EASTSPRING INVESTMENTS - ASIAN BOND FUND - December 2020
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EASTSPRING INVESTMENTS -
ASIAN BOND FUND
December 2020
eastspring.com
eastspring.us/offshoreadvisor
2
LEADING ASSET MANAGER IN ASIA
LEVERAGING OUR ASIAN DNA TO CAPITALISE ON GLOBAL OPPORTUNITIES
1994 One of the
USD 248bn 300+ INVESTMENT DEEP INSIGHTS
Founded 1994 in Managing USD 248bn
PROFESSIONALS^ LARGEST INTO ASIA
Singapore (HQ) and assets on behalf of
100% owned by institutional and individual
Unrivalled on-the-ground ASIAN ASSET Our investment teams'
investment presence in Asia deep understanding of
Prudential plc (UK) investors globally MANAGERS Asian markets, provides us
and a major Asian Fixed with a unique perspective
Income player for global investments
United
Kingdom
Luxembourg
Japan
United States China* South Korea
Taiwan
India* Hong Kong*
Thailand*
Vietnam
Malaysia
Singapore
Indonesia
Investment and Sales & Client Service office
Sales & Client Service Office
Joint venture
Source: Eastspring Investments. As at 31 December 2020. ^Including joint ventures and sales offices in the US, UK and
Luxembourg. AUM size by contracted sales. Note: bn = billion.
STRICTLY PRIVATE AND CONFIDENTIAL. FOR PROFESSIONAL INVESTORS ONLY.
3
A DIVERSIFIED AND GROWING GLOBAL ASSET MANAGER
AUM Growth (USD bn)
2% 7% 241 248
193
47% 12% CAGR 188
40% 146
131
99 121
95
81 78
51%
Fixed Income Equity Quant
Others ^ Investment Solutions (IS)
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Internal Life 56% Third Party 44%
AUM USD248bn
Source: Eastspring Investments as at 31 December 2020. AUM includes Joint Ventures AUM based on % of ownership
*Joint ventures: India - ICICI Prudential Asset Management Co Ltd, Hong Kong - Bank of China International – Prudential Asset
Management and China - CITIC-Prudential Fund Management Co Ltd. ^ Others – include Alternative assets and money market
funds. Note: bn = billion.
STRICTLY PRIVATE AND CONFIDENTIAL. FOR PROFESSIONAL INVESTORS ONLY.
4 EXTENSIVE LOCAL PRESENCE IN ASIA ONSHORE ASSET MANAGEMENT ACROSS ASIA Sources: Singapore and Hong Kong (Morningstar), Malaysia (Lipper), Thailand (Association of Investment Management Companies), Korea (Korea Financial Investment Association), India (Association of Mutual Funds in India), Japan (Investment Trusts Association, Japan), Taiwan (Securities Investment Trust & Consulting Association of R.O.C.), China (Wind), Indonesia (Otoritas Jasa Keuangan), Vietnam (State Securities Commission of Vietnam). All markets as of December 2020. Eastspring JVs include HK, India and China. Japan reflects Publicly Offered Investment Trusts market presence. China reflects public mutual funds market presence. Vietnam reflects open-ended mutual funds market presence only. *Market presence based on whether the AMCs offer onshore domiciled mutual funds. Market ranking based on 100% shareholdings. STRICTLY PRIVATE AND CONFIDENTIAL. FOR PROFESSIONAL INVESTORS ONLY.
5
INVESTMENT CAPABILITIES OVERVIEW
Fixed Investment Quantitative
Equities Income Solutions Strategies
AUM of AUM of AUM of AUM of
USD 25bn USD 62bn USD 115bn* USD 3.5bn
Key capabilities: Key capabilities: Key capabilities: Key capabilities:
GEM Concentrated Value EM Debt Multi Asset Global Low Vol
Japan Concentrated Value Asian HY Solutions Asian Low Vol
China A Growth Asia Fixed Income Multi-Factor
Greater China Asian Sustainable
Asia ex – Japan China RMB
Number of Inv. Number of Inv. Number of Inv. Number of Inv.
professionals: 31 professionals: 22 professionals: 12 professionals: 8
Avg. yrs experience: Avg. yrs experience: Avg. yrs experience: Avg. yrs experience:
18 15 14 13
Source: Eastspring Investments as at 31 December 2020. AUM for investment teams are internally calculated and includes advisory
mandates. There might be double counting of assets within the individual investment teams. The figures above do not reflect joint venture
assets under management. *Including sub-funds managed by other teams and investments into Eastspring SICAV funds. Note: bn =
billion.
STRICTLY PRIVATE AND CONFIDENTIAL. FOR PROFESSIONAL INVESTORS ONLY.
6
FOCUSED - FIXED INCOME INVESTMENT CAPABILITIES
Strategy Name Asian High Yield Bond China Onshore Bond Global Emerging Markets Bond
JPMorgan Asia Credit – Non JPMorgan Emerging Markets Bond Index -
Benchmark Investment Grade Index Markit iBoxx ALBI China Onshore Bond index Global Diversified
Invests primarily in USD–
Invests primarily in China onshore bonds Invests primarily in hard currency
denominated below investment
Investment Objective across different sectors, including government denominated bonds issued by government
grade bonds issued by Asian
corporate, quasi-sovereign and and non-government bond sectors; Moderate and quasi-government entities within
sovereign flexibility to go into non-RMB securities Emerging Markets
Investment Style Benchmark-aware Benchmark-unconstrained Benchmark-aware
AuM (USD mn) 468.3 434.2 2,251.6
Incepted :December 2019
Strategy Inception Oct 2011 Investment Start Date : Apr 2011
21 February 2020
Lead PM Wai Mei Leong Guan Yi Low with advisory from China WFOE Eric Fang
Current YTM (%)+ 7.72 3.37 4.29
Current Duration (yrs)+ 3.50 5.45 8.44
Credit Quality Bias High Yield Investment Grade High Yield
Key Investment Parameters *
Duration Range +/- 1.5 years from BM duration N/A +/- 1 year from BM duration
Not applicable; Max 20%in non-BM
Max Country Weight countries Up to 35% for single country of risk ex. China +/- 5% BM Weight
Max 20% in corporates (ex Quasi-
Max Sector Weight Max 33% in IG, non-rated and cash N/A sovereigns)
Up to 10% per currency with exception of
Currency Limits Max 20% in non-USD exposures CNY/CNH; Max aggregate non-CNY/CNH Max 10% in non-USD exposures
exposure: 30%
Min. Portfolio Average Not more than 3 notches below BM Aggregate non-investment grade bond exposure Not more than 1 notch below BM rating
Credit Rating* rating (Linear) limit: Max 30% (Linear)
Source: Eastspring Investments, as of 31 December 2020. +The computation of yield to maturity and average duration includes cash and
derivatives securities.; * Internal guidelines, subject to changes at fund managers’ discretion
STRICTLY PRIVATE AND CONFIDENTIAL. FOR PROFESSIONAL INVESTORS ONLY.7
FOCUSED - FIXED INCOME INVESTMENT CAPABILITIES
Strategy Name Asian USD Bond Asia Sustainable Bond Asian Total Return
Benchmark JPMorgan Asia Credit Index Unconstrained Unconstrained
Invests in a mix of green, social and sustainability
Invests primarily in USD –denominated (“GSS”) bonds and other debt securities issued by Invests primarily in a mix of USD and
bonds issued by Asian corporate, quasi- Emerging Asian governments, quasi-governments, domestic Asian bonds and currencies;
Investment Objective
sovereign and sovereign, including both corporates or supranational, which are aligned to flexibility to implement tactical
high yield and investment grade internal Environmental, Social and Governance overlays
(“ESG”) principles
Investment Style Benchmark-aware Absolute return targeted Absolute return targeted
AuM (USD mn) 3,334.2 73.3 92.7
Strategy Inception Dec 2002 Dec 2019 Nov 2017
Lead PM Wai Mei Leong Rong Ren Goh Guan Yi Low
Current YTM (%)+ 4.43 4.20 6.27
Current Duration (yrs)+ 5.57 4.39 4.00
Credit Quality Bias Investment Grade Investment Grade Investment Grade
Key Investment Parameters *
Duration Range +/- 1 year from BM duration Below 5 years -1y to 8y
Max Country Weight +/- 10% BM Weight 35% 30%
Sovereign: Max 35% for single issuer Max non-investment grade
Max Sector Weight Not applicable exposure: 30%
IG/HY Corporate: Max 10% for single issuer
Up to 10% per currency with exception of USD
Currency Limits Max 10% in non-USD exposures (subject to an aggregate limit of 20% for non-USD Aggregate net short FX: 30%
exposures)
Min. Portfolio Average Not more than 1 notch below BM rating Max non-investment grade N.A.
