Marketing material
Schroder AsiaPacific Fund plc
Matthew Dobbs, Fund Manager January 2020 Schroders in the Far East Strong regional presence
– Matthew Dobbs has over 38 years of Schroders office
investment experience with Schroders, Tokyo 30 of which has been spent following Opened 1974 Seoul Far Eastern markets Opened 1987 Beijing – Richard Sennitt has 26 years of Opened 1996 Mumbai2 investment experience all of which have Opened 2012 Taipei been spent following the Far Eastern Opened 1989 markets and all at Schroders Shanghai Opened 1994 1 – 37 ex Japan analysts based in six Hong Kong offices across the region Opened 1971 Singapore Opened 1977 Jakarta Opened 1991
Sydney Opened 1963 Melbourne Opened 2007
Investment office Representative office 2A joint venture fund management company with Axis Asset Management Company Source: Schroders, as at 31 December 2019. 1December 2019. Includes a joint-venture team of Indian equity specialists at Axis Asset Management (Axis AMC) in Mumbai. The Axis AMC team is fully integrated and provides support and coverage for Indian stocks within our research universe.
2 Asia Pacific ex Japan Equities research Our research team Years Years of Years with Years of Analyst Location Coverage Analyst Location Coverage with Experience Schroders Experience Schroders Raymond MAGUIRE Hong Kong Head of Research 23 5 Regional Energy and Sameer KAKAKHEL, CFA Singapore 25 8 Jay LUONG1 Hong Kong Regional Financials 20 12 Materials Sherry LIN Hong Kong Regional Financials 26 10 Jeonghoon (Matthew) YANG Hong Kong Korean Equity 12 6 Alice LIU Hong Kong China Equity 10 1 Philippines, Thailand Maggie LI, CFA Hong Kong China Equity 6 6 Siok Mei LIM, CFA Singapore 25 24 and Vietnam Domestic Maurien YAU, CFA Hong Kong China Equity 28 15 Indonesian and Ashley CHUNG Hong Kong China Equity 14 2 Siew Ling TAN, CFA Singapore 11 6 Malaysia Domestic Wei LI Hong Kong China Equity 9 2 Chuanyao LU, CFA Singapore Singapore Domestic 12 2 Jose PUN Hong Kong China Equity 9 1 Gina KIM, CFA Singapore Asian Small Caps 20 7 4 Sarah LIU Shanghai China Equity 14 6 Martin CONLON Sydney Australian Domestic 31 26 Andrew FLEMING5 Sydney Australian Domestic 31 12 Candice CHEN Shanghai China Equity 6 2 Joseph KOH Sydney Australian Domestic 23 10 Kelly ZHANG, CFA Shanghai China Equity 8 4 Justin HALLIWELL6 Sydney Australian Domestic 23 23 Nina YAN Shanghai China Equity 12 1 Ray DAVID Sydney Australian Domestic 18 7 Jingyi SONG Shanghai China Equity 3 1 Daniel PETERS, CFA Sydney Australian Domestic 20 11 Jack LEE, CFA2 Shanghai China Equity 21 7 Sally WARNEFORD Sydney Australian Domestic 26 2 Chen-Hsiu CHEN, CFA Taipei Regional Technology 22 20 Joseph WRIGHT Sydney Australian Domestic 8 3 Vana MAKARIC Sydney Australian Domestic 10 3 Ashish NAIK Mumbai3 India Domestic 13 10 Nitin ARORA Mumbai3 India Domestic 11 2 Depth of research, 37 career analysts in 6 offices Deepak AGRAWAL Mumbai3 India Domestic 13 5 Hitesh DAS Mumbai3 India Domestic 9 5 Source: Schroders, as at December 2019. Mayank HYANKI Mumbai3 India Domestic 12 4 1 Jay Luong also has fund management role. Vinayak JAYANATH Mumbai3 India Domestic 5 3 2 Head of China-A shares Research and reports directly to Louisa Lo. 3Joint venture fund management company with Axis Asset Management Company. Average 16 7 4Head of Australian Equities. 5Deputy Head of Australian Equities. 6Head of Australian Research.
