Schroder Asian Income
Semi-Annual Report &
Financial Statements
June 2015
SCHRODER ASIAN INCOME
(a sub-fund of Schroder International Opportunities Portfolio)
Constituted under a Trust Deed in the Republic of Singapore on
3 January 2006
Manager
Schroder Investment Management (Singapore) Ltd
138 Market Street #23-01
CapitaGreen
Singapore 048946
Reg. No. 199201080H
Trustee
HSBC Institutional Trust Services (Singapore) Limited
21 Collyer Quay #10-02
HSBC Building
Singapore 049320
Auditors
PricewaterhouseCoopers LLP
8 Cross Street #17-00
PWC Building
Singapore 048424
Solicitors to the Manager
Allen & Gledhill LLP
One Marina Boulevard #28-00
Singapore 018989
Solicitors to the Trustee
Shook Lin & Bok LLP
1 Robinson Road #18-00
AIA Tower
Singapore 048542
Further Information
Schroders is a Foreign Account Tax Compliance Act (“FATCA”)
compliant organisation. Please find the FATCA classification of this
entity and its Global Intermediary Identification Number (“GIIN”)
below.
FATCA entity classification: Foreign Financial Institution (“FFI”)
Sponsoring entity:
Schroder Investment Management
(Singapore) Ltd
Sponsoring entity GIIN:
WM9S4Z.00000.SP.702
1
SCHRODER ASIAN INCOME
(a sub-fund of Schroder International Opportunities Portfolio)
Constituted under a Trust Deed in the Republic of Singapore on
3 January 2006
COMMENTARY
Asian equity had a strong start for the year 2015 finishing the first
quarter in the positive territory, as further easing measures in China
and a delay in market expectations of an interest rate rise by the
US Federal Reserve (Fed) drove gains. The People’s Bank of China
(PBoC) cut the required reserve ratio (RRR) by 50 basis points in
early February as it stepped up efforts to counter the impact of
capital outflows and to alleviate tight liquidity conditions before the
Chinese New Year. The central bank then cut interest rates in early
March to help boost flagging growth. These boosted returns in
Hong Kong and Chinese equities. However, returns were weaker in
ASEAN markets given disappointing economic data and profit taking
pressure following strong performance in 2014. In fixed income,
global bond yields fell across the board with most Asian bond markets
delivering positive returns. The massive quantitative easing (QE)
response by the European Central Bank (ECB) boosted sentiment
globally. The JPMorgan Asia Credit index was up +2.3% in Q1 2015.
The second quarter of 2015 was a volatile period for Asian equities.
Chinese and Hong Kong equities soared in April and May amid
further easing through reducing interest rates and RRR, although
the market reversed sharply after hitting seven-year high in midJune. However, despite the crash, Chinese equities’ performance
remained positive over the quarter. In ASEAN, all markets fell
given decelerating economic growth and disappointing earnings.
Rising bond yields globally also resulted in negative returns in
fixed income, although performance of Asian bonds were better
relative to other markets. Indonesia was the worst performer amidst
weaker economic data and as Indonesian President Jokowi’s proreform initiative faced further setbacks, whereas Chinese credit
outperformed on the back of falling onshore rates. Most Asian
currencies depreciated against the US Dollar on the prospect of
an imminent US rate hike, with Thai Baht and Indonesian Rupiah
among the losers.
In the first half of 2015, the Fund maintained a preference for
equities over fixed income and cash. While the broader Asian equity
market outperformed fixed income, the high dividend stocks in our
portfolio underperformed. Therefore, the overweight equity decision
detracted value. Having more high yield than investment grade
bonds helped. The allocation to global assets was a detractor as
longer duration assets in Europe underperformed given the upward
re-pricing of real yields. We continue to believe the global allocation
not only allows us to access income opportunities outside of Asia,
but also provides diversification especially in a volatile market.
2
SCHRODER ASIAN INCOME
(a sub-fund of Schroder International Opportunities Portfolio)
Constituted under a Trust Deed in the Republic of Singapore on
3 January 2006
Looking forward by comparing to the beginning of 2015, we believe
that the world is now facing higher risks given the uncertainty
from Greece in Europe and the heightened volatility from Chinese
equities. Our view is that the situation in Greece is mainly driven
by sentiment, as the size of its economy is irrelevant and most of
the debts are held in public hands. Obviously the clear win of the
“No” campaign in the referendum increases the risk of a “Grexit”
scenario, but the European Central Bank (ECB) stands ready to
intervene to combat any excessive spill-over effects from Greece to
other peripheral European countries, not to mention that the direct
exposure to Greece/Europe is limited for Asia. However, we remain
worried about the risks posed by the tumble in A-Shares on the
rest of the region. With a significant portion of the A-Shares market
still under voluntary or involuntary suspension, it remains to be seen
whether the authorities’ attempt to prop up the market is successful.
The recent market episode highlights the danger of chasing high
momentum stocks without solid fundamental support. Looking
ahead, the equity markets are likely to remain volatile over the
short term given the ebb and flow of investor sentiment, especially
in China A-Shares. With heightened short-term risk, we are likely
to see some investors shifting their focus back to corporate
fundamentals, which could benefit high-dividend yield stocks with
strong business profiles and stable cash-flows. We will continue
to focus on sectors such as telecoms, banks, REITs and selected
utilities which could deliver stable income. Meanwhile, we are also
adding some cyclical exposure via Taiwan technology names in
order to capture the potential growth of Asian equities.
In fixed income, the solid macroeconomic and labour market data
should support the US Federal Reserve to raise interest rates
in the second half of 2015. Therefore, we remain cautious on
duration risk and hence maintaining the duration hedges through
sale of US Treasury futures. Also, we continue to hold a net long
US Dollar exposure to benefit from any further appreciation of the
greenback. Despite the outperformance of Asian bonds relative to
other fixed income markets, the spread pick-up remains wide, while
fundamentals remain stable for most issuers with low expected
default rates. The overall investment themes of lower commodity
prices, divergence of monetary policy between US and Asian local
rates and the easing bias of China should continue to drive the
markets for the rest of the year. In particular, we believe the recent
volatile Chinese equity market is unlikely to post any significant risks
to the fixed income market. On the contrary, we are likely to see
further easing through cutting interest rates and RRRs for banks to
support the economy, as well as increased infrastructure spending
through the “One Belt, One Road” policy.
3
SCHRODER ASIAN INCOME
(a sub-fund of Schroder International Opportunities Portfolio)
Constituted under a Trust Deed in the Republic of Singapore on
3 January 2006
Overall, we expect the Asian equity market to stay volatile over the
shorter-term and, therefore, will continue to actively manage the
portfolio’s equity hedges to reduce downside risks. With higher
uncertainty, risk management will become increasingly important for
investors in the course of investing for income. The Fund’s diversified
and defensive allocation as well as our active hedging strategies
should help our investors ride out this challenging environment more
smoothly.