Credit Rating* (Linear) exposure: 30%
Source: Eastspring Investments, as of 31 December 2020. +The computation of yield to maturity and average duration includes cash and
derivatives securities.; * Internal guidelines, subject to changes at fund managers’ discretion
STRICTLY PRIVATE AND CONFIDENTIAL. FOR PROFESSIONAL INVESTORS ONLY.8
AWARD WINNING FIXED INCOME CAPABILITIES
2020 2019 2018 2017
Asian High Asian Local
Asian Asian Currency
Bond Bond Yield Bond
Bond
House House Fund Fund
“Best of the Best” “Best of the Best” Best Fund over five years Best Fund Manager Bond Asia
Regional Awards Regional Awards Bond USD – High Yield Pacific Local Currency Category
(Awarded by Asia Asset (Awarded by Asia Asset
Management) Category Low Guan Yi
Management)
(Awarded by Refinitiv Lipper Fund (Awarded by Citywire Asia)
Award)
Top 5 Investment Houses in Asia
Asian Local – Asian Local Bond Currency
Singapore Asian Local Category Rank 1st
Currency Select Bond Currency (Awarded by The Asset Benchmark
Bond Bond Research)
Fund Fund
Fund Most Astute Investors
Asian Local Bond Currency
Best Asian Fixed Income Fund, Best Fund over 3 & 5 years Portfolio managers,
Local Currency Bond SGD Top 5 Investment Houses in Cheong Wei Ming (No. 3),
(Awarded by Asia Asset Management) (Awarded by Refinitiv Lipper Fund Asia – Asian Local Bond Danny Tan (No. 6) and Guan Yi
Award) Currency Category Rank 1st Low (Highly commended)
(Awarded by The Asset Benchmark
Research)
(Awarded by The Asset Benchmark
Research)
Sources: Refinitiv Lipper (April 2019 and April 2017), Citywire (April 2016), The Asset Benchmark Research (November 2016, July 2017),
Asia Asset Management (2015, 2019 and 2020), Asian Investor Asset Management (June 2015), and unless otherwise stated.
STRICTLY PRIVATE AND CONFIDENTIAL. FOR PROFESSIONAL INVESTORS ONLY.9
WHY EASTSPRING?
Pursuit of alpha through a differentiated,
DIVERSITY OF
Asian lens OUR PEOPLE AND
PERSPECTIVES
History of operating in some of the most
diverse, illiquid and inefficient markets
positions us well for emerging and
developed markets investment
56% 40% of female
Alignment of interests and history of of our workforce representation in our
is female Executive Management
investing alongside our clients
Committee
Commitment of seed capital to innovate
new strategies and willingness to
customize solutions for clients
27
nationalities
Risk management is embedded in our
DNA with a long history of managing
liability-linked assets
As of 31 December 2020.
STRICTLY PRIVATE AND CONFIDENTIAL. FOR PROFESSIONAL INVESTORS ONLY.ASIAN FIXED INCOME OVERVIEW
11
WHY INVEST IN ASIAN BONDS?
1 2 3
Asia’s strong economic A growing universe of Potential for superior risk-
fundamentals investment opportunities adjusted returns over time
Positive demographics to Myriad credit quality Rising domestic participation
power long-term economic opportunities encompassing in Asian debt markets has
growth in the region, driving both investment grade and coincided with lower volatility
investment and savings high yield for the asset class
Positive economic Home to some of the world’s This has translated to steady
fundamentals to support largest companies, which are returns with lower volatility
corporate profitability and growing in global prominence for Asian bonds
debt-servicing ability
Source: Eastspring Investments (Singapore) Limited
STRICTLY PRIVATE AND CONFIDENTIAL. FOR PROFESSIONAL INVESTORS ONLY.12
WHAT ARE ASIAN BONDS?
OVERVIEW OF ASIAN USD BOND MARKET
SUMMARY JP MORGAN ASIA CREDIT INDEX SECTOR/ CREDIT QUALITY* SPLIT
Government 11.8% 1.4%
Number of issues 1,863
Quasi-
21.1% 1.5%
Market capitalisation Sovereign
1,202.0
(US$ billion) Corporate 44.1% 20.0%
Average credit rating BBB+
0% 10% 20% 30% 40% 50% 60% 70%
Investment Grade High Yield
COUNTRY SPLIT CORPORATES SECTOR SPLIT
China, 50.6% Financial, 35.1%
Indonesia, 11.2% Real Estate, 23.9%
Hong Kong, 8.0%
TMT, 8.9%
Korea, 7.7%
India, 5.9% Oil & Gas, 7.0%
Philippines, 4.9% Utilities, 6.8%
Singapore, 3.5%
Malaysia, 2.7% Consumer, 4.5%
Thailand, 1.7% Industrial, 4.5%
Macau, 1.6% Infrastructure, 3.4%
Sri Lanka, 0.6%
Taiwan, 0.6% Diversified, 3.1%
Pakistan, 0.4% Metals & Mining, 2.3%
Mongolia, 0.3%
Transport, 0.5%
Vietnam, 0.2%
Cambodia, 0.0% Pulp & Paper, 0.0%
Source: Eastspring Investments (Singapore) Limited. JPMorgan, 31 December 2020.
*Based on credit ratings assigned by external credit rating agencies, S&P, Moody’s or Fitch only.
STRICTLY PRIVATE AND CONFIDENTIAL. FOR PROFESSIONAL INVESTORS ONLY.13
WHY INVEST IN ASIAN BONDS?
CHANGING DEMOGRAPHICS IN ASIA
Demographic changes are likely to have a profound impact on the investment landscape
A rise in the Asian “middle class” population will help to power economic growth in the region,
driving savings and investments needs which will fuel structural demand for fixed income
To cater to the world’s largest elderly population, Asia’s growing pension and retirement pool will
likely be a structural buyer of fixed income assets
A RISING ASIAN MIDDLE CLASS POPULATION BY 2035 - 60% OF THE WORLD’S ELDERLY WILL BE IN ASIA
Global Middle Class by Region (millions) People Aged 65 and Over
100%
5000 90%
80%
4000 70%
60% 60%
3000 50%
40%
2000 30%
20%
1000
10%
0%
0
2015 2020F 2025F 2030F
Asia Pacific North America Europe Oceania
Europe Central and South America Northern America Latin America and the Caribbean
Sub-Saharan Africa Middle East and North Africa Africa Asia
LHS Source: Global Economy & Development Working Paper 100, February 2017 (The Unpresented Expansion of the Global Middle Class (an update).
RHS Source: United Nations, December 2017.
STRICTLY PRIVATE AND CONFIDENTIAL. FOR TRAINING PURPOSE ONLY.14
WHY INVEST IN ASIAN BONDS
A GROWING UNIVERSE OF INVESTMENT OPPORTUNITIES
Region encompasses a wide range of credit quality (AAA to B- sovereign ratings)
Asia is home to some of the world’s largest companies, which have grown in global prominence
COUNTRIES BY STANDARD & POOR’S FOREIGN RATING TOP 10 COUNTRIES WITH THE MOST FORTUNE
GLOBAL 500 COMPANIES
B
2019 Rank Country Companies
1 United States 121
A+
AA China (including 3 Hong
2 Kong companies)
119
B-
3 Japan 52
BBB- AA-
BB- AA+ 4 France 31
5 Germany 29
BB BBB+
BBB+
6 United Kingdom + 17
B+ A- 7 South Korea 16
AAA
8 Switzerland 14
BBB
9 Canada 13
10 Netherlands + 12
LHS Chart Source: S&P, 31 May 2019. RHS Chart Source: Fortune Global 500, July 2019. + The Global 500 includes Unilever
under the heading "Britain/Netherlands", as the company is counted in the tally for both countries.
