Factsheet Singapore October 2018 All data as at 30 September 2018 unless otherwise stated Eastspring Investments Asian Low Volatility Equity Fund FUND DETAILS Fund size (mil) 307.3 Fund base currency Fund dealing frequency USD Daily Net asset value (Class A) USD 11.926 ISIN (Class A) Inception date (Class A) LU1522347837 23-Nov-16 Benchmark (BM) MSCI AC Asia Pacific ex Japan Minimum Volatility Index^ ^The MSCI Index is calculated with dividends reinvested. FUND MEASURES Number of Securities 133 3 year tracking error(%) (Class A) 3 year sharpe ratio (Class A) 3 year volatility(%) (Class A) Source: Morningstar SECTOR WEIGHTS (%) Financials 24.2 Communication Services 16.9 Utilities 12.5 Information technology 11.8 Industrials 11.1 Consumer staples 8.9 Energy 3.6 Consumer discretionary 3.1 Other sectors 6.6 Cash and cash equivalents 1.3 Due to rounding, the allocation table may not add up to 100% or may be negative. COUNTRY WEIGHTS (%) China 18.7 Hong Kong 17.8 Australia 13.9 Thailand 11.7 Taiwan (Republic of China) 10.9 Malaysia 8.9 Singapore 6.1 Korea 4.6 Other countries 6.1 Cash and cash equivalents 1.3 INVESTMENT OBJECTIVE This Sub-Fund aims to generate total returns in line with Asia Pacific ex Japan equity markets, via a combination of capital growth and income, but with lower volatility. The Sub-Fund will invest primarily in equities and equity-related securities of companies, which are incorporated, listed in or have their area of primary activity in the Asia Pacific ex-japan Region. 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) 40 35 30 25 20 15 10 5 0-5 -10 2013 2014 2015 2016 2017 Offer-bid Bid-bid Benchmark Returns (%) Class A 1 m 3 m YTD 1 y 3 y 5 y 10 y inception Offer-bid -4.8-1.8-6.3-2.6 7.0 Bid-bid 0.2 3.4-1.4 2.5 10.0 Benchmark 0.0 2.3 2.0 10.1 19.5 : per annum. Source: Eastspring Investments (Singapore) Limited. 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. For full details, please refer to the performance disclosure. TOP 10 HOLDINGS (%) 1. CHUNGHWA TELECOM CO. LTD. 3.0 2. CLP HOLDINGS LTD 3.0 3. ADVANCED INFO SERVICE PCL F 3.0 4. PUBLIC BANK 2.9 5. INFOSYS ADR 2.9 6. WESFARMERS LTD 2.9 7. TENAGA NASIONAL BHD 2.8 8. WOOLWORTHS GROUP LTD 2.6 9. MTR CORP LTD 2.4 10. BANK OF COMMUNICATIONS LTD H 2.3 Due to rounding, the allocation table may not add up to 100% or may be negative. Page 1 / 5
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 11.926 ESALVAU LX LU1522347837 23-Nov-16 Cash 5.000 1.500 A DM USD 10.384 ESAADMU LX LU1497733557 07-Oct-16 Cash 5.000 1.500 SGD 10.541 ESALASS LX LU1634259391 30-Jun-17 Cash, SRS 5.000 1.500 SGD 10.480 ESALASH LX LU1634259557 30-Jun-17 Cash, SRS 5.000 1.500 SGD 10.364 ESAASDM LX LU1497733631 07-Oct-16 Cash 5.000 1.500 SGD 10.216 ESAASDH LX LU1497734951 07-Oct-16 Cash 5.000 1.500 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 0.500 USD1,000 USD100 N.A. N.A. N.A. N.A. A DM USD 0.500 USD1,000 USD100 Monthly 01-Oct-18 0.0317620 4.00 SGD 0.500 SGD1,000 SGD100 N.A. N.A. N.A. N.A. SGD 0.500 SGD1,000 SGD100 N.A. N.A. N.A. N.A. SGD 0.500 SGD1,000 SGD100 Monthly 01-Oct-18 0.0317935 4.00 SGD 0.500 SGD1,000 SGD100 Monthly 01-Oct-18 0.0312802 4.00 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 (%) 3 y 5 y 10 y Share class Currency 1 m 3 m YTD 1 y inception 2017 2016 2015 2014 2013 A Offer-bid USD -4.8-1.8-6.3-2.6 7.0 16.8-6.6 Bid-bid USD 0.2 3.4-1.4 2.5 10.0 23.0-1.7 Benchmark USD 0.0 2.3 2.0 10.1 19.5 37.0-0.6 A DM Offer-bid USD -4.8-1.8-6.3-2.6 3.1 16.8-12.5 Bid-bid USD 0.2 3.4-1.4 2.5 5.8 22.9-7.9 Benchmark USD 0.0 2.3 2.0 10.1 15.0 37.0-5.8 Offer-bid SGD -5.1-1.5-4.1-2.0 0.1-0.8 Bid-bid SGD -0.1 3.7 0.9 3.2 4.3 4.4 Benchmark SGD -0.3 2.5 4.3 10.8 12.5 11.0 Offer-bid SGD -4.9-2.1-7.1-3.7-0.4 1.9 Bid-bid SGD 0.1 3.1-2.3 1.4 3.8 7.2 Benchmark SGD -0.1 2.1 1.4 9.3 12.3 14.0 Offer-bid SGD -5.1-1.5-4.1-2.0 2.9 8.1-7.9 Factsheet Singapore October 2018 All data as at 30 September 2018 unless otherwise stated Page 2 / 5
Returns (%) Calendar year returns (%) 3 y 5 y 10 y Share class Currency 1 m 3 m YTD 1 y inception 2017 2016 2015 2014 2013 Bid-bid SGD -0.1 3.6 0.9 3.2 5.6 13.8-3.0 Benchmark SGD -0.3 2.5 4.3 10.8 14.7 26.7-0.8 Offer-bid SGD -4.9-2.1-7.2-3.7 2.2 16.2-12.6 Bid-bid SGD 0.1 3.1-2.3 1.4 4.9 22.3-8.1 Benchmark SGD -0.1 2.1 1.4 9.3 14.1 36.2-5.9 Performance Disclosure: : 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. 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. From inception to 31-Jan-18, the benchmark was the MSCI AC Asia Pacific ex Japan Index. 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. Wef July 2018, the monthly fund and benchmark returns calculated are aligned to the last NAV date of the fund for the month. Past performance information presented is not indicative of future performance. Factsheet Singapore October 2018 All data as at 30 September 2018 unless otherwise stated Page 3 / 5
