’s original effective interest rate.

             If in a subsequent period the amount of an impairment loss recognised on
             a financial asset carried at amortised cost decreases and the decrease can
             be linked objectively to an event occurring after the write-down, the write-
             down is reversed through profit or loss.

        (vi) Derecognition

             The Sub-funds derecognise a financial asset when the contractual rights to
             the cash flows from the financial asset expire or they transfer the financial
             asset and the transfer qualifies for derecognition in accordance with HKAS
             39.

             The Sub-funds use the weighted average method to determine realised
             gains and losses on derecognition.

             A financial liability is derecognised when the obligation specified in the
             contract is discharged, cancelled or expired.

    (e) Translation of foreign currencies

        Foreign currency transactions during the year/period are translated into United
        States dollars at the rate of exchange ruling at the transaction dates. Monetary
        assets and liabilities denominated in foreign currencies are translated into
        United States dollars at the foreign exchange rates ruling at the year/period end
        date. Differences arising on foreign currency translation are recorded in profit
        or loss.




                                            66
BEA UNION INVESTMENT SERIES

NOTES ON THE FINANCIAL STATEMENTS (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

2   Significant accounting policies (continued)
    (f)   Related parties

          For the purposes of these financial statements, a party is considered to be
          related to the Sub-funds if:

          (i)   the party has the ability, directly or indirectly through one or more
                intermediaries, to control the Sub-funds or exercise significant influence
                over the Sub-funds in making financial and operating policy decisions, or
                has joint control over the Sub-funds;

          (ii) the Sub-funds and the party are subject to common control;

          (iii) the party is a subsidiary, an associate of the Sub-funds or a joint venture in
                which the Sub-funds are the venturers;

          (iv) the party is a member of key management personnel of the Sub-funds, or a
               close family member of such an individual, or is an entity under the control,
               joint control or significant influence of such individuals; or

          (v) the party is a close family member of a party referred to in (i) or is an entity
              under the control, joint control or significant influence of such individuals.

          Close family members of an individual are those family members who may be
          expected to influence, or be influenced by, that individual in their dealings with
          the Sub-funds.

    (g) Cash and cash equivalents

          Cash and cash equivalents comprise cash at bank and on hand, demand deposits
          with banks and other financial institutions, and short-term, highly liquid
          investments 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.

    (h) Taxation

          Taxation for the year/period comprises current tax and movements in deferred
          tax assets and liabilities. Current tax and movements in deferred tax assets and
          liabilities are recognised in profit or loss.

          Current tax is the expected tax payable on the taxable income for the year/
          period, using tax rates enacted or substantively enacted at the date of
          statement of assets and liabilities, and any adjustment to tax payable in respect
          of previous years. Current tax also includes non-recoverable withholding taxes
          on investment income and capital gains.




                                              67
BEA UNION INVESTMENT SERIES

NOTES ON THE FINANCIAL STATEMENTS (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

2   Significant accounting policies (continued)
    (h) Taxation (continued)

          Deferred tax assets and liabilities arise from deductible and taxable temporary
          differences respectively, being the differences between the carrying amounts of
          assets and liabilities for financial reporting purposes and their tax bases.

          All deferred tax liabilities, and all deferred tax assets to the extent that it is
          probable that future taxable capital gains will be available against which the
          asset can be utilised, are recognised.

          The amounts of deferred tax recognised is measured based on the expected
          manner of realisation or settlement of the carrying amount of the assets and
          liabilities, using tax rates enacted or substantively enacted at the date of
          statement of assets and liabilities. Deferred tax assets and liabilities are not
          discounted.

    (i)   Units in issue

          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.




                                             68
BEA UNION INVESTMENT SERIES

NOTES ON THE FINANCIAL STATEMENTS (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

2   Significant accounting policies (continued)
    (i)   Units in issue (continued)

          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 Japan Growth Fund, BEA Union Investment Global
          Themes Fund and BEA Union Investment Global Resources Fund have two
          classes of redeemable units: Class A and Class B. Class A units were in issue.

          BEA Union Investment Four Seasons Fund has one class of redeemable units:
          Class A and Class A units were in issue.

          BEA Union Investment Asian Bond and Currency Fund has three classes of
          redeemable units: Class A, Class B and Class I while the sub-fund has further
          separate its units into accumulating units and distributing units. Class A
          Accumulating and Class A Distributing units were in issue.

          BEA Union Investment China A-Share Equity Fund has four classes of
          redeemable units: Class A, Class B, Class I and Class P. Class A, Class I and Class P
          units were in issue.

          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 Asian Bond and Currency
          Fund and BEA Union Investment China A-Share Equity Fund, all the Sub-funds’
          redeemable units meet the definition of puttable instruments classified as
          equity instruments under the revised HKAS 32.

          BEA Union Investment Asian Bond and Currency Fund’s Class A units have been
          further separated into distributing units and accumulating units, which rank
          pari passu in all material respects but have different distribution policy as set
          out in the Explanatory Memorandum. Those redeemable units are the most
          subordinate classes of financial instruments in BEA Union Investment Asian
          Bond and Currency Fund. 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 present value of the redemption amounts.

                                              69
BEA UNION INVESTMENT SERIES

NOTES ON THE FINANCIAL STATEMENTS (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

2   Significant accounting policies (continued)
    (i)   Units in issue (continued)

          BEA Union Investment China A-Share Equity Fund has created 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
          and holders’ servicing fees. Those redeemable units are the most subordinate
          classes of financial instruments in the sub-fund. 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 present value of the redemption amounts.

          The Sub-funds continuously assess 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 Sub-funds will reclassify
          them as financial liabilities and measure them at fair value at the date of
          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
          Sub-funds will reclassify them as equity instruments and measure them at the
          carrying amount of the liabilities at the date of the reclassification.

    (j)   Distributions to holders of redeemable units

          Distributions to holders of redeemable units classified as financial liabilities
          are recognised in profit or loss as finance costs when they are authorised
          and no longer at the discretion of the Sub-funds. Distributions to holders of
          redeemable units classified as equity are classified as transactions with owners
          and recorded in the statement of changes in equity.

    (k) Segment reporting

          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”).




                                             70
BEA UNION INVESTMENT SERIES

NOTES ON THE FINANCIAL STATEMENTS (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

3   Financial instruments of fair value through profit or loss
    (a) Breakdown of investments:




                                              BEA Union Investment                 BEA Union Investment
                                               Japan Growth Fund                    Global Themes Fund
                                                  2010               2009              2010                 2009


        Listed/quoted investment
           funds                         $   11,200,764    $   15,290,070     $            –   $       588,600
        Listed equities                               –                 –         34,051,678        35,249,728
        Listed/quoted debt securities                 –                 –                  –                 –
        Listed/quoted participatory
          notes                                       –                  –           32,257               732,288


        Total investments                $   11,200,764    $   15,290,070     $   34,083,935   $    36,570,616


        Investments, at cost             $   14,283,158    $   22,036,376     $   29,872,383   $    34,072,661
        Net unrealised (depreciation)/
          appreciation in value
          of investments                     (3,082,394)        (6,746,306)        4,211,552         2,497,955


        Investments, at market value     $   11,200,764    $   15,290,070     $   34,083,935   $    36,570,616



        For BEA Union Investment Japan Growth Fund, the carrying value of
        investments as at 31 December 2010 represented 31.32% (2009: 43.00%) of the
        net asset value of ipac Multi-Manager Japan Equity Fund.




                                                      71
                                                                                                       BEA Union
                                                                                  BEA Union            Investment
     BEA Union Investment                    BEA Union Investment            Investment Four          China A-Share
     Global Resources Fund                Asian Bond and Currency Fund           Seasons Fund          Equity Fund
         2010                2009                 2010                2009                2010                  2010



$            –   $              –     $              –    $              –   $       1,208,032    $                –
    11,304,483         13,261,117                    –                   –           6,859,641            42,440,446
             –                  –           47,108,308          31,072,737           6,919,255                     –

             –                   –                   –                   –                    –                     –


$   11,304,483   $     13,261,117     $     47,108,308    $     31,072,737   $      14,986,928    $       42,440,446


$   10,957,290   $     15,324,011     $     45,157,560    $     29,826,775   $      14,208,804    $       35,774,067



      347,193           (2,062,894)          1,950,748           1,245,962             778,124             6,666,379


$   11,304,483   $     13,261,117     $     47,108,308    $     31,072,737   $      14,986,928    $       42,440,446




                                                     72
BEA UNION INVESTMENT SERIES

NOTES ON THE FINANCIAL STATEMENTS (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

3   Financial instruments of fair value through profit or loss (continued)
    (b) Fair value hierarchy

        The following table summarises the inputs used to value the Sub-funds’
        investments and foreign currency forward contracts as of 31 December 2010.




                                     BEA Union Investment               BEA Union Investment
                                      Japan Growth Fund                  Global Themes Fund
                                         2010               2009            2010               2009


        Level 1                $             –    $            –   $   34,051,678   $    35,838,328
        Level 2                     11,200,764        15,290,070           32,257           732,288
        Level 3                              –                 –                –                 –


                               $    11,200,764    $   15,290,070   $   34,083,935   $    36,570,616




        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: Quoted market price (unadjusted) in an active market for an identical
                 instrument.

        Level 2: Valuation techniques based on observable inputs, 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 where all significant inputs are directly or indirectly
                 observable from market data.

        Level 3: Valuation techniques using significant unobservable inputs. This
                 category includes all instruments where 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 where significant unobservable adjustments
                 or assumptions are required to reflect differences between the
                 instruments.




                                             73
                                                                                                    BEA Union
                                                                                BEA Union           Investment
     BEA Union Investment                  BEA Union Investment            Investment Four         China A-Share
     Global Resources Fund              Asian Bond and Currency Fund           Seasons Fund         Equity Fund
         2010                2009               2010                2009                2010                 2010


$   11,304,483   $     13,261,117   $              –    $              –   $       6,859,641   $       42,440,446
             –                  –         47,275,822          31,085,587           8,127,287                    –
             –                  –                  –                   –                   –                    –


$   11,304,483   $     13,261,117   $     47,275,822    $     31,085,587   $      14,986,928   $       42,440,446




                                                   74
BEA UNION INVESTMENT SERIES

NOTES ON THE FINANCIAL STATEMENTS (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

3   Financial instruments of fair value through profit or loss (continued)
    (b) Fair value hierarchy (continued)

        When fair values of listed or 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 debt securities at
        the reporting date represent quoted prices in markets that are considered less
        than active, these debt securities 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
        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, Level 2 or
        Level 3.




                                           75
BEA UNION INVESTMENT SERIES

NOTES ON THE FINANCIAL STATEMENTS (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

3   Financial instruments of fair value through profit or loss (continued)
    (b) Fair value hierarchy (continued)

        Over-the-counter (“OTC”) derivative contracts include foreign currency forward
        contracts and participatory notes. Depending on the product and the terms of
        the transaction, the fair value of the OTC derivative 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 judgments and the pricing inputs are observed from actively quoted
        markets. Foreign currency forward contracts and participatory notes valued by
        the Sub-funds using pricing models fall into this category and are categorised
        within level 2 of the fair value hierarchy.




                                           76
BEA UNION INVESTMENT SERIES

NOTES ON THE FINANCIAL STATEMENTS (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

4   Capital management and units in issue



                                             BEA Union Investment               BEA Union Investment
                                              Japan Growth Fund                  Global Themes Fund
                                                2010                2009           2010                2009

    Class A
    Number of units in issue at
      beginning of the year/period        2,213,029.17      2,298,811.20    4,997,491.67       5,261,989.06
    Units issued during the year/period     11,223.16           2,461.37       11,776.64          22,142.63
    Units redeemed during the year/
      period                               (784,609.94)       (88,243.40)   (1,183,662.71)      (286,640.02)


    Number of units in issue at end
      of the year/period                  1,439,642.39      2,213,029.17    3,825,605.60       4,997,491.67


    Class A Accumulating
    Number of units in issue at
      beginning of the year/period                   –                 –                –                 –
    Units issued during the year/period              –                 –                –                 –
    Units redeemed during the
      year/period                                    –                 –                –                 –


    Number of units in issue at end
      of the year/period                             –                 –                –                 –


    Class A Distributing
    Number of units in issue at                      –                 –                –                 –
      beginning of the year/period
    Units issued during the year/period              –                 –                –                 –
    Units redeemed during the
      year/period                                    –                 –                –                 –


    Number of units in issue at
      end of the year/period                         –                 –                –                 –




                                                     77
                                                                                             BEA Union
                                                                           BEA Union         Investment
    BEA Union Investment                BEA Union Investment            Investment Four     China A-Share
    Global Resources Fund           Asian Bond and Currency Fund         Seasons Fund (1)   Equity Fund (2)
       2010                 2009           2010                2009                2010               2010




17,734,971.07      19,217,026.82                –                  –                   –                 –
 1,023,756.03       3,714,843.10                –                  –       4,505,957.65         151,159.18


(5,892,973.15)     (5,196,898.85)               –                  –       (2,672,211.66)                –



12,865,753.95      17,734,971.07                –                  –       1,833,745.99         151,159.18




            –                  –      442,787.62         339,938.77                    –                 –
            –                  –      786,700.48         338,890.68                    –                 –


            –                  –     (591,122.91)       (236,041.83)                   –                 –



            –                  –      638,365.19         442,787.62                    –                 –



            –                  –    2,611,767.47       2,137,345.01                    –                 –


            –                  –    2,636,440.59       1,659,775.87                    –                 –


            –                  –    (1,362,781.29)     (1,185,353.41)                  –                 –



            –                  –    3,885,426.77       2,611,767.47                    –




                                                78
BEA UNION INVESTMENT SERIES

NOTES ON THE FINANCIAL STATEMENTS (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

4   Capital management and units in issue (continued)



                                          BEA Union Investment          BEA Union Investment
                                           Japan Growth Fund             Global Themes Fund
                                             2010                2009      2010                2009

    Class I
    Number of units in issue at                 –                   –         –                   –
      beginning of the year/period
    Units issued during the year/period         –                   –         –                   –
    Units redeemed during the year/
      period                                    –                   –         –                   –


    Number of units in issue at end of
      the year/period                           –                   –         –                   –


    Class P
    Number of units in issue at
      beginning of the year/period              –                   –         –                   –
    Units issued during the year/period         –                   –         –                   –
    Units redeemed during the year/
      period                                    –                   –         –                   –


    Number of units in issue at end of
      the year/period                           –                   –         –                   –



    (1)       The date of commencement for BEA Union Investment Four Seasons Fund was 23
              October 2009.