STRICTLY PRIVATE AND CONFIDENTIAL. FOR PROFESSIONAL INVESTORS ONLY.15
WHY INVEST IN ASIAN BONDS
A GROWING UNIVERSE OF CREDIT OPPORTUNITIES
Supply of corporate credits has been led by Asian issuers in recent years; this has provided
increasing credit opportunities within Asia
Market capitalisation of bonds in the JP Morgan Asia Credit Index has risen 9-fold from 2005 to
2020
ASIA CREDITS ARE MOSTLY ASIAN OWNED NOW JACI MARKET CAPITALISATION (US$ ‘BILLION)
100% 1400
90% The investible universe of Asian bonds has
1200 grown, encompassing both IG and Non-IG
80%
70% 1000
60% 800
50%
600
40%
30% 400
20% 200
10%
0
0%
2014
2005
2006
2007
2008
2009
2010
2011
2012
2013
2015
2016
2017
2018
2019
2020
US Europe Asia Investment Grade Non-Investment Grade
LHS Source: JP Morgan report, as of 7 January 2021.
RHS Source: JP Morgan Asia Credit Index (“JACI”), 31 December 2020. Note: IG=Investment Grade; Non-IG = Non-Investment Grade.
STRICTLY PRIVATE AND CONFIDENTIAL. FOR TRAINING PURPOSE ONLY.16
WHY INVEST IN ASIAN BONDS
FUNDAMENTALS REMAIN LARGELY STABLE
Corporate earnings and credit migration trend have turned weaker due to impact of virus outbreak
in 2020.
However, Asian credits entered into the sell-off in relatively good shape. Policy measures are also
supportive.
REGIONAL NET LEVERAGE TRENDS … BUT NET DEBT IS STILL DOWN MODESTLY
YEAR-ON-YEAR
3.5x 20%
Asia
2Q20/1Q20 (qoq) 1Q20/4Q19 (qoq)
3.0x Emerging Europe 15% 2Q20/2Q19 (yoy) 1Q20/1Q19 (yoy)
Latin America
2.5x 10%
Middle East & 2.5x
Africa 2.3x
2.0x 5%
1.9x
1.8x
1.5x 0%
1.0x -5%
0.5x -10%
-15%
0.0x
Asia Emerging Latin Middle East Global
Europe America & Africa
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 LTM
Left Chart Source : JPMorgan estimates, September 2020.
Right Chart Source : JP Morgan, Bloomberg, CapitalIQ, September 2020.
STRICTLY PRIVATE AND CONFIDENTIAL. FOR PROFESSIONAL INVESTORS ONLY.17
WHY INVEST IN ASIAN BONDS
MANAGEABLE DEFAULT RISKS
Default risks for 2021 are expected to moderate given the stronger macroeconomic outlook.
However, China’s credit tightening measures and an uneven global recovery path are still likely
to result in idiosyncratic risks.
HISTORICAL HIGH YIELD CORPORATE DEFAULT RATES (%)
18.0
16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021F
Asia Emerging Europe Latin America
US Asia Average (2.4) Emerging Europe Average (3.7)
Latin America Average (4.6) US Average (3.4)
Source: JP Morgan, 6 January 2021; based on par value of defaulted bonds and excluding 100% quasi-sovereigns. Note: Average
default rates are calculated from 2009-2020. Past performance is not necessarily indicative of the future or likely performance of
the portfolio.
STRICTLY PRIVATE AND CONFIDENTIAL. FOR PROFESSIONAL INVESTORS ONLY.18
WHY INVEST IN ASIAN BOND
FAVOURABLE RISK-ADJUSTED RETURNS VS OTHER ASSET
CLASSES (DEC 2000 ~ DEC 2020)
Sharpe Ratio* Annualised Volatility, % Annualised Returns, %
1.12 6.1% Asian Bonds 7.1%
1.05 8.8% Asian High Yield Bonds 9.4%
0.98 4.2% US Treasuries 4.4%
0.95 6.3% Asian Local Bonds 6.2%
0.88 8.9% Global EM Bonds USD 8.1%
0.78 9.4% US High Yield Bonds 7.6%
0.68 6.5% Global Bonds 4.6%
0.48 15.1% US Equities 7.5%
0.47 20.6% Asian Equities 10.0%
0.40 15.9% Global Equities 6.7%
30.0% 20.0% 10.0% 0.0% 0.0% 5.0% 10.0% 15.0%
Please note that there are limitations to the use of such indices as proxies for the past performance in the respective asset classes/sector. The historical performance or
forecast presented in this slide is not indicative of and should not be construed as being indicative of or otherwise used as a proxy for the future or likely performance.
Source: Bloomberg, Eastspring Investments, from end December 2000 to end December 2020, in USD, based on monthly data; *Based on risk-free rate of 3-Month
Intercontinental Exchange London Interbank Offered rate (“LIBOR”). Various markets are represented by following indices : Asian High Yield Bonds – JP Morgan
(“JPM”) Asia Credit Index (“JACI”) High Yield Index, Asian USD Bonds – JACI Asia Credit Index, Asian Local Bonds – Markit iBoxx Asian Local Bond Index, Global
Government Bonds – Citi World Govt Bond, US High Yield Bonds – Bank of America Merrill Lynch(“BofAML”) US High Yield, Global Emerging Market Bonds –
JPM Emerging Markets Bond Investment Grade, Asian ex Japan Equities – Morgan Stanley Composite Index (“MSCI”) Asia Ex Japan, Global Equities – MSCI AC
World US$, US Equities – Standard & Poor 500 Index, US Treasuries represented by Citi US Broad Investment-Grade Treasury/Agency Index.
STRICTLY PRIVATE AND CONFIDENTIAL. FOR PROFESSIONAL INVESTORS ONLY.19
WHY INVEST IN ASIAN BOND
COUPON INCOME IS A KEY PILLAR OF RETURNS
Relatively attractive coupon rates offered by Asian bonds provide investors with the potential for enhanced
current income*
PMORGAN ASIAN CREDIT INDEX
ANNUALISED RETURNS FROM SEP 2005 – DEC 2020
10% 9.18%
8.12%
8%
0.70%
5.51%
6%
6.38%
0.69%
4%
7.37%
2% 4.79%
2.63%
0%
Asian USD High Yield Bonds Asian USD Investment Grade Bonds Asian Equities
Interest/ Dividend Income Capital Gains Total
Source: Bloomberg, JPMorgan, Eastspring Investments, in USD, from 30 September 2005 to 31 December 2020; *Barring any defaults or
negative credit developments.
Notes: Asian USD High Yield Bonds, represented by JPMorgan Asia Credit Index – Non-Investment Grade Index, Asian USD Investment Grade
bonds represented by JPMorgan Asia Credit – Investment Grade index, Asian Equities represented by MSCI Asia ex Japan Index, dividend
income calculated from the difference between price returns and total returns. Past performance is not necessarily indicative of the future
performance of the markets and/or the Fund.
STRICTLY PRIVATE AND CONFIDENTIAL. FOR TRAINING PURPOSE ONLY.20
WHY INVEST IN ASIAN BONDS?
POSITIVE YIELD PICK-UP VS. DEVELOPED MARKETS
AVERAGE
AVERAGE YIELD (%) YIELD PER UNIT
CREDIT
OF DURATION (%)
QUALITY
Asian HY Corp 7.0 3.1 B+
50% EM Corporate + 50% EM
Sovereign (Hard Currency) 4.3 0.6 BBB-
US HY Corp 4.2 1.2 B+
Asian USD Bonds 3.1 0.6 BBB
EUR HY Corp 2.9 0.8 BB-
Asian Local Bonds 2.8 0.4 A
Asian IG Corp 2.2 0.4 A-
US IG Corp 1.8 0.2 A-
Developed Gov Bonds* 0.3 0.0 AA
EUR IG Corp 0.2
0.0 A-
Source: Bloomberg, Eastspring Investments, BofAML, Citigroup, Markit iBoxx as at 31 December 2020. * Data as of 30 September 2020. Asian HY Corp as represented
by BofA Merrill Lynch Asian Dollar High Yield Corp Index. Asian IG Corp as represented by BofA Merrill Lynch Asian Dollar Investment Grade Corp Index. US IG Corp and
US HY Corp as represented by BofA Merrill Lynch US Corp and High Yield Indices respectively, Asian Local Bonds as represented by the Markit iBoxx Asian Local Bond
Index, Asian USD Bonds as represented by BofA Merrill Lynch Asian Dollar Index, Developed Govt bonds represented by Citigroup World Government Bond index. EUR
HY Corp and EUR IG Corp represented by BofA Merrill Lynch Euro High Yield and Euro Corporate Indices respectively. 50% EM Corp + 50% EM Sov (Hard currency) as
represented by JP Morgan EMBI Global Diversified Index + JP Morgan CEMBI Broad Diversified Index. HY= High Yield, IG = Investment Grade. Average yield for
corporate bonds are based on yield to worst. Please note that there are limitations to the use of such indices as proxies for the past performance in the respective asset
classes/sector. The historical performance or forecast presented in this slide is not indicative of and should not be construed as being indicative of or otherwise used as a
proxy for the future or likely performance.
