Factsheet Singapore February 2018 All data as at 31 January 2018 unless otherwise stated Eastspring Investments Funds Monthly Income Plan FUND DETAILS Fund size (mil) 1,253.4 Fund base currency Fund dealing frequency SGD Daily Net asset value (Class M) SGD 0.928 ISIN (Class M) Inception date (Class M) SG9999002968 01-Feb-05 Benchmark (BM) 50% JP Morgan Asia Credit Index & 50% BofA Merrill Lynch US High Yield Constrained Index (SGD hedged) Underlying Fund Size Eastspring Investments - Asian Bond Fund USD 3,379.0 mil Eastspring Investments - US High Yield Bond Fund USD 1,872.3 mil FUND MEASURES 3 year tracking error (Class M) 1.6 3 year sharpe ratio (Class M) 0.7 3 year volatility (Class M) 4.8 Source: Morningstar FUND ALLOCATION (%) Eastspring Investments - US High Yield Bond Eastspring Investments - Asian Bond 47.3 38.2 Equities 10.0 Cash and Other Net Assets 4.5 SECTOR WEIGHTS (%) Industrials 45.1 Financials 26.5 Government 5.2 Energy 4.9 Utilities 3.3 Telecom 2.9 Materials 1.9 Consumer discretionary 1.3 Consumer staples 0.4 Cash and others 8.5 COUNTRY WEIGHTS (%) United States 39.0 China 17.1 Singapore 10.9 Indonesia 4.8 India 3.3 Hong Kong 3.3 Korea 2.7 Canada 2.0 Philippines 1.9 Cash and others 15.0 INVESTMENT OBJECTIVE The investment objective of the Eastspring Investments Funds - Monthly Income Plan is to seek to provide investors with regular income and capital growth by investing: (i) 30% to 70% of its assets into the Luxembourg domiciled Eastspring Investments - US High Yield Bond Fund; and (ii) 30% to 70% of its assets into the Luxembourg domiciled Eastspring Investments - Asian Bond Fund. The Fund may in addition, at the Manager s absolute discretion, invest up to 20% of its assets in any other Asia Pacific investments (including real estate investment trusts, dividend yielding equities and any other subfunds of the Eastspring Investments, subject to the prior approval of the Authority where necessary). PERFORMANCE Calendar year returns (%) (Class M) 15 10 5 0-5 -10 2013 2014 2015 2016 2017 Offer-bid Bid-bid Benchmark Returns (%) Class M 1 m 3 m YTD 1 y 3 y 5 y 10 y Since inception Offer-bid -4.7-4.5-4.7 0.4 2.4 2.3 4.2 4.5 Bid-bid 0.3 0.5 0.3 5.6 4.1 3.3 4.8 4.9 Benchmark 0.0 0.0 0.0 5.1 5.5 5.1 3.7 3.0 : per annum. Source: Eastspring Investments (Singapore) Limited. Returns are based in SGD 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. From inception to 31-May-12, the benchmark was the 12 month SGD Fixed Deposit Rate. Calendar year returns are based on the relevant class performance for the year, and if the relevant class was incepted during a particular year, the returns shown relate to the performance of that class since its inception to the end of that calendar year. TOP 10 HOLDINGS (%) 1. BNYMELLON USD LIQUIDITY FUND 1.2 2. DBS GROUP HOLDINGS LTD 1.0 3. UNITED OVERSEAS BANK 0.9 4. OVERSEA-CHINESE BANKING 0.9 5. SINGAPORE TELECOMMUNICATIONS 0.8 6. HCA INC 5.375% 01/02/2025 0.6 7. CAPITALAND RETAIL CHINA TRUST 0.4 8. MAPLETREE COMMERCIAL UNITS 0.4 9. FRASERS CENTREPOINT 0.4 10. PARKWAY LIFE REAL ESTATE INVESTMENT TRUST UNITS 0.4 Page 1 / 5
RATINGS (%) AA 1.4 A 10.3 BBB 16.8 BB 22.5 B 19.5 CCC 4.9 CC 0.2 Cash and others 24.4 Credit ratings of securities held by Underlying Funds are by S&P/Moody's/Fitch. MATURITY (%) 0-1 year 0.9 1-3 years 9.6 3-5 years 16.8 5-10 years 43.7 10+ years 10.0 Cash and others 19.0 RELEVANT CLASS DETAILS Class Currency Net asset value Bloomberg ticker ISIN Inception date Subscription method Initial sales charges% (max) Annual management fee % (Current) A SGD 0.982 PRUSMON SP SG9999002851 01-Feb-05 Cash, SRS 5.000 1.250 IA SGD 1.033 ESMIPIA SP SG9999016455 25-May-17 Cash 5.000 0.625 M SGD 0.928 PRUSMOM SP SG9999002968 01-Feb-05 Cash, SRS 5.000 1.250 M (RMB hedged) CNH 10.678 PMIPRMB SP SG9999010763 02-Sep-13 Cash 5.000 1.250 Class Currency Annual admin fee% (max) Minimum initial investment Minimum subsequent investment Distribution frequency Ex-date Dividend per unit A SGD Nil SGD 1,000 SGD 100 Yearly 01-Feb-18 