Units traded in SGD: $UOBAM Ping An FTSE ASEAN Dividend Index ETF(UPD.SI)$
Units traded in USD: $UOBAM PA FT ASEAN DV US$(UPU.SI)$
In the first of our two-part series exploring the companies powering the UOBAM Ping An FTSE ASEAN Dividend Index ETF, we take a closer look at its top five holdings. In Part 2, we’ll dive into the next five holdings, which span banking, telecommunications, energy and automobiles.
Spotlight on ASEAN
Tech and software stocks have faced heightened volatility in recent weeks on concerns over soaring AI spending and the growing risk of AI-fuelled disruption. As markets churn, investors seeking stability are increasingly turning to lower-volatility sectors and companies less exposed to AI-driven swings.
Against this backdrop, ASEAN markets stand out for their lower volatility and attractive valuations, supported by a smaller concentration of tech names. Notably ASEAN equities are up 5.3 percent in the year to date, outperforming the S&P 500’s 1.2 percent gain [1].
The region also offers abundant dividend opportunities, appealing to investors seeking income and resilience.
For investors seeking easy access, the UOBAM Ping An FTSE ASEAN Dividend Index ETF (SGX: UPD, UPU) (the “ETF”) provides diversified exposure to the region’s leading dividend-paying companies and aims to pay dividends of at least 6.0 percent per annum in 2026 and 2027 [2].
Overview
The ETF tracks the FTSE ASEAN ex REITs Target Dividend Index (the “Index”). Given its focus on ASEAN’s dividend leaders, the Index naturally tilts towards financials, with the top 5 holdings comprising major banks from Singapore and Indonesia. These financial institutions play central roles in funding trade, consumption, and investment across the region.
Here’s a deep dive into the top five holdings.
1. DBS
DBS is Singapore’s largest bank by assets and one of Asia’s strongest financial institutions. Its scale and earnings resilience anchor its importance within the ETF.
Outlook [3]
4Q25 softness, but fundamentals intact
DBS ended the fourth quarter of 2025 on a weaker note, with 4Q net profit down 10 percent year‑on‑year (YoY) as lower interest rates and a stronger Singapore dollar compressed loan margins. Still, longer‑term fundamentals remain firm. Loan demand and deposit inflows remain steady, and wealth management continues to be a key growth driver. Singapore’s status as a regional safe haven and financial hub has supported healthy client inflows and strong demand for wealth solutions.
2026 income expected to stabilise
DBS expects 2026 total income to hold broadly around 2025 levels, supported by balance sheet strength, hedging strategies and cross border wealth flows across ASEAN and Greater China.
Valuation
Trading at a premium to history
DBS currently trades at a price‑to‑book (P/B) ratio of about 2.4 times, higher than its five‑year average of 1.7 times [4]. While this premium valuation reflects confidence in DBS’s continued earnings strength and dividend outlook, it also means upside may be more moderate unless the bank delivers further growth catalysts.
Dividends
Strong and visible payouts
DBS delivered S$3.06 per share in total dividends for 2025, 38 percent higher than the previous year. The bank plans to sustain its 15‑cent quarterly capital return dividend through FY2026 and FY2027, supporting visibility in payouts. With a 12‑month yield of 4.9 percent, DBS’s strong capital base, disciplined capital return policy, and resilient earnings underpin its ability to maintain attractive and growing dividends.
Key statistics
2. Bank Rakyat Indonesia
Bank Rakyat Indonesia (BRI) is one of the largest state-owned banks in Indonesia and it is the country’s dominant lender for micro, small, and medium enterprises (MSMEs), with deep rural reach.
Outlook [5]
Supportive macro conditions
BRI continues to benefit from Indonesia’s stable fundamentals. Management highlights lower funding costs, better liquidity, and rising loan demand as key tailwinds. Loan growth is supported by both consumer and corporate lending, while digital banking transactions continue to accelerate, improving engagement and efficiency.
MSME leadership
As the nation’s leading micro lender, BRI is especially well positioned to ride Indonesia’s growth momentum, where micro and SME borrowers tend to respond quickly to better sentiment.
Valuation
Undervalued relative to history
At current P/B valuations of 1.7 times compared to its historical P/B value of 2.2 [6], BRI’s stock appears undervalued, suggesting attractive upside potential.
Dividends
Strong income appeal
BRI’s 12-month dividend yield stands at 9.1 percent [7], supported by the bank’s strong capital and stable asset quality.
Key statistics
3. Bank Mandiri
Bank Mandiri is one of the largest and most prominent financial institutions in Indonesia. It is a state-owned bank and provides a wide range of financial services, including retail banking, corporate banking, treasury, and capital market services.
Outlook [8]
Solid 4Q25 performance
Bank Mandiri ended 2025 on solid footing with net profit up 40 percent quarter on quarter in 4Q25 and up 1 percent YoY for FY2025, ahead of consensus. Loan growth was a standout, rising 13.4 percent YoY, well above its guidance range, led by corporate and commercial lending.
Digitalisation continues to drive efficiency
With 80 percent of transactions now on digital channels, customer engagement and operating leverage continue to improve.