STRICTLY PRIVATE AND CONFIDENTIAL. FOR PROFESSIONAL INVESTORS ONLY.FIXED INCOME TEAM, PHILOSOPHY & PROCESS
22
FIXED INCOME EXPERIENCED & STABLE INVESTMENT TEAM
Portfolio Management Portfolio Management Portfolio Management
Life / Solutions Credit Credit Research
Local Rates
Danny Tan (21) Wai Mei Leong (21) Wei Ming Cheong (25) Yong Hong Tan^^ (19)
Investment Director Investment Director Investment Director Credit Manager
Kenneth Lee (7) Eric Fang (17) Guilherme Maciel de Li Ping Yeo^ (26)
Portfolio Manager Portfolio Manager Barros (14) Senior Credit Analyst
Portfolio Manager
Rong Ren Goh (13) Jerry Gwee^ (18)
Boon Peng Ooi # (33) Peerampa Janjumratsang^ (8) Senior Credit Analyst
Head of ES Portfolio Strategies Portfolio Manager Portfolio Manager
Matthew Kok (3) Elvin Tan (15)
Portfolio Manager Senior Credit Analyst
Marvin Kwong (14)
Senior Credit Analyst
Other Investment Support Personnel Shao Keng Ang (12)
Senior Credit Analyst
Guan Yi Low (23)
Ginny Wong (19) Senior Dealer 1
Head of Fixed Income Lee Wai Meng (9)
Vivian Ting (21) Senior Dealer 1
Senior Credit Analyst
Matthew Valath (10) Dealer 1
Tricia Wong (19) Client Portfolio Manager 2
Valerie Yan (4)
Chung Yuh Ang (8) Client Portfolio Manager3 Credit Analyst
Shirley Fong (12) Portfolio Specialist 3
Jacelyn Wu (17) Investment Analyst 4 Ng Kah Wee (3)
Credit Analyst
Credit Research: China (WFOE)
Portfolio managers have an average 16 years of investment William Xin (18)**
Head of Fixed Income
experience and 9 years of experience within the firm
USD62.4* billion of assets under management Janet Lu (11)
Analyst
Source: Eastspring Investments, 1 January 2021. Years of relevant investment experience in brackets (xx). ^Li Ping Yeo, Jerry Gwee and Peerampa Janjumratsang
assume both credit research and portfolio management responsibilities. ^^Yong Hong Tan oversees the credit analyst team. **Secondary reporting line to CIO, Fixed
Income and direct reporting to General Manager, Eastspring China. 1Direct reporting to Head of Central Dealing Desk. 2Direct reporting to Head of Client Portfolio
Managers. 3Direct reporting to Client Portfolio Manager of Fixed Income, Tricia Wong. 4Direct reporting to Investment Director (Fixed Income), Danny Tan. #Boon Peng is
also CEO of Eastspring Singapore and oversees the Equities and Quantitative Strategies teams as well. *As of end December 2020.
STRICTLY PRIVATE AND CONFIDENTIAL. FOR PROFESSIONAL INVESTORS ONLY.23
FIXED INCOME TEAM-BASED RESEARCH APPROACH
USD62.4b Asset Under Management*
Global Macro
Asian Interest Rates 14+ years of fixed income experience
and Currencies
Boon Peng/ Rong
Ren/Guan Yi: G3 and Wei Ming/ Rong Ren : 21 Investment Professionals
Asian rates and currencies
broad interest rate and
Guilherme : GEM rates & 2 Credit Analysts based in
macro views China
currencies
Wei Ming:
Kenneth : Phil & Thai
Commodities rates
700+ Issuers^
Guan Yi: under coverage
Formulation of
Investment
views
Credits Bottom-up &
Wai Mei: Asian Credits Industry Trends
Eric: Global Emerging Credit Analysts: Bottom- Combining
Sovereign/Quasi-Sov up analysis of best of top-down
Markets companies and credit & bottom up
sectors
Strong track record
of credit selection
Source: Eastspring Investments, 31 December 2020. Years of relevant investment experience in brackets (xx).*As of end December 2020.
^Research coverage included corporate, sovereign and quasi-sovereign issuers.
STRICTLY PRIVATE AND CONFIDENTIAL. FOR PROFESSIONAL INVESTORS ONLY.24 FIXED INCOME INVESTMENT PHILOSOPHY Fundamentals, Valuation and Technical factors are the basis for well-informed investment decisions and alpha generation A medium-term investment horizon provides patient investors opportunities to take advantage of dislocations in fair value Investment opportunities are created by identifying cyclical extremities in interest rates and credit spreads Value opportunities arise due to shifts in investor risk perception, resulting in the mispricing of assets relative to fundamentals STRICTLY PRIVATE AND CONFIDENTIAL. FOR PROFESSIONAL INVESTORS ONLY.
25
FIXED INCOME INVESTMENT PROCESS
A rigorous investment process comprising four broad stages
1
INVESTMENT
1 Macroeconomic and market research to determine the
investment outlook and ascertain the fair value of the broad
interest rate, credit and currency markets
OUTLOOK &
FAIR VALUE
4
ANALYSIS
2 Fundamental, valuation and technical analyses of relevant
markets are combined to determine the portfolio’s:
Duration and yield curve strategy
RISK 2 Currency strategy
ASIAN STRATEGY
CONTROL
AND FIXED FORMULATION Credit strategy
REVIEW INCOME
Portfolio is constructed in line with the duration/yield curve,
3
PORTFOLIO
3 sector, credit and currency risk preferences of the team, as
well as the client’s risk preferences and objectives
CONSTRUCTION
Portfolios’ risk exposures are reviewed in real time and
4 discussed during weekly and quarterly team meetings
Performance and risk exposures also reviewed on a quarterly
basis with the Investment Risk Oversight Committee
Source: Eastspring Investments (Singapore) Limited
STRICTLY PRIVATE AND CONFIDENTIAL. FOR PROFESSIONAL INVESTORS ONLY.26
FIXED INCOME INVESTMENT PROCESS
A rigorous investment process comprising four broad stages
MACRO ANALYSIS Analysis & View Assessing Value in Bond Market &
AND DURATION Formulation Bond Markets Duration Strategy
Economic & inflation Monetary policy Duration position
MANAGEMENT outlook pricing versus benchmark
Projected monetary Yield curve slope & Yield curve
policy action forward yield curve strategy
Global interest rate analysis Relative value of
outlook Absolute & real yield bond markets
levels vs history Credit & swap
Supply & demand spread strategy
dynamics
Source: Eastspring Investments.
STRICTLY PRIVATE AND CONFIDENTIAL. FOR PROFESSIONAL INVESTORS ONLY.27
FIXED INCOME INVESTMENT PROCESS
A rigorous investment process comprising four broad stages
Top-down Credit Bottom-up Credit Credit Strategy
Outlook Selection
Economic Assess credit strength Credit allocation
environment and default risk versus benchmark
PROPRIETARY Credit condition Establish Internal Credit sector
Credit Rating (ICR) allocation
CREDIT ANALYSIS Credit migration and
default trend Relative value Value opportunities
& STRATEGY Corporate earnings analysis and calculate
implied credit default
Supply-demand
levels
Risk appetite
Market liquidity
Sector comparison
Cross-market
comparison
Source: Eastspring Investments.
STRICTLY PRIVATE AND CONFIDENTIAL. FOR PROFESSIONAL INVESTORS ONLY.28
TOP-DOWN MACROECONOMIC THEMES
Identify thematic drivers – event Portfolio flow trends into EM and Asia
risks, asset class trends , secular/ region
structural trends Investor positioning – DM vs. EM / Asia
Assess correlations across assets Technical/price signals – Risk assets
and currencies
BOTTOM-UP CURRENCY ANALYSIS
Fundamentals Valuations Technicals
CURRENCY Economic fundamentals Structural valuation
models (eg.
Investor positions – high
level of long or shorts in
MANAGEMENT Monetary policy outlook
Fiscal policy trends
Fundamentals / Real
effective exchange rate)
a currency
Investor sentiment & risk
appetite: risk seeking /
Current account trends Interest rate carry avoidance behaviour
relative to volatility Technical/ price signals:
Eg. MACD, RSI, Trend
Interest rate differentials Channels, Charting
CURRENCY STRATEGIES
Strategic overlays
Relative value and total return assessment
Determine currency positioning relative to benchmark or absolute basis
Tactical overlays
Exploit opportunities arising from market noise and idiosyncrasies prevalent in FX markets.
