Eastspring Investments India Equity Fund

Transcription

1 Factsheet Singapore March 2018 All data as at 28 February 2018 unless otherwise stated Eastspring Investments India Equity Fund RATINGS Class A Morningstar Overall Rating QQQ FUND DETAILS Fund size (mil) Fund base currency Fund dealing frequency USD Daily Net asset value (Class A) USD ISIN (Class A) Inception date (Class A) Benchmark (BM) MSCI India Index FUND MEASURES LU Jul-07 Number of Securities 48 3 year tracking error (Class A) year sharpe ratio (Class A) year volatility (Class A) 16.9 Source: Morningstar SECTOR WEIGHTS (%) Financials 26.2 Information technology 17.5 Energy 13.1 Materials 10.1 Consumer discretionary 8.5 Consumer staples 7.2 Industrials 6.5 Utilities 4.7 Health care 3.9 Cash and others 2.3 INVESTMENT OBJECTIVE This Sub-Fund aims to maximize long-term total return by investing primarily in equity and equity-related securities of companies, which are incorporated, listed in or have their area of primary activity, in India. The Sub-Fund may also invest in depository receipts including ADRs and GDRs, debt securities convertible into common shares, preference shares, and warrants. PERFORMANCE Calendar year returns (%) (Class A) Offer-bid Bid-bid Benchmark Returns (%) Class A 1 m 3 m YTD 1 y 3 y 5 y 10 y Since inception Offer-bid Bid-bid Benchmark : per annum. Source: Eastspring Investments (Singapore) Limited. Returns are based in USD and computed on bid-bid basis with net income reinvested, if any. Offer-bid is inclusive of sales charge which is subject to changes. Since inception returns for periods less than a year are not annualised. Calendar year returns are based on the share class performance for the year, and if the share class was incepted during a particular year, the returns shown relate to the performance of the share class since its inception to the end of that calendar year. TOP 10 HOLDINGS (%) 1. INFOSYS LTD HOUSING DEVELOPMENT FINANCE CORP RELIANCE INDUSTRIES TATA CONSULTANCY SERVICES LARSEN AND TOUBRO AXIS BANK ITC GAIL INDIA COAL INDIA CIPLA 2.7 Page 1 / 5

2 SHARE CLASS DETAILS Share class Currency Net asset value Bloomberg ticker ISIN Inception date Subscription method Initial sales charges% (max) Annual management fee % (Current) A USD IOFIEAA LX LU Jul-07 Cash A S SGD ESINEAS LX LU Dec-12 Cash, SRS Share class Currency Annual admin fee% (max) Minimum initial investment Minimum subsequent investment Distribution frequency Ex-date Dividend per share Annual dividend yield % A USD USD1,000 USD100 N.A. N.A. N.A. N.A. A S SGD SGD1,000 SGD100 N.A. N.A. N.A. N.A. Distributions are not guaranteed. Distributions may be paid out of distributable income, capital or both. Important Notes: (i) Payment of distributions out of capital amounts to a return or withdrawal of part of an investor s original investment or from any capital gains attributable to that original investment; and (ii) Any distributions involving payment out of the Fund s capital may result in an immediate reduction of the net asset value per share. Funds with Monthly and Quarterly Distribution Frequency: Annual Dividend Yield = (Dividend amount / Reference NAV) x (No. of calendar days in a year / No. of calendar days in distribution period) x 100%. Funds with Yearly Distribution Frequency: Annual Dividend Yield = (Dividend amount / Total Net Assets) x (No. of calendar days in a year / No. of calendar days in distribution period) x 100%. "N.A." means that this share class does not distribute dividends. Returns (%) Calendar year returns (%) Since 3 y 5 y 10 y Share class Currency 1 m 3 m YTD 1 y inception A Offer-bid USD Bid-bid USD Benchmark USD A S Offer-bid SGD Bid-bid SGD Benchmark SGD : per annum. Source: Eastspring Investments (Singapore) Limited. Returns are based in share class currency and computed on bid-bid basis with net income reinvested, if any. Offer-bid is inclusive of sales charge which is subject to changes. Since inception returns for periods less than a year are not annualised. The benchmark for the hedged share classes, if any, is also calculated on a hedged basis. Calendar year returns are based on the share class performance for the year, and if the share class was incepted during a particular year, the returns shown relate to the performance of the share class since its inception to the end of that calendar year. Factsheet Singapore March 2018 All data as at 28 February 2018 unless otherwise stated Page 2 / 5