Valuation
Upside potential
Bank Mandiri currently trades at a P/B ratio of about 1.6 times, below its five‑year average of 1.8 times [9]. This relatively undemanding valuation could offer potential upside if earnings momentum strengthens.
Dividends
Attractive dividend profile
Bank Mandiri offers a 12-month dividend yield of 11.3 percent [10], supported by strong financial performance and a healthy capital base.
Key statistics
4. OCBC
OCBC is one of Singapore’s most diversified financial groups, with strong wealth, regional lending and insurance businesses.
Outlook [11]
Diversified income streams provide support
OCBC enters 2026 with steady momentum ahead of its 4Q25 results on 25 February 2026. In 3Q25, the bank reported healthy loan growth, a strong deposit franchise and resilient customer activity. While net interest margins came under pressure due to falling rates, its wealth management and insurance business under Great Eastern helped to support earnings.
New CEO adds strategic interest
With expectations building around new Group CEO Tan Teck Long’s upcoming multi‑year strategic roadmap, sentiment is likely to remain constructive, supporting a stable outlook for 2026.
Valuation
More forgiving than DBS
OCBC currently trades at a P/B ratio of about 1.6 times, slightly above its five‑year average of 1.2 times [12]. Compared with DBS, whose P/B trades closer to 2.4 times, OCBC’s valuation remains relatively forgiving, suggesting room for further re‑rating if profitability strengthens.
Dividends
Strong payout visibility
OCBC’s 12-month dividend yield currently stands at 4.6 percent [13]. In 2025, OCBC raised its dividend payout ratio policy from 50 percent to 60 percent and committed to completing its share buybacks in 2026. This signals confidence in its capital position and long‑term earnings resilience. With diversified income streams, strong capital and sound asset quality, OCBC’s dividend outlook is likely to remain solid.
Key statistics
5. UOB
UOB is one of Singapore’s leading banks with strong ASEAN connectivity and rising strengths in wealth management, cards and cross border business banking.
Outlook [14]
Temporary profit drop not reflective of core strength
UOB is set to announce its 4Q earnings on 24 February 2026, and the results will be closely watched after the bank reported a 72 percent YoY decline in net profit during 3Q25. Crucially, the drop was due to pre emptive general allowances and not core weakness, reflecting UOB’s conservative stance to strengthen balance sheet resilience going into 2026.
Bank remains resilient
Loan growth is steady across the region, and fee income from wealth, cards and lending services is expected to offset further moderation in net interest margins as interest rates continue to ease.
Valuation
Attractively valued relative to Singapore peers
UOB trades at a P/B ratio of about 1.3 times, only slightly above its five‑year average of around 1.2 times [15], and lower than both DBS and OCBC. This suggests greater upside potential, particularly if earnings stabilise and re‑rating catalysts emerge.
Dividends
Resilient dividend profile
UOB has reaffirmed that its 3Q25 pre‑emptive allowances will not affect its 2025 final dividend. The bank currently offers a 12-month dividend yield of 5.8 percent, supported by strong capital and consistent profitability. It is also on track to distribute 50 cents in special dividends for FY25, lifting its effective payout ratio to around 74 percent.
Key statistics
Stay tuned
In the second part of this series, we’ll explore the ETF’s subsequent holdings across telecommunications, energy, automobiles, and banks. These companies add further diversification and additional growth drivers to the ETF.
How to invest in the UOBAM Ping An FTSE ASEAN Dividend Index ETF
Listed on the Singapore Exchange (SGX), the ETF can be purchased through your preferred brokerage platform in either SGD ( $UOBAM Ping An FTSE ASEAN Dividend Index ETF(UPD.SI)$ ) or USD ( $UOBAM PA FT ASEAN DV US$(UPU.SI)$ ). You can buy it using cash and / or your SRS funds.
With no minimum board lot size, you can also start investing from just one unit.
[1] Source: Bloomberg, as of 10 Feb 2026. ASEAN equities refers to the FTSE ASEAN ex REITs Target Dividend Index
[2] Distributions are not guaranteed. Distributions may be made out of income, capital gains and/or capital. This relates to the disclosed distribution policy as set out in the Fund’s prospectus.
[3] Data presented in this section is sourced from DBS’s 4Q25 earnings, published 9 Feb 2026
[4] Source: Bloomberg, as of 10 Feb 2026
[5] Data presented in this section is sourced from BRI’s 3Q25 earnings, published 30 October 2025
[6,7] Source: Bloomberg, as of 10 Feb 2026
[8] Data presented in this section is sourced from Bank Mandiri’s 4Q25 earnings, published 6 Feb 2026
[9,10] Source: Bloomberg, as of 10 Feb 2026
[11] Data presented in this section is sourced from OCBC’s 3Q25 earnings, published 7 Nov 2025
[12,13] Source: Bloomberg, as of 10 Feb 2026
[14] Data presented in this section is sourced from UOB’s 3Q25 earnings, published 6 Nov 2025
[15] Source: Bloomberg, as of 10 Feb 2026
Please refer to uobam.com.sg/awards for the latest list of UOBAM awards
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