Risk management due to near term headwinds identified.
Overlays applied to create synthetic bond positions that deliver better risk-adjusted carry, and
lower transaction costs.
Source: Eastspring Investments.
STRICTLY PRIVATE AND CONFIDENTIAL. FOR PROFESSIONAL INVESTORS ONLY.29
PORTFOLIO RISK CONTROLS & REVIEW
REGULAR INVESTMENT MEETING
Our core framework for managing MEETING FREQUENCY PURPOSE DISCUSSION TOPICS
investment risks involves: Local rates and FX
Investment markets updates and Broad macro updates
Meeting Weekly review of key Individual LCY and FX markets
Appropriate risk sizing for (Rates/FX) portfolio risk Discussion on portfolio strategies
exposures
positions and risk control at
outset. Monitoring of positions Discussion and Updates on credit sector meetings
Investment and new issuance activity
update of credit-
with appropriate stop/review Meeting Weekly specific issues and Highlight material issuer
(Credit) developments developments or credit risks
levels Ad-hoc topical / sectoral discussion
Macro and G3 interest rate markets
Comprehensive real time Formulation of Commodity markets
Strategy At least three investment strategy Individual Asian LCY and FX
portfolio monitoring and risk Meeting times a year for the next 3-6 markets
reports months Asian credit markets
Sector / credit focus
Regular portfolio and risk RISK OVERSIGHT MEETINGS
oversight meetings to discuss Monthly One-on-One Quarterly Investment
Quarterly Risk Oversight
with Head of Investment Management Meeting
market and credit risks in light of Strategies with CIOs (IMM)
Review
economic and market Attended by Head of
Attended by Head of Attended by Investment
developments. Investment Strategies Investment Strategies,
Risk team, Head of
and CIO of Fixed Head of Investment
Investment Strategies, and
Income team Solutions and all CIOs of
CIO of Fixed Income team
respective asset classes
Ongoing ad hoc analysis and reviews by Risk Oversight function covering emerging issues
Source: Eastspring Investments. The above views are subject to change at the fund manager’s discretion without prior notice.ASIAN FIXED INCOME STRATEGY
31
ASIAN BOND FIXED INCOME STRATEGY
KEY INVESTMENT PROFESSIONALS
CREDIT RESEARCH TEAM Investment/
Credit Primary Responsibility Firm
Research (Credit Research Coverage) Experience
(years)
China properties, China Investment Grade
Yong Hong Tan corporates, Korea corporates,
19 / 10
(Credit Manager) Australia/Europe/Japan corporates
PORTFOLIO MANAGEMENT China local government financing vehicles
Investment/ William Xin* (LGFV) and Hong Kong HY/Taiwan 18 / 6
Firm corporates
Name Designation Responsibilities
Experience India high yield corporates and other non-
(years) Elvin Tan Asia Emerging Market corporates & 15 / 2
financials
Chief Investment SGD property, China/Hong Kong and
Guan Yi Low, 23 / 13 Marvin Kwong 14 / 7
CFA Officer, Team oversight financial institutions, Indon property issuers
Fixed Income
Malaysia/MYR corporates and other banks
Shao Keng Ang & financial institutions
12 / 13
Wai Mei Portfolio Management of Asian 21 / 13 China central state owned enterprises
Leong Manager USD Credit funds Janet Lu (SOE) and China HY non-property issuers 11 / 1
/ industrials, Macao corporates
Management of Asian Credit research of Hong Kong IG
Valerie Yan Corporates and Singapore properties
3 /32
Key Characteristics of
Differentiating the Strategy
Representative Portfolio
Benchmark JP Morgan Asia Credit
Focus on Asian USD-denominated bonds
64% of the portfolio’s bond securities are Average Duration +/- 1 year benchmark
(Years) duration
investment grade bonds (38% IG Corps)
KEY PRODUCT currently, while the rest are high yield +/- 10% of benchmark
securities (32% HY Corps) Country Limit
weight
FEATURES Average portfolio quality of BBB
Sector Limit N.A.
EASTSPRING Key value add from credit allocation
across sectors and most importantly Average not more
INVESTMENTS – credit selection Average Rating than one notch below
US interest rate management provides a benchmark
ASIAN BOND FUND more moderate source of value-add Non-USD
max 10%
Exposure
OVERVIEW Single Issuer Limit
Higher of 5% or 2%+BM
(Non-Sovereign)
The Investment Team
10 November 2004
Inception Date
(Class D)
Lead Portfolio Manager: Wai Mei Leong
Investment team Strategy Size USD3,334.2 million
11 Portfolio Managers*
8 Credit Analysts
1 Quant Analyst / 1 Investment Analyst Currency USD
Source: Eastspring Investments (Singapore) Limited, 31 December 2020. *Li Ping Yeo, Peerampa and Jerry Gwee assume both
credit research and portfolio management responsibilities. The portfolio characteristics are subject to change at the fund
manager’s discretion without notice. IG stands for Investment Grade, HY stands for High Yield.
STRICTLY PRIVATE AND CONFIDENTIAL. FOR PROFESSIONAL INVESTORS ONLY.33
KEY PRODUCT FEATURE
ROBUST CREDIT SELECTION PROCESS
1. Meeting with
management
Credit selection is key to fund
performance
Selecting credits / sectors will be 2. Fundamental
important alpha generators analysis
5. Site visits, ongoing - Business profile
monitoring and annual
review - Financial profile
The Fund aims to outperform the benchmark
- Internal Credit
through two key sources:
CREDIT SELECTION Rating
1 Credit Strategy
Sector Allocation PROCESS
(Allocation across sovereign/ corporate/
quasi-sovereign, Investment Grade vs. High Yield,
etc.)
Security Selection
(Selection of credits to mitigate default risks and to
pick securities which offer attractive risk-return trade
off)
4. Technical analysis 3. Valuation analysis
2 Duration Strategy
- Demand dynamics - Relative value
(Implementation of US interest rate views,
i.e., overweight/ underweight duration) - Supply risk - Default probability
Source: Eastspring Investments, December 2019
STRICTLY PRIVATE AND CONFIDENTIAL. FOR PROFESSIONAL INVESTORS ONLY.34
ROBUST CREDIT SELECTION PROCESS
DEFAULTS IN ASIAN USD BOND MARKET IN 2019 & YTD 2020
Year Issuer Country Sector
Huiyuan Juice China Consumer
Despite the moderate Kangde Xin China Industrial
MIE Holdings China Oil & Gas
rise in Asian bond New Cotai Macau Consumer
default rate since China Minsheng Investment China Diversified
2019
GCX Limited India TMT
2018, we believe our Haikou Meilan Airport China Infrastructure
rigorous credit Delta Merlin Dunia Textile Indonesia Consumer
Tewoo China Industrials
selection has helped Huachen Energy China Utilities
our funds to avoid Qinghai Provincial Investment China Diversified
extreme drawdowns PKU Founder China TMT
Tunghsu Group China TMT
due to idiosyncratic Jain Irrigation India Industrial
factors Yida China China Real Estate
PKU Resources China Real Estate
Dr Peng China TMT
Garuda India Transport
YTD
Yihua Enterprise China Consumer
2020
MNC Investama Indonesia TMT
Zhongrong Xinda China Diversified
Geo Energy Indonesia Metal & Mining
Hilong Holding China Oil & Gas
MIE Holdings China Oil & Gas
Tahoe Group China Real Estate
Jiansu Nantong Sanj Intl China Industrial
Modernland Realty Indonesia Real Estate
Source: JPMorgan report, 14 October 2020
STRICTLY PRIVATE AND CONFIDENTIAL. FOR PROFESSIONAL INVESTORS ONLY.35
FUND POSITIONING
CHARACTERISTICS, SECTOR, COUNTRY AND CURRENCY BREAKDOWN1
COUNTRY BREAKDOWN
Fund Characteristics Fund BM
No of issues 812 1863
Number of issuers 382 783
Average duration (years) 5.6 5.0
Average credit rating BBB- BBB+
Yield to maturity (%) 4.4 3.3
Yield to worst (%) 4.1 3.1
Currency Fund % Benchmark %
Bond Sector Breakdown Fund % BM % US Dollar 94.3 100.0
Corporate Bond Indonesian Rupiah 1.9 -
36.4 44.2
Investment Grade* Indian Rupee 1.5 -
High Yield* (incl. NR) 32.6 19.9 Hong Kong Delivered
1.0 -
Chinese Renminbi (Yuan)
Government Bond 11.7 13.2
-
Malaysian Ringgit 0.5
Quasi Government 17.8 22.6 Singapore Dollar 0.5 -
Cash 1.5 0.0 South Korean Won 0.3 -
100.0 100.0 Hong Kong Dollar 0.1 -
Total
Total 100.0 100.0
Source: Eastspring Investments (Singapore) Limited as at 31 December 2020. Note: 1Fund positioning is subject to change without
prior notice. The above does not constitute a recommendation of any security/sector/industry. The information provided herein are
subject to change at the discretion of the Investment Manager without prior notice. Benchmark of the Fund is JPMorgan Asia Credit
Index; *Based on credit ratings assigned by external credit rating agencies, S&P, Moody’s or Fitch only.
