Factsheet Singapore April 2018 All data as at 31 March 2018 unless otherwise stated Eastspring Investments Asian Equity Income Fund FUND DETAILS Fund size (mil) 725.9 Fund base currency Fund dealing frequency USD Daily Net asset value (Class A) USD 14.105 ISIN (Class A) Inception date (Class A) LU0315178854 05-Sep-07 Benchmark (BM) MSCI AC Asia Pacific ex Japan Index FUND MEASURES Number of Securities 67 3 year tracking error (Class A) 2.8 3 year sharpe ratio (Class A) 0.3 3 year volatility (Class A) 15.8 Source: Morningstar SECTOR WEIGHTS (%) Financials 29.8 Information technology 24.5 Industrials 11.3 Real estate 8.3 Telecommunication services 6.6 Energy 5.4 Consumer discretionary 3.7 Materials 3.5 Utilities 2.4 Cash and others 4.5 COUNTRY WEIGHTS (%) China 36.8 Taiwan 16.0 Australia 12.9 Korea 11.4 Hong Kong 7.6 Singapore 7.3 Indonesia 2.8 India 2.8 Cash and others 2.4 INVESTMENT OBJECTIVE This Sub-Fund aims to maximize income by investing primarily in equity and equityrelated 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 -10-15 -20 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 Since inception Offer-bid -7.5-5.9-5.9 5.5 2.5 2.6 3.1 2.7 Bid-bid -2.6-0.9-0.9 11.0 4.3 3.7 3.8 3.3 Benchmark -2.2-0.6-0.6 20.7 8.0 6.6 5.3 4.6 : 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. TENCENT HOLDINGS 5.5 2. CHINA CONSTRUCTION BANK-H 4.2 3. BANK OF CHINA LTD-H 3.8 4. TAIWAN SEMICONDUCTOR MANUFACTURING 3.8 5. SAMSUNG ELECTRONICS NON VOTING PREF SHS 2.9 6. IND & COMM BK OF CHINA-H 2.5 7. AUSTRALIA AND NEW ZEALAND BANKING GROUP 2.5 8. SAMSUNG ELECTRONICS 2.3 9. CHINA MOBILE 2.2 10. SINGAPORE TECHNOLOGIES ENGINEERING 2.0 Page 1 / 6
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 14.105 IOFAEIA LX LU0315178854 05-Sep-07 Cash 5.000 1.500 A ADM AUD 10.662 ESAEADQ LX LU0795476463 18-Jun-12 Cash 5.000 1.500 A DM USD 9.722 IOAADQU LX LU0588545730 07-Feb-11 Cash 5.000 1.500 A S SGD 13.486 IOAEASS LX LU0588545490 07-Feb-11 Cash, SRS 5.000 1.500 A S SGD 11.787 ESAEASH LX LU0865486749 02-Jan-13 Cash, SRS, CPFIS-OA# 5.000 CPF - 3.00 1.500 A SDM SGD 10.009 IOAADQS LX LU0588545904 07-Feb-11 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 ADM AUD 0.500 AUD2,000 AUD200 Monthly 03-Apr-18 0.0470894 4.75 A DM USD 0.500 USD1,000 USD100 Monthly 03-Apr-18 0.0428809 4.75 A S SGD 0.500 SGD1,000 SGD100 N.A. N.A. N.A. N.A. A S SGD 0.500 SGD1,000 SGD100 N.A. N.A. N.A. N.A. A SDM SGD 0.500 SGD1,000 SGD100 Monthly 03-Apr-18 0.0447119 4.75 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 2017 2016 2015 2014 2013 A Offer-bid USD -7.5-5.9-5.9 5.5 2.5 2.6 3.1 2.7 18.5 1.2-17.3 0.1-3.8 Bid-bid USD -2.6-0.9-0.9 11.0 4.3 3.7 3.8 3.3 24.8 6.6-12.9 5.3 1.2 Benchmark USD -2.2-0.6-0.6 20.7 8.0 6.6 5.3 4.6 37.0 6.8-9.4 2.8 3.4 A ADM Offer-bid AUD -7.6-6.3-6.3 5.1 2.9 3.4 5.9 18.5 1.6-15.8 1.1-2.4 Bid-bid AUD -2.8-1.3-1.3 10.7 4.7 4.5 7.0 24.7 7.0-11.4 6.4 2.7 Benchmark AUD -2.3-1.0-1.0 20.4 8.1 7.3 9.9 37.1 6.8-8.3 4.4 5.1 A DM Offer-bid USD -7.5-5.9-5.9 5.5 2.5 2.6 3.0 18.5 1.2-17.3 0.0-3.8 Bid-bid USD -2.6-1.0-1.0 11.0 4.3 3.7 3.9 24.8 6.6-12.9 5.3 1.2 Benchmark USD -2.2-0.6-0.6 20.7 8.0 6.6 5.3 37.0 6.8-9.4 2.8 3.4 A S Offer-bid SGD -8.4-7.7-7.7-1.0 0.9 3.8 3.4 9.7 3.3-11.5 4.8-0.6 Bid-bid SGD -3.5-2.8-2.8 4.2 2.7 4.8 4.3 15.4 8.7-6.8 10.3 4.7 Benchmark SGD -3.1-2.5-2.5 13.3 6.4 7.7 5.7 26.7 8.7-3.0 7.9 6.9 A S Offer-bid SGD -7.6-6.2-6.2 4.7 2.2 2.3 2.2 18.0 0.9-17.2-0.4-6.0 Factsheet Singapore April 2018 All data as at 31 March 2018 unless otherwise stated Page 2 / 6
Returns (%) Calendar year returns (%) Since 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 -2.7-1.3-1.3 10.2 3.9 3.4 3.2 24.2 6.2-12.8 4.9-1.1 Benchmark SGD -2.2-0.9-0.9 19.9 7.6 6.2 5.9 36.2 6.5-9.1 2.5 0.9 A SDM Offer-bid SGD -8.4-7.7-7.7-1.0 0.9 3.7 3.4 9.7 3.2-11.5 4.8-0.6 Bid-bid SGD -3.5-2.8-2.8 4.2 2.7 4.8 4.3 15.5 8.7-6.9 10.3 4.7 Benchmark SGD -3.1-2.5-2.5 13.3 6.4 7.7 5.7 26.7 8.7-3.0 7.9 6.9 : 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 April 2018 All data as at 31 March 2018 unless otherwise stated Page 3 / 6