June 2015
4
STATEMENT OF TOTAL RETURN
For the financial period ended 30 June 2015 (Unaudited)
30 Jun 2015 30 Jun 2014
$
$
Income
Dividends:
Singapore
Foreign
Interest on deposits with banks
Sundry income
Less : Expenses
Management fees
Trustee fees
Valuation fees
Custodian fees
Registration fees
Audit fees
Transaction costs
Others
Net income
Net gains or losses on value
of investments and financial
derivatives
Net (losses)/gains on investments
Net gains/(losses) on spot
foreign exchange contracts
Net (losses)/gains on forward
foreign exchange contracts
Net gains/(losses) on futures
contracts
Net gains on options contracts
Net losses on swap contracts
Net foreign exchange losses
Total (deficit)/return for the
period before income tax
Less : Income tax
Total (deficit)/return for the
period
5
5,120,186
16,586,672
4,477
5,971
21,717,306
4,828,122
10,737,599
20,346
7,032
15,593,099
9,291,005
230,421
185,820
113,334
735,848
8,008
513,518
271,956
11,349,910
10,367,396
7,132,414
178,615
142,648
144,705
564,887
7,707
373,479
77,645
8,622,100
6,970,999
(10,687,872)
69,561,515
91,046
(6,613,756)
(30,672)
4,670,760
441,747
(1,008,799)
778,471
(425,085)
(658,081)
(802,152)
(98,363)
(17,217,601) 72,436,360
(6,850,205)
(2,306,032)
79,407,359
(1,593,926)
(9,156,237)
77,813,433
STATEMENT OF FINANCIAL POSITION
As at 30 June 2015 (Unaudited)
30 Jun 2015
$
31 Dec 2014
$
ASSETS
1,712,027,040 1,150,396,307
Portfolio of investments
88,762,786
5,437,524
24,383,290
6,917,619
4,945,874
Bank balances
Sales awaiting settlement
Receivables
Financial derivatives
Margin account
Total assets
56,352,495
18,991,119
5,795,916
1,536,798
1,842,474,133 1,233,072,635
LIABILITIES
Purchases awaiting settlement
Payables
Financial derivatives
22,674,569
12,592,364
12,725,114
9,364,253
16,799,692
Total liabilities
47,992,047
26,163,945
EQUITY
Net assets attributable to unitholders 1,794,482,086 1,206,908,690
6
STATEMENT OF MOVEMENTS OF UNITHOLDERS’ FUNDS
For the financial period ended 30 June 2015 (Unaudited)
30 Jun 2015
$
Net assets attributable to
unitholders at the beginning
of the financial period/year
31 Dec 2014
$
1,206,908,690 1,284,672,844
Operations
Change in net assets attributable
to unitholders resulting from
operations
Unitholders’ contributions/
(withdrawals)
Creation of units
Cancellation of units
Change in net assets attributable
to unitholders resulting from net
creation and cancellation of units
(9,156,237)
132,464,876
847,548,833 404,923,352
(209,273,723) (551,246,160)
638,275,110
(146,322,808)
Distributions
(41,545,477)
(63,906,222)
Total increase/(decrease)
in net assets attributable to
unitholders
587,573,396
(77,764,154)
Net assets attributable to
unitholders at the end
of the financial period/year
1,794,482,086 1,206,908,690
7
STATEMENT OF PORTFOLIO
As at 30 June 2015 (Unaudited)
Primary
By geography
Percentage
of total net
assets
attributable
to
Holdings
Fair value unitholders
at
at
at
30 Jun 2015 30 Jun 2015 30 Jun 2015
$
%
Quoted
Collective investment
scheme
LUXEMBOURG
(country of domicile)
Schroder International
Selection Fund –
Global Multi-Asset
Income I Accumulation
Share Class
Total Collective
investment scheme
849,171
137,712,199
7.67
137,712,199
7.67
19,831,570
12,156,418
20,910,340
1.10
0.68
1.17
10,043,681
0.56
6,323,838
14,618,347
4,216,957
0.35
0.81
0.23
28,659,831
1.60
17,026,670
26,902,624
29,552,364
18,344,823
4,953,175
213,540,638
0.95
1.50
1.65
1.02
0.28
11.90
Equities
AUSTRALIA
AGL Energy Ltd
1,232,310
ASX Ltd
294,392
AusNet Services
14,483,721
Australia & New
Zealand Banking
Group Ltd
301,391
Commonwealth Bank
of Australia
71,778
DUET Group
6,114,762
Myer Hldg Ltd
3,326,261
National Australia
Bank Ltd
831,366
Spark Infrastructure
Group
8,415,428
Stockland
6,340,216
Telstra Corp Ltd
4,650,687
Westpac Banking Corp
551,348
Woolworths Ltd
177,524
8
STATEMENT OF PORTFOLIO
As at 30 June 2015 (Unaudited)
Primary (continued)
By geography
Percentage
of total net
assets
attributable
to
Holdings
Fair value unitholders
at
at
at
30 Jun 2015 30 Jun 2015 30 Jun 2015
$
%
Quoted
Equities
CHINA
China Construction
Bank Corp H Shares
China Mobile Ltd
Industrial &
Commercial Bank of
China Ltd H Shares
HONG KONG
BOC Hong Kong
(Hldg) Ltd
CLP Hldg Ltd
Fortune REIT
Hang Seng Bank Ltd
HK Electric
Investments and HK
Electric Investments
Ltd Stapled Shares
HKT Trust and HKT
Ltd Stapled Shares
Hutchison
Telecommunications
Hong Kong Hldg Ltd
Link REIT
MGM China Hldg Ltd
Power Assets Hldg Ltd
Sands China Ltd
VTech Hldg Ltd
20,465,000
319,500
25,165,570
5,507,609
1.40
0.31
20,908,000
22,369,432
53,042,611
1.25
2.96
2,771,000
183,000
18,848,000
271,300
15,545,361
2,094,586
25,566,900
7,138,783
0.87
0.12
1.42
0.40
34,089,823
31,380,682
1.75
16,204,020
25,667,252
1.43
11,062,000
3,989,000
679,600
633,000
93,200
339,200
6,186,589
31,454,418
1,496,699
7,772,932
422,492
6,062,238
160,788,932
0.35
1.75
0.08
0.43
0.02
0.34
8.96
9
STATEMENT OF PORTFOLIO
As at 30 June 2015 (Unaudited)
Primary (continued)
By geography
Percentage
of total net
assets
attributable
to
Holdings
Fair value unitholders
at
at
at
30 Jun 2015 30 Jun 2015 30 Jun 2015
$
%
Quoted
Equities
INDONESIA
Telekomunikasi
Indonesia Persero
Tbk PT
JAPAN
Activia Properties Inc
Advance Residence
Investment Corp
Daiwa House REIT
Investment Corp
Daiwahouse
Residential
Investment Corp
Frontier Real Estate
Investment Corp
Fukuoka REIT Corp
GLP J-REIT
Japan Excellent Inc
Japan Prime Realty
Investment Corp
Japan Rental Housing
Investments Inc
Japan Retail Fund
Investment Corp
Kenedix Office
Investment Corp
Nippon
Accommodations
Fund Inc
72,465,100
21,443,281
1.19
180
2,054,000
0.11
764
2,521,268
0.14
258
1,464,936
0.08
1,188
3,630,291
0.20
346
801
2,611
1,531
2,086,439
1,881,826
3,358,694
2,382,175
0.12
0.11
0.19
0.13
297
1,243,541
0.07
2,720
2,574,047
0.14
1,334
3,594,957
0.20
491
3,317,409
0.19
378
1,967,443
0.11
10
STATEMENT OF PORTFOLIO
As at 30 June 2015 (Unaudited)
Primary (continued)
By geography
Percentage
of total net
assets
attributable
to
Holdings
Fair value unitholders
at
at
at
30 Jun 2015 30 Jun 2015 30 Jun 2015
$
%
Quoted
Equities
JAPAN (continued)
Nomura Real Estate
Master Fund Inc
Orix JREIT Inc
Sekisui House SI
Residential
Investment Corp
United Urban
Investment Corp
1,601
1,282
2,741,259
2,488,489
0.15
0.14
1,367
1,922,421
0.11
1,260
2,400,030
41,629,225
0.13
2.32
MALAYSIA
DiGi.Com Bhd
4,151,400
7,941,067
0.44
NEW ZEALAND
Spark New
Zealand Ltd
9,450,979
24,054,946
1.34
12,480,200
30,701,292
1.71
12,562,400
9,693,400
7,251,300
19,597,344
20,840,810
11,819,619
1.09
1.16
0.66
8,780,200
632,300
18,087,212
2,048,652
1.01
0.11
16,279,700
23,849,760
1.33
21,538,300
21,969,066
1.22
SINGAPORE
Ascendas Real Estate
Investment Trust
CapitaLand
