Factsheet Singapore June 2018 All data as at 31 May 2018 unless otherwise stated Eastspring Investments Asian Equity Income Fund RATINGS Class A Morningstar Overall Rating QQQ FUND DETAILS Fund size (mil) 709.3 Fund base currency Fund dealing frequency USD Daily Net asset value (Class A) USD 13.962 ISIN (Class A) Inception date (Class A) LU0315178854 05-Sep-07 Benchmark (BM) MSCI AC Asia Pacific ex Japan Index^ ^The MSCI Index is calculated with dividends reinvested. FUND MEASURES Number of Securities 68 3 year tracking error (Class A) 2.7 3 year sharpe ratio (Class A) 0.2 3 year volatility (Class A) 15.3 Source: Morningstar SECTOR WEIGHTS (%) Financials 30.9 Information technology 24.1 Industrials 11.8 Real estate 7.9 Telecommunication services 5.9 Energy 5.4 Materials 3.5 Consumer discretionary 3.3 Utilities 2.4 Cash and others 4.8 COUNTRY WEIGHTS (%) China 38.2 Taiwan (Republic of China) 14.9 Korea 12.4 Australia 11.5 Hong Kong 8.1 Singapore 6.5 Indonesia 2.4 India 2.2 France 1.2 Cash and others 2.6 INVESTMENT OBJECTIVE This Sub-Fund aims to maximise 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 -6.7-8.4-6.9 2.2 0.9 2.7 3.0 2.6 Bid-bid -1.8-3.6-2.0 7.6 2.6 3.8 3.6 3.2 Benchmark -0.8-2.1-0.4 15.9 7.0 7.0 4.6 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 5.6 2. CHINA CONSTRUCTION BANK-H 4.3 3. BANK OF CHINA H 4.1 4. TAIWAN SEMICONDUCTOR MANUFACTURING 3.8 5. SAMSUNG ELECTRONICS NON VOTING PREF SHS 3.0 6. AUSTRALIA AND NEW ZEALAND BANKING GROUP 2.6 7. IND & COMM BK OF CHINA-H 2.6 8. SAMSUNG ELECTRONICS 2.5 9. HENAN SHUANGHUI INVESTMENT & DEVELOPMENT A 2.2 10. CHINA MOBILE 2.2 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 13.962 IOFAEIA LX LU0315178854 05-Sep-07 Cash 5.000 1.500 A ADM AUD 10.464 ESAEADQ LX LU0795476463 18-Jun-12 Cash 5.000 1.500 A DM USD 9.546 IOAADQU LX LU0588545730 07-Feb-11 Cash 5.000 1.500 A S SGD 13.638 IOAEASS LX LU0588545490 07-Feb-11 Cash, SRS 5.000 1.500 A S SGD 11.643 ESAEASH LX LU0865486749 02-Jan-13 Cash, SRS, CPFIS-OA# 5.000 CPF - 3.00 1.500 A SDM SGD 10.039 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 01-Jun-18 0.0413758 4.75 A DM USD 0.500 USD1,000 USD100 Monthly 01-Jun-18 0.0377332 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 01-Jun-18 0.0396080 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 -6.7-8.4-6.9 2.2 0.9 2.7 3.0 2.6 18.5 1.2-17.3 0.1-3.8 Bid-bid USD -1.8-3.6-2.0 7.6 2.6 3.8 3.6 3.2 24.8 6.6-12.9 5.3 1.2 Benchmark USD -0.8-2.1-0.4 15.9 7.0 7.0 4.6 4.6 37.0 6.8-9.4 2.8 3.4 A ADM Offer-bid AUD -6.7-8.6-7.2 1.7 1.0 3.5 5.5 18.5 1.6-15.8 1.1-2.4 Bid-bid AUD -1.8-3.8-2.4 7.1 2.8 4.5 6.6 24.7 7.0-11.4 6.4 2.7 Benchmark AUD -0.8-2.1-0.8 15.5 7.1 7.7 9.6 37.1 6.8-8.3 4.4 5.1 A DM Offer-bid USD -6.7-8.4-6.9 2.2 0.9 2.7 2.8 18.5 1.2-17.3 0.0-3.8 Bid-bid USD -1.8-3.6-2.0 7.6 2.6 3.8 3.7 24.8 6.6-12.9 5.3 1.2 Benchmark USD -0.8-2.1-0.4 15.9 7.0 7.0 5.2 37.0 6.8-9.4 2.8 3.4 A S Offer-bid SGD -5.7-7.3-6.6-1.0 0.6 3.9 3.5 9.7 3.3-11.5 4.8-0.6 Bid-bid SGD -0.8-2.5-1.7 4.2 2.4 5.0 4.3 15.4 8.7-6.8 10.3 4.7 Benchmark SGD 0.2-1.0-0.3 12.1 6.7 8.2 5.9 26.7 8.7-3.0 7.9 6.9 A S Offer-bid SGD -6.8-8.7-7.3 1.3 0.4 2.4 1.9 18.0 0.9-17.2-0.4-6.0 Factsheet Singapore June 2018 All data as at 31 May 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 -1.9-3.9-2.5 6.7 2.1 3.4 2.9 24.2 6.2-12.8 4.9-1.1 Benchmark SGD -0.9-2.2-0.9 15.1 6.6 6.7 5.7 36.2 6.5-9.1 2.5 0.9 A SDM Offer-bid SGD -5.7-7.3-6.6-1.0 0.6 3.9 3.5 9.7 3.2-11.5 4.8-0.6 Bid-bid SGD -0.8-2.5-1.7 4.3 2.4 4.9 4.3 15.5 8.7-6.9 10.3 4.7 Benchmark SGD 0.2-1.0-0.3 12.1 6.7 8.2 5.9 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 June 2018 All data as at 31 May 2018 unless otherwise stated Page 3 / 6
COMMENTARY Commentary sources 1.Eastspring Investments (Singapore) Limited Performance Review Global Equity markets dipped into the end of the month when domestic political developments in Italy, Brazil and elsewhere combined with concerns over developing economy debt levels to send many indices lower, particularly in emerging markets. Developed markets, led by the US, comfortably outperformed Emerging Markets, but Europe was dragged lower by Italy that fell 11%. Among Emerging Markets, Latin America and EMEA fell sharply and in contrast, Asia only just ended in the red with the MSCI Asia Pacific ex Japan index down just 0.8%. Here, China markedly outperformed and ended with a small gain as economic data continued to show strength in the broader economy while a string of corporate earnings pointed to improving earnings, especially among cyclicals. Strong earnings growth also contributed to an outperformance in Taiwan with chip makers recovering from April s dip. However, elsewhere, Asia markets followed the global trend lower. Among the negative drivers for the month, US dollar strength, high oil prices, and fear of escalating trade disputes added to the political uncertainties in