    (2)       The date of commencement for BEA Union Investment China A-Share Equity Fund
              was 8 June 2010.

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




                                                 79
                                                                                      BEA Union
                                                                    BEA Union         Investment
BEA Union Investment               BEA Union Investment          Investment Four     China A-Share
Global Resources Fund          Asian Bond and Currency Fund       Seasons Fund (1)   Equity Fund (2)
   2010                 2009          2010                2009              2010               2010



      –                    –             –                   –                  –                 –


      –                    –             –                   –                  –      2,788,464.03


      –                    –             –                   –                  –       (164,609.05)



      –                    –             –                   –                  –      2,623,854.98




      –                    –             –                   –                  –                 –
      –                    –             –                   –                  –        974,283.85


      –                    –             –                   –                  –       (148,409.55)



      –                    –             –                   –                  –        825,874.30




                                          80
BEA UNION INVESTMENT SERIES

NOTES ON THE FINANCIAL STATEMENTS (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

4   Capital management and units in issue (continued)
    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
    Bank of East Asia (Trustees) Limited (“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.

5   Net asset value of the Sub-funds
    The Trustee and the Manager would like to highlight that the net asset value
    presented in the financial statements and that quoted for pricing purposes at the
    year/period end (“Dealing NAV”) are different due to the principles for calculating
    the Dealing NAV as set out in the Explanatory Memorandum document being
    different from that required for financial reporting purposes under HKFRSs. The
    following reconciliation provides details of these differences:




                                                   BEA Union Investment                BEA Union Investment
                                                    Japan Growth Fund                   Global Themes Fund
                                                      2010                2009            2010                 2009

    NAV as reported in the financial
        statements as at 31 December         $   11,172,416    $    15,346,997   $   34,737,217   $     38,112,745
    Use of latest available traded pricing
        instead of bid pricing in valuing
      investment                                          –                  –          51,515                49,432
    Pre-operating expenses                                –                  –               –                     –
    Deferred tax liabilities                              –                  –               –                     –


    Dealing NAV as at 31 December            $   11,172,416    $    15,346,997   $   34,788,732   $     38,162,177




                                                          81
                                                                                                    BEA Union
                                                                                BEA Union           Investment
      BEA Union Investment                     BEA Union Investment          Investment Four       China A-Share
      Global Resources Fund                Asian Bond and Currency Fund        Seasons Fund         Equity Fund
         2010                  2009               2010                2009              2010                 2010



$   11,337,491    $     13,505,516     $    56,157,135     $    33,342,483   $    19,679,675   $       42,202,656



       47,033                 11,982           113,996              54,815           17,930               33,014
            –                      –                 –                   –                –              137,465
            –                      –                 –                   –                –              742,279


$   11,384,524    $     13,517,498     $    56,271,131     $    33,397,298   $    19,697,605   $       43,115,414




                                                      82
BEA UNION INVESTMENT SERIES

NOTES ON THE FINANCIAL STATEMENTS (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

6   Transactions with related parties
    The following is a summary of transactions with related parties during the year/
    period. All such transactions were entered into the ordinary course of business and
    on normal commercial terms.

    (a) 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 and the interest income arising there from are set out below:




                                       BEA Union Investment                BEA Union Investment
                                        Japan Growth Fund                   Global Themes Fund
                                          2010                 2009           2010                  2009

        At 31 December:
        Bank balance as at year/
          period end               $    76,909     $          61,525   $   196,761    $           283,451



        Interest income on bank deposits and bank charges incurred are not disclosed as
        the Trustee and the Manager consider the amount immaterial.




                                              83
                                                                                                   BEA Union
                                                                              BEA Union           Investment
    BEA Union Investment                     BEA Union Investment          Investment Four       China A-Share
    Global Resources Fund                Asian Bond and Currency Fund        Seasons Fund         Equity Fund
       2010                  2009               2010                2009              2010                 2010




$    68,211     $           82,144   $       348,902     $       285,357   $     1,764,282   $        2,445,247




                                                    84
BEA UNION INVESTMENT SERIES

NOTES ON THE FINANCIAL STATEMENTS (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

6   Transactions with related parties (continued)
    (b) The Bank of East Asia (Nominees) Limited and The Bank of East Asia (China)
        Limited which are the fellow subsidiaries and The Bank of East Asia, Limited
        which is the ultimate holding company of the Manager and the Trustee, held
        the following units of the Sub-funds as at year/period end on behalf of their
        clients.




                                            BEA Union Investment             BEA Union Investment
                                             Japan Growth Fund                Global Themes Fund
                                               2010                2009         2010                2009

        The Bank of East Asia
          (Nominees) Limited
          – Class A                      1,439,642.39      2,213,029.17   2,965,823.62      4,007,445.85
          – Class A Accumulating                   –                  –             –                  –
          – Class A Distributing                   –                  –             –                  –
          – Class I                                –                  –             –                  –
          – Class P                                –                  –             –                  –


                                         1,439,642.39      2,213,029.17   2,965,823.62      4,007,445.85


        The Bank of East Asia
          (China) Limited
          – Class A                                –                  –    859,781.98         990,045.82
          – Class A Accumulating                   –                  –             –                  –
          – Class A Distributing                   –                  –             –                  –


                                                   –                  –    859,781.98         990,045.82


        The Bank of East Asia, Limited
          – Class I                                –                  –             –                  –



        In addition, BEA Union Investment Greater China Growth Fund, an investment
        fund managed by the Manager and entrusted by the Trustee, held 66,131.50
        units (2009: Nil units) of BEA Union Investment China A-Share Equity Fund as at
        year end.




                                                    85
                                                                                        BEA Union
                                                                        BEA Union       Investment
    BEA Union Investment               BEA Union Investment          Investment Four   China A-Share
    Global Resources Fund          Asian Bond and Currency Fund        Seasons Fund     Equity Fund
       2010                 2009          2010                2009              2010             2010




12,226,475.06      17,082,980.31             –                   –      1,833,745.99       151,159.18
           –                   –    582,308.51          401,678.78                 –                –
           –                   –   3,885,426.77       2,611,767.47                 –                –
           –                   –              –                  –                 –     1,222,332.52
           –                   –              –                  –                 –       825,874.30


12,226,475.06      17,082,980.31   4,467,735.28       3,013,446.25      1,833,745.99     2,199,366.00




  639,278.89          651,990.76             –                   –                 –                –
           –                   –     10,170.11            8,693.44                 –                –
           –                   –             –                   –                 –                –


  639,278.89          651,990.76     10,170.11            8,693.44                 –                –



           –                   –             –                   –                 –     1,335,390.95




                                              86
BEA UNION INVESTMENT SERIES

NOTES ON THE FINANCIAL STATEMENTS (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

6   Transactions with related parties (continued)
    (c)   The Manager is entitled to receive investment management fees, determined at
          the rates stated below on the net asset value of each sub-fund, accrued on and
          calculated at each dealing day. The investment management fees are payable
          monthly in arrears.

          The rates of investment management fees charged to each individual sub-fund
          are as follows:

                                                                                    Rate per annum

          BEA Union Investment Global Themes Fund                                               1.50%

          BEA Union Investment Global Resources Fund                                            1.50%

          BEA Union Investment Asian Bond and Currency Fund                                     0.75%

          BEA Union Investment Four Seasons Fund                                                1.75%

          BEA Union Investment China A-Share Equity Fund – Class A                              1.75%

          BEA Union Investment China A-Share Equity Fund – Class I                              1.50%

          BEA Union Investment China A-Share Equity Fund – Class P                              1.75%

          For BEA Union Investment Japan Growth Fund, the Manager received
          investment management fees determined at 1.50% per annum on the net asset
          value of the sub-fund, less management fees charged by the manager of the
          underlying fund, AXA Investment Managers Asia Limited, which are determined
          at 1.05% per annum of the investments, accrued on and calculated at each
          dealing day.

          The investment management fees charged for the year/period for each sub-fund
          are disclosed in the statement of comprehensive income. As at 31 December,
          investment management fees payable for each sub-fund is as below:




                                           BEA Union Investment               BEA Union Investment
                                            Japan Growth Fund                  Global Themes Fund
                                              2010                2009           2010                 2009

          Investment management fees
           payable                     $     4,501     $          5,989   $    43,064    $           48,312




                                                  87
                                                                                                   BEA Union
                                                                              BEA Union           Investment
    BEA Union Investment                     BEA Union Investment          Investment Four       China A-Share
    Global Resources Fund                Asian Bond and Currency Fund        Seasons Fund         Equity Fund
       2010                  2009               2010                2009              2010                 2010



$    14,573     $           17,288   $        36,039     $        21,446   $       29,211    $          56,664




                                                    88
BEA UNION INVESTMENT SERIES

NOTES ON THE FINANCIAL STATEMENTS (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

6   Transactions with related parties (continued)
    (d) The Trustee is entitled to receive trustee’s fees, determined at the rates stated
        below on the net asset value of each sub-fund, accrued on and calculated at
        each dealing day. The trustee’s fees are payable monthly in arrears.

        The rates of trustee’s fees charged to each individual sub-fund are as follows:

                                                                              Rate per annum

        BEA Union Investment Japan Growth Fund                                           0.125%

        BEA Union Investment Global Themes Fund                                          0.175%

        BEA Union Investment Global Resources Fund                                       0.175%

        BEA Union Investment Asian Bond and Currency Fund                                0.125%

        BEA Union Investment Four Seasons Fund                                           0.175%

        BEA Union Investment China A-Share Equity Fund                                   0.175%

        The trustee’s fees charged for the year/period 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:




                                     BEA Union Investment               BEA Union Investment
                                      Japan Growth Fund                  Global Themes Fund
                                        2010                2009           2010                2009

        Trustee’s fees payable   $     1,253     $          1,652   $     5,024    $           5,636




                                            89
                                                                                                  BEA Union
                                                                             BEA Union           Investment
    BEA Union Investment                    BEA Union Investment          Investment Four       China A-Share
    Global Resources Fund               Asian Bond and Currency Fund        Seasons Fund         Equity Fund
       2010                 2009               2010                2009              2010                 2010

$     1,700     $           2,017   $         6,007     $         3,575   $         2,921   $            6,350




                                                   90
BEA UNION INVESTMENT SERIES

NOTES ON THE FINANCIAL STATEMENTS (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

6   Transactions with related parties (continued)
    (e) The Trustee also acts as registrar and is entitled to receive registrar’s fees. The
        fees are payable monthly in arrears at the higher of (i) and (ii) below:

        (i)

                                                                                 Fee rate per annum
                                                                             accrued on a daily basis
              Net asset value

              First $50 million                                                                 0.050%

              Next $10 million                                                                  0.045%

              Next $10 million                                                                  0.040%

              Next $10 million                                                                  0.035%

              Next $10 million                                                                  0.030%

              Next $10 million                                                                  0.025%

              Remainder                                                                         0.015%

        (ii) A minimum of $3,000 per annum.

              The registrar’s fees charged for the year/period 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:




                                           BEA Union Investment                BEA Union Investment
                                            Japan Growth Fund                   Global Themes Fund
                                              2010                2009            2010                2009

              Registrar’s fees payable $       501     $           661   $       1,435    $           1,610




                                                  91
                                                                                                 BEA Union
                                                                            BEA Union           Investment
    BEA Union Investment                   BEA Union Investment          Investment Four       China A-Share
    Global Resources Fund              Asian Bond and Currency Fund        Seasons Fund         Equity Fund
       2010                 2009              2010                2009              2010                 2010

$       486     $            576   $         2,375     $         1,430   $          834    $            1,814




                                                  92
BEA UNION INVESTMENT SERIES

NOTES ON THE FINANCIAL STATEMENTS (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

6   Transactions with related parties (continued)
    (f)   Investments

          As at period end, BEA Union Investment Four Seasons Fund held 33,343 units
          in BEA Union Investment Asia Strategic Growth Fund, an investment fund
          managed by the Manager and entrusted by the Trustee.

          In their purchases and sales of investments, details of transactions in investment
          funds managed by the Manager and entrusted by the Trustee are as follows:

                                                                       BEA Union Investment
                                                                          Four Seasons Fund
                                                                                      2010(1)

          Total aggregate value of total transactions for the period             126,608,577

          Percentage of such transactions in value of total
            transactions for the period                                               0.87%

          No commission was charged by the Manager.

          (1) The date of commencement for BEA Union Investment Four Seasons Fund
              was 23 October 2009.




                                             93
BEA UNION INVESTMENT SERIES

NOTES ON THE FINANCIAL STATEMENTS (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

7   Taxation
    No provision for Hong Kong Profits Tax has been made in the financial statements
    as the income of the Sub-funds is exempt from taxation under S26A(1A) of the Hong
    Kong Inland Revenue Ordinance.

    Capital gains, interest and dividend income received by the Sub-funds may be
    subject to non-recoverable withholding tax imposed on the country of origin.
    Capital gains and investment income are recorded gross of withholding tax in profit
    or loss.

    Under the current general provisions of the PRC Corporate Income Tax Law and
    published tax circulars, the Sub-funds would be subject to PRC withholding tax
    at the rate of 10% in respect of its PRC sourced income earned, including capital
    gains realised on the sale of PRC listed companies, dividend income derived from
    PRC listed companies and interest income earned in respect of PRC bank deposits
    and corporate bonds. This withholding taxation basis should apply as it is intended
    that the Sub-funds would be managed and operated in such a manner that they
    would not be considered a tax resident enterprise in China or otherwise as having a
    taxable permanent establishment in the PRC. The 10% withholding tax rate may be
    further reduced under an applicable tax treaty which the PRC has entered into with
    the jurisdiction in which the beneficial owner of the relevant income is a resident.
    However, in the Sub-funds’ case, as the beneficial owners of the Sub-funds may
    be difficult to identify precisely to the satisfaction of the PRC tax authorities, any
    preferential tax treatment under an applicable tax treaty/tax arrangement would
    unlikely to be applied. On this basis, the 10% withholding tax rate would likely be
    applicable in respect of the Sub-funds’ PRC sourced income derived.