Commercial Trust
CapitaLand Mall Trust
CDL Hospitality Trusts
Frasers
Centrepoint Trust
M1 Ltd
Mapletree
Commercial Trust
Mapletree
Greater China
Commercial Trust
11
STATEMENT OF PORTFOLIO
As at 30 June 2015 (Unaudited)
Primary (continued)
By geography
Percentage
of total net
assets
attributable
to
Holdings
Fair value unitholders
at
at
at
30 Jun 2015 30 Jun 2015 30 Jun 2015
$
%
Quoted
Equities
SINGAPORE (continued)
Mapletree
Industrial Trust
13,469,300
Singapore
Telecommunications
Ltd
7,233,600
Soilbuild Business
Space REIT
10,167,000
StarHub Ltd
5,014,700
Suntec Real Estate
Investment Trust
10,876,600
United Overseas
Bank Ltd
424,800
SOUTH KOREA
SK Telecom Co Ltd
TAIWAN
Advanced
Semiconductor
Engineering Inc
Chunghwa Telecom
Co Ltd
Novatek
Microelectronics Corp
Siliconware Precision
Ind Co
Taiwan Mobile Co Ltd
Taiwan Semiconductor
Manufacturing Co Ltd
21,012,108
1.17
30,453,456
1.70
8,641,950
19,808,065
0.48
1.10
18,762,135
1.05
9,800,136
257,391,605
0.55
14.34
85,305
25,743,684
1.43
3,528,000
6,435,654
0.36
2,420,000
10,391,979
0.58
1,271,000
8,264,558
0.46
6,965,000
3,620,000
14,361,862
16,271,726
0.80
0.91
392,000
2,403,534
58,129,313
0.13
3.24
12
STATEMENT OF PORTFOLIO
As at 30 June 2015 (Unaudited)
Primary (continued)
By geography
Percentage
of total net
assets
attributable
to
Holdings
Fair value unitholders
at
at
at
30 Jun 2015 30 Jun 2015 30 Jun 2015
$
%
Quoted
Equities
THAILAND
Advanced Info Service
PCL (F)
1,544,700
Bangkok Bank PCL (F) 2,250,900
BTS Rail Mass Transit
Growth Infrastructure
Fund (F)
31,404,000
Electricity Generating
PCL NVDR
2,530,200
Intouch Hldg PCL NVDR 4,740,800
Ratchaburi Electricity
Generating Hldg
PCL NVDR
1,655,900
Ratchaburi Electricity
Generating Hldg
PCL (F)
3,219,700
UNITED KINGDOM
HSBC Hldg PLC
1,453,200
Total Equities
13
14,163,693
16,017,655
0.79
0.89
12,644,768
0.71
15,483,451
14,741,808
0.86
0.82
3,779,324
0.21
7,348,445
84,179,144
0.41
4.69
17,705,770
0.99
965,590,216
53.80
STATEMENT OF PORTFOLIO
As at 30 June 2015 (Unaudited)
Primary (continued)
By geography
Percentage
of total net
assets
attributable
to
Holdings
Fair value unitholders
at
at
at
30 Jun 2015 30 Jun 2015 30 Jun 2015
$
%
Quoted
Fixed income
BARBADOS
Rated BBColumbus Intl Inc
7.375% 30 Mar 2021
BRAZIL
Rated BBB
Votorantim Cimentos
SA 7.25% 5 Apr 2041
Rated BBBBraskem America
Finance Co 7.125%
22 Jul 2041
Braskem Finance Ltd
6.45% 3 Feb 2024
Samarco Mineracao SA
4.125% 1 Nov 2022
Rated BBCimpor Financial
Operations BV 5.75%
17 Jul 2024
Minerva Luxembourg
SA 7.75% 31 Jan 2023
Minerva Luxembourg
SA Var Perp
Tupy Overseas SA
6.625% 17 Jul 2024
1,000,000
1,466,002
0.08
900,000
1,193,672
0.07
400,000
475,315
0.03
1,000,000
1,282,541
0.07
1,500,000
1,878,368
0.10
1,075,000
1,230,364
0.07
300,000
407,989
0.02
2,000,000
2,726,663
0.15
222,000
295,560
0.02
14
STATEMENT OF PORTFOLIO
As at 30 June 2015 (Unaudited)
Primary (continued)
By geography
Percentage
of total net
assets
attributable
to
Holdings
Fair value unitholders
at
at
at
30 Jun 2015 30 Jun 2015 30 Jun 2015
$
%
Quoted
Fixed income
BRAZIL (continued)
Rated B+
Marfrig Hldg Europe
BV 6.875% 24 Jun 2019
Marfrig Hldg Europe
BV 8.375% 9 May 2018
2,000,000
2,598,745
0.14
500,000
682,507
0.04
Rated B2
Odebrecht Drilling
Norbe VIII/IX Ltd
6.35% 30 Jun 2021
1,500,000
1,275,270
14,046,994
0.07
0.78
CHILE
Rated BBBEmpresa Electrica
Guacolda SA 4.56%
30 Apr 2025
200,000
261,221
0.01
Rated Baa3
Cencosud SA
4.875% 20 Jan 2023
500,000
677,331
938,552
0.04
0.05
15
STATEMENT OF PORTFOLIO
As at 30 June 2015 (Unaudited)
Primary (continued)
By geography
Percentage
of total net
assets
attributable
to
Holdings
Fair value unitholders
at
at
at
30 Jun 2015 30 Jun 2015 30 Jun 2015
$
%
Quoted
Fixed income
CHINA
Rated AAChina Development
Bank Corp 4.2%
19 Jan 2027
Export-Import Bank
of China 3.625%
31 Jul 2024
Sinopec Group
Overseas
Development 2013 Ltd
5.375% 17 Oct 2043
State Grid Overseas
Investment 2014 Ltd
4.125% 7 May 2024
Rated A+
Alibaba Group Hldg Ltd
3.6% 28 Nov 2024
CDBL Funding 1
3.25% 2 Dec 2019
CDBL Funding 1
4.25% 2 Dec 2024
China Shenhua
Overseas Capital Co Ltd
3.125% 20 Jan 2020
China Shenhua
Overseas Capital Co Ltd
3.875% 20 Jan 2025
1,000,000
219,213
0.01
3,700,000
5,085,111
0.28
1,600,000
2,406,267
0.13
1,000,000
1,411,294
0.08
4,900,000
6,351,552
0.35
1,600,000
2,156,662
0.12
4,400,000
5,823,171
0.32
1,000,000
1,346,938
0.07
1,500,000
1,996,361
0.11
16
STATEMENT OF PORTFOLIO
As at 30 June 2015 (Unaudited)
Primary (continued)
By geography
Percentage
of total net
assets
attributable
to
Holdings
Fair value unitholders
at
at
at
30 Jun 2015 30 Jun 2015 30 Jun 2015
$
%
Quoted
Fixed income
CHINA (continued)
Rated A
China Life Insurance
Co Ltd Var 3 Jul 2075
Eastern Creation II
Investment Hldg Ltd
EMTN 2.625%
20 Nov 2017
Eastern Creation II
Investment Hldg Ltd
EMTN 3.25%
20 Jan 2020
Rated ABeijing State-Owned
Assets Management
(Hong Kong) Co Ltd
4.125% 26 May 2025
CGNPC Intl Ltd 4%
19 May 2025
CRCC Yuxiang Ltd
3.5% 16 May 2023
Industrial &
Commercial Bank of
China Macau Ltd Var
10 Sep 2024
Rated A3
CCCI Treasure Ltd
Var Perp
CRCC Yupeng Ltd
Var Perp
Dianjian Haixing Ltd
Var Perp
1,800,000
2,423,700
0.13
4,000,000
5,435,390
0.30
2,700,000
3,644,984
0.20
1,100,000
1,451,394
0.08
2,000,000
2,684,423
0.15
2,300,000
3,002,927
0.17
1,500,000
2,054,651
0.11
4,400,000
5,879,692
0.33
700,000
958,703
0.05
3,600,000
4,935,283
0.27
17
STATEMENT OF PORTFOLIO
As at 30 June 2015 (Unaudited)
Primary (continued)
By geography
Percentage
of total net
assets
attributable
to
Holdings
Fair value unitholders
at
at
at
30 Jun 2015 30 Jun 2015 30 Jun 2015
$
%
Quoted
Fixed income
CHINA (continued)
Rated BBB+
Bank of China Ltd
5% 13 Nov 2024
China Cinda Finance
2014 Ltd 4%
14 May 2019
China Construction
Bank Corp Var
12 Nov 2024
China Construction
Bank Corp Var
13 May 2025
China Overseas
Finance Cayman III Ltd
5.375% 29 Oct 2023
China Overseas
Finance Cayman VI Ltd
5.95% 8 May 2024
China Resources
Land Ltd EMTN
4.375% 27 Feb 2019
CITIC Ltd 6.8%
17 Jan 2023
CITIC Ltd EMTN
6.625% 15 Apr 2021
Talent Yield
Investments Ltd 4.5%
25 Apr 2022
2,000,000
2,765,307
0.15
1,000,000
1,380,459
0.08
1,000,000
218,772
0.01
2,800,000
3,746,938
0.21
700,000
997,077
0.06
2,000,000
2,953,790
0.16
800,000
1,113,696
0.06
2,000,000
3,146,286
0.18
1,700,000
2,640,831
0.15
650,000
909,770
0.05
18
STATEMENT OF PORTFOLIO
As at 30 June 2015 (Unaudited)
Primary (continued)
By geography
Percentage
of total net
assets
attributable
to
Holdings
Fair value unitholders
at
at
at
30 Jun 2015 30 Jun 2015 30 Jun 2015
$
%
Quoted
Fixed income
CHINA (continued)
Rated Baa1
Charming Light
Investments Ltd EMTN
3.75% 3 Sep 2019
Rated BBB
Century Master
Investment Co Ltd
4.75% 19 Sep 2018
Greenland Global
