Schroder ISF Sustainable Asian Equity
Delivering alpha through a sustainable lensIntroducing Schroder ISF* Sustainable Asian Equity
An actively managed and differentiated Asia Pacific ex Japan Equity portfolio grounded in sustainability characteristics (SFDR Article 8)1
Why does sustainability matter for Asia?
Take advantage of the growing climate change investment opportunity in Asia
Long-term forecasts2 indicate that climate change will significantly impact the performance of Asian equity markets if action is not taken to combat it.
Fortunately, Asian governments and businesses have started taking concrete steps towards adaptation and mitigation, creating numerous investment opportunities across the region:
- Southeast Asia has seen US$15 billion in cumulative investments since 2020, with the majority going to renewables and the built environment.3
- However, an additional US$3 trillion is needed to close the emission gap of 2.6 to 3.2 gigatons versus 2030 targets.3
Socially-responsible companies can deliver better growth in the long-run
Companies run with consideration of social issues like diversity and inclusion, as well as fair labour practices can deliver better growth through improved employee productivity, talent retention and avoidance of significant reputational risks.
Good governance drives long-term outperformance
Companies with good governance drives long-term shareholder value, and ultimately, share price outperformance. However, there is a wide dispersion of corporate governance scores across Asia4, hence detailed analysis is needed to pick out the best companies that will outperform in the long-term.
Why Schroder ISF Sustainable Asian Equity?
1. Delivering Returns
Proven track record of delivering strong outperformance against the benchmark and peers consistently, through its focus on alpha generation.5,6
Past performance is not a guide to future performance and may not be repeated.
2. Embedded Sustainability Lens:
Actively managed Asia Pacific ex Japan portfolio constructed through fundamental, bottom-up stock research underpinned by thorough sustainability analysis.
We select investments which fall within three categories, namely “Sustainable Companies”, “Sustainable Living” companies, and “Sustainable Transition” companies, to deliver to investors a portfolio grounded in sustainability characteristics.
3. Expertise and Resources:
For investors who want to take advantage of the growing opportunity-set in sustainable Asian equities, they should consider active managers with a well-trodden, structured approach to ESG.
- A large and experienced Asian equity team comprising of over 50 investment professionals7
- Supported by a dedicated sustainability team with award-winning proprietary tools
4. Stable Monthly Income:
For investors seeking a regular income stream, the fund’s distribution share class seeks to provide a 3.0% monthly payout⁵,⁶ through a combination of dividends and longer term capital appreciation potential in the Asian companies held within the fund.
⁵The annualised payout rate shown is as at the last record date of 30 Dec 2022. For more information on the annualized dividend rate of a single payout and the composition of distribution payments, please refer to www.schroders.com.sg/distributioninformation.
⁶Distributions of the Schroder ISF Sustainable Asian Equity (the “Fund”) for share class USD A Dis and SGD A Dis will be declared on a monthly basis. The distributions are not guaranteed and will be reviewed periodically. In the event of income and realised gains being less than the intended distribution, distributions will be made from capital. Investors should be aware that the distributions may exceed the income and realised gains of each fund at times and lead to a reduction of the amount originally invested depending on the date of initial investment.
Awards
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Meet the fund manager
Manish Bhatia, based in Hong Kong, joined Schroders in 2008 and has over 20 years of investment experience. Prior to joining Schroders, he was Senior Portfolio Manager at Manulife Asset Management, responsible for the management of several Asia Pacific portfolios and country funds for India and Taiwan.
Manish Bhatia
Fund Manager, Indian Equities
Disclaimers
*Schroder International Selection Fund is referred to as Schroder ISF.
1The fund has environmental and/or social characteristics within the meaning of Article 8 of Regulation (EU) 2019/2088 on Sustainability-related Disclosures in the Financial Services Sector (the “SFDR”). For information on sustainability-related aspects of this fund, please go to www.schroders.com.
2Source: Schroders, 30-Year Forecasts, Jan 2022
3Source: Bain & Company’s Southeast Asia Green Economy 2022 report
4Source: CLSA, Asian Corporate Governance Association
7Source: Schroders, as at December 2022
This advertisement has not been reviewed by the Monetary Authority of Singapore. This is prepared by Schroders for information and general circulation only and the opinions expressed are subject to change without notice. It does not constitute an offer or solicitation to deal in units of any Schroders fund (the “Fund”) and does not have regard to the specific investment objectives, financial situation or the particular needs of any specific person who may receive this. Investors may wish to seek advice from a financial adviser before purchasing units of any Fund. In the event that the investor chooses not to seek advice from a financial adviser, he should consider whether the Fund in question is suitable for him. Past performance of the Fund or the manager, and any economic and market trends or forecast, are not necessarily indicative of the future or likely performance of the Fund or the manager. The value of units in the Fund, and the income accruing to the units, if any, from the Fund, may fall as well as rise. Investors should read the prospectus, available from Schroder Investment Management (Singapore) Ltd or its distributors, before deciding to subscribe for or purchase units in any Fund. Funds may carry a sales charge of up to 5%.