3 COMMENTARY Commentary sources 1.Eastspring Investments (Singapore) Limited Performance Review The Global equity markets endured a turbulent month as the selling momentum which began at the end of January on the back of inflation fears accelerated early February. Markets staged recovery in the later part of the month to be back above where they started the year but almost all markets ended lower month-on-month in February with Developed and Emerging markets performing more or less in line with one another. The MSCI India total return index dropped 6.7% in USD terms; all sectors ended lower in an eventful month which started with unveiling the last full-year Union Budget of the current administration. Next General Elections in India are due by May In a measure to support growth and propel spending, the government relaxed their fiscal deficit target, pushing it down another year. In the bid to further rationalize taxation and boost receipts, India reintroduced a 10% long term capital gains tax on listed equities; long term being a year. Tax on gains on equities held for under a year remained unchanged at 15%. Sentiment dampened further after one of the biggest frauds in Indian banking history broke out. India s second-largest state owned bank, Punjab National Bank, uncovered an INR114bn (c.usd1.75bn) fraud at one of its flagship braches in Mumbai. As investigations deepen, the total quantum is expected to cross USD 2bn. Positive news came early March in the form of India s Oct-Dec 2017 GDP growth which paced to 7.2% year-on-year, beating expectations. The attributes of growth surprised more as investments growth led while private consumption growth decelerated. Investments growth jumped to double digits 13% year-on-year from 8.9% last quarter. The superior quality of growth lays the foundation for sustainability of growth over medium term. Key Contributors Not having exposure to Vakrangee, off-benchmark exposure to Mindtree and overweight exposure to Coal India aided relative performance in February. Coal India s stock price was firm in a weak market, owing to strong financial performance in the previous quarter. The company showed improvement on various key parameters such as sales volume, price realization and employee cost. Mindtree s stock price bucked the trend continuing its trajectory on the back of improving industry and business outlook. Not owning Vakrangee aided performance as the company s stock price less than halved over the month on reports that the regulator may be investigating into stock price manipulation after it almost tripled during January January 2017 period. Key Detractors The Fund s off-benchmark exposure to Bank of Baroda, not having exposure to JSW Steel and underweight in Reliance Industries detracted from relative performance in February. Sentiment towards the state-owned banks soured after the fraud broke out. Market was quick to extrapolate the weak compliance and systems that led to the fraud to all state-owned banks. Shares in Bank of Baroda also suffered, albeit to a less extent. Large steel players in India including JSW Steel are a beneficiary of improving outlook of the Indian steel sector amid consolidation. As a resolution for stressed assets for banks, 18% of the total Indian steel production is set to change hands, consolidating the industry further, hence improving the stability in profits. The Fund prefers Tata Steel which recently completed a successful rights issue to partly fund acquisition of the stressed steel assets in India. Reliance Industries stock price fell less than the broad market thus hurting relative performance. The heavyweight has been oscillating in a narrow price range the past few months. Fund Activity Among the key trades, the Fund increased stakes in State Bank of India, Tata Steel Ltd and Mahindra & Mahindra ltd. These were funded by reducing stakes in Bharat Petroleum Corp Ltd and Bharti Airtel, and pruning Coal India and Infosys on recent relative strength. Outlook The portfolio manager remains positive about India s long-term outlook. India s economic recovery appears to be on a strong footing to achieve its potential real GDP growth aided by lower interest rates, strong reforms momentum, and a thrust on investments. A stimulus through investments and not subsidies should yield a better quality and sustainable growth in the long term. India s corporate earnings are expected to recover gradually, aided by higher demand, lower interest rates, and a favourable investment cycle. Valuations are fair in light of an impending recovery in earnings. Factsheet Singapore March 2018 All data as at 28 February 2018 unless otherwise stated Page 3 / 5