    The Sub-funds’ Explanatory Memorandum gives the Manager the right to provide
    for withholding tax on such gains or income and withhold the tax for the account
    of the Sub-funds. On the basis of the available information, the Manager has
    determined that it is appropriate to provide for PRC taxation at the withholding
    tax rate of 10% on realised gains on A-shares; dividend income from A-shares and
    H-shares; and interest income from corporate bonds in the financial statements. BEA
    Union Investment China A-Share Equity Fund is also exposed to deferred tax arising
    from the unrealised gains on A-Shares at the end of the period. Details of taxation
    in profit or loss and the statement of assets and liabilities and the movement of
    deferred tax liabilities during the year/period for the Sub-funds are disclosed as
    below.




                                           94
BEA UNION INVESTMENT SERIES

NOTES ON THE FINANCIAL STATEMENTS (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

7   Taxation (continued)

                                                                                                          BEA Union           BEA Union
                                                                                                         Investment           Investment
                                        BEA Union Investment             BEA Union Investment            Four Seasons        China A-Share
                                        Global Themes Fund               Global Resources Fund             Fund(1)           Equity Fund(2)

                                          2010               2009          2010              2009              2010                 2010
    Transaction in profit or
      loss represents:

    Current tax – PRC
      withholding tax               $         –    $            –    $         –    $            –   $               –   $       142,874
    Current tax – Overseas
      withholding tax                   123,296         143,540           52,175           54,278             9,534                     –
    Deferred tax – PRC
      withholding tax                         –                 –              –                 –                   –           742,279


                                    $   123,296    $    143,540      $    52,175    $      54,278    $        9,534      $       885,153


    Provision for taxation in
      the statement of assets
      and liabilities represents:

    Current tax – PRC
      withholding tax               $         –    $            –    $         –    $            –   $               –   $       120,264


    Deferred tax – PRC
      withholding tax               $         –    $            –    $         –    $            –   $               –   $       742,279



    (1) The date of commencement for BEA Union Investment Four Seasons Fund was
        23 October 2009.

    (2) The date of commencement for BEA Union Investment China A-Share Equity
        Fund was 8 June 2010.




                                                                95
BEA UNION INVESTMENT SERIES

NOTES ON THE FINANCIAL STATEMENTS (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

8   Soft commission arrangements
    During the year/period, the Sub-funds had no soft commission arrangements with
    the brokers.

9   Contingent liabilities and commitment
    The Sub-funds had no contingent liabilities or commitment as at 31 December 2010
    and 2009.

10 Fair value information
    The Sub-funds’ financial instruments are measured at fair value on the date of
    statement of assets and liabilities. Fair value estimates are made at a specified
    point in time, based on market conditions and information about the financial
    instruments. Usually, fair values can be reliably determined within a reasonable
    range of estimates. For certain other financial instruments, including dividend
    receivables, amounts receivable from sale of investments, amounts receivable on
    subscription, bank interest receivables, other receivables, amounts payable on
    redemption, amounts payable for purchase of investments and accruals and other
    payables, the carrying amounts approximate fair value due to the immediate or
    short-term nature of these financial instruments.

11 Financial instruments and associated risks
    The Sub-funds maintain positions in a variety of financial instruments as dictated by
    its investment management strategy. The Sub-funds’ investment portfolios comprise
    listed equity investments, listed and quoted debt securities, participatory notes, and
    investment funds that the Sub-funds intend to hold for an indefinite period of time.

    Asset allocation is determined by the Manager to achieve the investment objectives.
    Divergence from target asset allocations and the composition of the portfolio is
    monitored by the Manager. In instances where the portfolio has diverged from
    target asset allocation, the Manager will rebalance the portfolio to align with the
    target asset allocation.

    The nature and extent of the financial instruments outstanding at the date of the
    statement of assets and liabilities and the risk management policies employed by the
    Sub-funds are discussed below.




                                           96
BEA UNION INVESTMENT SERIES

NOTES ON THE FINANCIAL STATEMENTS (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

11 Financial instruments and associated risks (continued)
   (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 is driven by the Sub-funds’ investment objectives.

       The investment objective of the BEA Union Investment Japan Growth Fund is
       to achieve long term capital growth through investing in a Japan equity fund
       (ipac Multi-Manager Japan Equity Fund) managed by reputable specialist fund
       manager and aiming to provide high capital growth over the long term by
       investing in Japanese equities.

       The investment objective of the BEA Union Investment Global Themes Fund is to
       seek long-term growth of capital through a diversified international portfolio
       of marketable securities, primarily equity securities, including common stocks,
       preferred stocks, warrants and debt securities convertible into common stocks.

       The investment objective of the BEA Union Investment Global Resources Fund
       is to seek long-term growth of capital through a diversified international
       portfolio of marketable securities, primarily equity securities, including common
       stocks, preferred stocks, warrants, equity deposits, equity linked notes and debt
       securities convertible into common stocks with a business focus on mining,
       agriculture, forestry, extraction of energy, oil and gas, exploration, processing
       and distribution, commodity-related industries, recycling, and renewable
       energy.

       The investment objective of BEA Union Investment Asian Bond and Currency
       Fund is to capture regular interest income, capital gains and currency
       appreciation by an actively managed portfolio of debt securities denominated
       in Asian or other currencies and primarily issued by Asian governments and
       corporate entities. Debt securities invested by the sub-fund may include
       convertible, non-convertible, exchangeable, or non-exchangeable debt
       securities; fixed and floating rate bonds; zero coupons and discount bonds;
       transferable notes; commercial papers; certificates of deposit of variable or
       fixed interest rates listed, traded, or dealt in regulated markets or exchanges; as
       well as money market instruments, unit trusts and cash.

       The investment objective of the BEA Union Investment Four Seasons Fund is to
       seek to achieve short term capital stability, and the potential for capital growth
       over the medium to long term through investing in a dynamically allocated
       portfolio of marketable equity and debt securities consisting of equity securities
       and equity linked securities, including common stocks, preferred stocks,
       warrants, equity deposits, equity linked notes, and debt securities issued by
       government or corporate entities.



                                          97
BEA UNION INVESTMENT SERIES

NOTES ON THE FINANCIAL STATEMENTS (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

11 Financial instruments and associated risks (continued)
   (a) Market risk (continued)

       The investment objective of the BEA Union Investment China A-Share Equity
       Fund is to seek long-term capital growth by investing primarily in a diversified
       portfolio of securities of companies which have their principal place of business
       or key assets located in China or which derive a substantial part of their
       revenue from China. The sub-fund invests at least 70% of its total assets in
       China A-Shares listed on the Shanghai Stock Exchange or the Shenzhen Stock
       Exchange (“Equity Securities”), and not more than 30% of its total assets in
       Renminbi denominated government and corporate bonds (“RMB Bonds”), China
       B-Shares, China H-Shares, securities, investment funds or collective investment
       schemes, warrants listed and traded on a stock exchange, initial public offerings,
       money market instruments and cash or cash equivalents in accordance with
       applicable investment restrictions. Currently the sub-fund obtains exposure
       to Equity Securities and RMB Bonds primarily by using the QFII quotas of the
       Manager.

       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 date of the statement of assets and
       liabilities are disclosed in the investment report.

       (i)   Currency risk

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

             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 Japan Growth Fund is not subject to
             direct currency risk as their assets and liabilities are denominated in Hong
             Kong dollars (“HKD”) and United States dollars (“USD”) only.

             Sensitivity analysis

             Each sub-fund’s net exposure to each currency other than USD and HKD at
             the date of statement of assets and liabilities and their estimated impact to
             net assets attributable to unitholders and the profit for the year/period had
             the USD weakened/strengthened by 5% (2009: 5%) are illustrated below.
             The analysis is performed on the same basis as 2009.

                                           98
BEA UNION INVESTMENT SERIES

NOTES ON THE FINANCIAL STATEMENTS (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

11 Financial instruments and associated risks (continued)
   (a) Market risk (continued)

       (i)   Currency risk (continued)

             Sensitivity analysis (continued)

             As at 31 December
                                                           BEA Union Investment Global Themes Fund

                                                      2010                                  2009
                                                                   Estimated                              Estimated
                                                          increase/(decrease)                    increase/(decrease)
                                             Net assets/             had USD        Net assets/             had USD
                                             (liabilities) weakened by 5%           (liabilities) weakened by 5%

             Australian Dollar           $    1,259,025       $       62,951    $     297,698        $       14,885
             British Pound                    2,470,372             123,519          2,716,513             135,826
             Brazilian Real                   1,465,470               73,274          974,300                48,715
             Canadian Dollar                   446,122                22,306                16                    1
             Swiss Franc                      1,429,213               71,461         1,141,989               57,099
             Danish Krone                     1,179,245               58,962                11                    1
             Euro                             5,092,516             254,626          5,323,505             266,175
             Indonesian Rupiah                         –                   –                 1                    0
             Israeli Shekel                            –                   –          353,735                17,687
             Japanese Yen                              –                   –         3,390,959             169,548
             Malaysian Ringgit                         –                   –          126,613                 6,331
             Mexican Peso                              –                   –               515                   26
             Norwegian Krone                           –                   –                15                    1
             Singapore Dollar                        597                  30            47,091                2,355
             South Korean Won                  757,727                37,886          780,926                39,046
             Swedish Krona                             –                   –                60                    3
             Thai Baht                                 –                   –          344,319                17,216
             New Turkish Liva                          –                   –          362,942                18,147
             South African Rand                756,542                37,827          157,237                 7,862




                                                99
BEA UNION INVESTMENT SERIES

NOTES ON THE FINANCIAL STATEMENTS (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

11 Financial instruments and associated risks (continued)
   (a) Market risk (continued)

       (i)   Currency risk (continued)

             Sensitivity analysis (continued)

             As at 31 December (continued)
                                                          BEA Union Investment Global Resources Fund

                                                      2010                                   2009
                                                                   Estimated                               Estimated
                                                          increase/(decrease)                     increase/(decrease)
                                             Net assets/             had USD         Net assets/             had USD
                                             (liabilities) weakened by 5%            (liabilities) weakened by 5%

             Australian Dollar           $     727,849        $       36,392     $     740,361       $        37,018
             British Pound                    1,195,653               59,783          1,277,995               63,900
             Canadian Dollar                   926,795                46,340           792,776                39,639
             Swiss Franc                       198,315                 9,916           228,385                11,419
             Euro                             3,920,203             196,010           4,884,290             244,214
             Japanese Yen                     1,220,122               61,006          1,560,596               78,030
             Norwegian Krone                     80,266                4,013           139,050                 6,953



                                                   BEA Union Investment Asian Bond and Currency Fund

                                                      2010                                   2009
                                                                   Estimated                               Estimated
                                                          increase/(decrease)                     increase/(decrease)
                                             Net assets/             had USD         Net assets/             had USD
                                             (liabilities) weakened by 5%            (liabilities) weakened by 5%

             Australian Dollar           $    2,007,796       $     100,390      $    6,344,152      $      317,208
             Euro                                   143                    7          3,826,717             191,336
             Renminbi                        11,800,439             590,022            437,434                21,872
             Malaysian Ringgit                    2,679                  134                   –                   –
             South Korean Won                       533                   27           604,727                30,236
             Singapore Dollar                  837,437                41,872           744,270                37,214
             Taiwanese Dollar                 2,773,134             138,657            953,297                47,665




                                                100
BEA UNION INVESTMENT SERIES

NOTES ON THE FINANCIAL STATEMENTS (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

11 Financial instruments and associated risks (continued)
   (a) Market risk (continued)

       (i)   Currency risk (continued)

             Sensitivity analysis (continued)

             As at 31 December (continued)

                                                            BEA Union Investment
                                                              Four Seasons Fund

                                                                          2010
                                                                                     Estimated
                                                                                       increase/
                                                                                      (decrease)
                                                                                       had USD
                                                         Net assets/                 weakened
                                                          (liabilities)                   by 5%

             Australian Dollar                       $             42            $            2
             Euro                                                858                        43
             Indonesian Rupiah                              305,117                     15,256
             Singapore Dollar                               354,860                     17,743
             South Korean Won                               944,050                     47,203
             Taiwanese Dollar                               623,080                     31,154
             Thai Baht                                      266,481                     13,324



                                                           BEA Union Investment
                                                          China A-Share Equity Fund

                                                                          2010
                                                                                     Estimated
                                                                                       increase/
                                                                                      (decrease)
                                                                                       had USD
                                                         Net assets/                 weakened
                                                          (liabilities)                   by 5%

             Renminbi                                $ 42,008,934                $   2,100,447




                                            101
BEA UNION INVESTMENT SERIES

NOTES ON THE FINANCIAL STATEMENTS (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

11 Financial instruments and associated risks (continued)
   (a) Market risk (continued)

       (i)   Currency risk (continued)

             Sensitivity analysis (continued)

             As at 31 December (continued)

             As HKD is pegged to USD, the Sub-funds do not expect any significant
             movement in USD/HKD exchange rate. A 5% appreciation of USD 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 gains
             or losses to the Sub-funds.

             Except for BEA Union Investment Asian Bond and Currency Fund and BEA
             Union Investment Four Seasons Fund, all the other sub-funds did not have
             any interest bearing liabilities as at year/period end and 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 on a monthly basis.

             The following table summarises BEA Union Investment Asian Bond and
             Currency Fund’s and BEA Union Investment Four Seasons Fund’s exposure
             to interest rate risk. It includes their interest rate sensitivity gap and the
             period in which the interest bearing assets and interest bearing liabilities
             reprice (the earlier of contractual re-pricing or maturity date) as at year/
             period end.