STRICTLY PRIVATE AND CONFIDENTIAL. FOR PROFESSIONAL INVESTORS ONLY.36
FUND POSITIONING
CREDIT RATING BREAKDOWN & TOP 10 ISSUERS1
CREDIT RATING BREAKDOWN (%) TOP 10 ISSUERS (%)
Ratings by External Agencies* Fund BM Diff Issuers Fund BM Diff
AAA 0.2 0.7 -0.5 INDONESIA (REPUBLIC OF) 6.0 4.8 1.2
AA+ 0.2 0.5 -0.4
AA 1.8 5.0 -3.2 PHILIPPINES (REPUBLIC OF) 2.2 2.9 -0.7
AA- 0.3 0.4 0.0
A+ 9.6 14.4 -4.8 PERUSAHAAN PENERBIT
SURAT BERHARGA SYARIAH 1.6 1.4 0.2
A 4.1 7.4 -3.4
NEGARA INDONESIA III
A- 5.3 8.4 -3.1
BBB+ 13.9 14.5 -0.6 PERUSAHAAN LISTRIK
1.6 1.0 0.6
BBB 17.4 16.6 0.8 NEGARA (PERSERO) PT
BBB- 10.8 9.3 1.5
PERTAMINA PERSERO PT 1.6 1.3 0.3
IG sub-total 63.5 77.2 -13.7
BB+ 2.2 1.9 0.3 KAISA GROUP HOLDINGS LTD 1.5 0.8 0.7
BB 1.7 2.9 -1.2
COUNTRY GARDEN HOLDINGS
BB- 5.8 3.6 2.2 1.5 1.0 0.5
CO LTD
B+ 4.8 2.7 2.1
HUARONG FINANCE 2017 CO
B 6.5 3.7 2.8 1.3 0.7 0.6
LTD
B- 2.2 1.5 0.8 FANTASIA HOLDINGS GROUP
CCC+ and below 2.0 0.8 1.2 1.3 0.2 1.0
CO LTD
NR 9.8 5.7 4.1 SMC GLOBAL POWER
HY sub-total 35.0 22.8 12.2 1.2 0.2 1.0
HOLDINGS CORP
Cash 1.5 0.0 1.5
Total 19.7 14.2 5.5
Total 100.0 100.0 0.0
Source: Eastspring Investments (Singapore) Limited as at 31 December 2020. Note: 1Portfolio positioning is subject to change
without prior notice. The above does not constitute a recommendation of any security/sector/industry. The information provided
herein are subject to change at the discretion of the Investment Manager without prior notice. Benchmark of the Fund is JPMorgan
Asia Credit Index; *Based on credit ratings assigned by external credit rating agencies, S&P, Moody’s or Fitch only.
STRICTLY PRIVATE AND CONFIDENTIAL. FOR PROFESSIONAL INVESTORS ONLY.37
EASTSPRING INVESTMENTS – ASIAN BOND FUND
FUND PERFORMANCE (CLASS A, USD)
3Y 5Y 10Y S.I.
Performance (%) 1M 3M YTD 1Y 2019 2018 2017
p.a. p.a. p.a. p.a.
Eastspring Investments
– Asian Bond Fund 0.7 2.4 5.9 5.9 4.5 4.5 4.2 4.8 11.0 -2.8 4.4
(Class A) (Bid-Bid)
JP Morgan Asia Credit
0.6 1.8 6.3 6.3 5.5 5.6 5.6 6.2 11.3 -0.8 5.8
Index
Relative Return
0.1 0.6 -0.4 -0.4 -1.0 -1.1 -1.4 -1.4 -0.3 -2.1 -1.4
(versus Bid-Bid)
Overall Rating
Source: Eastspring Investments (Singapore) Limited (Benchmark - JP Morgan Asia Credit Index), Morningstar Ratings as at 31 December 2020.;
Returns are based in share class currency and computed using the NAV price on bid-bid basis with net income reinvested . The NAV price is net of
all fees, expenses and withholding taxes. Calendar year returns are based on the share class performance for the year and if the share class is
incepted during a particular year, the returns shown relate to the performance of the share class since its inception till end of that calendar year.
Fees and expenses vary among share classes, further information is available in the Prospectus. Note: Funds are rated based on their risk-
adjusted returns. Performance and benchmark values are rounded off to 1 decimal place. p.a. refers to per annum. Investors should be aware that
past performance of the Fund is not necessarily indicative of the future or likely performance of the Fund.
STRICTLY PRIVATE AND CONFIDENTIAL. FOR PROFESSIONAL INVESTORS ONLY.38
EASTSPRING INVESTMENTS – ASIAN BOND FUND
QUARTERLY FUND CHANGES
QUARTERLY CHANGES IN SECTOR ALLOCATION (RELATIVE WEIGHT VERSUS BENCHMARK)
Source: Eastspring Investments (Singapore) Limited as at 31 December 2020. Relative position of the Fund versus the JPMorgan
Asia Credit Index; Investment Grade/ High Yield classifications based on credit ratings assigned by external credit rating agencies,
S&P, Moody’s or Fitch only. Non-Rated bonds are included under High Yield. The information provided herein are subject to change
at the discretion of the Investment Manager without prior notice. Note: IG refers to Investment Grade, HY refers to High Yield.
STRICTLY PRIVATE AND CONFIDENTIAL. FOR PROFESSIONAL INVESTORS ONLY.39
INVESTMENT STRATEGY AND OUTLOOK
Asian countries have generally been relatively
However, we are cognizant that spreads
successful in the fight against COVID-19,
have tightened in significantly, while the
allowing the region’s economies to recover uneven growth recovery could still
faster and keeping default risks manageable. challenge weaker issuers. We will thus
This economic recovery should accelerate in be cautious in adding risk from here as
2021 as vaccines are rolled out globally. valuations are less compelling and in
Realistically speaking though, the growth anticipation of strong issuances ahead.
boost from virus immunization should come
only in the second half of the year, given major We will, however, retain our overweight in high
yield sector and may look to add moderate local
hurdles in vaccine distribution and the near-
currency bond exposures on pull-back.
term challenges mentioned above.
Both fiscal and monetary policies are likely to We may also look to add our duration position if
remain accommodative to nurse the still fragile UST yields overshoots our expected range.
economic recovery.
The favourable macro backdrop suggests that
Asian bonds should continue to perform well
in 2021.
Low-to-negative rates in most developed
markets will encourage capital inflows to Asia,
where the growth outlook is being supported
by a better management of the pandemic.
Source : Eastspring Investment, December 2020
STRICTLY PRIVATE AND CONFIDENTIAL. FOR PROFESSIONAL INVESTORS ONLY.APPENDIX
41
ASIAN USD BOND (JPM) COMPOSITE DECEMBER 2020 (USD)
Annualised figures
Rolling Period Data Calendar Year Data YTD 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010
1m 1Y 2 Y 3 Y 4 Y 5 Y 6 Y 7 Y 8 Y 9 Y 10 Y S. I.