3 Performance Schroder AsiaPacific Fund plc NAV performance
Benchmark: MSCI AC Asia ex Japan Index1 (net dividends reinvested) Current value: £857,294,118 Inception date: 20 November 1995
Returns to 31 December 2019 (£) 3 months 1 year 3 years 5 years Since inception % % % p.a. % p.a. % p.a. Schroder AsiaPacific Fund plc2 4.1% 15.0% 12.1% 12.2% 8.2%
MSCI AC Asia ex Japan 4.0% 13.6% 10.2% 10.2% 5.6%
Relative performance 0.1% 1.4% 1.9% 2.0% 2.6%
Past performance is not a guide to future performance. The value of investment can go down as well as up and is not guaranteed.
Source: Morningstar, Schroders. Source for ratings: Morningstar and Citywire, as at 31 December 2019. Please see Morningstar disclaimer at the end of the presentation. 1Prior to 28 February 2011 Benchmark was MSCI AC Far East ex Japan. 2Cum-income fair NAV Total Return (since inception Total Return NAV), net of fees, GBP.
5 Schroder AsiaPacific Fund plc NAV performance
Calendar year returns (£) Q4 2018 – Q4 2019 Q4 2017 – Q4 2018 Q4 2016 – Q4 2017 Q4 2015 – Q4 2016 Q4 2014 – Q4 2015 % % % % % Schroder AsiaPacific Fund plc2 15.0% -11.7% 38.7% 27.6% -1.0% MSCI AC Asia ex Japan1 13.6% -9.1% 29.5% 26.1% -3.6% Relative performance 1.4% -2.6% 9.2% 1.5% 2.6%
Past performance is not a guide to future performance. The value of investment can go down as well as up and is not guaranteed.
Source: Morningstar, Schroders. 1Prior to 31 January 2011 Benchmark was MSCI AC Far East ex Japan. 2Cum-income fair NAV Total Return, net of fees, GBP.
6 Schroder AsiaPacific Fund plc Performance – Since inception1 to December 31, 2019
Index 100 = 20 November 1995 700 650 +562% 600 550 500 450 400 350 +264% 300 250 200 150 100 50 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Schroder AsiaPacific Fund plc2 MSCI AC Asia ex Japan (NDR)3
Past performance is not a guide to future performance. The value of investment can go down as well as up and is not guaranteed.
1 20 November 1995 2 Total Return NAV, net of fees, GBP. 3 Prior to 31/01/2011 Benchmark was MSCI AC Far East ex Japan Source: Morningstar, Schroders
7 Schroder AsiaPacific Fund plc Risk factors
– Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amount originally invested. – Emerging markets, and especially frontier markets, generally carry greater political, legal, counterparty and operational risk. – The trust can be exposed to different currencies. Changes in foreign exchange rates could create losses. – The trust may be concentrated in a limited number of geographical regions, industry sectors, markets and/or individual positions. This may result in large changes in the value of the fund, both up or down, which may adversely impact the performance of the fund. – The trust may borrow money to invest in further investments, this is known as gearing. Gearing will increase returns if the value of the investments purchased increase in value by more than the cost of borrowing, or reduce returns if they fail to do so. – Investments such as warrants, participation certificates, guaranteed bonds, etc will expose the fund to the risk of the issuer of these instruments defaulting on paying the capital back to the fund.
Source: Schroders.