                                            102
BEA UNION INVESTMENT SERIES

NOTES ON THE FINANCIAL STATEMENTS (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

11 Financial instruments and associated risks (continued)
   (a) Market risk (continued)

       (ii) Interest rate risk (continued)
                                                                                     BEA Union
                                                                                     Investment
                                                              BEA Union                 Four
                                                           Investment Asian            Seasons
                                                        Bond and Currency Fund          Fund
                                                            2010             2009            2010

           Assets

           Investments
           – 1 year or less                        $ 9,155,794      $ 5,529,116      $ 2,645,531
           – over 1 year to 5 years                    26,093,152       17,060,764       3,653,849
           – over 5 years                              11,859,362        8,482,857        619,875
           – non-interest bearing                               –                –       8,067,673

                                                   $ 47,108,308     $ 31,072,737     $ 14,986,928

           Amount receivable from
             foreign currency forward
             contracts
           – non-interest bearing                  $     167,514    $      12,850    $          –

           Amounts receivable on subscription
           – non-interest bearing                  $      52,492    $            –   $          –

           Bank interest receivables
           – non-interest bearing                  $          91    $          72    $         71

           Bank balances
           – 1 year or less                        $ 9,538,209      $ 2,336,439      $ 4,741,957

           Total assets                            $ 56,866,614     $ 33,422,098     $ 19,728,956




                                             103
BEA UNION INVESTMENT SERIES

NOTES ON THE FINANCIAL STATEMENTS (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

11 Financial instruments and associated risks (continued)
   (a) Market risk (continued)

       (ii) Interest rate risk (continued)
                                                                                        BEA Union
                                                                                        Investment
                                                               BEA Union                   Four
                                                            Investment Asian              Seasons
                                                         Bond and Currency Fund            Fund
                                                             2010              2009             2010

           Liabilities


           Amounts payable on redemption
           – non-interest bearing                   $     645,954     $      35,435     $          –

           Accruals and other payables
           – non-interest bearing                   $      63,525     $      44,180     $     49,281

           Total liabilities (excluding net
             assets attributable
             to unitholders)                        $     709,479     $      79,615     $     49,281

           Total interest sensitivity gap
           – 1 year or less                         $ 18,694,003      $ 7,865,555       $ 7,387,488
           – over 1 year to 5 years                     26,093,152        17,060,764        3,653,849
           – over 5 years                               11,859,362         8,482,857         619,875
           – non-interest bearing                         (489,382)          (66,693)       8,018,463




                                              104
BEA UNION INVESTMENT SERIES

NOTES ON THE FINANCIAL STATEMENTS (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

11 Financial instruments and associated risks (continued)
   (a) Market risk (continued)

       (ii) Interest rate risk (continued)

           Sensitivity analysis

           If the market interest rate at the date of the statement of assets and
           liabilities had changed by 50 basis points (2009: 50 basis points), with all
           other variable held constant, it is estimated that the net assets attributable
           to unitholders and the profit for the year/period would have changed
           accordingly as shown below. The analysis is performed on the same basis
           for 2009.

           As at 31 December
                                                                                   BEA Union
                                                                                   Investment
                                                               BEA Union              Four
                                                            Investment Asian         Seasons
                                                         Bond and Currency Fund       Fund
                                                             2010           2009         2010

           Estimated (decrease)/increase
             if interest rate had increased/
             (decreased) by 50 basis points          $    740,862    $   527,234   $   126,130




                                               105
BEA UNION INVESTMENT SERIES

NOTES ON THE FINANCIAL STATEMENTS (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

11 Financial instruments and associated risks (continued)
   (a) Market risk (continued)

       (iii) Price risk

            Price risk is the risk that value of the 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, its issuer or all factors affecting all instruments traded in the
            market.

            The breakdown of investments held by the Sub-funds is shown in note 3.

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

            Sensitivity analysis

            The Manager projects the possible movement of the underlying fund
            price/benchmark indices (“the potential movement”) based on historical
            experience. If the underlying fund price/benchmark indices had changed by
            the following percentages, which are based on the Manager’s best estimate
            of the potential movement as at the date of the statement of assets and
            liabilities, with all other variables held constant, it is estimated that the net
            assets attributable to unitholders and the profit for the year/period would
            have changed accordingly as shown below. The analysis is performed on
            the same basis as 2009.




                                           106
BEA UNION INVESTMENT SERIES

NOTES ON THE FINANCIAL STATEMENTS (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

11 Financial instruments and associated risks (continued)
   (a) Market risk (continued)

       (iii) Price risk (continued)

            Sensitivity analysis (continued)

            As at 31 December




                                                                 BEA Union Investment
                                                                  Japan Growth Fund




            Underlying fund/benchmark indices                  ipac Multi-Manager Fund
                                                                     2010                2009

            Potential movement of the underlying fund/
              benchmark indices                                   13.02%             3.04%


            Estimated increase/(decrease)                  $    1,458,339    $      464,818



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




                                                107
                                                                                            BEA Union
                                                                            BEA Union       Investment
    BEA Union Investment                 BEA Union Investment            Investment Four   China A-Share
     Global Themes Fund                  Global Resources Fund             Seasons Fund     Equity Fund


                                                                                  Direct
                                      50% MSCI World Materials            investments in
                                       25% MSCI World Energy                equities and       MSCI China A
      MSCI World Index                25% MSCI World Industrials        investment fund            Net USD
        2010               2009              2010                2009              2010               2010



     12.67%              34.63%            19.44%            44.00%              5.00%              20.07%


$   4,318,435   $   12,664,404    $      2,197,591     $   5,834,918    $       403,384    $      8,517,798




                                                 108
BEA UNION INVESTMENT SERIES

NOTES ON THE FINANCIAL STATEMENTS (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

11 Financial instruments and associated risks (continued)
   (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 fall 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.

       At the date of the statement of assets and liabilities, BEA Union Investment
       Asian Bond and Currency Fund and BEA Union Investment Four Seasons Fund
       were the only sub-funds that held debt securities. The credit quality of these
       debt securities are expressed as a percentage of investments below:

       As at 31 December
                                                                 BEA Union Investment
                                                             Asian Bond and Currency Fund

                                                                   2010             2009
       Rating

       AAA                                                        2.23%           20.25%
       AA                                                              –           4.56%
       AA-                                                        1.35%            3.26%
       A                                                          5.97%           14.57%
       A-                                                         4.48%            7.65%
       BBB+                                                       5.32%            5.14%
       BBB                                                        3.17%            4.50%
       BBB-                                                       1.14%           13.71%
       BB                                                        16.72%           14.63%
       BB+                                                        0.48%            1.62%
       BB-                                                       21.91%            3.51%
       BBBe                                                            –           1.87%
       BB-e                                                            –           1.71%
       B+                                                         9.10%                 –
       B                                                          2.07%                 –
       B-                                                         9.74%                 –
       N/A                                                       16.32%            3.02%


       Total                                                    100.00%          100.00%




                                         109
BEA UNION INVESTMENT SERIES

NOTES ON THE FINANCIAL STATEMENTS (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

11 Financial instruments and associated risks (continued)
   (b) Credit risk (continued)

         As at 31 December (continued)
                                                                              BEA Union
                                                                           Investment Four
                                                                             Seasons Fund

                                                                                     2010
         Rating

         AAA                                                                       45.09%
         A                                                                          4.42%
         A-                                                                         7.70%
         BBB+                                                                       7.88%
         BBB                                                                        7.71%
         BBB-                                                                      27.20%

         Total                                                                    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 The Bank
         of New York Mellon (“the Banks”). Bankruptcy or insolvency of the custodians
         and the Banks may cause the Sub-funds’ 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.

         At both 31 December 2010 and 2009, there were no significant concentrations
         of credit risk.

   (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 redeem the units 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.




                                           110
BEA UNION INVESTMENT SERIES

NOTES ON THE FINANCIAL STATEMENTS (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

11 Financial instruments and associated risks (continued)
   (c)   Liquidity risk (continued)

         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 longer 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 2010 and 2009, all the financial liabilities of the Sub-funds
         are repayable on demand or due within three months.

   (d) Specific instruments

         As at 31 December 2010, the details of participatory notes held by BEA Union
         Investment Global Themes Fund are as follows:
                                          Contract                 Expiration         Fair
         Description                      amount           Price        date         value

         United States of America

         Merrill-CW15
           National Bank of
           Pakistan P-note
           25/02/15                   $    25,975    $   0.89557   25/02/2015   $   23,262
         Morgan Stanley BV-
           Zenith Bank Ltd
           P-note 18/03/11                 91,150        0.09868   18/03/2011        8,995

                                                                                $   32,257




                                            111
BEA UNION INVESTMENT SERIES

NOTES ON THE FINANCIAL STATEMENTS (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

11 Financial instruments and associated risks (continued)
   (d) Specific instruments (continued)

       As at 31 December 2009, the details of participatory notes held by BEA Union
       Investment Global Themes Fund are as follows:
                                            Contract                  Expiration          Fair
       Description                          amount            Price        date          value

       United Kingdom

       HSBC Riyad Bank
         P-note 29/02/12                $     5,900    $    7.06535   29/02/2012   $    41,686
       HSBC Samba Financial
         Group P-note 05/09/11                3,000        13.39750   05/09/2011        40,193
       HSBC Saudi Basic
         P-note 22/08/11                     12,700        21.92924   22/08/2011       278,501
       HSBC Saudi Telecom
         Co P-note 15/09/11                   2,700        11.75781   15/09/2011        31,746
       HSBC-First Bank of
         Nigeria PLC – REG
         S P-note 05/10/12                  983,900         0.09431   05/10/2012        92,792


       Luxembourg

       Merrill-CW10 Doha Bank Ltd
         P-note 24/05/10                      3,135        12.35771   24/05/2010        38,741
       Merrill-CW10 National Bank
         of Abu Dhabi P-note 12/01/10         7,090         3.13100   12/01/2010        22,199
       Merrill-CW10 Qatar Electricity
         P-note 24/05/10                        711        27.46159   24/05/2010        19,525
       Merrill-CW10 Qatar National
         Bank P-note 26/07/10                 1,093        40.67061   26/07/2010        44,453
       Merrill-CW11 Bharat Electron
         P-note 16/06/11                      2,400        41.71834   16/06/2011       100,124
       Merrill-CW11 Commercial
         International Bank
         P-note 09/05/11                      2,245         9.94576   09/05/2011        22,328

                                                                                   $   732,288




                                              112
BEA UNION INVESTMENT SERIES

NOTES ON THE FINANCIAL STATEMENTS (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

11 Financial instruments and associated risks (continued)
   (d) Specific instruments (continued)

       As at 31 December 2010, the details of foreign currency contracts held by BEA
       Union Investment Asian Bond and Currency Fund are as follows:
                                                                           Notional
                                                                        amount of
                                                                           contracts
       Type of contract       Expiration                Underlying     outstanding         Fair value

       Currency forward     January 2011         Buy Renminbi/sell     $ 2,115,762     $      12,088
                                           United States dollars

       Currency forward     January 2011            Buy Taiwanese          1,324,065          59,851
                                                 dollars/sell United
                                                     States dollars

       Currency forward    February 2011            Buy Taiwanese          1,324,503          64,715
                                                 dollars/sell United
                                                     States dollars

       Currency forward    February 2011         Buy Renminbi/sell         1,506,024          15,701
                                           United States dollars

       Currency forward    February 2011         Buy Renminbi/sell         1,810,911          15,159
                                           United States dollars

                                                                                       $    167,514


       As at 31 December 2009, the details of foreign currency contracts held by BEA
       Union Investment Asian Bond and Currency Fund are as follows:
                                                                           Notional
                                                                        amount of
                                                                           contracts
       Type of contract       Expiration                Underlying     outstanding         Fair value

       Currency forward     January 2010         Buy South Korean      $    598,802    $       5,925
                                                   Won/sell United
                                                     States dollars

       Currency forward    February 2010            Buy Taiwanese           946,372            6,925
                                                 dollars/sell United
                                                     States dollars

                                                                                       $      12,850



                                           113
BEA UNION INVESTMENT SERIES

NOTES ON THE FINANCIAL STATEMENTS (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

12 Segment information
   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 note 11(a) and the investment report respectively.

   There were no changes in the operating segment during the year/period.

   The internal reporting provided to the Manager is the same as that disclosed in the
   statement of comprehensive income and statement of assets and liabilities.

13 Charge on the Sub-funds’ assets
   (a) The Fund has obtained overdraft facility from The Bank of East Asia, Limited
       with effect from 25 March 2010 and 5 May 2010. Information relating to this
       facility is set out below:
                                                                                  % of
                                                                  US$        net assets

       BEA Union Investment Japan Growth Fund                3,000,000              10

       BEA Union Investment Global Themes Fund               6,500,000              10

       BEA Union Investment Global Resources Fund            2,500,000              10

       BEA Union Investment Asian Bond and Currency Fund     5,000,000              10

       BEA Union Investment Four Seasons Fund                4,500,000              10

       The overdraft facility available to each sub-fund is up to the lesser of the
       amounts stated above or the percentage of each sub-fund’s net assets stated
       above.

       The obligations of each sub-fund under these facilities are secured by charges
       on, inter alia, the securities and cash of the Sub-funds.




                                           114
BEA UNION INVESTMENT SERIES

NOTES ON THE FINANCIAL STATEMENTS (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

13 Charge on the Sub-funds’ assets (continued)
   (b) Under the agreement related to charge over accounts and securities signed by
       The Bank of New York Mellon (as the Sub-funds’ custodian) and the Trustee
       (as the trustee of the Sub-funds) dated 5 February 2010 and 14 May 2010,
       the obligations of BEA Union Investment Global Themes Fund, BEA Union
       Investment Global Resources Fund, BEA Union Investment Asian Bond and
       Currency Fund and BEA Union Investment Four Seasons Fund are secured by
       charges on, inter alia, the securities and cash of the Sub-funds held from time to
       time with The Bank of New York Mellon.

14 Comparative figures
   Certain comparative figures have been adjusted or reclassified to conform with
   current year’s presentation.

15 Possible impact of amendments, new standards and interpretations issued
   but not yet effective for the year/period ended 31 December 2010
   Up to the date of issue of these financial statements, the HKICPA has issued a
   number of amendments and interpretations and one new standard which are not
   yet effective for the accounting year/period ended 31 December 2010 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

   Improvements to HKFRSs 2010                                             1 January 2011

   HKFRS 9, Financial instruments                                          1 January 2013

   The Sub-funds are in the process of making an assessment of what the impact of
   these amendments is expected to be in the period of initial application. So far they
   have concluded that the adoption of them is unlikely have a significant impact on
   the Sub-funds’ results of operations and financial position.




