Schroder Asian Total Return Inv. Company

Asia Equities

Rated Fund 2018-19. Strong choice for more cautious investors in Asia Pacific

A newcomer to our recommendations in 2018, Schroder Asian Total Return investment trust has proved a resilient addition and was highly commended in the Best Asia Pacific Trust category of Money Observer’s 2018 awards.

Veteran duo Robin Parbrook and King Fuei Lee have worked together for 17 years and have run the trust since 2013. Importantly, in light of current market conditions, they seek to combine bottom-up investment in a portfolio of quality Asia Pacific firms with a degree of capital preservation. To this end, the managers use a quantitative model to indicate when countries are cheap or expensive on a medium-term view, and then deploy hedges and options to modify the risks, including short-term market risk.

They think Asia should escape the worst effects, but they expect to keep a relatively high level of hedging to protect the trust from choppy trading as credit markets tighten during 2019.

The proof of the pudding is that the trust held up well last year and also outperformed most of its peers in 2017, despite taking out put options on five Asia Pacific markets, which acted as a drag on performance.

Morningstar hails it “an exceptional Asia Pacific ex Japan equity offering, with unique downside resilience”, while David Liddell, a director at IpsoFacto Investor, an online investment advisory service, believes its total return objective makes it a “useful addition to the armoury of the investor in Asia”. The trust has a discount control mechanism in place. Its shares tended to trade at a modest premium to its net assets throughout 2018.

Narrative and ratings content all as of January 2019.  

See all Money Observer rated funds
Name
Schroder Asian Total Return Inv. Company
Manager
Schroders Investment Management
Type
Closed Ended Investment Company
ISIN
GB0008710799
Sector
Asia Pacific - Excluding Japan
Launched
26/11/1987
OCF
0.97 %
Risk Rating
2
3 Year Sharpe
1.73
3 Year Alpha
9.80
Yield
1.4 %
Benchmark
MSCI AC Asia Pac Ex JPN GR USD
Fund Size
£ 328.92 million
NAV
349
Gearing
103
Discount Premium
1
To provide a high rate of total return primarily through investment in equity and equity related securities in Asia Pacific Companies (excluding Japan). The Company seek to offer a degree of capital preservation through tactical use of derivative instruments. It is intended that the Company will have a bias to investing in small and mid-cap companies.
Holding %
Samsung Electronics Co Ltd 4.90 %
Tencent Holdings Ltd 4.37 %
HDFC Bank Ltd ADR 4.01 %
Taiwan Semiconductor Manufacturing Co Ltd 3.74 %
Swire Properties Ltd 3.33 %
Jardine Strategic Holdings Ltd 3.24 %
AIA Group Ltd 3.03 %
Alibaba Group Holding Ltd ADR 2.81 %
BHP Group Ltd 2.79 %
Aeon Thana Sinsap (Thailand) PCL DR 2.73 %
Region %
Asia - Developed 45.69 %
Asia - Emerging 30.31 %
Australasia 14.24 %
United States 5.29 %
Sector %
Technology 25.57 %
Financial Services 22.73 %
Consumer Cyclical 16.61 %
Real Estate 10.63 %
Industrials 9.37 %
Healthcare 7.38 %
Name
Schroders Investment Management
Address
EC2V 7QA, London, United Kingdom
UCITS
No
Legal Structure
Closed Ended Investment Company

Managers

Robin Parbrook
Joined 03/15/2013

Robin Parbrook is the Co-head of Asian Alternative investments at Schroders, his main responsibility is co-running the Asian Total Return Fund and Asian Total Return Investment Company. In 2017 he returned to the UK having spent most of the previous 25 years with Schroders in Asia. Prior to this he was head of the Asian Equity Team, overseeing the investment team and equity products managed in the region. He joined Schroders in 1990 and is based in London. Robin was the Head of Asian Equities at Schroders (based in Hong Kong) from 2010 to 2017, . He was the Co-Manager SISF Asian Total Return Fund at Schroders UK (based in Edinburgh) from 2007 to 2010, . He was an Asian Equity Fund Manager (and Team Head from 2004) at Schroders Hong Kong/Singapore from 1992 to 2007, . Alongside the Asian Total Return Funds he also managed the SISF Asian Opportunities fund until the end of 2017. Qualifications: MA in Economics from Edinburgh University.

King Fuei Lee
Joined 03/15/2013

King Fuei Lee is the Head of Asian Equities (Singapore) at Schroders, which involves managing Developed Pacific ex-Japan, Asian Total Return and Asian Yield mandates. King Fuei was appointed Head of Asian Equities (Singapore) in March 2011 where he has oversight of the Asia ex Japan Equity fund managers in the Singapore office. He joined Schroders in 1999 and is based in Singapore. King Fuei was a Fund Manager at Schroders (Singapore) from 2001 to 2011, which involved transferring from the Global Equities Team in the London office to the Asian Equities Team in Singapore in Dec 2001. King Fuei was promoted to Manager in 2003, Associate Director in 2005, and Director in 2006. He was a Graduate Trainee at Schroders (UK) from 1999 to 2001, which involved joining Schroders as a graduate trainee. Qualifications: CFA Charterholder; Investment Management Certificate (IMC); M.Phil in Economics from Cambridge University; BA in Economics (First Class Honours) from London School of Economics.

Data provided by Morningstar.

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