8 Outlook Asian outlook Global monetary easing point to better global growth – a positive for Asia
Global Manufacturing PMI*1 Central Bank cuts point to PMI improvement2
55 1.15 63 1.0
61 0.8 54 1.10 59 0.6 57 53 0.4 1.05 55 0.2 52 53 0.0 1.00 51 51 -0.2 49 0.95 -0.4 50 47 45 -0.6 0.90 49 43 -0.8 Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep Sep 48 0.85 95 97 99 01 03 05 07 09 11 13 15 17 19 2012 2014 2016 2018 Global Manufacturing PMI new orders
Global Manufacturing PMI New Order/Inventory (RHS) % of Central Banks Cutting v Hiking, 8m lead, rhs
Source: 1Refinitiv Datastream, as at 31 December 2019. 2Credit Suisse November 2019. *PMI – Purchasing Managers Index
10 Asian Outlook However market already anticipating recovery
Changes in valuations have dominated1 Therefore earnings need to grow2
Consensus EPS* growth for Pacific ex Japan 50% 30%
40% 25%
30% 20% 20% 15% 10% 10% 0% 5% -10%
-20% 0%
-30% -5% 2016 2017 2018 2019 -10% 2015 2016 2017 2018 2019 Price Earnings Rerate EPS % Price return 2021/2020 2020/2019 2019/2018 2018/2017 2017/2016 2016/2015
Past performance is not a guide to future performance. The value of investment can go down as well as up and is not guaranteed. Source: 1Schroders,Bloomberg. December 31, 2019. Data is based on the MSCI AC Pacific ex Japan Index. 2FactSet Estimates, MSCI, as at December 31, 2019. *Earnings Per Share (EPS) 11 Asian outlook Valuations now at or above 10 year averages
Price to book (x) Historic price/earnings1 (x)
3.0 30
2.7 25 2.4 20 2.1
1.8 15
1.5 10 1.2
0.9 5
1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019
1999 1991 1993 1995 1997 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 Asia Pacific ex Japan price to book ratio Asia Pacific ex Japan price / earnings ratio Average Average Average - 10 years December 31, 2019 Average - 10 years December 31, 2019
Source: Citi Investment Research, as at 31 December 2019.
12 Asian Outlook Some positive factors for Asian markets
MSCI regions (incl-fin) – Return of Equity trends MSCI regions (ex-fin) – net gearing trend % of companies with yield over 3% Net debt to equity % % 20 80
18 70 16
14 60 12
10 50
8 40 6
4 30 2
0 20
20F 21F
19E
04A 05A 06A 07A 08A 09A 10A 11A 12A 13A 14A 15A 16A 17A 18A
2004A 2005A 2006A 2007A 2008A 2009A 2010A 2011A 2012A 2013A 2014A 2015A 2016A 2017A 2018A USA AC Europe Japan AC Pacific ex-JP USA AC Europe Japan AC Pacific ex-JP
Source: Jefferies, FactSet, January 2020. Note: ROE and net gearing data is bottom up aggregated with freefloat adjustment based on current MSCI universe. The forecast should be regarded as illustrative of trends. Actual figures will differ from forecasts. Please refer to the important information slide at the end of this presentation
13 Asian Outlook “De-globalisation” – nothing wildly new
Global cross border lending1 Asia its own trading bloc2
45% 65% Globalisation 60% Globalisation 40%
55% 35% 42% 50% 30% De-globalisation 45%
25% 40% Regionalisation
20% 35%
2009 2014 2019 1993 2001 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2010 2011 2012 2013 2015 2016 2017 2018 1981 1983 1985 1987 1989 1991 1995 1997 1999 2003 2005 2007 2009 2011 2013 2015 2017 2019
Global Cross Border Bank Lending (% of GDP*) Proportion of Interregional-to-Total Goods Exports from the Region Proportion of Interregional-to-Total Goods Imports to the Region
Source: 1BofA Global Research, IMF. January 2020. 2BofA Global Research, IMF, Bloomberg. Based on MSCI AC World and MSCI Frontier Markets countries. January 2020. *Gross domestic product (GDP).