COMMENTARY Commentary sources 1.Eastspring Investments (Singapore) Limited Market Review Asian equities ended lower in September, with the MSCI AC Asia Pacific ex Japan index falling by 1.4%. Among major markets, Chinese equities fell as tariff worries added to softer growth concerns. However, losses were capped by a strong rally in the second half after Beijing promised to stimulate domestic consumption to partially offset the negative effects of US tariffs. Indian stocks fell as Financials, especially Non-Banking Financial Companies (NBFCs), came under pressure on contagion fears after lender IL&FS defaulted on its debt payments. Rising rates and tighter domestic liquidity caused by advance-tax payments added further pressure on NBFCs. Higher oil prices and a widening trade deficit also weighed on the market. In South-east Asia, Thailand was among the best-performing markets after the government approved key laws that now point to an election in the first half of 2019. Singapore also gained as the local dollar turned higher but the other ASEAN markets were weak. Indonesia s top share index fell as the central bank hiked rates by 0.25% to curb the decline in the rupiah, while the Philippines lagged amid lingering worries over inflation and as investors assessed damages from Typhoon Mangkhut. Fund Review In September, the Fund outperformed its benchmark, the MSCI AC Asia Pacific ex Japan Minimum Volatility index, and the broad market, the MSCI AC Asia Pacific ex Japan index. The overall contribution from Style factors was negative over the month, weighed by the Fund s underexposure to Size and relatively higher exposure to Liquidity. Against this, the underweight positions in Volatility and Growth pared relative losses, as these factors were weaker. Country and Industry factors were also positive over the month. The former was helped by the overweight position in Thailand, which was one of the strongest performing markets in September, while the latter was due to the overweight positions in Telecommunication Services and Energy, which both performed strongly over the month. On a one-year basis, Style factors contributed to relative performance, while Industry and Country factors detracted. Among Style factors, the underexposure to Volatility remained the biggest contributor to relative performance, while the relatively higher exposure to Value also helped. Among Industry factors, the Fund s underweight position in Software and Services as well as the overweight position in Telecommunication Services were among the biggest detractors. Among Country factors, the overweight exposure in Hong Kong and underweight exposure in Korea were the key detractors. Outlook Asia Pacific ex Japan equities continue to trade at valuations below their long-term averages. These levels have historically been an attractive entry point for investors. For over a year, we have been highlighting the improvement in cyclical and earnings momentum globally amid a backdrop of continued monetary accommodation which has supported Equities outperformance. Asia Pacific ex Japan equities remain attractively valued compared to global and other regional markets. We remain cognisant of the impact of the US Federal Reserve s balance sheet reduction program, which raises monetary policy uncertainty. We continue to focus on dividend-paying stocks in the Asia Pacific ex Japan region and construct a portfolio targeting lower volatility and drawdown, which could provide protection against choppy markets. We also consider Valuation as an input for the process to avoid investing in overvalued stocks. Returns should be dependent on the regional equity market return to a large extent, although at reduced levels of volatility. Factsheet Singapore October 2018 All data as at 30 September 2018 unless otherwise stated Page 4 / 5
IMPORTANT INFORMATION Investment manager - Eastspring Investments (Singapore) Limited Disclaimer This document is issued by Eastspring Investments (Singapore) Limited (UEN: 199407631H). 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: 199407631H 10 Marina Boulevard #32-01 Marina Bay Financial Centre Tower 2 Singapore 018983 T: (65) 6349 9711 F: (65) 6509 5382 eastspring.com.sg Factsheet Singapore October 2018 All data as at 30 September 2018 unless otherwise stated Page 5 / 5