Factsheet Singapore August 2018 All data as at 31 July 2018 unless otherwise stated Eastspring Investments Asian Low Volatility Equity Fund FUND DETAILS Fund size (mil) 305.7 Fund base currency Fund dealing frequency USD Daily Net asset value (Class A) USD 11.929 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 127 3 year tracking error (Class A) 3 year sharpe ratio (Class A) 3 year volatility (Class A) Source: Morningstar SECTOR WEIGHTS (%) Financials 23.4 Telecommunication services 15.5 Information technology 13.5 Utilities 13.1 Industrials 11.6 Consumer staples 10.2 Health care 3.2 Energy 3.0 Materials 2.6 Cash and others 3.9 COUNTRY WEIGHTS (%) Hong Kong 18.6 China 18.5 Australia 11.3 Thailand 10.9 Malaysia 9.5 Taiwan (Republic of China) 8.9 Singapore 8.0 Korea 4.1 India 3.1 Cash and others 7.1 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 -1.8-7.3-6.3-1.3 0.0 0.0 0.0 7.7 Bid-bid 3.4-2.5-1.3 3.9 0.0 0.0 0.0 11.0 Benchmark 2.1-1.1 1.8 10.7 0.0 0.0 0.0 21.4 : 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. inception returns for periods less than a year are not annualised. 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. TOP 10 HOLDINGS (%) 1. CLP HOLDINGS LTD 3.1 2. INFOSYS ADR 3.1 3. PUBLIC BANK 2.9 4. ADVANCED INFO SERVICE PCL F 2.9 5. WESFARMERS LTD 2.9 6. WOOLWORTHS GROUP LTD 2.9 7. TENAGA NASIONAL BHD 2.9 8. MTR CORPORATION CORP LTD 2.5 9. BANK OF COMMUNICATIONS LTD H 2.3 10. MALAYAN BANKING 2.2 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 11.929 ESALVAU LX LU1522347837 23-Nov-16 Cash 5.000 1.500 A DM USD 10.458 ESAADMU LX LU1497733557 07-Oct-16 Cash 5.000 1.500 SGD 10.498 ESALASS LX LU1634259391 30-Jun-17 Cash, SRS 5.000 1.500 SGD 10.505 ESALASH LX LU1634259557 30-Jun-17 Cash, SRS 5.000 1.500 DM SGD 10.393 ESAASDM LX LU1497733631 07-Oct-16 Cash 5.000 1.500 DM SGD 10.311 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-Aug-18 0.0331693 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. DM SGD 0.500 SGD1,000 SGD100 Monthly 01-Aug-18 0.0331554 4.00 DM SGD 0.500 SGD1,000 SGD100 Monthly 01-Aug-18 0.0327156 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 -1.8-7.3-6.3-1.3 0.0 0.0 0.0 7.7 16.8-6.6 Bid-bid USD 3.4-2.5-1.3 3.9 0.0 0.0 0.0 11.0 23.0-1.7 Benchmark USD 2.1-1.1 1.8 10.7 0.0 0.0 0.0 21.4 37.0-0.6 A DM Offer-bid USD -1.8-7.4-6.3-1.3 0.0 0.0 0.0 3.3 16.8-12.5 Bid-bid USD 3.4-2.5-1.3 3.9 0.0 0.0 0.0 6.3 22.9-7.9 Benchmark USD 2.1-1.1 1.8 10.7 0.0 0.0 0.0 16.3 37.0-5.8 Offer-bid SGD -1.9-4.8-4.5-1.0 0.0 0.0 0.0-0.2-0.8 Bid-bid SGD 3.2 0.2 0.5 4.2 0.0 0.0 0.0 4.6 4.4 Benchmark SGD 1.9 1.7 3.7 11.0 0.0 0.0 0.0 13.8 11.0 Offer-bid SGD -1.8-7.6-6.9-2.3 0.0 0.0 0.0-0.2 1.9 Bid-bid SGD 3.3-2.8-2.0 2.9 0.0 0.0 0.0 4.6 7.2 Benchmark SGD 2.0-1.3 1.3 9.9 0.0 0.0 0.0 14.1 14.0 DM Offer-bid SGD -1.9-4.8-4.5-1.0 0.0 0.0 0.0 2.9 8.1-7.9 Factsheet Singapore August 2018 All data as at 31 July 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 3.2 0.2 0.5 4.2 0.0 0.0 0.0 5.9 13.8-3.0 Benchmark SGD 1.9 1.7 3.7 11.0 0.0 0.0 0.0 15.7 26.7-0.8 DM Offer-bid SGD -1.8-7.6-6.9-2.3 0.0 0.0 0.0 2.5 16.2-12.6 Bid-bid SGD 3.3-2.8-2.0 2.8 0.0 0.0 0.0 5.5 22.3-8.1 Benchmark SGD 2.0-1.3 1.3 9.9 0.0 0.0 0.0 15.4 36.2-5.9 : 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. 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. Factsheet Singapore August 2018 All data as at 31 July 2018 unless otherwise stated Page 3 / 5
COMMENTARY Commentary sources 1.Eastspring Investments (Singapore) Limited Market Review Asian equities ended up in July, with most markets closing higher except for China and Korea. Concerns over an escalation in trade tensions between the US and China, as well as a depreciating yuan, weighed on Chinese equities. Korean stocks were hit as its biotechnology sector fell sharply, impacting sentiment, while a lack of positive catalysts also proved a drag. After months of underperformance, Southeast Asian markets rebounded sharply in July with both MSCI Thailand and MSCI Philippines rising by almost 8% in US dollar terms. The rally in Thailand came on the back of better-than-expected second-quarter results especially from banks, while Philippine equities were supported by a proactive monetary policy stance amid inflationary pressures. India bounced amid a fall in oil prices, while a cut in goods and services tax rate for certain consumer items also helped sentiment. On the downside, inflation rose for the third month in a row in June, signalling a likely rate increase in August. Meanwhile, Australian equities continued to tick higher, sustained by resilient commodity prices. Fund Review In July, the Fund outperformed its benchmark, the MSCI AC Asia Pacific ex Japan Minimum Volatility Index. The overall contribution from Style factors was positive, helped by the contribution from the Fund s underexposure to Volatility and relatively higher exposure to Value, which had a strong month. Against this, the overexposure to Short-term Momentum pared relative gains. Besides Style factors, Country and Industry factors were the other key contributors to relative performance. The former was largely due to the overweight position in Thailand and the underweight position in China. Meanwhile, the latter was attributed to the overweight positions in Telecommunication Services and Utilities, which rebounded 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 overexposure to Medium-term Momentum also helped. Among Industry factors, the Fund s underweight position in Software and Services as well as the overweight position in Telecommunication Services were the biggest detractors. Expectations of higher interest rates had led to a decline in prices for Telecommunication Services stocks that were considered bond proxies. However, the valuations of these stocks have continued to become more attractive. As noted above Telecommunication stocks were amongst the best performers last month. Among Country factors, the overweight exposure in Hong Kong and underweight exposure in Taiwan 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 relatively attractively valued compared to global and other regional markets. We remain cognisant of the impact of Fed s balance sheet reduction program which raises monetary policy uncertainty at the margin. 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. Given the popularity of Dividend Yield and Low Volatility investment styles over the last few years, 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 August 2018 All data as at 31 July 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 August 2018 All data as at 31 July 2018 unless otherwise stated Page 5 / 5