                                          115
              MANAGEMENT AND ADMINISTRATION

                               Manager
            BEA Union Investment Management Limited
                5th Floor, The Bank of East Asia Building
                       10 Des Voeux Road Central
                               Hong Kong

Investment Adviser for BEA Union Investment Global Resources Fund,
          BEA Union Investment Global Themes Fund and
            BEA Union Investment Four Seasons Fund
               Union Investment Institutional GmbH
                        Wiesenhüttenstraße 10
                       60329 Frankfurt am Main
                               Germany

                       Trustee and Registrar
                Bank of East Asia (Trustees) Limited
                         32nd Floor, BEA Tower
                           Millennium City 5
                         418 Kwun Tong Road
                         Kwun Tong, Kowloon
                               Hong Kong

                                Auditor
                                 KPMG
                       8th Floor, Prince’s Building
                             10 Chater Road
                                  Central
                               Hong Kong

                      Solicitor to the Manager
                               Deacons
                      5th Floor, Alexandra House
                             18 Chater Road
                                 Central
                               Hong Kong
BEA Union Investment Series




                         INTERIM REPORT (Unaudited)
                          For the period ended 30 June 2010




   Investment Manager:
BEA UNION INVESTMENT SERIES
FOR THE PERIOD ENDED 30 JUNE 2010


CONTENTS                                                 PAGE

INVESTMENT REPORT
  – MARKET REVIEW                                          1-6
  – INVESTMENT PORTFOLIO                                  7-18
  – STATEMENT OF MOVEMENTS IN PORTFOLIO HOLDINGS         19-22

STATEMENT OF COMPREHENSIVE INCOME                        23-27

STATEMENT OF ASSETS AND LIABILITIES                      28-32

STATEMENT OF CHANGES IN EQUITY / STATEMENT
  OF CHANGES IN NET ASSETS ATTRIBUTABLE TO UNITHOLDERS   33-36

MANAGEMENT AND ADMINISTRATION




EAM17 Interim Report 2010
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
FOR THE PERIOD ENDED 30 JUNE 2010

MARKET REVIEW

BEA Union Investment Japan Growth Fund

Returns in Japan’s strong equity market earlier this year were supported by generally
positive economic news. Based on the March Tankan survey, corporate profits,
driven by a continued surge in exports, climbed 49% YoY. In addition, the Hatoyama
Administration’s stimulus plan appeared to have revived domestic consumption as
consumer confidence advanced for a second straight month. Japan’s economy added
more jobs in January than in any other month over the past three decades, sending the
unemployment rate to a 10-month low of 4.9%. The best performing sectors in March
were information technology, materials, and consumer discretionaries, while telecom
and utilities performed the worst. Investors also showed a strong preference for high
beta names during the month. The reward associated with valuation was more mixed,
as stocks with low price-to-book ratios performed well while those with low price-to-
earnings ratios trailed.

The MSCI Japan Index lost 4.7% (in JPY) in June. With stronger demand for the yen’s
safe-haven qualities, the currency continued to appreciate versus both the US dollar and
the euro. Japan’s economic data remained lacklustre. Industrial production, although
close to consensus expectations, declined 0.1%, and the inventory-to-shipment ratio rose
sharply MoM. The defensive and domestically-oriented sectors performed well, while the
cyclical, export-heavy sectors fared poorly. The utility sector performed the best, followed
by telecom and healthcare. The biggest sectors by market cap, consumer discretionaries
and financials, underperformed, as did industrials, materials, and information
technology.

BEA Union Investment Global Themes Fund

Most of the world’s major equity indices ended 1Q10 in positive territory, and there were
signs that economic activity increased worldwide. However, as 2Q10 began, the OECD
warned that recovery remained fragile and reported significant variations in growth
worldwide. The German economy contracted by 0.4% in 1Q10, while GDP growth in
the US slowed to 2.4% from 5.6% in 4Q09. The US Labor Department reported that
non-farm payrolls rose by 162,000 in March, which was shy of expectations but
nonetheless welcome news after the loss of 14,000 jobs in February. Pending US home
sales rose in February by 8.2% MoM and by 17.3% YoY, above forecast, as purchasers
took advantage of a tax credit for first-time buyers before it expired at the end of April.
In March, the ISM Service Sector Index rose for the third month in a row to reach 55.4,
up from 53 in February. The Federal Reserve said at its March meeting that tight credit
conditions and persistently high unemployment remained the economic headwinds for
the time being, constraining growth. The Fed said they would keep rates low to help
sustain the recovery.



                                             1
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
FOR THE PERIOD ENDED 30 JUNE 2010 (CONTINUED)

MARKET REVIEW (CONTINUED)

BEA Union Investment Global Themes Fund (continued)

At end of 1Q10, production accelerated in China, while Europe also saw a pick-up in
activity, led by notably strong data out of Germany. Output rose in Japan, too, but at a
slower pace. China continued to lead Asia’s rebound from the financial crisis.

In 2Q10, investors remained nervous due to the debt crisis in the Eurozone and
speculations that higher-than-expected sovereign debt in Hungary would spark fears
and lead to a double-dip recession. The persistently difficult situation in the US housing
and labour markets caused the Fed to adopt a cautiously optimistic view. Eurozone
data revealed that economic expectations had been clouded, which meant that the
pace of the upswing faltered. However, a number of economic institutes raised their
growth expectations for Germany. Meanwhile, the emerging markets showed mixed
development in June. The move by China’s central bank to allow its currency to be more
flexible created near-euphoria in the markets. Investors in China feared that an increase
in the required reserve ratio for banks or a tightening in mortgage lending criteria could
noticeably dampen the economic upswing.

BEA Union Investment Global Resources Fund

In 1Q10, the DJ UBS Commodity Index was considerably distorted by two commodities as
high price decreases in sugar and natural gas prevented the index from turning positive.
Sugar was burdened by news that current year’s crop yield in Brazil seemed to be good,
which led many investors to take profits. The price of natural gas, which was one of the
biggest losers in the previous month, stayed under pressure. The main reasons were
unseasonably high inventories as well as comparatively mild weather in the US. Investors
were unsettled by cautious forecasts for the newly accessible natural gas sources in shale.
A newly developed drilling method might enlarge worldwide reserves for another 100
years. Finally, the price for natural gas was more than 20% weaker at end of 1Q10 than
at the end of February. In contrast, crude oil could exhibit price increases of nearly 5%,
supported by sustained high demand from China.

However, the highest price increases were found in industrial metals. Healthy economic
data as well as confirmation that the EU would help Greece if necessary led to increasing
risk appetites among investors. In particular, demand for nickel grew, with prices soaring
18%. Although a strike in a Peruvian mine reduced overall copper production by roughly
2%, the event had little impact on supply as inventories were still high. However, driven
by investor sentiment, the copper price increased by about 8%. For most of the time, gold
trended sideways, with the price of physical gold consistently reaching just below the level
of US$1,100 per ounce. The precious metal was neglected as investors’ high-risk appetites
drove them towards other assets. News that China’s need for gold would probably double
in the coming ten years did little to bolster the price. At end of 1Q10, gold stood at
US$1,115 per ounce, approximately 1% lower than it did at the end of February.

                                             2
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
FOR THE PERIOD ENDED 30 JUNE 2010 (CONTINUED)

MARKET REVIEW (CONTINUED)

BEA Union Investment Global Resources Fund (continued)

In 2Q10, investors remained nervous due to the debt crisis in the Eurozone and
speculations that higher-than-expected sovereign debt in Hungary would spark fears
and lead to a double-dip recession. The persistently difficult situation in the US housing
and labour markets caused the Fed to adopt a cautiously optimistic view. Eurozone data
revealed that economic expectations had been clouded, which meant that the pace of
the upswing faltered. However, a number of economic institutes raised their growth
expectations for Germany.

In commodities, mining companies came under selling pressure. Discussions in
Australia about a “super tax” to be imposed on miners led to great uncertainty among
investors, and the companies involved threatened to postpone investments totalling
AUD200 billion. Oil companies as well as subcontractors were on top of June’s
international sell lists. The oil spill in the Gulf of Mexico, for which BP is responsible,
remained a serious burden. Commodities were weaker in June. Subdued demand in
China made investors feel cautious.

BEA Union Investment Asian Bond and Currency Fund

Standard & Poor’s upgraded its long-term foreign currency rating for Indonesia by one
notch to BB from BB-. Further expansion in Singapore was anticipated for this year as the
region’s economic recovery continues. Central banks from Indonesia and South Korea
announced regulations to curb foreign exchange and capital flow volatility. The Bank of
Japan (“BOJ”) unveiled a 3 trillion yen lending program with an interest rate equal to
the BOJ target rate, which was kept unchanged at 0.1%. In addition, Taiwan’s central
bank announced that it would raise the benchmark rate by 0.125% to 1.375%. This rate
hike reflected the bank’s careful management of inflation, and also sent a reminder
to financial markets and retail borrowers that interest rates would not remain at rock
bottom levels forever.




                                            3
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
FOR THE PERIOD ENDED 30 JUNE 2010 (CONTINUED)

MARKET REVIEW (CONTINUED)

BEA Union Investment Four Seasons Fund

Bonds

In 1Q10, risk appetite and liquidity continued to improve in the global bond markets as
the global economy continued to recover. Spreads narrowed at a relatively fast pace in
emerging market bonds, supported by strong GDP growth in those markets. Renewed
tensions surrounding Greece and the difficult political situation inside the Eurozone
triggered a correction in global bonds in December 2009, but the pullback was somewhat
modest. Heavily indebted Greece won a major pledge of financial support from euro-
using nations, as well as from the International Monetary Fund in a deal that aims to
prevent the government debt crisis from undermining the European economy and the
euro currency. However, the bailout programme can only be tapped if Greece and other
financially troubled Eurozone members cannot raise funds from the financial markets
and the 16 Eurozone countries unanimously agreed to release loan funds. As global
recovery remained slow, developed markets were in no hurry to remove supportive
policies and raise interest rates. Investors regained much of their risk appetite for bonds
and after a surge in bond prices, global bonds were trading range bound.

In 2Q10, European sovereign-debt woes, slowing growth in China and together with
the stagnation of the US recovery led investors to seek the safety of Treasuries, German
bunds, UK gilts, and Japanese bonds. Investors continuing to seek safety by buying
10-year Treasury notes, which drove their yields below 3% for the first time since April
2009. The yield was at 2.967% in late trading on 29th June, 2010. The yield on the 2-year
note touched a record-low of 0.582% before ending at 0.609%.

Equities

China’s GDP rose to a 3-year high of 11.9% in 1Q10 from 10.7% in 4Q09, mainly driven
by wages and consumption growth. Accelerating urbanisation boosted consumption,
and improvements in social welfare encouraged consumers to spend. China’s export
competitiveness and sustainability remained intact as external demand continued to
pick up. Government efforts to curb overcapacity showed little effect, and thus further
quantitative control, administrative measures on property, and local finance were
imposed to cool down the property market. The strike over wages in June revealed that
China has entered the pay rise era, the monthly minimum wages is generally raised
from 10-20%. On 19th June, 2010, the PBOC announced its decision to reform the RMB
exchange rate regime and enhance its flexibility. But despite this move, there was no
one-off or significant appreciation of the RMB.




                                            4
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
FOR THE PERIOD ENDED 30 JUNE 2010 (CONTINUED)

MARKET REVIEW (CONTINUED)

BEA Union Investment Four Seasons Fund (continued)

Equities (continued)

Hong Kong property prices rose between 5-6% in 1Q10, thanks to low interest rates
and abundant liquidity in the market. However, market sentiment in the property
sector weakened following a raft of government measures from both the Hong Kong
and Chinese governments to curb the overheated property markets. Hong Kong’s CPI
rose 2.5% YoY in May, mainly due to rising food prices and higher rent for residential
properties, but the pressure was not alarming. Exports soared 24.4% in May, thanks to
vibrant trade within Asia, as well as stronger shipments to the US and Europe. Hong
Kong’s unemployment rate rose for the first time in 11 months to 4.6% in May, as
increased uncertainties in the external environment and fluctuations in the local asset
market affected general sentiment.

Taiwan’s export orders rose faster than economists expected, up by 43.7% YoY in March,
as the global economic recovery boosted demand for computers and mobile phones.
In light of the better-than-expected corporate earnings recorded by global technology
companies in 1Q10, Taiwan’s exports should continue to pick up. Taiwan’s central bank
announced that it would raise the benchmark rate by 0.125% to 1.375%. Some experts
believe that the main reason for the raise is to suppress the overheating housing market.
During the quarter, Taiwan and Mainland Chinese negotiators also reached a consensus
on the “early harvest” list of tariff concessions under the Economic Cooperation
Framework Agreement.

In 1Q10, South Korea’s economy expanded 7.8% YoY and 1.8% QoQ. With stronger
exports and domestic demand, the Bank of Korea (“BOK”) raised its 2010 economic
growth forecast from 4.6% to 5.2% in April. Big corporations, such as Samsung
Electronics Co., LG Display Co., and Hyundai Motor Co. recorded strong earnings in 1Q10,
and the overall performance of the banking and financial sector also beat market’s
expectations. Thanks to strong exports, an improved travel account deficit, and a fall in
dividend payouts to foreign investors, South Korea’s current account surplus hit a six-
month high in May at US$3.83 billion. The BOK kept its key interest rate at a record low
for a 16th month, citing potential risks to the export-driven economy from the Eurozone
debt crisis. The risk of an interest rate hike still remains, but the actual implementation
timetable is uncertain.




                                            5
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
FOR THE PERIOD ENDED 30 JUNE 2010 (CONTINUED)

MARKET REVIEW (CONTINUED)

BEA Union Investment Four Seasons Fund (continued)

Equities (continued)

Singapore’s GDP expanded strongly by 13.1% YoY in 1Q10, prompting the government
to revise its 2010 GDP forecast upwards from 4.5-6.5% in February to 7-9% in April. The
labour market tightened further in 1Q10, with the unemployment rate falling to 2.2%.
As demand for labour remains strong, there could be more pressure for nominal wages
to rise going forward. The resulting increase in unit labour costs could add to inflation
pressures, and/or squeeze the margins of more labour-intensive sectors. Singapore and
Malaysia have finally broken the deadlock that has plagued their bilateral relations for
almost two decades, including the agreement on relocating the KTM railway station
to Woodlands in Singapore as well as the set-up of a 50-50 joint venture company to
develop an iconic wellness township in Iskandar, Malaysia.

Malaysia’s exports and industrial production grew at a slower-than-expected 26.6% and
10.1% YoY respectively in April, suggesting that economic expansion in 2Q10 may not
have outperformed that of 1Q10. The CPI rose 1.6% in May vs. 1.5% YoY in April, mainly
led by rising food and transport costs. Prime Minister Najib tabled the 10th Malaysia Plan
on 10th June, 2010 with targets aimed at moving Malaysia into a high-income economy
with 6% annual growth for the next five years led by the service and manufacturing
sectors.

