Schroder Asian Total Return Investment plc

"You can’t dine off relative returns, and in Asia we believe the benchmark indices are a poor reflection of the overall investment opportunities. The priority of the Company is to make money, whilst providing an element of capital preservation in a volatile asset class."

Robin Parbrook & King Fuei Lee

Co-Managers of the Schroder Asian Total Return Investment Company

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Introduction

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Taking a different approach to investing in Asia

Why invest?

Seeks to provide a total return to investors whilst providing an element of capital protection.
Delivered annualised returns of more than 11% compared with 2.8% from the Asia Pacific (excluding Japan) market indices and less than 1% return from three-month LIBOR.
Managed by a team with extensive experience and expertise. Robin Parbrook has more than 20 years of experience covering Asia at Schroders, while King Fuei Lee has more than 15 years of industry experience.
Fundamental research is at the heart of the investment process. Our fund managers leverage the local knowledge of Schroders’ wide network of analysts across the region.

Meet the managers

Robin Parbrook

Co-manager of the Schroder Asian Total Return Investment Company

With more than 20 years of experience covering Asia at Schroders, Robin Parbrook is the head of Asia (excluding Japan) equities and a regional and alternatives fund manager based in Hong Kong. Before managing the Asia Total Return Investment Company, Robin was head of the Schroders Asian investment team, where he managed a range of Asian funds including the Morningstar five-star rated Schroder International Selection Fund (ISF) Hong Kong Fund.

King Fuei Lee

Co-manager of the Schroder Asian Total Return Investment Company

King Fuei Lee began working with the Singapore-based Schroders Asian investment team in 2001. Currently head of Asia equities (Singapore), King Fuei manages a variety of institutional Asia Pacific (excluding Japan) accounts, including the award-winning Nikko Global Wrap Developed Pacific Equity Fund and the SISF Asian Equity Yield Fund.

Investment objective

The Company seeks to provide a high rate of total return through investment in equities and equity-related securities of companies trading in the Asia Pacific region (excluding Japan). The Company seeks to offer a degree of capital preservation through tactical use of derivative instruments.

Investment policy

The Company invests principally in a diversified portfolio of 40-70 companies operating primarily in Asia, including Australasia but excluding Japan. It is intended that the Company will have a bias to investing in small and mid cap companies.

Investments may be made in companies listed on the stock markets of countries located in the region and/or listed elsewhere but controlled from within the region and/or with a material exposure to the region. The Company will focus on investing in companies with sound balance sheets, professional management and capital allocation policies that are aligned with the interests of minority shareholders.

The use of derivatives to protect the capital value of the portfolio or for efficient portfolio management is fundamental to the strategy of the Company's Portfolio Managers. Such derivatives may include listed futures, call options, long puts, OTC instruments and instruments to hedge currency exposure with Board approval. The Board will monitor the effectiveness of the underlying process and the use of derivatives.

In order to obtain further exposure to equity indices or individual stocks, the Company may enter into contracts for difference where the underlying investments are not delivered and settlement is made in cash. In extreme circumstances, and subject to Board approval, the majority, or even all, of the Company's assets could be held in cash or near cash instruments, with appropriate diversification of cash held on deposit.

The Company may use gearing to enhance performance but net gearing will not exceed 30% of net asset value. The Company does not tie its portfolio construction to the constituents of any benchmark; instead, the size of stock positions are set on an absolute basis reflecting where the best potential risk adjusted returns are to be found.

Investor profile

May be suitable for investors who:

are aiming for capital growth and willing to invest in a higher-risk fund
are willing to accept possible short-term losses for the benefit of potential long-term gains
are looking for exposure to the potential growth from Asian equities
are comfortable with the risks associated with an equity-based investment
have a medium- to long-term investment horizon of three to five years or more

May not be suitable for investors who:

are seeking a lower-risk fund
don’t want to put their capital at risk
are uncomfortable with the level of risk associated with equity-based investment
have a short-term investment horizon
can’t tolerate short-term volatility

Getting started

Investment trusts offer a flexible and effective way to gain exposure to some of the world's most dynamic markets and regions, and can be used to meet a variety of investment outcomes. For more information on how Schroder Asian Total Return Investment Plc shares can be bought and sold, visit our How to invest page.

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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 may go down as well as up and investors may not get back the amount originally invested.

Investors in the emerging markets and Asia 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 Company 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 Company invests in smaller companies that may be less liquid than in larger companies and price swings may therefore be greater than investment companies that invest in larger companies.

The Company 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 Company

The fund can use derivatives to protect the capital value of the portfolio and reduce volatility, or for efficient portfolio management.

Contact Schroders

Schroders is a world-class asset manager operating from 37 locations across Europe, the Americas, Asia, the Middle East and Africa.

Worldwide locations

For any further questions, please contact us.

Please remember that the value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested.

Marketing material.

Issued by Schroder Unit Trusts Limited, 1 London Wall Place, London EC2Y 5AU. Registered Number 4191730 England.

Schroder Unit Trusts Limited is an authorised corporate director, authorised unit trust manager and an ISA plan manager, and is authorised and regulated by the Financial Conduct Authority.

On 17 September 2018 our remaining dual priced funds converted to single pricing and a list of the funds affected can be found in our Changes to Funds. To view historic dual prices from the launch date to 14 September 2018 click on Historic prices.

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Schroder Asian Total Return Investment Company plc

"You can’t dine off relative returns, and in Asia we believe the benchmark indices are a poor reflection of the overall investment opportunities. The priority of the Company is to make money, whilst providing an element of capital preservation in a volatile asset class."

Robin Parbrook & King Fuei Lee

Co-Managers of the Schroder Asian Total Return Investment Company

Why invest?

Meet the managers

Robin Parbrook

Co-manager of the Schroder Asian Total Return Investment Company

King Fuei Lee

Co-manager of the Schroder Asian Total Return Investment Company

Investment objective

Investment policy

Investor profile

May be suitable for investors who:

May not be suitable for investors who:

Getting started

Never miss an update

Latest insights

Learn more about our approach to managing investment trusts and access the latest ideas and opinions from our investment teams.

What are the risks?

Contact Schroders