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The iNAV reflects the estimated NAV per unit in respect of the Fund’s assets that have live market prices during the trading day. The issuer of the Fund has engaged ICE Data Indices, LLC as iNAV calculation agent to independently calculate the iNAV.
* iNAV calculations as shown (the "data") are provided by ICE Data Indices, LLC or its third party suppliers and are updated during ASX trading hours. iNAV calculations are indicative and for reference purposes only. The Fund is not sponsored, endorsed, sold or marketed by ICE Data Indices, LLC, its affiliates ("ICE Data") and ICE Data or its respective third party suppliers MAKE NO EXPRESS OR IMPLIED WARRANTIES, AND HEREBY EXPRESSLY DISCLAIM ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO THE iNAV, FUND OR ANY FUND DATA INCLUDED THEREIN. IN NO EVENT SHALL ICE DATA HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, DIRECT, INDIRECT, OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES. You acknowledge that the data is provided for information only and should not be relied upon for any purpose.
Strategy Overview
Key Facts
Strategy Overview
Key Facts
SUT represents Singapore Unit Trust fund range
Fund performance data is sourced from First Sentier Investors. Single pricing basis with net income reinvested. The above performance data is provided for information only and does not contain or constitute investment advice. A copy of the Prospectus is available and may be obtained from the Manager, First Sentier Investors (Singapore), or any of our distributors. Investors should read the Prospectus and consult a financial adviser before deciding to make any investment. In the event of discrepancies between the marketing materials and the Prospectus, the Prospectus shall prevail. The value of the Fund and the income from them, if any, may fall or rise. Past performance of the Fund or the Manager and any economic and market trends or forecast, is not indicative of the future or likely performance of the Fund or the Manager. Neither the Manager, nor any of its associates, nor any director, or employee accepts any liability for any loss arising directly or indirectly from any use of this information. Units are not available to U.S. persons.
Opportunities within a fast evolving and diverse Asian Credit landscape
The Asian Investment Grade (IG) market has more than doubled in size over the past decade and we expect that trend to resume as issuance volume returns
Asia remains the fastest growing region, with countries such as Indonesia and India still having a strong domestic story to support strong growth.
Inflation has been less of a problem for Asia when compared to developed economies and Latin America, and easing rates should cushion Asia’s headwinds in growth in 2025.
Asian countries compare favorably against developed markets as a resource rich region moving up the global value chain, with further growth potential coming from a younger demography.
Asian USD Credit
The strategy seeks to deliver attractive and consistent returns by investing in a diversified portfolio of USD-denominated investment-grade bonds issued by Asian governments and corporations. Selective positions in local currencies may also offer additional return opportunities.
Dynamic Rates and Currency
The strategy invests across a broad spectrum of government bonds from both developed and emerging markets, complemented by active positions in interest rates and currencies to enhance return potential.
Asian Total Return
The strategy seeks to deliver superior total returns through a combination of income and capital appreciation, driven by the investment team's high-conviction positions in credit and government bonds, as well as strategic views on interest rates and currencies.
PK Founder Group – steering clear of a default
China-based diversified conglomerate PK Founder Group operates across IT, healthcare and pharmaceuticals, bulk commodities trading, education and training.
PK Founder Group did not have an external rating by international rating agencies, which is quite common among domestic companies in China. When the issuer first came to the international bond market in 2017 unrated, we assigned an ‘investment grade’ rating, with a view that there would be a high probability of support from the Government of China, despite the company’s relatively weak standalone financials. The bond issue was also attractively valued relative to other state-owned Chinese university issuers at the time.
After several interactions with the management, we concluded that the USD bond proceeds were being pledged against the company’s onshore borrowing facilities. This alarmed us as management was not transparent with regards to the structural subordination for offshore investors. The group quickly became a commercialised conglomerate, expanding into non-strategic mandates such as property. In our view, this severely weakened the likelihood of future government support.
The group’s total debt surged by >USD20 billion by end-FY18, (+31% year-on-year increase), and five additional USD bonds (totalling US$1 billion) were issued during the first six months of 2019. Concern were raised after meeting with management, and analysing the latest financials. Positions in our credit portfolios were trimmed and subsequently sold completely. The internal credit rating was subsequently downgraded into the ‘high yield’ category. Following the disposal, the bonds depreciated sharply. In December 2019, the group missed a bond repayment. This ‘default’ resulted in a very sharp deterioration in the value of the bonds.
Source: First Sentier Investors as at 31 August 2020.
Disclaimer: Reference to specific securities (if any) is included for the purpose of illustration only and should not be construed as a recommendation to buy or sell the same. All securities mentioned herein may or may not form part of the holdings of First Sentier Investors’ portfolios at a certain point in time, and the holdings may change over time
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Nigel Foo
Fiona Kwok
Adeline Tan
Jin Hur
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