Asian Bond Fund
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EASTSPRING INVESTMENTS - ASIAN BOND FUND December 2020 eastspring.us/eastspring.comoffshoreadvisor 2 LEADING ASSET MANAGER IN ASIA LEVERAGING OUR ASIAN DNA TO CAPITALISE ON GLOBAL OPPORTUNITIES 1994 USD 248bn 300+ INVESTMENT One of the DEEP INSIGHTS Founded 1994 in Managing USD 248bn PROFESSIONALS^ LARGEST INTO ASIA Singapore (HQ) and assets on behalf of Unrivalled on-the-ground ASIAN ASSET 100% owned by institutional and individual Our investment teams' investment presence in Asia Prudential plc (UK) investors globally MANAGERS deep understanding of 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 Benchmark JPMorgan Emerging Markets Bond Index - 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 across different sectors, including government Investment Objective grade bonds issued by Asian denominated bonds issued by government 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, Investment Objective domestic Asian bonds and currencies; 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 IG/HY Corporate: Max 10% for single issuer exposure: 30% 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 Local Asian Asian Asian High Yield Bond Currency Bond 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 Category Low Guan Yi Management) 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 st Currency Category Rank 1 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 st Award) Currency Category Rank 1 Low (Highly commended) (Awarded by The Asset Benchmark (Awarded by The Asset Benchmark Research) 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