Investment Ltd
5.875% 3 Jul 2024
Haitong Intl Finance
2015 Ltd 4.2%
29 Jul 2020
Rated BBBBluestar Finance
Hldg Ltd EMTN
4.375% 11 Jun 2020
Franshion
Development Ltd
6.75% 15 Apr 2021
Poly Real Estate
Finance Ltd 5.25%
25 Apr 2019
Sino-Ocean Land
Treasure Finance I
Ltd EMTN 6%
30 Jul 2024
Sino-Ocean Land
Treasure Finance II
Ltd 4.45% 4 Feb 2020
Wanda Properties
Intl Co Ltd 7.25%
29 Jan 2024
2,100,000
2,853,622
0.16
2,000,000
2,838,314
0.16
800,000
1,097,591
0.06
1,000,000
1,361,803
0.08
200,000
270,303
0.01
1,950,000
2,986,705
0.17
1,000,000
1,418,726
0.08
1,200,000
1,657,212
0.09
1,350,000
1,841,352
0.10
3,700,000
5,415,289
0.30
19
STATEMENT OF PORTFOLIO
As at 30 June 2015 (Unaudited)
Primary (continued)
By geography
Percentage
of total net
assets
attributable
to
Holdings
Fair value unitholders
at
at
at
30 Jun 2015 30 Jun 2015 30 Jun 2015
$
%
Quoted
Fixed income
CHINA (continued)
Rated Baa3
Yuexiu Property Co Ltd
4.5% 24 Jan 2023
Rated BB+
CAR Inc 6.125%
4 Feb 2020
China Resources
Power Hldg Co Ltd
Var Perp
Country Garden Hldg
Co Ltd 7.5%
9 Mar 2020
Country Garden Hldg
Co Ltd 10.5%
11 Aug 2015
Rated BB
China Hongqiao
Group Ltd 6.875%
3 May 2018
China Hongqiao
Group Ltd 7.625%
26 Jun 2017
Fufeng Group Ltd
7.625% 13 Apr 2016
Industrial &
Commercial Bank of
China Ltd Var Perp
3,000,000
3,852,431
0.21
1,400,000
1,918,089
0.11
7,200,000
9,973,526
0.56
2,200,000
3,073,386
0.17
900,000
1,223,969
0.07
400,000
541,185
0.03
1,200,000
1,640,845
0.09
400,000
370,157
0.02
600,000
837,707
0.05
20
STATEMENT OF PORTFOLIO
As at 30 June 2015 (Unaudited)
Primary (continued)
By geography
Percentage
of total net
assets
attributable
to
Holdings
Fair value unitholders
at
at
at
30 Jun 2015 30 Jun 2015 30 Jun 2015
$
%
Quoted
Fixed income
CHINA (continued)
Rated BB
Longfor Properties Co
Ltd 6.75% 28 May 2018
Longfor Properties Co
Ltd 6.75% 29 Jan 2023
Longfor Properties Co
Ltd EMTN 6.875%
18 Oct 2019
7,000,000
1,534,200
0.09
600,000
804,264
0.04
5,000,000
7,055,660
0.39
Rated Ba2
Yancoal Intl Trading
Co Ltd Var Perp
1,000,000
1,370,737
0.08
Rated BBBank of China Ltd
Var Perp
10,000,000
2,287,964
0.13
Rated Ba3
Central Plaza
Development Ltd
7.6% 29 Nov 2015
7,000,000
1,547,172
0.09
1,600,000
2,348,296
0.13
3,000,000
4,184,340
0.23
Rated B+
CIFI Hldg Group Co
Ltd 12.25%
15 Apr 2018
Future Land
Development
Hldg Ltd 10.25%
21 Jul 2019
21
STATEMENT OF PORTFOLIO
As at 30 June 2015 (Unaudited)
Primary (continued)
By geography
Percentage
of total net
assets
attributable
to
Holdings
Fair value unitholders
at
at
at
30 Jun 2015 30 Jun 2015 30 Jun 2015
$
%
Quoted
Fixed income
CHINA (continued)
Rated B+
Gemdale Intl Hldg Ltd
9.15% 26 Jul 2015
18,000,000
Greentown China
Hldg Ltd 8%
24 Mar 2019
3,200,000
Greentown China
Hldg Ltd 8.5%
4 Feb 2018
2,800,000
KWG Property Hldg
Ltd 8.625% 5 Feb 2020 2,600,000
Yanlord Land HK Co
Ltd 5.375%
23 May 2016
5,000,000
Rated B1
Logan Property
Hldg Co Ltd 9.75%
8 Dec 2017
Logan Property
Hldg Co Ltd 11.25%
4 Jun 2019
Rated B
Times Property
Hldg Ltd 12.625%
21 Mar 2019
Yuzhou Properties Co
Ltd 8.625%
24 Jan 2019
3,931,338
0.22
4,580,254
0.26
4,007,723
0.22
3,546,412
0.20
1,071,456
0.06
600,000
818,774
0.05
600,000
842,082
0.05
1,250,000
1,795,177
0.10
1,800,000
2,441,878
0.14
22
STATEMENT OF PORTFOLIO
As at 30 June 2015 (Unaudited)
Primary (continued)
By geography
Percentage
of total net
assets
attributable
to
Holdings
Fair value unitholders
at
at
at
30 Jun 2015 30 Jun 2015 30 Jun 2015
$
%
Quoted
Fixed income
CHINA (continued)
Rated B
Yuzhou Properties Co
Ltd 8.75% 4 Oct 2018
Yuzhou Properties Co
Ltd 11.75%
25 Oct 2017
1,100,000
1,503,367
0.08
500,000
720,377
0.04
Rated BChina Aoyuan
Property Group Ltd
10.875% 26 May 2018
China Aoyuan
Property Group Ltd
11.25% 17 Jan 2019
900,000
1,206,397
0.07
1,900,000
2,546,837
0.14
1,681,346
0.09
3,623,432
0.20
1,083,814
0.06
2,165,610
0.12
660,086
0.04
Not Rated
361 Degrees Intl Ltd
7.5% 12 Sep 2017
8,000,000
Central Plaza
Development Ltd
Var Perp
2,600,000
China Development
Bank Corp 4.3%
2 Aug 2032
5,000,000
China Minmetals Corp
3.65% 28 Mar 2016 10,000,000
China New Town
Finance I Ltd 5.5%
6 May 2018
3,000,000
23
STATEMENT OF PORTFOLIO
As at 30 June 2015 (Unaudited)
Primary (continued)
By geography
Percentage
of total net
assets
attributable
to
Holdings
Fair value unitholders
at
at
at
30 Jun 2015 30 Jun 2015 30 Jun 2015
$
%
Quoted
Fixed income
CHINA (continued)
Not Rated
China Unicom
(Hong Kong) Ltd
EMTN 3.8%
24 Jul 2016
8,000,000
China Unicom
(Hong Kong) Ltd
EMTN 4% 16 Apr 2017 8,000,000
CITIC Ltd Var Perp
2,300,000
CITIC Ltd REGS
Var Perp
1,700,000
Eastern Air Overseas
Hong Kong Corp Ltd
3.875% 5 Jun 2016
3,000,000
Hero Asia Investment
Ltd Var Perp
3,000,000
Jinchuan Group Co Ltd
4.75% 17 Jul 2017
10,000,000
Lenovo Group Ltd
4.95% 10 Jun 2020
5,000,000
Poly Property Group
Co Ltd 4.75%
16 May 2018
1,000,000
Proven Honour
Capital Ltd 4.125%
19 May 2025
4,000,000
24
1,736,099
0.10
1,739,033
3,236,313
0.10
0.18
2,632,408
0.15
650,158
0.04
4,085,954
0.23
2,115,657
0.12
1,108,714
0.06
1,353,064
0.08
5,352,445
207,681,692
0.30
11.57
STATEMENT OF PORTFOLIO
As at 30 June 2015 (Unaudited)
Primary (continued)
By geography
Percentage
of total net
assets
attributable
to
Holdings
Fair value unitholders
at
at
at
30 Jun 2015 30 Jun 2015 30 Jun 2015
$
%
Quoted
Fixed income
COLOMBIA
Rated BBBBanco de Bogota SA
5% 15 Jan 2017
500,000
695,625
0.04
Rated Ba1
Bancolombia SA
5.125% 11 Sep 2022
500,000
676,090
0.04
Rated Ba2
Banco Davivienda SA
5.875% 9 Jul 2022
1,700,000
2,322,874
3,694,589
0.13
0.21
COSTA RICA
Rated Ba1
Instituto Costarricense
de Electricidad 6.375%
15 May 2043
600,000
671,109
0.04
Rated BB
Costa Rica
Government Intl
Bond 7% 4 Apr 2044
700,000
916,630
1,587,739
0.05
0.09
25
STATEMENT OF PORTFOLIO
As at 30 June 2015 (Unaudited)
Primary (continued)
By geography
Percentage
of total net
assets
attributable
to
Holdings
Fair value unitholders
at
at
at
30 Jun 2015 30 Jun 2015 30 Jun 2015
$
%
Quoted
Fixed income
HONG KONG
Rated A+
Sun Hung Kai
Properties Capital
Market Ltd EMTN
4.5% 14 Feb 2022
Sun Hung Kai
Properties Capital
Market Ltd EMTN
Var 25 Feb 2024
Rated A
Bank of China
(Hong Kong) Ltd
5.55% 11 Feb 2020
Link Finance Cayman
2009 Ltd EMTN 3.6%
3 Sep 2024
Rated A2
Zhejiang Energy
Group Hong Kong Ltd
2.3% 30 Sep 2017
Rated ADouble Rosy Ltd
3.625% 18 Nov 2019
Hutchison Whampoa
Intl 14 Ltd 3.625%
31 Oct 2014
1,000,000
1,430,104
0.08
250,000
340,479
0.02
2,000,000
2,954,208
0.17
1,000,000
1,335,857
0.08
2,000,000
2,709,064
0.15
1,200,000
1,631,392
0.09
2,400,000
3,191,609
0.18
26
STATEMENT OF PORTFOLIO
As at 30 June 2015 (Unaudited)
Primary (continued)
By geography
Percentage
of total net
assets
attributable
to
Holdings
Fair value unitholders
