Schroder Asian Income SGD Class Power your way to higher yields * Distributions at a variable percentage per annum of the net asset value per unit of the Schroder Asian Income SGD Class (the Fund ) will be declared monthly. It is the current intention of Schroder Investment Management (Singapore) Ltd (the Manager ) to make distributions of 5-6% per annum of the net asset value per unit on a monthly basis for 2015. The distributions are not guaranteed and might be changed at the Manager s discretion in accordance with the Trust Deed. Ordinarily, they will be reviewed annually. In the event of the Fund s income and realised gains being less than the intended distribution, distributions will be made from capital, subject to trustee approval. Investors should be aware that the distributions may exceed the income and realised gains of the Fund at times and lead to a reduction of the amount originally invested, depending on the date of initial investment.
The Schroder Asian Income (the Fund ) offers you an exceptional investment opportunity. By tapping into Asia s growth through both high yield bonds and high dividend yielding equities, you can now potentially enjoy both yield as well as growth on your investment. Three Key Benefits 1 Reap attractive potential payouts of 5-6% p.a., paid monthly* 2 Capture the strong growth potential of Asia through both equities and bonds 3 Gain from an active asset allocation strategy which aims to maximise yield and total return * Distributions at a variable percentage per annum of the net asset value per unit of the Fund will be declared monthly. It is the current intention of the Manager to make distributions of 5-6% per annum of the net asset value per unit on a monthly basis for 2015. The distributions are not guaranteed and might be changed at the Manager s discretion in accordance with the Trust Deed. Ordinarily, they will be reviewed annually. In the event of the Fund s income and realised gains being less than the intended distribution, distributions will be made from capital, subject to trustee approval. Investors should be aware that the distributions may exceed the income and realised gains of the Fund at times and lead to a reduction of the amount originally invested, depending on the date of initial investment.
Reap potential payouts of 5-6% p.a. every month*... The Fund intends to make potential payouts of 5-6% per annum, paid on a monthly basis*. Intended monthly payout calendar for 2015 Month Record Date Month Record Date January 30 Jan 2015 July 31 Jul 2015 February 27 Feb 2015 August 31 Aug 2015 March 31 Mar 2015 September 30 Sep 2015 April 30 Apr 2015 October 30 Oct 2015 May 29 May 2015 November 30 Nov 2015 June 30 Jun 2015 December 31 Dec 2015 How is this achieved? The Fund invests in a portfolio of Asian high yield bonds and high dividend yielding equities. Payouts of 5-6% per annum, paid monthly* Current portfolio yield: 4.9% Asian high yield bonds portfolio yield 5.3% p.a. Asian equities portfolio yield 4.8% p.a. Source: Schroders, as at 31 Jan 2015. * Distributions at a variable percentage per annum of the net asset value per unit of the Fund will be declared monthly. It is the current intention of the Manager to make distributions of 5-6% per annum of the net asset value per unit on a monthly basis for 2015. The distributions are not guaranteed and might be changed at the Manager s discretion in accordance with the Trust Deed. Ordinarily, they will be reviewed annually. In the event of the Fund s income and realised gains being less than the intended distribution, distributions will be made from capital, subject to trustee approval. Investors should be aware that the distributions may exceed the income and realised gains of the Fund at times and lead to a reduction of the amount originally invested, depending on the date of initial investment.
and other power benefits Capture Asia s strong potential Asia s economies rank amongst the fastest-growing and most dynamic globally. This means that Asian high yield bonds enjoy better growth potential than other major bond sectors, while Asian high dividend yielding equities offer sustainable dividend payouts as well as favourable capital growth prospects. Flexibility to move into other asset classes The Fund can invest up to 15% into other asset classes, such as commodities and real estate securities. This gives the Fund additional means to take advantage of any market environment, such as periods of rising inflation. Flexibility to take advantage of different market cycles Allocation (%) 80 70 60 50 40 30 20 10 0 30 70% Equities 30 70% Source: Schroders, as at 31 Jan 2015. Other Permissable Investments 0 15% Cash 0 30% Bonds Other Asset Classes Cash Active asset allocation strategy The Fund is dynamically managed between Asian high yield bonds (30-70%), Asian high dividend yielding equities (30-70%), cash (0-30%) and other asset classes (0-15%). This strategy allows the Fund potential to add value during all phases of the economic cycle. Adjusts allocation according to phase of economic cycle to potentially deliver more consistent returns over the cycle Recovery Expansion Slowdown Recession Increase: Equities, High yield bonds Decrease: Cash, Commodities Increase: Equities, High yield bonds Decrease: Cash Increase: Equities, High yield bonds Decrease: Cash Increase: Cash, Commodities Decrease: Equities, High yield bonds 60% 39% Cash 1% 58% Cash 1% 36% 35% Other Asset Classes 5% 40% 45% Other Asset Classes 5% Cash 20% 50% Cash 5% Source: Schroders, as at 31 Jan 2015. For illustration purposes only. The Fund s actual investments may differ from the model portfolio. The Fund can invest up to 15% of its portfolio in other asset classes such as commodities and real estate securities.