14 Asian Outlook North Asia – rising R&D and upskilling should help support growth. Brains vs. brawn
R&D spending as a % of GDP1,3 Number of patents filed2 Share of global patents filed2 2000 2008 2012 2017 Thousands Korea 2.2% 3.1% 4.0% 4.6% 300 50% Japan 2.9% 3.3% 3.2% 3.2% 45% Taiwan 1.9% 2.7% 3.0% 3.3% 250 US 2.6% 2.8% 2.7% 2.8% 40% Germany 2.4% 2.6% 2.9% 3.0% 35% France 2.1% 2.1% 2.2% 2.2% 200 4 Singapore 1.8% 2.6% 2.0% 2.2% 30% Australia 1.5% 2.2% 2.1% 1.9%5 China 0.9% 1.4% 1.9% 2.1% 150 25% Canada 1.9% 1.9% 1.8% 1.6% UK 1.6% 1.6% 1.6% 1.7% 20% 100 Spain 0.9% 1.3% 1.3% 1.2% 15% Italy 1.0% 1.2% 1.3% 1.4% Russia 1.0% 1.0% 1.0% 1.1% 10% 50 India 0.8% 0.9% 0.8% 0.6%5 Hong Kong 0.5% 0.7% 0.7% 0.8% 5% 5 South Africa 0.7% 0.9% 0.7% 0.8% 0 0% Turkey 0.5% 0.7% 0.8% 1.0%
Malaysia 0.5% 0.8% 1.1% 1.3%5
1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011
1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 Mexico 0.3% 0.5% 0.5% 0.5%6 1985 Thailand 0.2% 0.2% 0.4% 0.6%6 Americas APAC ex. Japan Americas APAC ex. Japan Egypt 0.2% 0.3% 0.5% 0.6% Eastern Europe EU Eastern Europe EU Philippines 0.1% 0.1% 0.1% 0.1%3 Japan LATAM Japan LATAM 3 Indonesia 0.1% 0.1% 0.1% 0.1% Middle East and Africa Middle East and Africa
Source: 1World Bank, OECD, Macquarie Research, June 2019. 2Patsnap, February 2017. 3Gross domestic product (GDP). Regions shown are for illustrative purposes only and should not be viewed as a recommendation to buy or sell. 3Latest data point is as of 2013. 4Latest data point is as of 2014. 5Latest data point is as of 2015. 6Latest data point is as of 2016.
15 Asian Outlook China – slower but more sustainable growth – easing trade drag
Effects of the trade war in China A slower but more balanced growth for 2020 Percentage points Percentage points
0.3 0.3 2018 2019e 2020e 2021e Effect of the Trade War on China Real 0.2 QoQ Annualized GDP Growth* 0.2 0.1 0.1 GDP by expenditure %YoY 6.6 6.1 5.8 5.7 Domestic demand %YoY 7.4 5.4 5.6 5.5 0.0 0.0 Consumption %YoY 9.8 7.5 7.6 7.6 -0.1 -0.1 Gross capital form. %YoY 4.4 2.9 3.0 2.8 -0.2 -0.2 Net exports PPT -0.6 0.7 0.3 0.2 -0.3 -0.3 Net Trade Exports %YoY 4.7 1.0 2.5 3.5 Real Income -0.4 -0.4 Imports %YoY 8.6 -3.0 1.0 2.5 FCI -0.5 -0.5 Trade Policy Fixed Asset Investment -0.6 Uncertainty -0.6 (FAI) forecasts Total -0.7 -0.7 Headline FAI %YoY 5.9 4.8 4.6 4.4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 Manufacturing %YoY 9.5 2.5 5.0 6.0 2018 2019 2020 2021 Infrastructure %YoY 3.5 5.0 5.0 5.0 *Assumes 25% tariff on List 1-3 remains and a rollback of 15% tariff on list 4A, no more escalation Real Estate %YoY 9.5 10.0 6.0 5.0 Others %YoY 1.2 3.5 2.0 0.0
Source: Goldman Sachs Global Investment Research, January 2020. The forecast should be regarded as illustrative of trends. Actual figures will differ from forecasts. Please refer to the important information slide at the end of this presentation.
