Schroder Investment – Schroder Asian Income Fund Review
Fund objective
Schroder Investment – Schroder Asian Income Fund aims to provide income and capital growth over the medium to longer term by investing primarily in Asian equities (including real estate investment trusts) and Asian fixed income securities.
Investment Strategy
Schroder Investment – Schroder Asian Income Fund will actively allocate between Asian equities, Asian fixed income securities, cash and other permissible investments to achieve its objective. The Fund will use a cyclical approach to asset allocation where the asset mix will be adjusted according to the four phases of the economic cycle – recovery, expansion, slowdown and recession – based on a combination of fundamental and quantitative factors such as asset class valuation, macroeconomic data and liquidity. Cash will be treated as a separate asset class and will be deployed if necessary to limit downside risk during adverse market conditions.
In addition to active asset allocation, the Fund will also perform active security selection for its investments in Asian equities, Asian fixed income and other permissible investments. For the Asian equities portfolio, the Fund intends to focus on companies that are able to create true shareholder value, have a strong and stable earnings stream and have a strong sustainable dividend yield. For the Asian fixed income portfolio, the Fund intends to select securities that deliver attractive yield and capital growth taking into account both fundamental and technical views such as valuation, demand/supply conditions and liquidity. The Fund will also manage the impact of interest rate movements on the value of the portfolio.
Schroder Investment – Schroder Asian Income Fund may invest up to 10% of its assets in China A-Shares through the Shanghai-Hong Kong Stock Connect and/or the Shenzhen-Hong Kong Stock Connect. The Fund may also invest up to 10% of its assets directly in RMB denominated fixed income and debt instruments issued or distributed in mainland China (“Onshore RMB Bonds”). Direct exposure to Onshore RMB Bonds may be gained via investing in the China Interbank Bond Market under the Bond Connect (as described in section (B) of the Annex to the Prospectus) and/ or other means as may be permitted by the relevant regulations from time to time.
The performance of each of the Class AUD Hedged A Dis, the Class USD Hedged A Dis, the Class USD Hedged A Acc, the Class GBP Hedged A Dis and the Class EUR Hedged A Acc aims to be similar to the performance of the Class SGD A Dis by reducing the effects of exchange rate fluctuations between the AUD, the USD, the GBP or the EUR (as the case may be) and the Fund’s base currency.
Who is Schroder Investment – Schroder Asian Income Fund suitable for?
Schroder Investment – Schroder Asian Income Fund is only suitable for investors who:
- seek medium to long-term capital growth
- understand the risks associated with investing in Asian equities and Asian fixed income securities
Dividend or Income payout frequency: Monthly or Accumulating
For additional assessments on product suitability, please obtain professional advice from a qualified Financial Adviser.
What are the key risks of Schroder Investment – Schroder Asian Income Fund?
The value of Schroder Investment – Schroder Asian Income Fund and its dividends and coupons (if any) may rise or fall. You may lose some or all of your investment depending on the performance of the underlying securities. Factors that may affect the performance of these securities include, without limitation, market risks, fluctuations in interest rates and foreign exchange rates, political instability, exchange controls, changes in taxation and foreign investment policies.
Some of the key risks associated with Schroder Investment – Schroder Asian Income Fund are described below:
Market and Credit Risks
- You are exposed to market risk in Asia
- You are exposed to credit risk
Liquidity Risks
- The Fund is not listed in Singapore and you can redeem only on Dealing Days
- You may be exposed to liquidity risk
Product-Specific Risks
- You are exposed to investment grade, below investment grade and unrated debt securities risk
- You are exposed to equity risk
- You are exposed to risks relating to distributions
- You are exposed to risks relating to hedging and Hedged Classes
- You are exposed to emerging markets and frontier risk
- You are exposed to financial derivatives risk
- You are exposed to risks associated with investing through the Shanghai-Hong Kong Stock Connect and the Shenzhen-Hong Kong Stock Connect (collectively and individually referred to as the “Stock Connect”)
- You are exposed to risks associated with investing in the China Interbank Bond Market
- You are exposed to risks specific to China
- You are exposed to onshore renminbi currency risk
Investment Fees and Charges
For a limited time (Until 31 Dec 2023), speak to a MAS licensed licensed financial adviser which has committed to offering our readers a flat 1% Subscription fee (Initial Sale Charge) for all Unit Trust Funds investment.
Learn more about the limited time offer on 1% Initial Sales Charge. Terms and conditions may apply.
Where can I get more details about Schroder Investment – Schroder Asian Income Fund
- Schroder Investment – Schroder Asian Income Fund Fact Sheet (Open in New Window)
- Schroder Investment – Schroder Asian Income Fund Product Highlight Sheet (Open in New Window)
- Speak to a licensed licensed financial adviser
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