Schroder AsiaPacific Fund plc
The Company’s principal investment objective is to achieve capital growth through investment primarily in equities of companies located in the continent of Asia (excluding the Middle East and Japan), together with the Far Eastern countries bordering the Pacific Ocean, with the aim of achieving growth in excess of the MSCI All Countries Asia excluding Japan Index in Sterling terms (Benchmark Index) over the longer term.
The Company has built a strong long-term performance record targeting attractive investment opportunities across Asian equity markets. Providing exposure to Asia’s superior long-term growth potential, the Company leverages the local knowledge of Schroders’ extensive network of analysts in the region and has been managed by Matthew Dobbs since launch in 1995.
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.
What are the risks?
- 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.
- Investors in the emerging markets and the Far East should be aware that this involves a high degree of risk and should be seen as long term in nature. Less developed markets are generally less well regulated than the UK, they may be less liquid and may have less reliable arrangements for trading and settlement of the underlying holdings.
- The trust holds investments denominated in currencies other than sterling, investors should note that exchange rates may cause the value of these investments, and the income from them, to rise or fall.
- The trust Invests in smaller companies that may be less liquid than in larger companies and price swings may therefore be greater than investment trusts that invest in larger companies.
- 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.
Non-Mainstream Pooled Investments (NMPI) Status
The Company currently conducts its affairs so that its shares can be recommended by IFAs to ordinary retail investors in accordance with the FCA's rules in relation to non-mainstream investment products and intends to continue to do so for the foreseeable future. The Company's shares are excluded from the FCA's restrictions which apply to non-mainstream investment products because they are shares in an investment trust.
Alternative Investment Fund Managers Directive Disclosure
How we aim to achieve this objective
The key word is Multi-Asset. The fund invests in a broad range of asset types,
which can help to generate positive returns or reduce risk at different times.
These include assets that are familiar to most, such as equities and bonds, along with assets in more specialist investment areas such as currencies and commodities. By casting our net as widely as possible, we can exploit opportunities in places that others may not be able to access.
We think about assets in terms of how they can help us to achieve the fund’s
objectives, aiming to achieve the right balance for the prevailing market
At any point in time, the fund will contain a balance between assets that we define in three ways:
1) Return seekers
These are the assets that offer the most attractive return potential on a 1 to 3 year view
2) Risk reducers
These are the assets that can help us to reduce the risk of short-term falls in the market
These are assets that have little or no correlation with bonds and equities, which can help to smooth the performance of the portfolio
One of the most important factors that we seek to control is the level of volatility that investors are exposed to, so when market conditions are unsettled, we employ a range of strategies to help to minimise the impact on the fund.
We always explain what we are doing and why in the regular reports that we provide, so you can readily understand where we are taking (or reducing) risk to meet objectives.
Understanding risk around Investment Trusts
Getting to grips with discounts and premiums
Since shares in an investment trust are traded on the stockmarket, the price is based on supply and demand among investors, rather than what the fund’s underlying investments are worth, known as the net asset value (NAV).
Investment trusts as a portfolio diversification strategy
First developed in the nineteenth century, an investment trust is incorporated as a public company and listed on the London Stock Exchange. A type of collective or pooled investment fund, an investment trusts is a professionally managed fund which combines the money of a broad range of investors in a single investment vehicle.
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What are the risks?
Past performance is not a guide to future performance and may not be repeated. The value of investments, and the income from them, can go down as well as up and investors might not get back the amount originally invested.
Some trusts invest solely in the companies of, or in property located in, one country or region. This can carry more risk than investments spread over a number of countries or regions.
Investors in the emerging markets and the Far East should be aware that this involves a high degree of risk and should be seen as long term in nature.
Exchange rates may cause the value of investments denominated in currencies other than sterling, and the income from them, to rise or fall.