16 Asian Outlook China managing a tricky transition
China Purchasing Managers’ Index (PMI) China real wage growth YoY % YoY % 58 12%
56 10% 54 8% 52
50 6%
48 4% 46 2% 44
42 0%
e
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Caixin Manufacturing PMI (Seasonally adjusted) Caixin Services PMI (Seasonally adjusted) Disposable Income per Capita: Urban Wage and Salary
Source: DSG Asia, January 2020.
17 Asian Outlook China increasingly a credible and substantial end market
Chinese growth 'needed‘1 Domestic economy not to be underestimated2 (% y-o-y) 16
14
12
10
8
6
4
2
0 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Real GDP growth What's needed'
Source: 1HSBC. January 2019. 2Visualcapitalist.com, May 2019. Regions and countries shown are for illustrative purposes only and should not be viewed as a recommendation to buy or sell. The forecast should be regarded as illustrative of trends. Actual figures will differ from forecasts. Please refer to the important information slide at the end of this presentation.
18 Asian Outlook Hong Kong economy has been hit hard
Hong Kong Retail Sales Hong Kong Visitor Arrivals YoY % YoY % % change year on year % change year on year 30% 30%
20% 20%
10% 10%
0% 0%
-10% -10%
-20% -20%
-30% -30%
-40% -40%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Hong Kong Retail Sales Hong Kong Visitor Numbers
Source: Thomson Reuters Datastream, January 2020.
19 Asian Outlook The future for Hong Kong as the mainland sees it – perhaps not so bad?
Source: Visual Capitalist, August 2018.
20 ESG integration Embedded in our culture and investment process
Thematic research Communication – Examines key sustainability trends and challenges current thinking – ESG specialists sit amongst investment teams to facilitate – Focused on investment impacts regular dialogue – Research and engagements shared on global research platform – Monthly Sustainability Investor Group meeting to discuss research insights and upcoming agenda
Proprietary ESG tools Investors Training – ESG guidance document covering 170+ GICS sub-sectors – ESG training for new joiners and existing analysts – Investment-driven ESG tool, CONTEXT – Sector specific training ESG – Country Sustainability Dashboard Analysts – Investment desk training specialists – SustainEx – Regular sector specific news and updates
ESG Analysis Monitoring – ESG specialists work with research analysts to understand key ESG issues and – Ongoing monitoring of companies to identify emerging issues and evaluate impact on the investment case candidates for engagement – ESG analysis included in research notes – Collaboration with Data Insights team to track sustainability trends and – ESG specialists periodically review to highlight best practice and negative events suggest improvements – Quarterly screening of desk portfolios to identify holdings with poor ESG ratings
Source: Schroders.
21 ESG integration More than 2,200 engagements across 52 countries
Number of engagements Company engagements by region
2,500
2,000
1,500
1,000
500
0 2014 2015 2016 2017 2018 Change facilitation Fact-finding
Source: Schroders, as at 31 December 2018.
22 ESG integration Governance is key
Ownership Structures in Asia are quite different from developed markets so a greater scrutiny of Governance is always the starting point in our work YoY %
Measure Emerging Asia All US UK
Family firm 360 1243 264 46 Founder firm 256 1483 668 87 State owned enterprise 336 624 6 5 Any of the above 790 2914 847 123 Total companies 983 7780 3002 536 Family/founder/state owned as % of total 80% 37% 28% 23%
Source: Schroders, April 2019.
23 ESG integration Asia’s environmental impact
Carbon Emissions1 Top Six Carbon Emitters2 YoY % YoY %
Source: 1CDIAC; Friedlingstein et al 2019; Global Carbon Budget 2019. 2CDIAC; Peters et al 2019; Friedlingstein et al 2019; Global Carbon Budget 2019. January 2020
24 ESG integration Environmental vulnerability of Asia
Asia-Pacific coastal zones at risk1 China has to face the challenge2 YoY % YoY %
Source: 1Asian Development Bank, World Bank, July 2017. 2Researchgate.net, October 2015.
