Schroder Asian Total Return Inv. Company

Asia-Pacific Equities

Rated Fund 2018-20. Strong choice for more cautious investors in Asia

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

Veteran management duo Robin Parbrook and King Fuei Lee have run the trust since 2013. Particularly 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. They then deploy hedges and options to modify the risks, including short-term market risk.

They are wary about the outlook for world stockmarkets. They reckon 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 in 2020. The proof of the pudding is that the trust held up well last year, despite hedges in the portfolio acting as a drag, and it is a top performer over three and five years.

Morningstar hails it a “terrific option” for Asia Pacific ex Japan exposure. David Liddell, a director at IpsoFacto Investor, an online investment advisory service, regards it an “attractive way to navigate potentially choppy Asian markets”, while broker Charles Stanley likes it as a core holding in this area, given its ability to add value in both positive and negative market scenarios.

The trust has a discount control mechanism in place. Its shares tended to trade at a modest premium to its net assets throughout 2019.

Narrative and ratings content all as of January 2020.  

See all Money Observer rated funds
Name
Schroder Asian Total Return Inv. Company
Manager
Schroder Unit Trusts Limited
Type
Closed Ended Investment Company
ISIN
GB0008710799
Sector
Asia Pacific
Launched
26/11/1987
OCF
0.87 %
Risk Rating
4
3 Year Sharpe
0.65
3 Year Alpha
3.46
Yield
1.8 %
Benchmark
MSCI AC Asia Pac Ex JPN GR USD
Fund Size
£ 287.78 million
NAV
310
Gearing
105
Discount Premium
-5
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 7.87 %
Taiwan Semiconductor Manufacturing Co Ltd 7.80 %
Alibaba Group Holding Ltd ADR 6.71 %
Tencent Holdings Ltd 6.16 %
HDFC Bank Ltd ADR 5.97 %
AIA Group Ltd 5.15 %
Jardine Strategic Holdings Ltd 4.38 %
Galaxy Entertainment Group Ltd 4.34 %
Techtronic Industries Co Ltd 4.30 %
Swire Properties Ltd 3.79 %
Region %
Asia - Developed 50.73 %
Asia - Emerging 27.86 %
Australasia 15.31 %
Sector %
Consumer Cyclical 20.22 %
Financial Services 19.05 %
Technology 18.37 %
Industrials 15.87 %
Healthcare 7.90 %
Real Estate 7.41 %
Name
Schroder Unit Trusts Limited
Address
EC2Y 5AU, 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.

The Content is only for your general information and use and is not intended to address your particular requirements. The Content does not constitute any form of advice, recommendation or arrangement by Money Observer and is not intended to be relied upon by you in making (or refraining from making) any specific investment or other decisions. Appropriate independent advice should be obtained before making any such decision.

This information is sourced from our partner Morningstar. We believe the data to be correct however you should take care in using any information.

You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.