Where the Fund Invests Overall Portfolio Allocation Overall Country Allocation Equities 47.2% Fixed Income 35.9% Japanese REITs 3.4% 10.1% Others Cash 3.5% Australia 12.6% China 15.3% 9.2% 6.5% Other Global Assets Indonesia India 5.6% Hong Kong 17.2% Thailand 5.0% Japan 3.7% 17.4% Others 7.6% Singapore Top 5 Equities Dividend Yield Portfolio Weight SK Telecom 0.4% 2.2% Fortune Real Estate Investment 4.8% 2.1% HKT Trust and HKT Limited 4.4% 2.0% Telstra Commercial Trust 6.2% 1.9% Mapletree Commercial Trust 5.5% 1.8% Top 5 Bonds Yield to Maturity Portfolio Weight MAS Bills 0.00% 21 Jul 2015 0.8% 1.5% Mas Bills 0.00% 03 Feb 2015 0.7% 1.4% India Government Bond 7.16% 20 May 2023 Indonesia (Government of) 8.3750% 15 March 2034 Perusahaan Listrik Negara 5.25% 24 Oct 2042 7.8% 1.1% 7.4% 0.7% 5.6% 0.7% Source: Schroders, as at 31 Jan 2015. This is not a recommendation to buy or sell the above securities.
Proven Track Record Cumulative performance of Schroder Asian Income SGD Class 24 Oct 2011 31 Jan 2015 Price Indexed 155 145 135 125 Total Return = +44.7% Annualised Return = +11.9% p.a. 115 Total Return = +30.8% 105 Annualised Return = +8.5% p.a. 95 Oct 11 Jul 12 May 13 Mar 14 Jan 15 Schroder Asian Income SGD Class Reference Benchmark Source: Morningstar, SGD, bid-to-bid, net dividends reinvested. On an offer-to-bid basis, the Fund s Total Return (TR) = +37.4%, Annualised Return (AR) = +10.2% p.a. Past performance is not an indicator of future performance. The Class was launched on 24 Oct 2011. Morningstar 2015. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Class Details Investment Objective Reference Benchmark The investment objective of the Schroder Asian Income is to provide income and capital growth over the medium to longer term by investing primarily in Asian equities and Asian fixed income securities. 50% MSCI AC Asia Pacific ex Japan and 50% JP Morgan Asia Credit Index (SGD hedged) Inception Date 24 October 2011 Fund Currency Launch Price Minimum Subscription Amount Subscription Method Payout Frequency Important Notes This document is prepared by Schroders for information and general circulation only and the opinions expressed are subject to change without notice. It does not constitute an offer or solicitation to deal in units of the Schroder Asian Income (the Fund ) and does not have any regard to specific investment objectives, financial situation or particular needs of any specific person who may receive it. Investors may wish to seek advice from a financial adviser before purchasing units of the Fund. In the event that he chooses not to seek advice from a financial adviser, he should consider carefully whether the Fund in question is suitable for him. Past performance of the Fund or the manager, and any economic and market trends or forecast, are not necessarily indicative of the future or likely performance of the Fund or the manager. The value of units in the Fund, and the income accruing to the units, if any, may fall as well as rise. Investment in units of the Fund involves risks, including the possible loss of the principal amount invested. Investors should read the prospectus, available from Schroder Investment Management (Singapore) Ltd or its distributors, before deciding to subscribe for or purchase units in the Fund. The Fund may use or invest in derivatives. SGD S$1.00 S$1,000 Cash and SRS Monthly Sales Charge Up to 5% Management Fee Dealing Frequency Fund Size as at 31 Jan 2015 1.25% p.a Daily S$1.3 billion Published: February 2015 Schroders Reg. No. 199201080H