4 COMMENTARY The Fund is positioned to benefit from a pickup in domestic economic activity. The portfolio manager maintains exposure to companies with strong cash flows, which are levered to perform better during a phase of growth recovery. Factsheet Singapore March 2018 All data as at 28 February 2018 unless otherwise stated Page 4 / 5

5 IMPORTANT INFORMATION Investment manager - Eastspring Investments (Singapore) Limited Rating should not be taken as a recommendation Morningstar. All rights reserved. Morningstar Category: India Equity Disclaimer This document is issued by Eastspring Investments (Singapore) Limited (UEN: H). Eastspring Investments (Singapore) Limited is the appointed Singapore Representative and agent for service of process in Singapore. This document has not been reviewed by the Monetary Authority of Singapore. The Fund is a sub-fund of Eastspring Investments, an open-ended investment company with variable capital (Société d Investissement à Capital Variable or SICAV) registered in the Grand Duchy of Luxembourg, which qualifies as an Undertaking for Collective in Transferable Securities ( UCITS ) under relevant EU legislation. The Management Company of the SICAV is Eastspring Investments (Luxembourg) S.A., Grand-Duchy of Luxembourg. All transactions into the Fund should be based on the Singapore Prospectus and Product Highlights Sheet ( PHS ). Such documents, together with the articles of incorporation of the SICAV and the most recent financial reports, may be obtained free of charge from Eastspring Investments (Luxembourg) S.A., or at relevant Eastspring Investments business units/website and their distribution partners. This document is solely for information and does not have any regard to the specific investment objectives, financial or tax situation and the particular needs of any specific person who may receive this document. This document is not intended as an offer, a solicitation of offer or a recommendation, to deal in shares of securities or any financial instruments. Please refer to the offering documents for details on fees and charges, dealing and redemption, product features, risk factors and seek professional advice before making any investment decision. An investment in the Fund is subject to investment risks, including the possible loss of the principal amount invested. The value of shares in the Fund and the income accruing to the shares, if any, may fall or rise. Where an investment is denominated in a currency other than the base currency of the Fund, exchange rates may have an adverse effect on the value price or income of that investment. Investors should not make any investment decision solely based on this document. Investors may wish to seek advice from a financial adviser before purchasing shares of the Fund. In the event that an investor may choose not to seek advice from a financial adviser, the latter should consider carefully whether the Fund in question is suitable for him. Past performance and the predictions, projections, or forecasts on the economy, securities markets or the economic trends of the markets are not necessarily indicative of the future or likely performance of Eastspring Investments or any of the funds managed by Eastspring Investments. There are limitations to the use of indices as proxies for the past performance in the respective asset classes/sector. The Fund may use derivative instruments for efficient portfolio management and hedging purposes. Distributions are not guaranteed and may fluctuate. Past distributions are not necessarily indicative of future trends, which may be lower. Distribution payouts and its frequency are determined by the Board of Directors, and can be made out of (a) income; or (b) net capital gains; or (c) capital of the Fund or a combination of any of (a) and/or (b) and/or (c). The payment of distributions should not be confused with the Fund s performance, rate of return or yield. Any payment of distributions by the Fund may result in an immediate decrease in the net asset value per share. The preceding paragraph is only applicable if the Fund intends to pay dividends / distributions. Eastspring Investments companies (excluding JV companies) are ultimately whollyowned / indirect subsidiaries / associate of Prudential plc of the United Kingdom. Eastspring Investments companies (including JV's) and Prudential plc are not affiliated in any manner with Prudential Financial, Inc., a company whose principal place of business is in the United States of America. In case of discrepancy between the English and Chinese versions, the English version shall prevail. For more information, please contact: Eastspring Investments (Singapore) Limited UEN: H 10 Marina Boulevard #32-01 Marina Bay Financial Centre Tower 2 Singapore T: (65) F: (65) Notes: Investors should note that the net asset value of this Fund is likely to have a higher volatility due to its concentration of investment in a single/and or limited number of countries. eastspring.com.sg Factsheet Singapore March 2018 All data as at 28 February 2018 unless otherwise stated Page 5 / 5