25 ESG integration Asia is part of the solution
EV+ESS* Battery Supply and Demand1 Battery capacity1
GWh % (Capacity in GWh – 2023 estimates) 2,500 By 2029, total supply not LG Chem enough even without any further consolidation 2,000 By 2026, total supply not Panasonic/Tesla enough (assuming some consolidation) CATL 1,500 By 2023, tier 1 battery supply Samsung SDI is not enough to meet government target 1,000 BYD
Others 500 China technology producers market share2
0 Market chare in China Market chare rest of world % of first tier components
% % from Chinese suppliers
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Solar panels 100 50 78 Demand - Govt target Supply - Consolidation (Tier 1 only) Supply - Consolidation Supply - No consolidation Wind turbines 80 5 68 Total capcity (GWh)
1 Source: Bernstein, January 2020. Electric vehicles 95 5 68 2Source: McKinsey Global Institute, January 2020. *Electric Vehicles (EV), Energy Storage System (ESS) The forecast should be regarded as illustrative of trends. Actual figures will differ from forecasts. Please refer to the important information slide at the end of this presentation
26 Positioning Schroder AsiaPacific Fund plc Active country positions as at 31 December 2019
Overweight/underweight positions % of portfolio Underweight Overweight
4.7 Other 4.7
2.9 Australia 2.9
5.3 Singapore 1.7
1.7 Vietnam 1.7
0.7 Japan 0.7
50.3 HK / China 0.2
0.0 Sri Lanka 0.0
0.0 Pakistan 0.0
1.4 Indonesia -0.9
0.2 Philippines -0.9
8.6 India -1.5
0.0 Malaysia -2.1
0.9 Thailand -2.1
11.6 Korea -2.2
9.6 Taiwan -4.2
2.1 Cash 2.1
Source: Schroders. Fund position less benchmark weight. Based on unaudited data. Country examples are for illustrative purposes only and are not a recommendation to buy or sell.
28 Schroder AsiaPacific Fund plc As at 31 December 2019
Overweight/underweight positions Overweight % of portfolio Underweight
20.8 Consumer Discretionary 6.1
22.3 Information Technology 3.6
26.2 Financials 3.2
6.4 Real Estate 0.6
6.7 Industrials 0.0
2.1 Health Care -0.9
3.2 Materials -1.1
1.2 Energy -2.8
8.6 Communication Services -2.9
0.0 Utilities -3.0
0.3 Consumer Staples -4.8
2.1 Cash 2.1
Source: Schroders. Fund position less benchmark weight. Based on unaudited data. Sector examples are for illustrative purposes only and are not a recommendation to buy or sell.
29 Schroder AsiaPacific Fund plc Top 20 holdings as at 31 December 2019
Top 20 holdings
Company name Country % portfolio Company name Country % portfolio
Alibaba Group Hldg China 8.0 Ping An Insurance China 2.3
Samsung Electronic Korea 7.5 Hdfc Bank India 2.3
Taiwan Semicon Man Taiwan 7.2 Samsung Sdi Korea 2.2
Tencent Hldgs Ltd China 6.5 Kerry Properties Hong Kong 2.1
Aia Group Ltd Hong Kong 3.7 Oversea-Chinese Bk Singapore 2.0
Galaxy Entertainment Hong Kong 3.1 Hong Kong Exchange Hong Kong 2.0
Icici Bank India 3.0 Swire Pacific Hong Kong 1.9
Midea Group Co Ltd China 3.0 Hon Hai Precision Taiwan 1.9
Boc Hong Kong Hldg Hong Kong 2.7 Prada Spa Hong Kong 1.9
Bhp Billiton Australia 2.6 Keppel Corp Singapore 1.9
Total of top 20 67.8
Source: Schroders. FactSet PA3. Based on unaudited data. Stock examples are for illustrative purposes only and are not a recommendation to buy or sell.