Composite Return - Net (%) 0.8 6.6 9.3 5.6 5.6 5.7 5.1 5.5 4.6 5.6 5.4 6.6 Composite Return - Net (%) 6.6 6.6 12.2 -1.6 5.8 5.8 2.2 8.4 -1.9 14.1 3.6 10.5
Composite Return - Gross (%) 7.1 7.1 12.5 -1.3 6.1 6.2 2.5 8.7 -1.6 14.5 4.0 10.9
Composite Return - Gross (%) 0.8 7.1 9.8 6.0 6.0 6.0 5.4 5.9 4.9 6.0 5.8 7.0
Benchmark Return (%) 6.3 6.3 11.3 -0.8 5.8 5.8 2.8 8.3 -1.4 14.3 4.1 10.6
Benchmark Return (%) 0.6 6.3 8.8 5.5 5.6 5.6 5.2 5.6 4.7 5.7 5.6 6.6
Relative to Gross (%) 0.8 0.8 1.2 -0.5 0.4 0.3 -0.3 0.4 -0.2 0.3 -0.1 0.3
Relative to Gross (%) 0.2 0.8 1.0 0.5 0.4 0.4 0.3 0.3 0.2 0.2 0.2 0.4 Composite 3-Year Annualised
6.6 6.6 2.9 3.1 3.0 3.3 4.5 4.8 6.1 5.3 6.5 11.4
Composite Annualised Volatility (%) N/A 10.7 7.7 6.6 5.7 5.4 5.1 4.8 5.1 5.0 5.2 6.4 Volatility (%)
Benchmark 3-Year Annualised
4.9 4.9 2.6 2.9 2.8 3.1 4.2 4.5 6.1 5.4 6.2 11.8
Highest Return in Composite (%) 0.8 7.1 9.8 6.0 6.0 6.0 5.4 5.9 4.9 6.0 5.8 N/A Volatility (%)
Number of Portfolios 1 1 1 1 1 1 1 1 1 1 1 1
Lowest Return in Composite (%) 0.8 7.1 9.8 6.0 6.0 6.0 5.4 5.9 4.9 6.0 5.8 N/A
Market Value at End, USD
3.33 3.33 4.25 3.53 3.37 3.04 2.73 2.28 2.04 2.20 1.71 1.21
Tracking Error (%) N/A 3.2 2.2 1.9 1.6 1.5 1.3 1.3 1.2 1.1 1.1 1.2 (bn)
Percentage of Firm’s Assets
Information Ratio N/A 0.2 0.4 0.2 0.3 0.3 0.2 0.3 0.2 0.2 0.2 0.3 (%) N/A N/A 3.41 2.53 2.31 2.67 2.70 2.40 2.66 2.72 2.57 1.83
Eastspring Investments claims compliance with Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. To receive a
complete list and description the composites and/or a presentation that adheres to the GIPS standards, contact the relevant sales representatives or email institutional@eastspring.com.
The Firm is defined as all portfolios, except those that are predominantly Private Equity portfolios, of Eastspring Investments (Singapore) Limited and Eastspring Investments (Hong-Kong) Limited (collectively referred to as "Eastspring
Investments"), which are business units within the Prudential Plc Group.
This composite includes separately managed portfolios that primarily invest in Asian fixed incomes securities and managed to JP Morgan Asia Credit Index.
This Composite was created on 1 Jul 02 and Composite Performance starts from 1 Jul 02. A full List of the Firm's Composites is available upon request.
In Aug 2006, the benchmark was renamed from Chase Asia Bond Total Return Composite Index to JP Morgan Asia Credit Index.
Eastspring Investments has been independently verified for the periods 1 Jan 1995 - 31 Dec 2009 and 1 Jan 2018 - 31 Dec 2018. The verification reports are available upon request.Verification assesses whether (1) the firm has
complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firms policies and procedures are designed to calculate and present performance in compliance with the GIPS
standards. Verification does not ensure the accuracy of any specific composite presentation.
The minimum fund size requirement for a fund to be included in a composite is USD3 million.
All returns are presented in Dollar. Market Values are presented in Dollar.
Policies for valuing portfolios, calculating performance and preparing compliant presentations are available upon request.
Performance results are presented gross of investment management fees and net of trading expenses. Treatment of other fees and withholding tax on dividends, interest income and capital gains varies for the underlying portfolios.
Additional information on other fees treatment are available upon request.
Portfolios within the composite has no or minimal derivatives exposure
If a fund has a cash flow or in-specie transfer (either in or out) that is greater than 10% of the opening balance of the fund, then the impact on portfolio performance has to be assessed to determine whether it should be held out-of-
structure. If the impact on performance is equal to or greater than 20 basis points, then the fund can be excluded from composite performance until it is back in structure. Additional information regarding the treatment of significant cash
flows is available upon request.
The highest % of management fee charged are as per below:
Equity Strategies : 2.00% per annum
Fixed Income Strategies : 1.25% per annum
Additional information regarding policies for calculating and reporting returns is available on request
The Firm total assets under management as of 31 December 2019 was USD125 billion.
Net composite returns shown do not represent actual net returns of underlying portfolios but are calculated net of the highest band fee (net down by 0.5% p.a.) in the tiered management fee schedule applicable to an institutional
investor investing in such a strategy. However, the firm reserves the right to change this fee structure and hence net composite returns might change without prior or subsequent notifications to current or potential investors
Effective 1st November 2018, Information Ratio is calculated as (Annualized Fund Return - Annualized Bench Return) / Tracking Error.
Prior to 1st November 2018, Information Ratio was calculated as (Average Annualized Excess Return / Tracking Error).
STRICTLY PRIVATE AND CONFIDENTIAL. FOR PROFESSIONAL INVESTORS ONLY.42
EASTSPRING INVESTMENTS – ASIAN BOND FUND
SHARE CLASSES AVAILABLE FOR INVESTMENT
Inception *Minimum *Minimum
Class Currency Bloomberg ticker ISIN date initial investment subsequent investment
Class A USD PRUASBA LX LU0154355936 01-Mar-05 USD500 USD50
Class Adm USD IOFASBA LX LU0428352776 02-Jun-09 USD500 USD50
Class R USD ESABDRU LX LU0865487804 14-Dec-12 USD500 USD50
Initial sales Annual Annual admin Initial sales Annual Annual Ongoing
Class charges% management fee% (max) charges% management admin fee% charges %
(max) fee% (max) (current) fee% (current) (current)
Class A 3.000 1.250 0.250 3.000 1.000 0.250 1.340
Class Adm 3.000 1.250 0.250 3.000 1.000 0.250 1.340
Class R None 0.625 0.250 None 0.500 0.250 0.840
Ongoing charges vary from year to year and do not include portfolio transaction cost.
Ongoing charges are based on annualized expenses for the year ending December 2020.
Annual R-class shares are not sold directly to investors, but to financial intermediaries that serve
Class Distribution Dividend per dividend investors. The intermediary executes the purchase of the funds on behalf of the investor, as
Ex-date
frequency share yield % well as the sale and exchange. The Sales Charge may be modified for certain financial
intermediaries who submit trades on behalf of eligible investors. As allowed in the
Prospectus, Eastspring and the financial intermediaries have agreed to waive the Sales
Class A N.A N.A N.A N.A Charge for all purchases for the fee-based R share class. Always consult your financial
adviser. For more about charges, see the Prospectus.
Class Adm Monthly 01-Mar-21 0.0410526 5.00
Class R N.A N.A N.A N.A
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. Funds with Monthly and Quarterly Distribution Frequency: Annualised Dividend yield = (Dividend
per share / Reference NAV at start of distribution period) x (No. of calendar days in a year / No. of calendar days in distribution period) x 100%. Funds with Yearly
Distribution Frequency: Annualised Dividend Yield = (Dividend amount / Total Net Assets) x (No. of calendar days in a year / No. of calendar days in distribution period)
x 100%. *Or their near equivalent in any major freely convertible currency of the amounts specified. "N.A.": This share class does not distribute dividends.