at
at
at
30 Jun 2015 30 Jun 2015 30 Jun 2015
$
%
Quoted
Fixed income
HONG KONG (continued)
Rated A3
ICBCIL Finance Co Ltd
2.625% 19 Mar 2018 3,600,000
4,862,815
0.27
1,000,000
1,371,976
0.08
4,000,000
5,415,704
0.30
Rated BBB
HKT Capital No. 2 Ltd
3.625% 2 Apr 2025
2,400,000
3,118,979
0.17
Rated Baa2
China Construction
Bank Asia Corp Ltd
EMTN Var 20 Aug 2024
1,600,000
2,191,930
0.12
Rated BBBNan Fung Treasury Ltd
4.5% 20 Sep 2022
1,500,000
2,071,940
0.12
600,000
795,159
0.04
1,500,000
1,985,414
0.11
Rated BBB+
CLP Power HK
Finance Ltd Var Perp
Goodman HK Finance
EMTN 4.375%
19 Jun 2024
Rated Baa3
LS Finance 2025 Ltd
4.5% 26 Jun 2025
Rated BB+
China Oil & Gas Group
Ltd 5% 7 May 2020
27
STATEMENT OF PORTFOLIO
As at 30 June 2015 (Unaudited)
Primary (continued)
By geography
Percentage
of total net
assets
attributable
to
Holdings
Fair value unitholders
at
at
at
30 Jun 2015 30 Jun 2015 30 Jun 2015
$
%
Quoted
Fixed income
HONG KONG (continued)
Rated BBShimao Property
Hldg Ltd 8.125%
22 Jan 2021
500,000
Not Rated
Champion MTN Ltd
EMTN 3.75%
17 Jan 2023
4,500,000
Cheung Kong Bond
Securities 03 Ltd
5.375% Perp
3,000,000
Cosco Pacific
Finance 2013 Co Ltd
4.375% 31 Jan 2023
3,000,000
Dorsett Hospitality Intl
Ltd EMTN 6%
3 Apr 2018
16,000,000
HLP Finance Ltd EMTN
4.45% 16 Apr 2021
2,600,000
HLP Finance Ltd EMTN
4.75% 25 Jun 2022
1,900,000
Joyous Glory Group
Ltd GMTN 5.7%
7 Mar 2020
3,100,000
New World China Land
Ltd 5.5% 6 Feb 2018 13,000,000
New World China Land
Ltd EMTN 5.375%
6 Nov 2019
1,500,000
28
708,932
0.04
5,802,308
0.32
4,059,697
0.23
3,861,398
0.22
3,456,886
0.19
3,649,058
0.20
2,649,440
0.15
4,460,998
0.25
2,912,560
0.16
2,111,649
0.12
STATEMENT OF PORTFOLIO
As at 30 June 2015 (Unaudited)
Primary (continued)
By geography
Percentage
of total net
assets
attributable
to
Holdings
Fair value unitholders
at
at
at
30 Jun 2015 30 Jun 2015 30 Jun 2015
$
%
Quoted
Fixed income
HONG KONG (continued)
Not Rated
NWD MTN Ltd EMTN
5.25% 26 Feb 2021
3,400,000
PB Issuer No. 3 Ltd
Convertible Bond
1.875% 22 Oct 2018
600,000
PB Issuer No. 4 Ltd
Convertible Bond
3.25% 3 Jul 2021
500,000
PCCW Capital No. 4
Ltd 5.75% 17 Apr 2022 3,000,000
PHBS Ltd EMTN
6.625% Perp
3,000,000
SmarTone Finance Ltd
3.875% 8 Apr 2023
1,300,000
Vast Expand Ltd 5.2%
11 Sep 2017
5,000,000
INDIA
Rated BBB+
Reliance Hldg USA Inc
5.4% 14 Feb 2022
Reliance Ind Ltd
4.125% 28 Jan 2025
Reliance Ind Ltd
4.875% 10 Feb 2045
Rated Baa2
Oil India Ltd 5.375%
17 Apr 2024
4,860,637
0.27
788,611
0.04
678,299
0.04
4,352,198
0.24
4,100,093
0.23
1,642,517
0.09
1,095,814
86,597,725
0.06
4.83
3,000,000
4,369,160
0.24
1,000,000
1,316,204
0.07
1,600,000
1,949,732
0.11
1,200,000
1,730,489
0.10
29
STATEMENT OF PORTFOLIO
As at 30 June 2015 (Unaudited)
Primary (continued)
By geography
Percentage
of total net
assets
attributable
to
Holdings
Fair value unitholders
at
at
at
30 Jun 2015 30 Jun 2015 30 Jun 2015
$
%
Quoted
Fixed income
INDIA (continued)
Rated BBBBharti Airtel Intl
Netherlands BV
5.125% 11 Mar 2023
Bharti Airtel Intl
Netherlands BV
5.35% 20 May 2024
Export-Import Bank of
India 4% 14 Jan 2023
NTPC Ltd EMTN
5.625% 14 Jul 2021
ONGC Videsh Ltd
4.625% 15 Jul 2024
Power Grid Corp
of India Ltd 3.875%
17 Jan 2023
Rated Baa3
Bharat Petroleum
Corp Ltd 4.625%
25 Oct 2022
Bharat Petroleum
Corp Ltd EMTN 4%
8 May 2025
India Government
Bond 8.24%
22 Apr 2018
India Government
Bond SPB 8.28%
21 Sep 2027
Indian Oil Corp Ltd
5.625% 2 Aug 2021
Indian Oil Corp Ltd
EMTN 5.75%
1 Aug 2023
4,000,000
5,635,857
0.31
1,000,000
1,424,206
0.08
3,000,000
4,015,546
0.22
1,700,000
2,542,379
0.14
1,000,000
1,371,249
0.08
1,500,000
1,984,303
0.11
2,400,000
3,302,420
0.19
1,000,000
1,293,273
0.07
80,000,000
1,704,402
0.09
200,000,000
4,260,949
0.24
4,000,000
5,859,699
0.33
2,000,000
2,931,761
0.16
30
STATEMENT OF PORTFOLIO
As at 30 June 2015 (Unaudited)
Primary (continued)
By geography
Percentage
of total net
assets
attributable
to
Holdings
Fair value unitholders
at
at
at
30 Jun 2015 30 Jun 2015 30 Jun 2015
$
%
Quoted
Fixed income
INDIA (continued)
Rated BB
ABJA Investment Co
Pte Ltd 4.85%
31 Jan 2020
ABJA Investment Co
Pte Ltd 5.95%
31 Jul 2024
Rated BBRolta Americas LLC
8.875% 24 Jul 2019
Vedanta Resources
Jersey Ltd Convertible
Bond 5.5% 13 Jul 2016
Vedanta Resources
PLC 6% 31 Jan 2019
Vedanta Resources
PLC 8.25% 7 Jun 2021
1,000,000
1,366,697
0.08
2,000,000
2,703,099
0.15
750,000
862,181
0.05
2,000,000
2,684,415
0.15
500,000
656,419
0.04
1,500,000
2,080,039
0.12
13,992,959
0.78
1,516,631
0.08
2,356,126
0.13
1,070,020
0.06
1,072,643
76,052,858
0.06
4.24
Not Rated
India Government
Bond 7.16%
20 May 2023
700,000,000
Power Finance Corp
Ltd 9.61% 1 Jun 2017 70,000,000
Power Grid Corp
of India Ltd 8.85%
19 Oct 2018
110,000,000
Rural Electrification
Corp Ltd 9.38%
6 Sep 2016
50,000,000
Rural Electrification
Corp Ltd 9.45%
10 Aug 2016
50,000,000
31
STATEMENT OF PORTFOLIO
As at 30 June 2015 (Unaudited)
Primary (continued)
By geography
Percentage
of total net
assets
attributable
to
Holdings
Fair value unitholders
at
at
at
30 Jun 2015 30 Jun 2015 30 Jun 2015
$
%
Quoted
Fixed income
INDONESIA
Rated Baa3
Astra Sedaya Finance
PT EMTN 2.875%
1 Apr 2018
3,000,000 4,071,372
Indonesia Treasury
Bond 8.375%
15 Mar 2034
80,000,000,000 8,008,809
Indonesia Treasury
Bond 9%
15 Mar 2029
90,000,000,000 9,537,552
Rated BB+
Indonesia Government
Intl Bond 3.75%
25 Apr 2022
Indonesia Government
Intl Bond 4.125%
15 Jan 2025
Indonesia Government
Intl Bond 5.125%
15 Jan 2045
Indonesia Government
Intl Bond 6.75%
15 Jan 2044
Pelabuhan Indonesia II
PT 4.25% 5 May 2025
Pertamina (Persero) PT
5.625% 20 May 2043
0.23
0.45
0.53
2,000,000 2,659,337
0.15
1,700,000 2,240,408
0.12
800,000 1,031,419
0.06
2,000,000 3,157,542
0.17
1,500,000 1,896,040
0.11
1,000,000 1,201,818
0.07
32
STATEMENT OF PORTFOLIO
As at 30 June 2015 (Unaudited)
Primary (continued)
By geography
Percentage
of total net
assets
attributable
to
Holdings
Fair value unitholders
at
at
at
30 Jun 2015 30 Jun 2015 30 Jun 2015
$
%
Quoted
Fixed income
INDONESIA (continued)
Rated BB+
Pertamina (Persero) PT
6% 3 May 2042
2,200,000
Pertamina (Persero) PT
6.45% 30 May 2044
2,000,000
Pertamina (Persero) PT
6.5% 27 May 2041
1,100,000
Perusahaan Gas
Negara Persero
Tbk PT 5.125%
16 May 2024
8,500,000
Rated BB
Perusahaan Listrik
Negara PT 5.25%
24 Oct 2042
Perusahaan Listrik
Negara PT 5.5%
22 Nov 2021
TBG Global Pte Ltd
5.25% 10 Feb 2022
Rated BBGolden Legacy Pte Ltd
9% 24 Apr 2019
Pratama Agung Pte Ltd
6.25% 24 Feb 2020
Theta Capital Pte Ltd
6.125% 14 Nov 2020
Theta Capital Pte Ltd
7% 16 May 2019
2,757,309
0.15
2,662,704
0.15
1,473,744
0.08
11,566,856
0.64
6,900,000
8,207,221
0.46
500,000
714,419
0.04
1,500,000
1,977,335
0.11
3,000,000
4,019,302
0.22
