Schroder AsianAsset Income Fund Seize Asias growth potential,grasp income opportunities
31 May, 2018
Important Information:1. The fund invests primarily in Asian equities and fixed income securities which offer attractive yields and sustainable dividend payments. The fund
will have limited Renminbi (RMB) denominated underlying investments.2. In respect of the distribution units, the manager will declare and pay monthly distributions. However, the distribution rate is not guaranteed.
Distribution yield is not indicative of the return of the fund. Distribution may be paid from capital of the fund. Investors should note that where the payment of distributions are paid out of capital, this represents and amounts to a return or withdrawal of part of the amount you originally invested or capital gains attributable to that and may result in an immediate decrease in the value of units.
3. Changes in market interest rates will affect the value of debt securities held by the fund. The fund invests in below investment grade and/or unrated debt securities may be subject to higher counterparty, credit and liquidity risk than higher rated securities.
4. The fund's investment in emerging and less developed markets may be subject to significant risks such as political and economic risks, legal and regulatory risks, market and settlement risks, execution and counterparty risk, and currency risk.
5. The fund may invest into investments denominated in currencies other than the fund's base currency and subject to currency and exchange risk. If the investor's based currency is a different currency than the share class's currency being invested in, the investor needs to carry out conversion and would involve conversion costs. RMB is currently not freely convertible. There is no assurance that RMB will not be subject to devaluation.
6. The effects of hedging will be reflected in the net asset values of the respective hedged classes. Expenses arising from hedging transactions will be borne by the relevant hedged classes. Hedged share class hedges the fund's base currency back to its currency of denomination on a best efforts basis. The volatility of the hedged classes measured in the fund's base currency may be higher than that of the equivalent class denominated in the fund's base currency.
7. The fund may invest in financial derivative instruments (FDI) for hedging purposes. In adverse situations, the fund's use of FDI may become ineffective in hedging and the fund may suffer significant losses. Risks associated with FDI include counterparty risk, credit risk and liquidity risk. Such exposure may lead to a high risk of capital loss.
You should not make any investment decision solely based on this document. Please read the relevant offering document carefully for further fund details including risk factors.
Capture investment opportunities in Asia by investing in high yielding Asian equities and bonds! The fund adopts an active investment strategy and a multi-asset approach to help investors seize the enormous opportunities in Asia's fast-growing economies.
Why invest in the Schroder Asian Asset Income Fund?
Yields on Asian assets remain attractive With persistently low interest rates across the globe, the Asian market provides plenty of investment opportunities which investors may enjoy attractive income streams. The region has also become an important market for many investors.The funds payouts mainly come from high income-generating Asian equities and Asian fixed income. The relevant asset class indices possess an average historical yield of 5.3% and 3.1% (in US dollar terms), respectively. The fund is a respectable investment choice for investors seeking out sustained income.
Great growth potential in Asias capital market The Asia Pacific region is host to a wide range of economies that enjoy more rapid growth compared to developed markets. In terms of valuations, Asian equities with high dividend yields remain attractive. In addition, yields of Asian bonds are higher than their counterparts in Europe and the US, bringing more attractive potential income to investors. Given continuous favourable factors, the growth potential of high dividend yield equities and bonds in Asia is worth investors attention.
Active asset allocation improves potential returns and manages risksThe funds active asset allocation strategy between Asian equities, Asian bonds, other asset classes and cash aims to capture investment opportunities in Asia in all market conditions. We look to increase exposure to equities and bonds to enhance potential returns as opportunities arise and hold cash to mitigate risks should markets reverse. The fund invests in a wide range of assets to earn returns for investors via active asset allocation in different economic cycles.
Historical yields of Asian bonds and equities(in US dollar terms)
Asia ex Japans economic growth is expected to remain strong
Year JPM Asia bond yield (%)
MSCI Asia (exc. Japan) stock dividend yield (%)
Source: Schroders, Bloomberg, as of 29/12/2017.
Source: Bloomberg, as of 29/03/2018.*Projected Data
US Europe Asia ex JP EMEA LatinAmerica
Bonds Other AssetClasses
2015 2016 2017 2018*
A wide range of asset classesprovide flexibility in asset allocation
The exact asset allocation may deviate from the range mentioned above without prior notice to investors. Please refer to the relevant offering documents for details.
Schroder Asian Asset Income Fund
Fund Features A Distribution unit class offers a monthly payout (Distribution
rate is not guaranteed, and payment of distributions could be paid out from capital)~
Capture Asia's strong growth potential through investment in Asian high dividend yielding equities and high yield bonds
Enjoy the capital growth potential of other assets Active asset allocation to manage risk
Top HoldingsEquityHK Electric Investments & HK ELyxor China Enterprise HSCEI UMapletree Greater China Commercial TrustThe Link REITAscendas Real Estate Investment
Fixed IncomeCNOOC Finance 2015 USA LLC 3.5% 05/05/2025Industrial And Commercial Bank Of China LimitedSingapore FRN 16/04/2021Tsinghua Unic Ltd 4.75% 31/01/2021CDB Leasing Company Limited 4.25% 02/12/2024Indian Oil Corporation Limited 5.75% 01/08/2023
Dividend Distribution Record~
A Dis - HKDA Dis - USDA Dis - AUD HedgedA Dis - RMB HedgedA Dis - GBP Hedged
Price on Record Date(30/05/2018)
Upcoming Distribution Record Date
Note: The distribution record date may subject to change.
Fund Objective To provide income and capital growth over the medium to longer term by investing primarily in Asian equities and Asian fixed income securities.
Unit NAV (Class A Acc) HKD 149.6155
Hi/Lo (past 12 mths, Class A Acc) HKD 156.0361/144.3954
Base Currency HKD
Fund Manager Multi-Asset Team
Launch Date 27/06/2011
Fund Size (Million) HKD 41,257.33
Initial Charge up to (Class A) 5%
Management Fee (Class A) 1.25% p.a.
Dealing Frequency Daily
Reference Benchmark 50% MSCI AC Asia Pacific ex Japan Index and 50% JP Morgan Asia Credit Index
Financial Year End 30/6
~ In respect of the distribution units, the manager will declare and pay monthly distributions. However, the distribution rate is not guaranteed. Distribution yield is not indicative of the return of the fund. Distributions may be paid from capital of the fund. Investors should note that where the payment of distributions are paid out of capital, this represents and amounts to a return or withdrawal of part of the amount you originally invested or capital gains attributable to that and may result in an immediate decrease in the value of units.
All fund information as at 31/05/2018. Source: Schroders. Fund performance based on Class A Accumulation; NAV-NAV in HKD with net income re-invested. The fund size quoted includes all classes of the fund.Investment involves risks. Past performance is not indicative of future performance. Please refer to the relevant offering documents for fund details including risk factors. This material, including the website, is issued by Schroder Investment Management (Hong Kong) Limited and has not been reviewed by the SFC.Management Company: Schroder Investment Management (Hong Kong) Limited, Level 33, Two Pacific Place, 88 Queensway, Hong KongSupervisory Authority: Securities and Futures Commission, 35/F, Cheung Kong Center, 2 Queen's Road Central, Hong Kong
Distribution Policy and Frequency
A Dis- HKDA Dis- USDA Dis- AUD HedgedA Dis- RMB HedgedA Dis- GBP HedgedA Acc- HKDA Acc- USDA Acc- GBP Hedged
SCAAHAD HKSCAAUAD HKSCAAIAA HKSCAAAHR HKSCAADHG HKSCAAHAA HKSCAAUAA HKSCAAAHG HK
Fund PerformanceCumulativePerformance (%)Fund