30 Important information
Marketing material. Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amount originally invested. Exchange rate changes may cause the value of any overseas investments to rise or fall. Schroders has expressed its own views and opinions in this document and these may change. This information is not an offer, solicitation or recommendation to buy or sell any financial instrument or to adopt any investment strategy. Nothing in this material should be construed as advice or a recommendation to buy or sell. Information herein is believed to be reliable but we do not warrant its completeness or accuracy. Any data has been sourced by us and is provided without any warranties of any kind. It should be independently verified before further publication or use. Third party data is owned or licenced by the data provider and may not be reproduced, extracted or used for any other purpose without the data provider’s consent. Neither we, nor the data provider, will have any liability in connection with the third party data. The material is not intended to provide, and should not be relied on for accounting, legal or tax advice. Reliance should not be placed on any views or information in the material when taking individual investment and/or strategic decisions. No responsibility can be accepted for error of fact or opinion. The forecasts included in this presentation should not be relied upon, are not guaranteed and are provided only as at the date of issue. Our forecasts are based on our own assumptions which may change. We accept no responsibility for any errors of fact or opinion and assume no obligation to provide you with any changes to our assumptions or forecasts. Forecasts and assumptions may be affected by external economic or other factors. Any references to securities, sectors, regions and/or countries are for illustrative purposes only. Schroders will be a data controller in respect of your personal data. For information on how Schroders might process your personal data, please view our Privacy Policy available at www.schroders.com/en/privacy-policy or on request should you not have access to this webpage. For your security, communications may be recorded or monitored.
31 Important information – Schroder AsiaPacific Fund plc
Risk Factors: Schroder AsiaPacific Fund plc: – Emerging markets, and especially frontier markets, generally carry greater political, legal, counterparty and operational risk. – The trust can be exposed to different currencies. Changes in foreign exchange rates could create losses. – The trust may be concentrated in a limited number of geographical regions, industry sectors, markets and/or individual positions. This may result in large changes in the value of the fund, both up or down, which may adversely impact the performance of the fund. – The trust may borrow money to invest in further investments, this is known as gearing. Gearing will increase returns if the value of the investments purchased increase in value by more than the cost of borrowing, or reduce returns if they fail to do so. – Investments such as warrants, participation certificates, guaranteed bonds, etc will expose the fund to the risk of the issuer of these instruments defaulting on paying the capital back to the fund.
32 Important information
Source for ratings: Morningstar, as at 31 December 2019. © 2019 Morningstar UK Ltd. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. For more detailed information about Morningstar's Analyst Rating, including its methodology, please go to: http://corporate.morningstar.com/us/documents/MethodologyDocuments/AnalystRatingforFundsMethodology.pdf For disclosure and detailed information about this fund please refer to full Morningstar Global Fund Report: http://essentials.morningstar.com/file/downloadEuAnalystRatingReport?IsUKCOUNTRY=false&univ=FO&isFullReport=true&msgType=514,639&MstarId=F0G BR04DLC&countryId=GBR&languageId=EN Third party data is owned or licensed by the data provider and may not be reproduced or extracted and used for any other purpose without the data provider's consent. Third party data is provided without any warranties of any kind. The data provider and issuer of the document shall have no liability in connection with the third party data. The Prospectus and/or www.schroders.com contains additional disclaimers which apply to the third party data. Subscriptions for fund units can only be made on the basis of its latest Key Investor Information Document and Prospectus, together with the latest audited annual report (and subsequent unaudited semi-annual report, if published), copies are available in English and can be obtained, free of charge, from Schroder Unit Trusts Limited. Issued in January 2020 by Schroder Unit Trusts Limited, 1 London Wall Place, London EC2Y 5AU. Registered No: 4191730 England. Authorised and regulated by the Financial Conduct Authority. GJE000032
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