0.0500000 IA SGD Nil SGD 10 Mil SGD 1,000 Yearly 01-Feb-18 0.0500000 M SGD Nil SGD 1,000 SGD 100 Monthly 01-Feb-18 0.0060000 M (RMB hedged) CNH Nil CNH 10,000 CNH 500 Monthly 01-Feb-18 0.0600000 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 unit. "N.A." means that the relevant class does not distribute dividends. Returns (%) Calendar year returns (%) Since 3 y 5 y 10 y Class / currency 1 m 3 m YTD 1 y inception 2017 2016 2015 2014 2013 A / SGD Offer-bid -4.7-4.5-4.7 0.3 2.4 2.2 4.2 4.5 1.3 5.9-9.5-2.4-3.5 Bid-bid 0.3 0.5 0.3 5.6 4.1 3.3 4.8 4.9 6.7 11.5-4.7 2.7 1.6 Benchmark 0.0 0.0 0.0 5.1 5.5 5.1 3.7 3.0 6.2 11.7 0.0 5.4 2.8 IA / SGD Offer-bid 0.4 0.7 0.4 3.3 2.9 Bid-bid 0.4 0.7 0.4 3.3 2.9 Benchmark 0.0 0.0 0.0 2.2 2.2 M / SGD Offer-bid -4.7-4.5-4.7 0.4 2.4 2.3 4.2 4.5 1.3 5.9-9.4-2.4-3.5 Bid-bid 0.3 0.5 0.3 5.6 4.1 3.3 4.8 4.9 6.7 11.4-4.6 2.7 1.6 Benchmark 0.0 0.0 0.0 5.1 5.5 5.1 3.7 3.0 6.2 11.7 0.0 5.4 2.8 M (RMB hedged) / CNH Offer-bid -4.5-4.0-4.5 2.6 4.7 5.2 4.5 7.6-7.6-0.7-1.4 Bid-bid 0.5 1.1 0.5 8.0 6.5 6.5 10.0 13.2-2.8 4.5 3.8 Benchmark 0.1 0.5 0.1 8.9 9.0 8.5 11.2 14.6 2.1 5.2 4.6 Factsheet Singapore February 2018 All data as at 31 January 2018 unless otherwise stated Page 2 / 5
: per annum. Source: Eastspring Investments (Singapore) Limited. Returns are based in the relevant 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 classes, if any, is also calculated on a hedged basis. From inception to 31-May-12, the benchmark was the 12 month SGD Fixed Deposit Rate. Calendar year returns are based on the relevant class performance for the year, and if the relevant class was incepted during a particular year, the returns shown relate to the performance of that class since its inception to the end of that calendar year. Factsheet Singapore February 2018 All data as at 31 January 2018 unless otherwise stated Page 3 / 5
COMMENTARY Commentary sources 1.Eastspring Investments (Singapore) Limited Market Review Global equities marked a good start to the year, extending the rally from 2017 as investors remained bullish over steady economic recovery and improved corporate earnings. US stocks also initially benefited from continued momentum surrounding the passing of tax reform at the end of 2017. However, stronger wage growth prompted investors to reconsider the prospect of inflation and more aggressive rate hikes by the Fed, leading to the paring of gains towards the end of the month as US bond yields climbed to multi-year highs. European stocks rose, led by cyclical sectors amid positive economic growth figures for the region. Progress towards a coalition deal in Germany further buoyed sentiment. Asian and emerging markets rallied, in part supported by US dollar weakness. China performed strongly, with the technology sector and financials leading gains. A rising oil price also benefited several emerging markets, notably Russia and Latin America. Returns from fixed income assets were mildly negative overall for the month, with the prospect of higher inflation weighing on markets. This was particularly the case for long duration US Treasuries with the asset class, having outperformed significantly the previous month on subdued inflation expectations, the worst performing fixed income sector in January. The higher growth and inflation expectations amid widespread positive macroeconomic data were beneficial for US High Yield, as was its lower sensitivity to rate rises, with the asset class the best performing major fixed income asset class for the month. Positive sentiment around the energy sector continued to lend further support to the asset class, amid an environment of rising oil prices during January. Fund Review The Fund outperformed the benchmark in January, with the Fund s off-benchmark exposure to Singapore high dividend equity adding most value. Performance was further supported by positive stock selection within the Asian USD Bond portfolio, as well as the Fund s underweight exposure to the asset class in a month when it underperformed