STRICTLY PRIVATE AND CONFIDENTIAL. FOR PROFESSIONAL INVESTORS ONLY.43
FIXED INCOME INVESTMENT TEAM PROFILE
Yrs of Yrs of Yrs of Yrs of
Portfolio Primary Responsibility (Credit
Primary Responsibilities Investment Firm Credit Research Investment Firm
Management Experience Experience Research Coverage) Experience Experience
Team oversight and management of
Guan Yi Low 23 13 China properties, China Investment
Asian Local bond, Total Return bond Yong Hong Tan
Grade corporates, Korea corporates, 19 10
and China Bond strategies (Credit Manager) Australia/Europe/Japan corporates;
Management of Asian, Singapore,
Wei Ming Cheong Indonesian bond strategies, as well as 25 15 Credit funds; Credit research of
SGD Cash strategies Li Ping Yeo^ China property and India Investment 26 3
Management of Hong Kong bond and Grade corporates
Danny Tan other solution-based/ credit-focused 21 17 Research coverage of Indonesia/IDR
strategies Jerry Gwee^ non property / industrials as well as 18 7
SGD non-property corporates
Management of Asian USD credit China local government financing
Wai Mei Leong 21 13
strategies William Xin* vehicles (LGFV) and Hong Kong 18 6
Management of Global Emerging HY/Taiwan corporates;
Markets Bond strategy, Fixed India high yield corporates and other
Eric Fang 17 13
Maturity products as well as selected Elvin Tan non-Asia Emerging Market 15 2
credit strategies corporates & financials
SGD property, China/Hong Kong and
Guilherme Maciel de Management of Global Emerging
14 2 Marvin Kwong financial institutions, Indon property 14 8
Barros Markets bond strategy
issuers;
Management of Global and Japan Malaysia/MYR corporates and other
bond strategies, as well as thematic / Shao Keng Ang 12 14
banks & financial institutions;
Rong Ren Goh Total Return strategies including Asian 13 5
Sustainable Bond, Capital Reserve China central and local state owned
funds enterprises (SOE) and China HY non-
Janet Lu 11 1
Management of Philippines Local/USD property issuers / industrials, Macao
Kenneth Lee bond and selected Asian USD credit 7 6 corporates
solution-based strategies
Wai Meng Lee Credit Research Support 9 2
Management of Thai bond strategies
Peerampa 8 4 Credit research of Hong Kong IG
Janjumratsang^ and Fixed Maturity products; Research 344
INVESTMENT TEAM BIOGRAPHIES
Wai Mei Leong is a Portfolio Manager in the as Senior Analyst at the Bank of Nova
Fixed Income team and is the Lead Portfolio Scotia Asia Ltd, Commerce International
Manager for Asian hard currency fixed Merchant Bankers (CIMB), Malaysia and
income portfolios, including the Asian Bond ABN AMRO Bank, Singapore. Wai Mei has
and High Yield Bond strategies. 21 years of investment experience.
Wai Mei joined Eastspring Investments in Wai Mei holds a Postgraduate Diploma
September 2007. (Finance) from Melbourne University and
Bachelor of Business (Accounting) from
Prior to joining Eastspring Investments, Wai RMIT, Australia. She is a Certified Public
Mei has worked in various capacities in Accountant.
Wai Mei Leong, CPA relation to credit including holding positions
Director – Fixed Income Credits
Guan Yi Low is the CIO of the Fixed Income Chartered Bank Singapore. Guan Yi has 22
team and is responsible for overseeing the years of investment experience.
management of the firm’s fixed income
strategies. She is also the lead Portfolio Guan Yi holds a Bachelor of Business from
Manager for Eastspring’s Asian local Nanyang Technological University,
currency and total return bond funds. Singapore. She is also a CFA charterholder.
Guan Yi joined Eastspring Investments in
August 2007. Prior to joining Eastspring
Investments, Guan Yi was managing Asian
local currency and credit portfolios at Bank
Guan Yi Low, CFA Pictet et Cie Asia Ltd, Fullerton Fund
Chief Investment Officer, Fixed Income Management Company and at Standard
STRICTLY PRIVATE AND CONFIDENTIAL. FOR PROFESSIONAL INVESTORS ONLY.45
INDEX DEFINITIONS
It is not possible to invest directly in an index. The performance of foreign indices may be based on different exchange rates than those used by a Fund
and, unlike the Fund’s NAV, is not adjusted to reflect fair value at the close of regular trading on the NYSE (generally 4:00 PM Eastern Time) on each day
that the exchange is open for trading.
MSCI AC Asia Pacific ex Japan Index captures large and mid cap representation across 4 of 5 Developed MSCI Singapore Free Index is a free-float adjusted market capitalization weighted index that is designed
Markets countries* (excluding Japan) and 8 Emerging Markets countries* in the Asia Pacific region. With to track the equity market performance of Singapore securities listed on Singapore Stock Exchange. The
678 constituents, the index covers approximately 85% of the free float-adjusted market MSCI Singapore Free Total Return Index takes into account both price performance and income from
capitalization in each country. dividend payments. The MSCI Singapore Free Index is constructed based on the MSCI Global Investable
Market Indexes Methodology targeting a free-float market capitalization coverage of 85%.HSBC ALBI with
MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to Government & Corporate Bonds
measure equity market performance of the following 23 emerging market country indexes: Brazil, Chile,
China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, J.P. Morgan Asia Credit Index (JACI) tracks total return performance of the Asia fixed-rate dollar bond
Peru, Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey* and United Arab market. JACI is a market cap-weighted index comprising sovereign, quasi-sovereign and corporate bonds
Emirates. and it is partitioned by country, sector and credit rating. Quasi-Sovereign, Sovereign, Utility, Conglomerates,
Telecom, Banks, Petrochemical, Petroleum, Electronics, Industrial, Infrastructure, Automobile, and Property.
MSCI Golden Dragon Index captures the equity market performance of large and mid cap China JACI sub-indexes include: JACI Sovereign and Quasi-sovereign Index, JACI Corporate Index, JACI
securities (H shares, B shares, Red-Chips and P-Chips) and non-domestic China securities listed in Hong Investment Grade Index, JACI Non-investment Grade Index, etc.
Kong and Taiwan.
UOB SGS Index is designed to provide Singapore fund managers and interest rate market participants with
FTSE Asia Pacific ex Japan Index is one of a range of indices designed to help investors to benchmark a Singapore government bond index calculated using internationally accepted practices. The Index is an
their Asia Pacific investments. The index comprises Large and Mid cap stocks providing coverage of the accumulation index incorporating price and income components covering only Singapore government
Developed and Emerging markets in Asia Pacific excluding Japan. bonds.
Topix 100 Index is a capitalization-weighted index designed to measure the performance of the 100 most MSCI ACWI Index captures large and mid cap representation across 23 Developed Markets (DM)*** and
liquid stocks with the largest market capitalization that are members of the TOPIX Index, also known as the 23 Emerging Markets (EM)** countries. With 2,446 constituents, the index covers approximately 85% of the
Tokyo Stock Price Index, which is a capitalization weighted index of all companies listed on the First global investable equity opportunity set.
Section of the Tokyo Stock Exchange. The index is supplemented by the sub indices of the 33 industry
sectors. MSCI World Index, which is part of The Modern Index Strategy, is a broad global equity benchmark that
represents large and mid-cap equity performance across 23 developed markets countries. It covers
FTSE Japan Index is comprised of large and mid cap Japanese companies that are constituents of the approximately 85% of the free float-adjusted market capitalization in each country and MSCI World
FTSE All-World Index. FTSE Kaigai Index (FTSE Developed ex Japan Index) consists of Large and Mid cap benchmark does not offer exposure to emerging markets.
companies from the Developed markets of the FTSE All-World Index excluding Japan. The FTSE All-World
Index in turn represents the Large and Mid Cap companies within the FTSE Global Equity Index Series S&P Emerging BMI Index captures all companies domiciled in the emerging markets within the S&P
(GEIS). Global BMI with a float-adjusted market capitalization of at least USD 100 million meeting 6- and 12-month
median value traded requirements.
Jakarta Stock Exchange Composite Index is a modified capitalization-weighted index of all stocks listed
on the regular board of the Indonesia Stock Exchange. MSCI China A Index is derived from the MSCI China A International Index but only includes securities that
are accessible through “Stock Connect”. The index is designed for international investors and is calculated
S&P Korea BMI (US Dollar) Index captures all companies domiciled in South Korea within the S&P Global using China A Stock Connect listings based on the offshore RMB exchange rate (CNH). Also, the index
BMI with a float-adjusted market capitalization of at least USD 100 million meeting 6- and 12-month median constituents are weighted by the security free-float adjusted market capitalization calculated based on the
Foreign Inclusion Factor (FIF) and subject to Foreign Ownership Limits (FOLs). The MSCI China A Index is
value traded requirements.
rebalanced simultaneously with the MSCI Global Investable Market Indexes, using the same price and data
cut-off dates.
JPM GABI Index consists of the JPM GABI US, a U.S. dollar denominated, investment-grade index
spanning asset classes from developed to emerging markets, and the JPM GABI extends the U.S. index to
also include multi-currency, investment-grade instruments.
Source: Eastspring Investments *Developed Markets countries in the index include: Australia, Hong Kong, New Zealand and Singapore. **E M
include: China, India, Indonesia, Korea, Malaysia, the Philippines, Taiwan and Thailand. ***DM include: Australia, Austria, Belgium, Canada,
Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain,
Sweden, Switzerland, the UK and the US. EM countries include: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India,
Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Russia, Qatar, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates.
STRICTLY PRIVATE AND CONFIDENTIAL. FOR PROFESSIONAL INVESTORS ONLY.You can also read