COMMENTARY Commentary sources 1.Eastspring Investments (Singapore) Limited Performance Review Global equity markets were volatile in March and ended lower on worries over US trade tariffs that first targeted steel and aluminium, then Chinese technology. Most markets fell with the MSCI World Index down 2.1% with Developed and Emerging Markets both lower by a similar amount. In Asia, the MSCI Asia Pacific ex Japan Index was 2.2% lower with the more defensive Latin America marginally outperforming; however, within Asia, there were pockets of gains with Korea, up 2.6%, and Taiwan, up 1.3%, both outperforming markets like Indonesia and the Philippines, which were noticeably weaker. Political events overtook corporate earnings as drivers with several names resigning from the Trump cabinet, tensions rising in the Middle East, and Jay Powell leading his first US Fed meeting and delivering a 25 basis points rate hike. Currency also played a role with the US dollar trading sideways against a basket of currencies but with several, notably Australia, Brazil (negatively affected by falling commodity prices) and Korea (rising on improving relations with the North) seeing strong swings. Among Asia equity markets, Korea was the best-performing MSCI Index with stocks benefitting from an apparent rapprochement with North Korea, notably as the North s trade with China fell sharply. Auto component manufacturers and consumer names here were particularly strong. Taiwan also outperformed, principally led by semiconductor names on an improved outlook for the sector while the defensive Malaysian market also returned a small gain. China fell 3.3% and experienced a sharp dip in the final week as the US trade tariffs materialised. Blue-chip names were hurt most and Financials also suffered but Healthcare names fared better. Among the underperformers in Asia were Indonesia, which was hit by a large-scale fund outflow and surging government bond yields, and Philippines that saw confusion surrounding the central bank s reaction to high inflation levels, with the bank reluctant to raise rates. Australia endured another testing month with lower commodity prices affecting the Aussie dollar and the local currency-denominated ASX200 seeing its worst performance in more than two years. Telecoms, Financials and Materials were the worst-affected sectors with banks lower as the Royal Commission enquiry continued. India declined 3.6% to underperform other Emerging Markets but classic defensive sectors outperformed and banks sold off sharply along with energy stocks. PMI indicators were notably lower but inflation came in lower than expected, reflecting the patchy nature of the India economy at present. Returns are MSCI Index total returns, in US dollar terms, unless otherwise stated. Key Contributors The Fund s overweight position in Mediatek contributed to the Fund s performance as the stock rose against a falling benchmark index as the China smartphone sector began to show signs of bottoming out and despite reporting that year-on-year sales had dropped 25% in February. The company s chip-making business is integrated into Artificial Intelligence Technology, which we believe will grow substantially in the next few years. The overweight in ST Engineering in Singapore benefited the Fund as the stock rose ahead of an investor day held at the Singapore Airshow in which the company outlined its next five-year strategic plan. The company highlighted that its Smart City business revenue would double in five years, its Defence business was growing in line with expectations and its troubled Marine division was to recover fully by 2022. The Fund maintains its overweight position on the view that the stock continues to represent good valuation upside. Not owning Baidu benefitted the Fund on a relative basis as the stock fell sharply in March. Although there was little in the way of direct fresh newsflow on the stock, the internet sector in China came under pressure as tariffs were announced on