3,700,000
4,843,150
0.27
3,308,500
4,534,420
0.25
2,300,000
3,215,774
0.18
33
STATEMENT OF PORTFOLIO
As at 30 June 2015 (Unaudited)
Primary (continued)
By geography
Percentage
of total net
assets
attributable
to
Holdings
Fair value unitholders
at
at
at
30 Jun 2015 30 Jun 2015 30 Jun 2015
$
%
Quoted
Fixed income
INDONESIA (continued)
Rated B+
MPM Global Pte Ltd
6.75% 19 Sep 2019
700,000
Pacific Emerald Pte Ltd
9.75% 25 Jul 2018
1,700,000
Pakuwon Prima Pte Ltd
7.125% 2 Jul 2019
1,800,000
890,710
0.05
2,443,561
0.14
2,443,090
0.14
1,550,000
2,003,592
87,557,484
0.11
4.88
JAMAICA
Rated B1
Digicel Ltd 6.75%
1 Mar 2023
750,000
992,202
0.06
KAZAKHSTAN
Rated BBB
Kazakhstan
Government Intl Bond
3.875% 14 Oct 2024
200,000
254,489
0.02
200,000
225,875
0.01
500,000
764,139
1,244,503
0.04
0.07
Rated B2
Star Energy Geothermal
Wayang Windu Ltd
6.125% 27 Mar 2020
Rated BB+
KazMunayGaz National
Co JSC 5.75%
30 Apr 2043
KazMunayGaz National
Co JSC 9.125%
2 Jul 2018
34
STATEMENT OF PORTFOLIO
As at 30 June 2015 (Unaudited)
Primary (continued)
By geography
Percentage
of total net
assets
attributable
to
Holdings
Fair value unitholders
at
at
at
30 Jun 2015 30 Jun 2015 30 Jun 2015
$
%
Quoted
Fixed income
MALAYSIA
Rated APetronas Capital Ltd
4.5% 18 Mar 2045
2,700,000
3,503,761
0.20
Rated Ba1
SBB Capital Corp
Var Perp
1,600,000
2,173,445
0.12
Rated BB
AMBB Capital Ltd
Var Perp
300,000
411,334
6,088,540
0.02
0.34
MEXICO
Rated BBB+
Petroleos Mexicanos
4.5% 23 Jan 2026
300,000
396,228
0.02
Rated BBB
Grupo Bimbo SAB
de CV 4.875%
27 Jun 2044
1,600,000
2,018,369
0.11
Rated Baa2
BBVA Bancomer
SA / Texas 6.75%
30 Sep 2022
1,850,000
2,761,903
0.15
35
STATEMENT OF PORTFOLIO
As at 30 June 2015 (Unaudited)
Primary (continued)
By geography
Percentage
of total net
assets
attributable
to
Holdings
Fair value unitholders
at
at
at
30 Jun 2015 30 Jun 2015 30 Jun 2015
$
%
Quoted
Fixed income
MEXICO (continued)
Rated BBBFermaca Enterprises
S de RL de CV
6.375% 30 Mar 2038 1,000,000
Mexichem SAB de CV
5.875% 17 Sep 2044
500,000
Rated BB+
Metalsa SA de CV
4.9% 24 Apr 2023
Rated B+
Cemex SAB de CV
5.7% 11 Jan 2025
Cemex SAB de CV
5.875% 25 Mar 2019
Cemex SAB de CV
6.125% 5 May 2025
Cemex SAB de CV
FRN 15 Oct 2018
1,376,796
0.08
626,452
0.04
650,000
835,840
0.05
200,000
257,855
0.01
1,000,000
1,383,596
0.08
250,000
333,680
0.02
500,000
708,596
10,699,315
0.04
0.60
1,997,028
0.11
2,447,964
0.14
1,437,388
5,882,380
0.08
0.33
MONGOLIA
Rated B+
Development Bank of
Mongolia LLC EMTN
5.75% 21 Mar 2017
1,500,000
Mongolia Government
Intl Bond 5.125%
5 Dec 2022
2,000,000
Trade & Development
Bank of Mongolia LLC
9.375% 19 May 2020 1,000,000
36
STATEMENT OF PORTFOLIO
As at 30 June 2015 (Unaudited)
Primary (continued)
By geography
Percentage
of total net
assets
attributable
to
Holdings
Fair value unitholders
at
at
at
30 Jun 2015 30 Jun 2015 30 Jun 2015
$
%
Quoted
Fixed income
PERU
Rated BBB
BBVA Banco
Continental SA Var
22 Sep 2029
1,600,000
2,194,860
0.12
PHILIPPINES
Rated BBB
Philippine Government
Intl Bond 3.9%
26 Nov 2022
40,000,000
1,182,629
0.07
576,744
0.03
273,682
0.02
4,166,670
0.23
1,427,036
0.08
607,594
3,873,679
0.03
0.22
1,407,712
0.08
1,779,542
0.10
2,024,729
17,320,017
0.11
0.97
Not Rated
Energy Development
Corp 6.5% 20 Jan 2021
385,000
ICTSI Treasury BV
EMTN 4.625%
16 Jan 2023
200,000
ICTSI Treasury BV
EMTN 5.875%
17 Sep 2025
2,900,000
Megaworld Corp
4.25% 17 Apr 2023
1,100,000
Petron Corp 7%
10 Nov 2017
20,000,000
Petron Corp Var Perp
2,700,000
Royal Capital BV
Var Perp
1,000,000
SM Investments Corp
4.25% 17 Oct 2019
1,300,000
Travelers Intl Hotel
Group Inc 6.9%
3 Nov 2017
1,400,000
37
STATEMENT OF PORTFOLIO
As at 30 June 2015 (Unaudited)
Primary (continued)
By geography
Percentage
of total net
assets
attributable
to
Holdings
Fair value unitholders
at
at
at
30 Jun 2015 30 Jun 2015 30 Jun 2015
$
%
Quoted
Fixed income
QATAR
Rated AOoredoo Intl Finance
Ltd 5% 19 Oct 2025
1,500,000
2,176,685
0.12
2,000,000
438,122
0.02
3,000,000
4,126,408
0.23
Rated BBB
United Overseas
Bank Ltd EMTN Var
19 Sep 2024
6,000,000
8,338,093
0.47
Rated Baa2
Global Logistic
Properties Ltd 3.875%
4 Jun 2025
5,000,000
6,611,450
0.37
Rated Baa3
China Jingye
Construction
Engineering
(Singapore) Pte Ltd
2.95% 21 May 2017
4,500,000
4,490,325
24,004,398
0.25
1.34
SINGAPORE
Rated BBB+
BOC Aviation Pte Ltd
EMTN 4.2%
5 Nov 2018
Oversea-Chinese
Banking Corp Ltd
4.25% 19 Jun 2024
38
STATEMENT OF PORTFOLIO
As at 30 June 2015 (Unaudited)
Primary (continued)
By geography
Percentage
of total net
assets
attributable
to
Holdings
Fair value unitholders
at
at
at
30 Jun 2015 30 Jun 2015 30 Jun 2015
$
%
Quoted
Fixed income
SOUTH KOREA
Rated A+
Korea Development
Bank 3.75%
22 Jan 2024
2,000,000
2,820,787
0.16
3,700,000
5,166,951
0.29
1,800,000
2,490,618
0.14
Rated BBBWoori Bank Co Ltd
4.75% 30 Apr 2024
6,500,000
9,134,907
19,613,263
0.51
1.10
SUPRANATIONAL
Rated Aaa
Intl Finance Corp
GMTN 6.45%
30 Oct 2018
80,000,000
1,682,617
0.09
TAIWAN
Rated BBB+
Formosa Group
Cayman Ltd 3.375%
22 Apr 2025
6,000,000
7,664,063
0.43
Rated BBB
Hana Bank 4.375%
30 Sep 2024
Korea Exchange
Bank 4.25%
14 Oct 2024
39
STATEMENT OF PORTFOLIO
As at 30 June 2015 (Unaudited)
Primary (continued)
By geography
Percentage
of total net
assets
attributable
to
Holdings
Fair value unitholders
at
at
at
30 Jun 2015 30 Jun 2015 30 Jun 2015
$
%
Quoted
Fixed income
THAILAND
Rated BBB+
PTTEP Canada Intl
Finance Ltd 6.35%
12 Jun 2042
2,000,000
3,080,469
0.17
70,000,000
2,538,554
0.14
1,200,000
1,631,958
7,250,981
0.09
0.40
UNITED ARAB
EMIRATES
Rated A
RAK Capital 3.094%
31 Mar 2025
700,000
921,825
0.05
Rated BBB
MAF Global Securities
Ltd 4.75% 7 May 2024
400,000
556,972
0.03
1,300,000
1,802,010
0.10
Rated Baa1
Thailand Government
Inflation-Linked Bond
12 Mar 2028
Rated BBBPTT Exploration &
Production PCL
Var Perp
Rated BBBEMG Sukuk Ltd
4.564% 18 Jun 2024
40
STATEMENT OF PORTFOLIO
As at 30 June 2015 (Unaudited)
Primary (continued)
By geography
Percentage
of total net
assets
attributable
to
Holdings
Fair value
unitholders
at
at
at
30 Jun 2015 30 Jun 2015 30 Jun 2015
$
%
Quoted
Fixed income
UNITED ARAB
EMIRATES (continued)
Rated Baa3
DP World Ltd 6.85%
2 Jul 2037
2,000,000
2,966,932
0.17
Rated BB+
MAF Global Securities
Ltd Var Perp
2,100,000
3,068,000
0.17
1,000,000
1,298,512
0.07
500,000
690,101
0.04
Not Rated
Emirates Airline
4.5% 6 Feb 2025
Emirates NBD 2014
Tier 1 Ltd Var Perp
Emirates NBD Tier 1
Ltd Var Perp
1,700,000
2,311,941
0.13
13,616,293
0.76
8,670,873
0.48
608,724,625
33.94
1,712,027,040
82,455,046
95.41
4.59
1,794,482,086
100.00
Accrued interest
on fixed income
securities
Total Fixed income
Portfolio of
investments
Other net assets
Net assets
attributable to
unitholders
Legend :