The Thai economy slowed down in April, partly due to the adverse impact of political
strife on tourism as well as consumer and business confidence. The Bank of Thailand
(“BOT”) decided to keep its policy rate unchanged at 1.25% on 2nd June, 2010. The
accompanying statement cited concerns over (1) the potential downside risk due to the
Eurozone’s sovereign debt turmoil and Thailand’s domestic political situation, and (2)
possible inflation moving forward. Although headline inflation rose 3.5% YoY in May,
and core inflation accelerated to 1.2% in the same month, the figures are still within
BOT’s inflation target band of 0.5-3%.




                                            6
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 30 JUNE 2010 (UNAUDITED)
(EXPRESSED IN UNITED STATES DOLLARS)

INVESTMENT PORTFOLIO

BEA UNION INVESTMENT JAPAN GROWTH FUND

                                                    Holding        Market        % of
                                                       units         value   net assets


Investment Fund


Established under the laws of Hong Kong


ipac Multi-Manager Japan Equity Fund
  – Class A                                   1,336,813.8100 $11,670,385         99.55


Total investment                                               $11,670,385       99.55


Total investment, at cost                                      $17,609,532




                                          7
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 30 JUNE 2010 (UNAUDITED) (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

INVESTMENT PORTFOLIO (CONTINUED)

BEA UNION INVESTMENT GLOBAL THEMES FUND

                                             Holding      Market        % of
                                         shares/units      value    net assets


Listed/quoted investments (90.29%)


Equities (90.22%)


BRAZIL (3.76%)

Santos Brasil Participacoes SA                70,000    $ 574,505        1.98
SLC Agricola SA                               70,000     515,701         1.78


CANADA (1.06%)

Talisman Energy Inc                           20,000     306,786         1.06


DENMARK (2.24%)

Carlsberg A/S-B                                8,500     648,604         2.24


GERMANY (12.38%)

Continental AG                                12,500     653,951         2.26
Deutsche Lufthansa AG - REG                   42,000     582,893         2.01
E ON AG                                        9,000     244,419         0.84
K+S AG                                        12,000     554,867         1.92
RWE AG -PREF                                   4,500     270,336         0.93
SAP AG                                        14,500     647,947         2.24
Suedzucker AG                                 35,000     632,109         2.18


KOREA (1.97%)

Samsung Electronics Co Ltd                       900     570,078         1.97


NORWAY (1.97%)

Yara International ASA                        20,000     570,357         1.97


SOUTH AFRICA (2.05%)

MTN Group Ltd                                 45,000     592,865         2.05



                                     8
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 30 JUNE 2010 (UNAUDITED) (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

INVESTMENT PORTFOLIO (CONTINUED)

BEA UNION INVESTMENT GLOBAL THEMES FUND (CONTINUED)

                                                        Holding       Market        % of
                                                     shares/units       value   net assets


Listed/quoted investments (90.29%) (continued)


Equities (90.22%) (continued)


SWITZERLAND (2.37%)

Nestle SA - REG                                           14,000    $ 675,393        2.33
Roche Holding AG - Genusschein                                85       11,713        0.04


UNITED KINGDOM (6.90%)

AMEC PLC                                                  27,000      335,473        1.16
BAE Systems PLC                                            1,891        8,923        0.03
BG Group PLC                                              22,000      333,117        1.15
Evraz Group SA - GDR REG S                                20,000      472,000        1.63
Royal Dutch Shell PLC - A SHS                             11,078      283,624        0.98
William Hill PLC                                         220,000      566,895        1.95


UNITED STATES OF AMERICA (55.52%)

Accenture PLC - CL A                                      15,500      598,610        2.07
Aetna Inc                                                 45,000    1,186,200        4.09
Banco Bradesco SA - ADR                                   36,000      570,960        1.97
Barrick Gold Corp                                         14,000      636,020        2.20
Burger King Holdings Inc                                  32,000      537,920        1.86
CF Industries Holdings Inc                                 8,500      539,325        1.86
Chevron Corp                                               6,000      406,920        1.40
China Mobile Ltd - Spon ADR                               14,000      691,880        2.39
CIGNA Corp                                                21,000      651,840        2.25
Coventry Health Care Inc                                  30,000      530,700        1.83
Google Inc - CL A                                          1,300      578,344        2.00
Hewlett-Packard Co                                        15,000      648,600        2.24
Hyatt Hotels Corp - CL A                                  16,000      592,960        2.05
International Business Machines Corp                       5,000      617,050        2.13
JPMorgan Chase & Co                                       16,000      585,600        2.02




                                                 9
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 30 JUNE 2010 (UNAUDITED) (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

INVESTMENT PORTFOLIO (CONTINUED)

BEA UNION INVESTMENT GLOBAL THEMES FUND (CONTINUED)

                                                                  Holding         Market         % of
                                                               shares/units         value    net assets


Listed/quoted investments (90.29%) (continued)


Equities (90.22%) (continued)


UNITED STATES OF AMERICA (55.52%) (continued)

Microsoft Corp                                                      22,000 $      506,000         1.74
Monsanto Co                                                         10,500        485,100         1.67
Noble Energy Inc                                                     4,500        271,170         0.94
Northrop Grumman Corp                                               10,000        544,500         1.88
Occidental Petroleum Corp                                            6,000        462,960         1.60
Pfizer Inc                                                          40,000        570,000         1.97
Potash Corp of Saskatchewan Inc                                      6,000        517,260         1.79
Schlumberger Ltd                                                     5,000        276,500         0.95
State Street Corp                                                   16,000        541,440         1.87
Talecris Biotherapeutics Holdings Corp                              36,000        758,160         2.62
UnitedHealth Group Inc                                              23,000        652,740         2.25
VimpelCom Ltd-Spon ADR                                              38,000        615,220         2.12
Wells Fargo & Co                                                    20,000        512,000         1.76

Total equities                                                                $ 26,138,535       90.22

Derivatives (0.07%)

LUXEMBOURG (0.07%)

Merrill-CW15 National Bank of Pakistan P-note Exp 25/02/2015        25,975 $       19,468         0.07

Total derivatives                                                             $    19,468         0.07


Total listed/quoted investments                                               $ 26,158,003       90.29


Total investments                                                             $26,158,003        90.29


Total investments at cost                                                     $29,552,598




                                                 10
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 30 JUNE 2010 (UNAUDITED) (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

INVESTMENT PORTFOLIO (CONTINUED)

BEA UNION INVESTMENT GLOBAL RESOURCES FUND

                                                    Holding       Market        % of
                                                 shares/units      value    net assets

Listed/quoted investments (98.57%)


Equities (98.57%)


AUSTRALIA (6.01%)

BHP Billiton Ltd                                      12,504    $ 401,790        4.23
Newcrest Mining Ltd                                    5,710     169,534         1.78


AUSTRIA (4.69%)

Andritz AG                                             2,203     124,074         1.31
Schoeller-Bleckmann Oilfield Equipment AG              5,329     242,009         2.55
Voestalpine AG                                         2,868      79,045         0.83


BELGIUM (1.93%)

Umicore                                                6,281     183,211         1.93


CANADA (5.72%)

Cameco Corp                                            1,844      39,758         0.42
Potash Corp of Saskatchewan Inc                        2,511     219,332         2.31
Teck Resources Ltd - CL B                              9,488     284,570         2.99


FRANCE (2.62%)

Alstom SA                                              1,800      82,460         0.87
Total SA                                               2,916     131,766         1.39
Vinci SA                                                 816      34,259         0.36


GERMANY (19.31%)

Aixtron AG                                            14,717     354,600         3.73
Aurubis AG                                             3,433     150,154         1.58
BASF SE                                                4,808     265,587         2.79
Bayer AG                                               2,479     138,831         1.46
E ON AG                                                3,900     105,915         1.11
K + S AG                                               1,984      91,738         0.96

                                            11
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 30 JUNE 2010 (UNAUDITED) (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

INVESTMENT PORTFOLIO (CONTINUED)

BEA UNION INVESTMENT GLOBAL RESOURCES FUND (CONTINUED)

                                                         Holding       Market        % of
                                                      shares/units      value    net assets


Listed/quoted investments (98.57%) (continued)


Equities (98.57%) (continued)


GERMANY (19.31%) (continued)

Linde AG                                                    1,841    $ 194,474        2.05
MAN SE                                                      1,820     150,907         1.59
Siemens AG - REG                                            1,796     162,796         1.71
SMA Solar Technology AG                                     1,400     144,054         1.52
ThyssenKrupp AG                                             3,100      77,214         0.81


IRELAND (0.98%)

CRH PLC                                                     4,491      93,464         0.98


ITALY (1.08%)

Saipem SpA                                                  3,356     103,124         1.08


JAPAN (12.30%)

Asahi Kasei Corp                                            9,000      47,417         0.50
Daido Steel Co Ltd                                          3,500      15,084         0.16
JFE Holdings Inc                                            1,600      50,181         0.53
JGC Corp                                                    3,500      53,859         0.57
JSR Corp                                                    7,300     123,946         1.30
Mitsubishi Heavy Industries Ltd                            22,000      74,459         0.78
Mitsubishi Rayon Co Ltd                                    15,000      54,321         0.57
Nippon Steel Corp                                          24,000      79,874         0.84
Shin-Etsu Chemical Co Ltd                                   2,900     136,429         1.44
Sumitomo Chemical Co Ltd                                   22,000      86,124         0.91
Sumitomo Metal Industries Ltd                              50,500     113,944         1.20
Sumitomo Metal Mining Co Ltd                               14,000     172,789         1.82
Tokyo Steel Manufacturing Co Ltd                           13,700     159,659         1.68




                                                 12
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 30 JUNE 2010 (UNAUDITED) (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

INVESTMENT PORTFOLIO (CONTINUED)

BEA UNION INVESTMENT GLOBAL RESOURCES FUND (CONTINUED)

                                                         Holding       Market        % of
                                                      shares/units      value    net assets


Listed/quoted investments (98.57%) (continued)


Equities (98.57%) (continued)


NETHERLANDS (2.35%)

Akzo Nobel NV                                               2,535    $ 133,288        1.40
ArcelorMittal                                               2,242      61,285         0.64
SBM Offshore NV                                             2,052      29,620         0.31


NORWAY (1.05%)

Frontline Ltd                                               3,400      99,794         1.05


SWITZERLAND (1.85%)

ABB Ltd - REG                                              10,026     175,681         1.85


UNITED KINGDOM (9.71%)

Anglo American PLC                                         12,894     456,070         4.80
BHP Billiton PLC                                           12,720     335,714         3.53
British American Tobacco PLC                                4,074     130,978         1.38


UNITED STATES OF AMERICA (28.97%)

Alcoa Inc                                                     620       6,237         0.07
Cenovus Energy Inc                                          2,532      65,174         0.69
Chart Industries Inc                                        5,524      86,009         0.90
Chevron Corp                                                1,690     114,616         1.21
Covidien PLC                                                2,130      85,498         0.90
Devon Energy Corp                                           1,587      96,616         1.02
EI du Pont de Nemours & Co                                  3,393     117,364         1.23
EnCana Corp                                                 2,032      61,671         0.65
Exxon Mobil Corp                                            4,191     238,719         2.51
FedEx Corp                                                  2,055     144,014         1.51
General Electric Co                                        15,032     216,310         2.27
Halliburton Co                                              5,493     134,908         1.42

                                                 13
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 30 JUNE 2010 (UNAUDITED) (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

INVESTMENT PORTFOLIO (CONTINUED)

BEA UNION INVESTMENT GLOBAL RESOURCES FUND (CONTINUED)

                                                         Holding         Market         % of
                                                      shares/units         value    net assets


Listed/quoted investments (98.57%) (continued)


Equities (98.57%) (continued)


UNITED STATES OF AMERICA (28.97%) (continued)

Honeywell International Inc                                 2,064 $       80,455         0.85
Intrepid Potash Inc                                         8,100        158,274         1.66
Kinross Gold Corp                                           4,198         71,618         0.75
Monsanto Co                                                 1,636         75,583         0.80
Newmont Mining Corp                                         2,191        135,228         1.42
Noble Corp                                                  2,251         69,533         0.73
Praxair Inc                                                 1,516        115,170         1.21
Schlumberger Ltd                                            1,722         95,227         1.00
The Boeing Co                                               1,893        118,748         1.25
The Dow Chemical Co                                         3,036         72,044         0.76
Tyco International Ltd                                      2,730         96,096         1.01
United Parcel Service Inc - CL B                            1,678         95,411         1.00
United Technologies Corp                                    1,422         92,217         0.97
Valero Energy Corp                                          1,575         28,303         0.30
Weyerhaeuser Co                                             1,172         41,266         0.43
Yamana Gold Inc                                             4,210         43,237         0.45


Total equities                                                       $ 9,370,728        98.57


Total listed/quoted investments                                      $ 9,370,728        98.57


Total investments at cost                                            $ 12,542,542




                                                 14
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 30 JUNE 2010 (UNAUDITED) (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

INVESTMENT PORTFOLIO (CONTINUED)

BEA UNION INVESTMENT ASIAN BOND AND CURRENCY FUND

                                                           Nominal      Market        % of
                                                              value       value   net assets


Listed/quoted investments (83.05%)


Debt securities (83.05%)


Denominated in Hong Kong Dollar (11.37%)

Far East Consortium 3.625% 05/03/2015                    20,000,000 $ 2,438,584        5.12
Joyous King Group Ltd 3.30% 22/10/2014                   24,000,000   2,977,673        6.25


Denominated in Renminbi (5.38%)


Hidili Industry International
  Development Ltd 1.50% 19/01/2015                       19,000,000   2,566,639        5.38


Denominated in US Dollar (66.30%)

Agile Property Holdings Ltd 10.0% 14/11/2016
  Callable - 14/11/2013                                   1,000,000   1,020,000        2.14
Agile Property Holdings Ltd 8.875% 28/04/2017
  Callable - 28/04/2014                                    250,000      232,322        0.49
Bahrain Government International
  Bond 5.50% 31/03/2020                                    500,000      497,118        1.04
Bank of East Asia Ltd 13/12/2015 Callable - 14/12/2010     500,000      503,013        1.06
Bumi Capital Pte Ltd 12.00% 10/11/2016
  Callable - 10/11/2013                                   2,000,000   2,037,500        4.27
CITIC Bank International Ltd 6.875% 24/06/2020            1,700,000   1,701,091        3.57
CITIC Resources Fin (2007) Ltd 6.75% 15/05/2014
  Callable - 15/05/2010                                   1,500,000   1,468,125        3.08
Dubai Electricity & Water Authority 8.50% 22/04/2015       500,000      508,986        1.07
Enercoal Resources Pte Ltd 5.00% 25/11/2016               1,000,000     962,077        2.02
Enercoal Resources Pte Ltd 9.25% 05/08/2014                400,000      375,003        0.79
Fita International Ltd 7.00% 10/02/2020                    500,000      500,536        1.05
GAZ Capital SA 8.125% 31/07/2014                           750,000      819,662        1.72
GAZ Capital SA 9.25% 23/04/2019                            500,000      574,550        1.21
Industrial Bank of Korea 7.125% 23/04/2014                 500,000      561,426        1.18
Korea National Oil Corp 5.375% 30/07/2014                  500,000      529,353        1.11
Majapahit Holding BV 7.75% 20/01/2020                      500,000      547,969        1.15
                                                  15
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 30 JUNE 2010 (UNAUDITED) (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