China s technology sector. Key Detractors Zhuzhou CRRC Times Electric saw its stock price fall in March in reaction to the very conservative procurement target released by the CRC (the old Ministry of Railways) in January as well as a full-year earnings miss late in the month caused by lower-thanexpected locomotive deliveries during the year. We continue to see upside in its move away from traditional trains to more technologically-driven capabilities like electric battery engineering vehicles. Hutchison Port Holdings fell as concerns over the trade dispute between the US and China weighed on the stock. With a forward dividend yield exceeding 8% and PB ratio of under 0.5x, the stock is one of the cheapest in our investable universe and we maintain our overweight position. Factsheet Singapore April 2018 All data as at 31 March 2018 unless otherwise stated Page 4 / 6
COMMENTARY Indonesia s Perusahaan Gas Negara (PGAS) fell over the month after the company missed on full-year net profit estimates and despite meeting basic earnings, with the difference reflecting a higher-than-expected tax rate. The Fund has trimmed its holding in recent months on the back of the stock s good performance however remains overweight versus the index. Fund Activity In March, the Fund added to holdings in China Petroleum & Chemical (Sinopec), Catcher Technology and SK Hynix while cutting positions in PTT in Thailand, Novatek Micro and Sands China. Outlook The portfolio manager maintains our investment strategy of thorough stock-level research with a focus on cash flow, dividend yield and dividend sustainability. The portfolio manager adopts a total return approach to investing, taking into account both dividends and the opportunity for price appreciation of a company. The portfolio manager continues to look for new opportunities to invest in attractivelyvalued companies with premium dividend yields. Maintaining a long-term view when investing, the Fund takes advantage of short-term price movements to buy and sell when the market price of stocks moves away from our view of a company's fundamental value. As a region, valuations across Asia Pacific ex Japan are in line with historical averages after the equity gains made in 2017 and continue to present investment opportunities. As Asia develops, more Asian companies are returning a greater amount of dividends to shareholders. These are positive signals for our style of investing. Factsheet Singapore April 2018 All data as at 31 March 2018 unless otherwise stated Page 5 / 6
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. 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 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. Notes: #The CPF interest rate for the Ordinary Account (OA) is based on the average 12-month fixed deposit and savings rates published by the major local banks. Under the CPF Act, the CPF Board pays a minimum interest of 2.5% p.a. when this interest formula yields a lower rate. The interest rate for the Special Account (SA) and Medisave Accounts (MA) is pegged to the 12-month average yield of 10-year Singapore Government Securities (10YSGS) plus 1%, or 4% whichever is the higher. The interest rate to be credited to the Retirement Account (RA) will be the weighted average interest of the entire portfolio of Special Government Securities (SSGS) which the RA savings are invested in, which earn a fixed coupon equal to the 12-month average yield of the 10YSGS plus 1% at the point of issuance, or 4%, whichever is the higher. As announced on 22 September 2017, the Government will maintain the 4% p.a. minimum rate for interest earned on all RA monies until 31 December 2018. In addition, the CPF Board will pay an extra interest rate of 1% p.a. on the first S$60,000 of a CPF member's combined balances, including up to S$20,000 in the OA. Only monies in excess of S$20,000 in the OA and S $40,000 in the Special Account can be invested. Factsheet Singapore April 2018 All data as at 31 March 2018 unless otherwise stated Page 6 / 6