relative to US High Yield Bonds. Outlook Our central scenario remains one of benign inflation, combined with moderate economic and earnings growth. Central banks reluctance to take away the punch bowl, should prevent them from hiking aggressively, so long as wage inflation remains muted. Global valuations are supported by strong earnings. Whilst on traditional valuation measures US equities look expensive, this has not always historically been a precursor to negative stock returns. We have considered the risk events that could cause a regime shift and derail our Goldilocks scenario. These include the Fed tightening more aggressively than the market currently expects, a China led slowdown, and a sudden spike in wage inflation due to labour market tightness. The manager continues to prefer Singapore high dividend equity over the medium term due to the high dividend yields, diversification from USD interest rate risk, as well as the potential capital upside. We have taken medium-term positions in good quality companies, with sustainable dividends, and business models, which still offer attractive valuation and yields. Factsheet Singapore February 2018 All data as at 31 January 2018 unless otherwise stated Page 4 / 5
IMPORTANT INFORMATION Investment manager - Eastspring Investments (Singapore) Limited Investment sub-manager - PPM America, Inc. Disclaimer This document is solely for information and may not be published, circulated, reproduced or distributed in whole or part to any other person without the prior written consent of Eastspring Investments (Singapore) Limited ( Eastspring Singapore ) (Company Reg No. 199407631H). This document is not an offer, solicitation of an offer, or a recommendation to transact in the investment units in the Fund. The information contained herein does not have any regards to the specific investment objectives, financial situation or particular needs of any person. A prospectus in relation to the Fund is available and a copy of the prospectus may be obtained from Eastspring Singapore and its distribution partners. Investors should read the prospectus and seek professional advice before making any investment decision. In the event that investor chooses not to seek advice, he should consider carefully whether the Fund in question is suitable for him. The value of units in the Fund and the income accruing to the units, if any, may fall or rise. Past performance of the Fund/Manager is not necessarily indicative of the future performance. Any prediction, projection or forecast on the economy, securities markets or the economic trends of the markets targeted by the Fund is not necessarily indicative of the future performance of the Fund. An investment in the Fund is subject to investment risks, including the possible loss of the principal amount invested. Whilst Eastspring Singapore has taken all reasonable care to ensure that the information contained in this document is not untrue or misleading at the time of publication, Eastspring Singapore cannot guarantee its accuracy or completeness. Any opinion or estimate contained in this document is subject to change without notice. The Fund/ underlying Fund(s) 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 Manager, Eastspring Singapore, and can be made out of (a) income; or (b) net capital gains; or (c) capital of the Fund or a combination 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 unit. The preceding paragraph is only applicable if the Fund intends to pay dividends / distributions. Eastspring Singapore is an ultimately wholly-owned subsidiary of Prudential plc of the United Kingdom. Eastspring Singapore 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. Notes: The name of the Fund Eastspring Investments Funds - Monthly Income Plan should not be taken as implying that monthly or regular distributions in respect of units will be made. 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 February 2018 All data as at 31 January 2018 unless otherwise stated Page 5 / 5