NVDR : Non-Voting Depository Receipts
(F) : Foreign
41
STATEMENT OF PORTFOLIO
As at 30 June 2015 (Unaudited)
Primary (continued)
Percentage Percentage
of total net of total net
assets
assets
attributable attributable
to
to
unitholders unitholders
at
at
30 Jun 2015 31 Dec 2014
%
%
By geography (summary)
Quoted
Australia
Barbados
Brazil
Chile
China
Colombia
Costa Rica
Hong Kong
India
Indonesia
Jamaica
Japan
Kazakhstan
Luxembourg
Malaysia
Mexico
Mongolia
New Zealand
Peru
Philippines
Qatar
Singapore
South Korea
Supranational
Taiwan
Thailand
United Arab Emirates
United Kingdom
Accrued interest on
fixed income securities
Portfolio of investments
Other net assets
Net assets attributable to
unitholders
42
11.90
0.08
0.78
0.05
14.53
0.21
0.09
13.79
4.24
6.07
0.06
2.32
0.07
7.67
0.78
0.60
0.33
1.34
0.12
0.97
0.12
15.68
2.53
0.09
3.67
5.09
0.76
0.99
11.90
0.12
0.64
0.05
12.69
0.28
0.08
16.00
5.28
5.93
4.07
8.42
0.69
0.61
0.75
1.21
15.00
3.19
2.21
4.46
0.79
0.42
0.48
95.41
4.59
0.53
95.32
4.68
100.00
100.00
STATEMENT OF PORTFOLIO
As at 30 June 2015 (Unaudited)
Secondary
By industry
Percentage Percentage
of total net of total net
assets
assets
attributable attributable
to
to
Fair value unitholders unitholders
at
at
at
30 Jun 2015 30 Jun 2015 31 Dec 2014
$
%
%
Agriculture
1,298,512
Airlines
Automobiles &
2,022,110
Components
253,321,882
Bank
Central Bank
Chemicals/
17,848,612
Petrochemicals
Collective investment
scheme - Multi-Asset 137,712,199
1,108,714
Computer
3,877,399
Construction Materials
5,700,648
Consumer Durables
Diversified Operations 14,847,447
6,062,238
Electronics
Engineering &
Construction
19,174,797
27,978,057
Finance
6,971,544
Food & Beverage
53,933,643
Government
5,376,077
Hotel
2,423,700
Insurance
6,351,552
Internet Services
17,336,392
Investment
862,181
IT Services
6,270,684
Logistics
1,466,002
Media
8,130,194
Metals
10,361,024
Mining
76,190,004
Miscellaneous
43
0.07
0.11
-
0.12
14.12
-
0.08
10.29
0.76
0.99
0.91
7.67
0.06
0.22
0.31
0.84
0.34
8.42
0.69
0.38
1.18
1.14
1.07
1.56
0.39
3.01
0.29
0.13
0.35
0.97
0.05
0.36
0.08
0.45
0.58
4.25
0.33
1.88
0.72
4.11
0.48
0.13
0.28
0.66
0.12
0.19
0.12
0.76
0.44
4.24
STATEMENT OF PORTFOLIO
As at 30 June 2015 (Unaudited)
Secondary (continued)
By industry
Percentage Percentage
of total net of total net
assets
assets
attributable attributable
to
to
Fair value unitholders unitholders
at
at
at
30 Jun 2015 30 Jun 2015 31 Dec 2014
$
%
%
54,927,858
Oil & Gas
423,325,958
Real Estate
9,912,550
Retail
12,156,418
Securities Exchange
31,465,608
Semiconductor
3,589,962
Sovereign agency
269,123,420
Telecommunications
31,176,003
Transportation
2,024,729
Travel Services
179,028,049
Utilities
Accrued interest
on fixed income
8,670,873
securities
Portfolio of
investments
1,712,027,040
Other net assets
82,455,046
Net assets
attributable to
unitholders
1,794,482,086
44
3.06
23.59
0.55
0.68
1.75
0.20
15.00
1.74
0.11
9.97
2.88
25.65
0.73
0.31
1.87
13.74
1.42
0.17
9.60
0.48
0.53
95.41
4.59
95.32
4.68
100.00
100.00
UNITS IN ISSUE
For the financial period ended 30 June 2015 (Unaudited)
SGD Class
30 Jun 2015 31 Dec 2014
Units
Units
At the beginning of the
financial period/year
Created
Cancelled
736,812,521 981,302,600
262,398,515 186,804,179
(147,140,149) (431,294,258)
At the end of the
financial period/year
852,070,887 736,812,521
$
Net assets attributable to
unitholders
$
976,884,784 861,418,527
Net assets attributable to
unitholders per unit
1.15
AUD Hedged Class
1.17
30 Jun 2015 31 Dec 2014
Units
Units
At the beginning of the
financial period/year
Created
Cancelled
At the end of the
financial period/year
85,545,394 102,005,286
85,198,738 37,219,636
(21,408,387) (53,679,528)
149,335,745
A$
85,545,394
A$
Net assets attributable to
unitholders
155,349,490
90,542,078
Net assets attributable to
unitholders per unit
1.04
1.06
45
UNITS IN ISSUE
For the financial period ended 30 June 2015 (Unaudited)
Class X
30 Jun 2015 31 Dec 2014
Units
Units
At the beginning of the
financial period/year
Created
Cancelled
At the end of the
financial period/year
210,667,051 86,684,648
334,583,838 127,011,148
(6,741,560) (3,028,745)
538,509,329 210,667,051
$
Net assets attributable to
unitholders
$
619,983,752 247,306,731
Net assets attributable to
unitholders per unit
1.15
USD Hedged Class
1.17
13 Mar 2015
to
30 Jun 2015
Units
Created
Cancelled
At the end of the financial period
29,363,006
(979,832)
28,383,174
US$
Net assets attributable to unitholders
27,359,280
Net assets attributable to unitholders
per unit
0.96
46
UNITS IN ISSUE
For the financial period ended 30 June 2015 (Unaudited)
The Fund currently offers 4 Classes of units, namely SGD Class
units, AUD Hedged Class units, Class X units and USD Hedged
Class units. All 4 Classes of units constitute the Fund and have
different features. The key differences between the Classes are the
currency of denomination and distribution policy applicable to each
Class. The AUD Hedged Class and USD Hedged Class, which were
incepted on 31 October 2012 and 13 March 2015 respectively,
are subject to foreign exchange risk against the Fund’s functional
currency. Class X, which was incepted on 26 February 2013, is
denominated in SGD.
Net assets attributable to unitholders (“NAV”) is apportioned
between SGD Class, AUD Hedged Class, Class X and USD Hedged
Class units based on the proportion of NAV of each Class, which
is determined by computing the equivalent number of units of SGD
Class, AUD Hedged Class, Class X and USD Hedged Class units in
issue. Any expense, income and/or gain which is attributable to a
particular Class shall be deducted from or added to the net assets
attributable to that Class.
47
FINANCIAL RATIOS
For the financial period ended 30 June 2015 (Unaudited)
30 Jun 2015
30 Jun 2014
AUD
USD
AUD
SGD Hedged
Hedged SGD Hedged
Class Class Class X Class Class Class Class X
Expense ratio1
(excluding underlying
fund’s unaudited
expense ratio)
1.46% 1.46%
1.46%
1.44% 1.47% 1.47%
1.47%
Expense ratio2
(including underlying
fund’s unaudited
expense ratio)
1.46% 1.46%
1.47%
1.45% 1.48% 1.48%
1.48%
Turnover ratio3
1
30 Jun 2015
Fund
30 Jun 2014
Fund
13.59%
20.50%
The expense ratio has been computed based on the guidelines
laid down by the Investment Management Association of
Singapore (“IMAS”). The calculation of the expense ratio was
based on total operating expenses divided by the average net
asset values for each Class for the year. The total operating
expenses do not include brokerage and other transaction
costs, performance fee, interest expense, distribution paid out
to unitholders, foreign exchange gains/losses, front or back
end loads arising from the purchase or sale of other funds
and tax deducted at source or arising out of income received.