Europe and Asia, as the US called off talks with North Korea (since reinstated), to send stocks lower. South Korea lost 5.2% in US dollar terms with a weakening won not helping and a compliance-related sale of Samsung Electronic by Samsung insurance companies also added to the weakness. Malaysia lost 8.1% with most of the losses coming in the couple of weeks post its election as investors grew nervous on the economic direction of the new government. Singapore was also weak as some of the year-to-date gains were sold to profit takers and elsewhere in ASEAN, the Philippines added another weak month to its year-to-date falls but Indonesia finally steadied the rupiah ship with two 25 basis points interest rate rises during the month. This helped the MSCI Indonesia index to end just 0.8% lower. MSCI India lost 3.6% to underperform Asia with the sustained high price of oil dominating macro developments and sending bond and forex markets lower. Firstquarter GDP figures were better than expected while inflation rose slightly and Industrial Production was below expectations. In the markets, a few misses on quarterly earnings from index heavyweights including Tata Motors and Coal India weighed on sentiment. Australia was one of the few global markets to record a gain in the month as commodity prices stayed relatively stable. Healthcare and Consumer Discretionary stocks outperformed while Telecom names fell again and banks continued to underperform with the Royal Commission hearings ongoing. Returns are MSCI Index total returns, in US dollar terms, unless otherwise stated. Key Contributors The Fund s position in meat producer Henan Shuanghui Investment contributed to the Fund in May as the stock rose 17% after posting solid first quarter results at the end of April, and when trade talks with the US began to get underway. The stock is not part of the benchmark index. The Fund s overweight position in Singapore-based transport group ComfortDelGro contributed as the stock rose another 9% to add to 10% gains in April building on a renewed confidence in the local transport sector after the exit of Uber. During May, ComfortDelGro announced first-quarter results in line with expectations and announced an end to its short-lived technology venture with Uber, while the management statement at the results presentation was upbeat. Cosco Shipping Energy Transport contributed although the stock had a volatile month with the fluctuations in the US-Sino trade war of words. The stock benefitted is a sharp rise on news that China will increase agricultural and energy products from the US which could boost demand for the company s tankers. Key Detractors Not owning internet giant Alibaba detracted from the Fund in May as the stock rose almost 11% after fourth-quarter results beat expectations. Revenues and earnings were both about 5% higher than expected while the outlook statement was also positive. The stock also benefitted from an easing of trade tensions between the US and China through the month. The Fund s overweight position in Korean power company Kepco detracted as the stock fell 12% post weak first-quarter earnings caused in the main by cost hikes and low utilisation of its nuclear power plants. The results fell short of market expectations while the stock failed to benefit from the positive sentiment from North-South rapprochement. Despite the fall, the Fund regards the stock as cheap, valuations remain very attractive and long-term prospects positive. Australian Telecom group Telstra weighed on performance with the stock falling more than 12% after third-quarter trading update pointed to average revenue declines in mobile as competition heats up. The company also gave guidance pointing to profits at the low end of expectations for the full quarter. Fund Activity Factsheet Singapore June 2018 All data as at 31 May 2018 unless otherwise stated Page 4 / 6
COMMENTARY In May, the Fund opened a position in Hong Kong-based bank Hang Seng and added to a holding in SK Hynix. It also closed out a position in Infosys in India, and trimmed a holding in Novatek Microelectronics. With regard the Unibail Rodamco Westfield merger, the Fund now owns a holding two-thirds of the size it had last month, having received the remaining third of the deal in cash. 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 June 2018 All data as at 31 May 2018 unless otherwise stated Page 5 / 6
IMPORTANT INFORMATION Investment manager - Eastspring Investments (Singapore) Limited Rating should not be taken as a recommendation. 2018 Morningstar. All rights reserved. Morningstar Category: Asia-Pacific ex- Japan Equity Income 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. 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 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 June 2018 All data as at 31 May 2018 unless otherwise stated Page 6 / 6