INVESTMENT PORTFOLIO (CONTINUED)

BEA UNION INVESTMENT ASIAN BOND AND CURRENCY FUND (CONTINUED)

                                                                Nominal        Market          % of
                                                                  value         value     net assets


Listed/quoted investments (83.05%) (continued)


Debt securities (83.05%) (continued)


Denominated in US Dollar (66.30%) (continued)

Majapahit Holding BV 8.00% 07/08/2019                          1,000,000 $ 1,106,250           2.32
National Agricultural Cooperative
  Federation 5.00% 30/09/2014                                  1,000,000     1,040,999         2.18
National Bank of Abu Dhabi PJSC 4.25% 25/03/2015                 500,000       502,679         1.05
Neo-China Land Group Holdings Ltd 9.75% 23/07/14
  Callable - 23/07/11                                            500,000       501,250         1.05
PetroBakken Energy Ltd 3.125% 08/02/2016                         500,000       446,907         0.94
Petroleum Co of Trinidad & Tobago Ltd 9.75% 14/08/2019           500,000       568,750         1.19
Petropavlovsk 2010 Ltd 4.00% 18/02/2015                          300,000       320,469         0.67
PT Adaro Indonesia 7.625% 22/10/2019 Callable - 22/10/2014     2,000,000     2,024,400         4.25
Ras Laffan Liquefied Natural Gas Co Ltd III 6.75% 30/09/2019   1,000,000     1,104,330         2.32
Reliance Communications Ltd 0.00% 01/03/2012                   2,000,000     2,260,000         4.74
Russian Foreign Bond-Eurobond 5.00% 29/04/2020                   500,000       482,929         1.01
Shimao Property Holdings Ltd 8.00% 01/12/2016
  Callable - 01/12/2011                                        1,000,000       914,750         1.91
Shimao Property Holdings Ltd
  US LIB+195 01/12/2011 Callable                               2,000,000     1,867,000         3.92
Sigma Capital Ltd 9.00% 30/04/2015 Callable - 30/04/2013       1,500,000     1,464,555         3.07
Standard Chartered Bank Perpetual Callable - 24/12/2014        1,000,000     1,107,321         2.32
State of Qatar 6.40% 20/01/2040                                1,000,000     1,062,656         2.23
TNK-BP Finance SA 6.25% 02/02/2015                               250,000       249,912         0.52
TNK-BP Finance SA 7.25% 02/02/2020                               750,000       744,525         1.56
Vedanta Resources Jersey II Ltd 4.00% 30/03/2017                 500,000       470,405         0.99
Vedanta Resources PLC 9.50% 18/07/2018                           500,000       528,750         1.11


Total debt securities                                                      $ 39,590,464       83.05


Total listed/quoted investments                                            $ 39,590,464       83.05


Total investments at cost                                                  $ 39,134,065


                                                 16
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 30 JUNE 2010 (UNAUDITED) (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

INVESTMENT PORTFOLIO (CONTINUED)

BEA UNION INVESTMENT FOUR SEASONS FUND

                                               Holding
                                           shares/units/       Market        % of
                                          nominal value          value   net assets


Listed/quoted investments (97.39%)


Equities (14.01%)


HONG KONG (7.57%)

BOC Hong Kong (Holdings) Ltd                     70,000 $     160,599         0.87
BYD Co Ltd - H                                   20,000       149,655         0.81
CNOOC Ltd                                      180,000        309,380         1.67
China Construction Bank Corp - H               320,000        260,617         1.41
China Life Insurance Co Ltd - H                  67,000       297,793         1.61
Kerry Properties Ltd                             20,000        86,838         0.47
Lenovo Group Ltd                               250,000        135,524         0.73


INDONESIA (1.09%)

PT Astra International Tbk                       38,000       201,432         1.09


KOREA (2.55%)

Duksan Hi-Metal Co Ltd                           10,000       154,672         0.84
Samsung Electronics Co Ltd                          500       316,710         1.71


SINGAPORE (1.13%)

United Overseas Bank Ltd                         15,000       209,121         1.13


TAIWAN (1.34%)

Hon Hai Precision Industry Co Ltd                70,000       248,331         1.34


THAILAND (0.33%)

PTT PCL - NVDR                                    8,000        60,699         0.33


Total equities                                             $ 2,591,371       14.01



                                     17
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 30 JUNE 2010 (UNAUDITED) (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

INVESTMENT PORTFOLIO (CONTINUED)

BEA UNION INVESTMENT FOUR SEASONS FUND (CONTINUED)

                                                           Holding
                                                       shares/units/       Market         % of
                                                      nominal value          value    net assets


Listed/quoted investments (97.39%) (continued)


Debt securities (74.16%)


Denominated in US Dollar (74.16%)

Bahrain Government International
  Bond 5.50% 31/03/2020                                    500,000 $       497,118         2.69
Bumi Capital Pte Ltd 12.00% 10/11/2016
  Callable - 10/11/2013                                    500,000         509,375         2.76
CITIC Bank International Ltd 6.875% 24/06/2020             300,000         300,193         1.62
ICICI Bank Ltd/Singapore 5.875% 20/10/2011                 500,000         515,826         2.79
State of Qatar 5.25% 20/01/2020                            500,000         521,697         2.82
TownGas China Co Ltd 8.25% 23/09/2011                      500,000         532,497         2.88
US Treasury Note 2.25% 31/01/2015                         1,000,000      1,025,469         5.54
US Treasury Note 2.375% 31/08/2014                        2,500,000      2,585,937        13.98
US Treasury Note 2.375% 30/09/2014                        2,000,000      2,066,875        11.18
US Treasury Note 2.375% 31/10/2014                        3,000,000      3,097,031        16.75
US Treasury Note 2.375% 28/02/2015                        2,000,000      2,062,500        11.15


Total debt securities                                                  $ 13,714,518       74.16


Investment fund (9.22%)


HONG KONG (9.22%)

BEA Asia Strategic Growth Fund - Class A                 59,043.402 $ 1,705,764            9.22


Total investment fund                                                  $ 1,705,764         9.22


Total listed/quoted investments                                        $ 18,011,653       97.39


Total investments at cost                                              $17,711,774




                                                 18
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 30 JUNE 2010 (UNAUDITED) (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

STATEMENT OF MOVEMENTS IN PORTFOLIO HOLDINGS

BEA UNION INVESTMENT JAPAN GROWTH FUND

                           Holdings                                     Holdings
                            as at 31                                     as at 30
                      December 2009     Additions      Disposals       June 2010
                               Units        Units          Units            Units


ipac Multi-Manager
 Japan Equity Fund
 – Class A            1,672,874.2300            –   336,060.4200   1,336,813.8100




                                   19
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 30 JUNE 2010 (UNAUDITED) (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

STATEMENT OF MOVEMENTS IN PORTFOLIO HOLDINGS (CONTINUED)

BEA UNION INVESTMENT GLOBAL THEMES FUND

                                                     % of net assets
                                                      At                 At
                                             30 June 2010   31 December 2009


Australia                                               –               0.62
Austria                                                 –               2.78
Belgium                                                 –               0.96
Brazil                                               3.76               2.52
Canada                                               1.06                  –
Denmark                                              2.24                  –
France                                                  –               0.49
Germany                                             12.38               7.36
Greece                                                  –               0.17
Hong Kong                                               –               1.14
Israel                                                  –               0.93
Italy                                                   –               0.39
Japan                                                   –               8.88
Korea                                                1.97               2.05
Luxembourg                                           0.07               0.65
Malaysia                                                –               0.29
Netherlands                                             –               1.06
Norway                                               1.97                  –
Russia                                                  –               1.47
Singapore                                               –               0.12
South Africa                                         2.05               0.36
Spain                                                   –               0.51
Switzerland                                          2.37               2.99
Thailand                                                –               0.84
Turkey                                                  –               0.04
United Kingdom                                       6.90              10.75
United States of America                            55.52              48.58

                                                    90.29              95.95




                               20
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 30 JUNE 2010 (UNAUDITED) (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

STATEMENT OF MOVEMENTS IN PORTFOLIO HOLDINGS (CONTINUED)

BEA UNION INVESTMENT GLOBAL RESOURCES FUND

                                                     % of net assets
                                                      At                 At
                                             30 June 2010   31 December 2009


Australia                                            6.01               5.47
Austria                                              4.69               4.42
Belgium                                              1.93               1.82
Canada                                               5.72               5.85
France                                               2.62               3.31
Germany                                             19.31              19.65
Greece                                                  –               1.17
Ireland                                              0.98               1.04
Italy                                                1.08               1.09
Japan                                               12.30              11.32
Netherlands                                          2.35               3.04
Norway                                               1.05               0.90
Switzerland                                          1.85               1.65
United Kingdom                                       9.71               9.11
United States of America                            28.97              28.35

                                                    98.57              98.19



BEA UNION INVESTMENT ASIAN BOND AND CURRENCY FUND

                                                     % of net assets
                                                      At                 At
                                             30 June 2010   31 December 2009


Australian Dollar                                       –              18.46
Euro                                                    –              11.10
Hong Kong Dollar                                    11.37               1.48
Renminbi                                             5.38               1.31
Singapore Dollar                                        –               2.16
United States Dollar                                66.30              57.05

                                                    83.05              91.56




                               21
BEA UNION INVESTMENT SERIES

INVESTMENT REPORT
AS AT 30 JUNE 2010 (UNAUDITED) (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

STATEMENT OF MOVEMENTS IN PORTFOLIO HOLDINGS (CONTINUED)

BEA UNION INVESTMENT FOUR SEASONS FUND

                                                     % of net assets
                                                      At                At
                                             30 June 2010   23 October 2009
                                                                   (Date of
                                                            Commencement)


Equities


Hong Kong                                            7.57                 –
Indonesia                                            1.09                 –
Korea                                                2.55                 –
Singapore                                            1.13                 –
Taiwan                                               1.34                 –
Thailand                                             0.33                 –

                                                    14.01                 –

Debt securities


United States Dollar                                74.16                 –

Investment fund


Hong Kong                                            9.22                 –

                                                    97.39                 –




                               22
BEA UNION INVESTMENT SERIES

STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 JUNE 2010 (UNAUDITED)
(EXPRESSED IN UNITED STATES DOLLARS)

BEA UNION INVESTMENT JAPAN GROWTH FUND

                                                               2010            2009

Income

Interest on bank deposits                             $            4    $          4

                                                      $            4    $          4

Expenses

Investment management fees                            $      33,215     $    31,589
Trustee's fees                                                9,195           8,708
Auditors' remuneration                                        5,569           6,381
Registrar's fees                                              3,678           3,483
Printing and publication expenses                             3,144           1,421
Regulatory fees                                                 700             580
Legal and professional fees                                     420              66
Interest expenses                                                 7               –

                                                      $      55,928     $    52,228


Net loss for the period before
  investments and exchange gain/(loss)                $     (55,924)    $    (52,224)

Net loss on investments and exchange

Net realised loss on sale of investments              $   (1,207,844)   $   (228,715)
Net movement in unrealised gain on investments               807,158         181,519
Exchange gain/(loss)                                               9             (14)

                                                      $    (400,677)    $    (47,210)


Loss and total comprehensive income for the period    $    (456,601)    $    (99,434)




                                                 23
BEA UNION INVESTMENT SERIES

STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 JUNE 2010 (UNAUDITED) (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

BEA UNION INVESTMENT GLOBAL THEMES FUND

                                                                 2010              2009

Income

Dividend income                                         $     403,340     $     472,763
Interest on bank deposits                                         329               964

                                                        $     403,669     $     473,727

Expenses

Investment management fees                              $     264,021     $     208,876
Trustee's fees                                                 30,802            24,369
Safe custody and bank charges                                  45,817            40,531
Auditors' remuneration                                         10,556             5,626
Registrar's fees                                                8,801             6,963
Printing and publication expenses                               3,493             1,421
Regulatory fees                                                   701                 –
Legal and professional fees                                     2,556                66
Other operating expenses                                            –               145
Transaction costs                                             131,826           118,015

                                                        $     498,573     $     406,012


Net (loss)/gain for the period before
  investments and exchange gain/(loss)                  $     (94,904)    $      67,715

Net (loss)/gain on investments and exchange

Net realised gain/(loss) on sale of investments         $    3,457,147    $   (3,150,748)
Net movement in unrealised (loss)/gain on investments       (5,084,024)        6,922,313
Exchange (loss)/gain                                        (1,284,998)          436,479

                                                        $   (2,911,875)   $   4,208,044


(Loss)/profit before tax                                $   (3,006,779)   $   4,275,759

Overseas withholding tax                                      (88,007)          (86,114)

(Loss)/profit and total comprehensive
  income for the period                                 $   (3,094,786)   $   4,189,645




                                                24
BEA UNION INVESTMENT SERIES

STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 JUNE 2010 (UNAUDITED) (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

BEA UNION INVESTMENT GLOBAL RESOURCES FUND

                                                                 2010             2009

Income

Dividend income                                         $     143,235     $    169,316
Interest on bank deposits                                          15               20
Other income                                                        –            1,222

                                                        $     143,250     $    170,558

Expenses

Investment management fees                              $      92,031     $     73,539
Trustee's fees                                                 10,737            8,580
Safe custody and bank charges                                   6,740            3,132
Auditors' remuneration                                          1,181            5,805
Registrar's fees                                                3,068            2,451
Printing and publication expenses                               3,144            1,421
Regulatory fees                                                   701                –
Legal and professional fees                                       357               66
Transaction costs                                               1,674            3,477

                                                        $     119,633     $     98,471


Net gain for the period before
  investments and exchange gain/(loss)                  $      23,617     $     72,087