Expenses which are common to all Classes are apportioned
based on the proportion of NAV of each Class. The Fund does
not pay any performance fee. The respective values used in
the calculation of the expense ratio are disclosed below. The
average net asset values are based on the daily balances. The
Fund invests in real estate investment trusts (REITs), for which
the expense ratios are not available or published. The expense
ratio of the Fund does not include the expense ratios of those
underlying REITs.
30 Jun 2015
30 Jun 2014
AUD
USD
AUD
Expense ratio
Hedged
Hedged
Hedged
calculations SGD Class Class
Class X Class SGD Class
Class
Class X
$
$
$
$
$
$
$
Total operating
expenses
12,882,863 1,589,825 4,334,144 231,397 15,520,236 1,699,817 1,490,904
Average net
asset value 882,901,804 108,980,210 296,403,200 16,063,105 1,052,625,738 115,243,708 101,093,068
48
FINANCIAL RATIOS
For the financial period ended 30 June 2015 (Unaudited)
2
The expense ratio is the sum of the Fund’s expense ratio and
the underlying fund’s unaudited expense ratio. The unaudited
expense ratio of the underlying fund, a Luxembourg domiciled
fund, is provided by Schroder Investment Management
(Luxembourg) S.A. There is no requirement for the expense
ratio of this Luxembourg domiciled fund to be published or
audited.
3
The portfolio turnover ratio is calculated in accordance with the
formula stated in the Code on Collective Investment Schemes.
The calculation of the portfolio turnover ratio was based on the
lower value of purchases or sales of the underlying investments
divided by the average daily net asset value.
30 Jun 2015
30 Jun 2014
Turnover ratio calculations
Fund
Fund
$
$
Lower of purchases or sales 203,639,616 (sales) 235,797,671 (purchases)
1,498,528,964
Average net asset value
1,150,472,514
49
REPORT TO UNITHOLDERS
30 June 2015
The following is a report on the Schroder Asian Income (the “Fund”):
1. For the composition of investments of the Fund as at 30 June
2015, refer to the Statement of Portfolio on pages 8 to 44.
2.
The Fund has the following exposure to financial derivatives as
at 30 June 2015:
Fair value
$
Contracts:
Spot foreign exchange
7,730
Forward foreign exchange
Percentage
of total net
assets
attributable
to
unitholders
%
*
(7,342,313)
(0.41)
Futures
766,451
0.04
Options
2,060,802
0.11
Swap
(1,300,165)
(0.07)
* Less than 0.01
The net gain on financial derivatives realised during the period
1 January 2015 to 30 June 2015 amounted to S$1,147,881.
The net loss on outstanding financial derivatives marked to
market as at 30 June 2015 amounted to S$6,875,458.
3. The Fund was not invested in other unit trusts, mutual funds
or collective investment schemes as at 30 June 2015 other
than as stated in the Statement of Portfolio on pages 8 to 44.
4. The Fund did not have any borrowings as at 30 June 2015.
5. The amount of subscriptions and redemptions during the
period 1 January 2015 to 30 June 2015 were as follows:
$
Subscriptions
Redemptions
847,548,833
209,273,723
50
REPORT TO UNITHOLDERS
30 June 2015
6. Top 10 holdings of the Fund as at 30 June 2015:
Fair value
$
SISF - Global Multi-Asset
Income I Acc
137,712,199
Link REIT
31,454,418
HK Electric Investments and
HK Electric Investments Ltd
Stapled Shares
31,380,682
Ascendas Real Estate
Investment Trust
30,701,292
Singapore Telecommunications
Ltd
30,453,456
Telstra Corp Ltd
29,552,364
National Australia Bank Ltd
28,659,831
Stockland
26,902,624
SK Telecom Co Ltd
25,743,684
HKT Trust and HKT Ltd
Stapled Shares
25,667,252
51
Percentage
of total net
assets
attributable
to
unitholders
%
7.67
1.75
1.75
1.71
1.70
1.65
1.60
1.50
1.43
1.43
REPORT TO UNITHOLDERS
30 June 2015
Top 10 holdings of the Fund as at 30 June 2014:
SISF - Global Multi-Asset
Income I Acc
Telstra Corp Ltd
SK Telecom Co Ltd
Mapletree Commercial Trust
Fortune REIT
HKT Trust and HKT Ltd
Stapled Shares
National Australia Bank Ltd
Suntec Real Estate
Investment Trust
Mapletree Industrial Trust
Ascendas Real Estate
Investment Trust
Fair value
$
Percentage
of total net
assets
attributable
to
unitholders
%
91,915,228
25,737,464
24,972,487
21,928,220
19,846,735
8.75
2.45
2.38
2.09
1.89
18,120,657
17,234,851
1.72
1.64
16,834,810
16,506,490
1.60
1.57
16,428,900
1.56
Legend:
SISF : Schroder International Selection Fund
7. Expense Ratio (including underlying fund)
SGD Class
1 July 2014 to 30 June 2015
1.46%
1 July 2013 to 30 June 2014
1.48%
AUD Hedged Class
1 July 2014 to 30 June 2015
1.46%
1 July 2013 to 30 June 2014
1.48%
Class X
1 July 2014 to 30 June 2015
1.47%
1 July 2013 to 30 June 2014
1.48%
52
REPORT TO UNITHOLDERS
30 June 2015
USD Hedged Class
Inception of Class, 13 March 2015
to 30 June 2015 (annualised)
1.45%
The total operating expenses do not include brokerage and
other transaction costs, performance fee, interest expense,
distribution paid out to unitholders, foreign exchange gains/
losses, front or back end loads arising from the purchase or
sale of other funds and tax deducted at source or arising out of
income received. Expenses which are common to all Classes
are apportioned based on the proportion of NAV of each Class.
The Fund does not pay any performance fee. The Fund invests
in real estate investment trusts (REITs), for which the expense
ratios are not available or published. The expense ratio of the
Fund does not include the expense ratios of those underlying
REITs.
8. Turnover of Portfolio
1 January 2015 to 30 June 2015
13.59%
1 January 2014 to 30 June 2014
9. Soft dollar commissions/arrangements:
20.50%
In the management of the Fund, the Manager may accept soft
dollar commissions from, or enter into soft dollar arrangements
with, stockbrokers who execute trades on behalf of the Fund
and the soft dollars received are restricted to the following
kinds of services:
(i)
(ii)
(iii)
(iv)
research, analysis or price information;
performance measurement;
portfolio valuations; and
administration services.
The Manager may not receive or enter into soft dollar commissions
or arrangements unless (a) such soft dollar commissions or
arrangements shall reasonably assist the Manager in their
management of the Fund, (b) best execution is carried out
for the transactions, and (c) that no unnecessary trades are
entered into in order to qualify for such soft dollar commissions
or arrangements. The Manager shall not receive goods and
services such as travel, accommodation and entertainment.
The description of soft dollars and the conditions set out above
also apply to the investment manager of the underlying fund
domiciled in Luxembourg.
53
REPORT TO UNITHOLDERS
30 June 2015
10. Related Party Transactions
The Manager of the Fund is Schroder Investment Management
(Singapore) Ltd. The Registrar for the Fund is Schroder
Investment Management (Luxembourg) S.A, a related party of
the Manager. The Trustee is HSBC Institutional Trust Services
(Singapore) Limited, a subsidiary of the HSBC Group. The
management fees paid to the Manager and registration fees
paid to the Registrar; trustee fees, valuation fees and custodian
fees charged by, and interest earned on deposits with, the
HSBC Group are shown in the Statement of Total Return.
As at 30 June 2015, the Fund maintained with the HSBC
Group, the following bank balances:
30 Jun 2015 31 Dec 2014
$
$
88,762,786
Current accounts
56,352,495
In addition to the above, the respective management fees are
chargeable by:
i) Schroder Investment Management (Luxembourg) S.A as
Management Company of the following underlying fund:
Underlying fund
Schroder International Selection Fund
- Global Multi-Asset Income I Acc
54
Per annum of NAV
-
REPORT TO UNITHOLDERS
30 June 2015
11. Performance of Fund for periods ended 30 June 2015
SGD Class
Benchmark**
3
6
mths mths
1
yr
3
Since
yrs* Inception*#
-3.2% 0.7%
-1.5% 3.8%
6.3% 8.8%
6.1% 8.1%
9.9%
7.9%
AUD Hedged Class -2.8% 1.5% 8.8%
Benchmark**
-0.2% 8.8% 20.7%
-
9.5%
15.2%
Class X
Benchmark**
6.3%
6.1%
-
5.2%
8.4%
-
-
-2.4%
2.3%
-3.1% 0.7%
-1.5% 3.8%
USD Hedged Class -3.1%
Benchmark**
0.4%
-
* Returns of more than 1 year are annualised
#
Since inception figures from 24 October 2011 (SGD Class),
31 October 2012 (AUD Hedged Class), 26 February 2013
(Class X) and 13 March 2015 (USD Hedged Class)
** Benchmark: 50% MSCI AC Asia Pacific ex Japan Net + 50%
JP Morgan Asia Credit Index (SGD Hedged)
Source: Morningstar, class currency, bid to bid, net dividends
reinvested.
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