Net (loss)/gain on investments and exchange

Net realised loss on sale of investments                $    (468,408)    $    (132,540)
Net movement in unrealised (loss)/gain on investments        (559,905)          817,893
Exchange (loss)/gain                                         (797,978)          287,815

                                                        $   (1,826,291)   $    973,168


(Loss)/gain before tax                                  $   (1,802,674)   $   1,045,255

Overseas withholding tax                                      (28,184)          (37,531)

(Loss)/gain and total comprehensive
  income for the period                                 $   (1,830,858)   $   1,007,724




                                                25
BEA UNION INVESTMENT SERIES

STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 JUNE 2010 (UNAUDITED) (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

BEA UNION INVESTMENT ASIAN BOND AND CURRENCY FUND

                                                                2010             2009

Income

Interest on bank deposits                               $         938    $         44
Interest on debt securities                                 1,041,013         735,257

                                                        $   1,041,951    $    735,301

Expenses

Investment management fees                              $    156,010     $     88,797
Trustee's fees                                                26,002           14,799
Safe custody and bank charges                                  4,451            1,252
Auditors' remuneration                                         8,197            7,084
Registrar's fees                                              10,401            5,920
Printing and publication expenses                              4,133            2,065
Regulatory fees                                                  699              581
Legal and professional fees                                    1,096               66

                                                        $    210,989     $    120,564


Net gain for the period before
  investments and exchange gain/(loss)                  $    830,962     $    614,737

Net (loss)/gain on investments and exchange

Net realised gain/(loss) on sale of investments         $     228,585    $      (3,607)
Net movement in unrealised (loss)/gain on investments        (234,273)       1,224,201
Exchange loss                                                (286,380)          (8,974)

                                                        $    (292,068)   $   1,211,620


Profit before finance costs                             $    538,894     $   1,826,357

Distribution to unitholders                                  (671,990)        (517,243)

(Loss)/gain and total comprehensive
  income for the period                                 $    (133,096)   $   1,309,114




                                                26
BEA UNION INVESTMENT SERIES

STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 JUNE 2010 (UNAUDITED) (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

BEA UNION INVESTMENT FOUR SEASONS FUND

                                                                            Period from
                                                                       23 October 2009
                                                                        to 30 June 2010

Income

Dividend income                                                          $      48,963
Interest on bank deposits                                                          190
Interest on debt securities                                                    386,940

                                                                         $     436,093

Expenses

Investment management fees                                               $     325,354
Trustee's fees                                                                  32,535
Safe custody and bank charges                                                    5,515
Auditors' remuneration                                                           8,103
Registrar's fees                                                                 9,296
Printing and publication expenses                                                1,531
Regulatory fees                                                                    121
Pre-operating expenses                                                           1,031
Other operating expenses                                                            44
Transaction costs                                                               21,263

                                                                         $     404,793

Net gain for the period before investments and exchange gain/(loss)      $      31,300

Net gain on investments and exchange

Net realised gain on sale of investments                                 $      33,733
Net movement in unrealised gain on investments                                 309,473
Exchange loss                                                                 (259,615)

                                                                         $      83,591

Profit before tax                                                        $     114,891

Overseas withholding tax                                                         (3,955)

Profit and total comprehensive income for the period                     $     110,936


Note:
Since BEA Union Investment Four Seasons Fund commenced operations on 23 October 2009,
preceding comparative figures for the period ended 30 June 2010 were not available.




                                                 27
BEA UNION INVESTMENT SERIES

STATEMENT OF ASSETS AND LIABILITIES
AS AT 30 JUNE 2010 (UNAUDITED)
(EXPRESSED IN UNITED STATES DOLLARS)

BEA UNION INVESTMENT JAPAN GROWTH FUND

                                                            30 June 2010       31 December 2009

Assets

Investments                                                 $ 11,670,385          $ 15,290,070
Amounts receivable from sale of investments                       19,000                24,000
Interest receivables                                                   4                     3
Bank balances                                                     64,243                61,525

Total assets                                                $ 11,753,632          $ 15,375,598

Liabilities

Amounts payable on redemption                               $        18,350       $         7,440
Accruals and other payables                                          12,240                21,161

Total liabilities
  (excluding net assets attributable to unitholders)        $        30,590       $        28,601


Net assets attributable to unitholders

Equity                                                      $ 11,723,042          $ 15,346,997


Represented by:
Adjustment from bid market prices
  to last traded market prices                              $             –       $             –
Net assets attributable to unitholders
  (at last traded market prices)                            $ 11,723,042          $ 15,346,997

Number of units in issue - Class A                              1,777,562.76          2,213,029.17

Net asset value per unit - Class A (at bid market prices)   $          6.59       $          6.93




                                                   28
BEA UNION INVESTMENT SERIES

STATEMENT OF ASSETS AND LIABILITIES
AS AT 30 JUNE 2010 (UNAUDITED) (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

BEA UNION INVESTMENT GLOBAL THEMES FUND

                                                            30 June 2010       31 December 2009

Assets

Investments                                                 $ 26,158,003          $ 36,570,616
Dividend receivables                                              29,203                25,149
Amounts receivable from sale of investments                            –             1,121,502
Interest receivables                                                  32                    13
Bank balances                                                  2,894,235             1,186,748

Total assets                                                $ 29,081,473          $ 38,904,028

Liabilities

Amounts payable on redemption                               $        54,188       $        27,760
Amounts payable for purchase of investments                               –               671,115
Accruals and other payables                                          57,282                92,408

Total liabilities
  (excluding net assets attributable to unitholders)        $       111,470       $       791,283


Net assets attributable to unitholders

Equity                                                      $ 28,970,003          $ 38,112,745


Represented by:
Adjustment from bid market prices
  to last traded market prices                              $        29,982       $        49,350
Net assets attributable to unitholders
  (at last traded market prices)                            $ 28,999,985          $ 38,162,095

Number of units in issue - Class A                              4,216,546.91          4,997,491.67

Net asset value per unit - Class A (at bid market prices)   $          6.87       $          7.62




                                                   29
BEA UNION INVESTMENT SERIES

STATEMENT OF ASSETS AND LIABILITIES
AS AT 30 JUNE 2010 (UNAUDITED) (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

BEA UNION INVESTMENT GLOBAL RESOURCES FUND

                                                            30 June 2010    31 December 2009

Assets

Investments                                                 $   9,370,728      $ 13,261,117
Dividend receivables                                                4,561             3,908
Interest receivables                                                   14                10
Bank balances                                                     278,581           292,001

Total assets                                                $   9,653,884      $ 13,557,036

Liabilities

Amounts payable on redemption                               $    126,248       $      18,903
Accruals and other payables                                       20,919              32,617

Total liabilities
  (excluding net assets attributable to unitholders)        $    147,167       $      51,520


Net assets attributable to unitholders

Equity                                                      $   9,506,717      $ 13,505,516


Represented by:
Adjustment from bid market prices
  to last traded market prices                              $     18,018       $      11,982
Net assets attributable to unitholders
  (at last traded market prices)                            $   9,524,735      $ 13,517,498

Number of units in issue - Class A                          14,890,534.95       17,734,971.07

Net asset value per unit - Class A (at bid market prices)   $        0.63      $         0.76




                                                   30
BEA UNION INVESTMENT SERIES

STATEMENT OF ASSETS AND LIABILITIES
AS AT 30 JUNE 2010 (UNAUDITED) (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

BEA UNION INVESTMENT ASIAN BOND AND CURRENCY FUND

                                                       30 June 2010    31 December 2009

Assets

Investments                                            $ 39,590,464       $ 30,529,859
Amount receivable from foreign
  currency forward contracts                                   1,014               12,850
Amounts receivable from sale of investments                  973,150                    –
Interest receivables                                         505,786              542,950
Bank balances                                              7,245,039            2,336,439

Total assets                                           $ 48,315,453       $ 33,422,098

Liabilities

Amounts payable on redemption                          $     26,222       $        35,435
Amounts payable for purchase of investments                 571,250                     –
Accruals and other payables                                  42,955                44,180

Total liabilities
  (excluding net assets attributable to unitholders)   $    640,427       $        79,615


Net assets attributable to unitholders

Financial liabilities                                  $ 47,675,026       $ 33,342,483


Represented by:
Adjustment from bid market prices
  to last traded market prices                         $    126,618       $        54,815
Net assets attributable to unitholders
  (at last traded market prices)                       $ 47,801,645       $ 33,397,298

Number of units in issue
 – Class A Accumulating                                  924,116.685            442,787.62
 – Class A Distributing                                3,424,334.490          2,611,767.47

Net asset value per unit
  – Class A Accumulating (at bid market prices)        $      11.58       $         11.37
  – Class A Distributing (at bid market prices)        $      10.79       $         10.83




                                                  31
BEA UNION INVESTMENT SERIES

STATEMENT OF ASSETS AND LIABILITIES
AS AT 30 JUNE 2010 (UNAUDITED) (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

BEA UNION INVESTMENT FOUR SEASONS FUND
                                                                          30 June 2010

Assets

Investments                                                              $ 18,011,653
Dividend receivables                                                           19,814
Interest receivables                                                          113,688
Bank balances                                                                 609,388

Total assets                                                             $ 18,754,543

Liabilities

Amounts payable on redemption                                            $       218,990
Accruals and other payables                                                       41,157

Total liabilities
  (excluding net assets attributable to unitholders)                     $       260,147


Net assets attributable to unitholders

Equity                                                                   $ 18,494,396


Represented by:
Adjustment from bid market prices
 to last traded market prices                                            $        11,633
Net assets attributable to unitholders
  (at last traded market prices)                                         $ 18,506,029

Number of units in issue – Class A                                           1,838,988.72

Net asset value per unit – Class A (at bid market prices)                $         10.05

Note:
Since BEA Union Investment Four Seasons Fund commenced operations on 23 October 2009,
preceding comparative figures for the period ended 30 June 2010 were not available.




                                                   32
BEA UNION INVESTMENT SERIES

STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 JUNE 2010 (UNAUDITED)
(EXPRESSED IN UNITED STATES DOLLARS)

BEA UNION INVESTMENT JAPAN GROWTH FUND

                                                                       2010             2009

Balance at 1 January                                          $ 15,346,997      $ 15,587,821

Transactions with owner recorded directly in equity

Subscription of units during the period                       $       40,658    $       8,578
Redemption of units during the period                             (3,208,012)        (290,526)

Total transactions with owners                                $   (3,167,354)   $    (281,948)

Loss and total comprehensive income for the period            $    (456,601)    $     (99,434)


Balance at 30 June                                            $ 11,723,042      $ 15,206,439




BEA UNION INVESTMENT GLOBAL THEMES FUND

                                                                       2010             2009

Balance at 1 January                                          $ 38,112,745      $ 28,378,339

Transactions with owner recorded directly in equity

Subscription of units during the period                       $       70,627    $      60,449
Redemption of units during the period                             (6,118,583)        (390,753)

Total transactions with owners                                $   (6,047,956)   $    (330,304)

(Loss)/profit and total comprehensive income for the period   $   (3,094,786)   $   4,189,645


Balance at 30 June                                            $ 28,970,003      $ 32,237,680




                                                33
BEA UNION INVESTMENT SERIES

STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 JUNE 2010 (UNAUDITED) (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

BEA UNION INVESTMENT GLOBAL RESOURCES FUND

                                                                     2010             2009

Balance at 1 January                                        $ 13,505,516      $ 10,331,355

Transactions with owner recorded directly in equity

Subscription of units during the period                     $      567,308    $   2,134,530
Redemption of units during the period                           (2,735,249)        (707,529)

Total transactions with owners                              $   (2,167,941)   $   1,427,001

(Loss)/gain and total comprehensive income for the period   $   (1,830,858)   $   1,007,724


Balance at 30 June                                          $   9,506,717     $ 12,766,080




                                                34
BEA UNION INVESTMENT SERIES

STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO UNITHOLDERS
FOR THE PERIOD ENDED 30 JUNE 2010 (UNAUDITED)
(EXPRESSED IN UNITED STATES DOLLARS)

BEA UNION INVESTMENT ASIAN BOND AND CURRENCY FUND

                                                                      2010             2009

Balance at 1 January                                          $ 33,342,483    $ 24,284,827

Subscription of units during the period                       $ 20,446,522    $    5,848,101
Redemption of units during the period                           (5,980,883)       (6,397,808)

Total transactions with unitholders                           $ 14,465,639    $    (549,707)

(Loss)/profit and total comprehensive income for the period   $   (133,096)   $   1,309,114


Balance at 30 June                                            $ 47,675,026    $ 25,044,234




                                                35
BEA UNION INVESTMENT SERIES

STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 JUNE 2010 (UNAUDITED) (CONTINUED)
(EXPRESSED IN UNITED STATES DOLLARS)

BEA UNION INVESTMENT FOUR SEASONS FUND

                                                                            Period from
                                                                       23 October 2009
                                                                        to 30 June 2010

Balance at 1 January                                                     $           –

Transactions with owner recorded directly in equity

Subscription of units during the period                                  $ 35,237,066
Redemption of units during the period                                      (16,853,606)

Total transactions with owners                                           $ 18,383,460

Profit and total comprehensive income for the period                     $     110,936


Balance at 30 June                                                       $ 18,494,396


Note:
Since BEA Union Investment Four Seasons Fund commenced operations on 23 October 2009,
preceding comparative figures for the period ended 30 June 2010 were not available.




                                                36
              MANAGEMENT AND ADMINISTRATION

                               Manager
            BEA Union Investment Management Limited
                5th Floor, The Bank of East Asia Building
                       10 Des Voeux Road Central
                               Hong Kong

Investment Adviser for BEA Union Investment Global Resources Fund,
          BEA Union Investment Global Themes Fund and
            BEA Union Investment Four Seasons Fund
               Union Investment Institutional GmbH
                        Wiesenhüttenstraße 10
                       60329 Frankfurt am Main
                               Germany

                       Trustee and Registrar
                Bank of East Asia (Trustees) Limited
                         32nd Floor, BEA Tower
                           Millennium City 5
                         418 Kwun Tong Road
                         Kwun Tong, Kowloon
                               Hong Kong

                                Auditor
                                 KPMG
                       8th Floor, Prince’s Building
                             10 Chater Road
                                  Central
                               Hong Kong

                      Solicitor to the Manager
                               Deacons
                      5th Floor, Alexandra House
                             18 Chater Road
                                 Central
                               Hong Kong

				
DOCUMENT INFO