Discover Asia’s growth opportunities of tomorrow
Asia’s role as a leading economic powerhouse is undeniable, with the region’s economies ranking amongst the fastest growing and most dynamic in the world1.
1Source: International Monetary Fund, real GDP growth, as of October 2020.Some of the trends contributing to the region’s growth:
Wide-spread urbanisation
Rapid industrialisation
Advancement of digital R&D and innovation
It is little wonder why Asia is expected to contribute more than 50% of global GDP and make up 40% of the world’s consumption by 20402.
2Source: McKinsey Global Institute, as of July 2019.Looking back, Asian Equities have performed well as compared to World Equities, returning an annualised 8.7% p.a. since 1990 as shown in the chart on the right. As the region grows in importance, Asia may have the potential for such continued performance.
Long term performance of Asian stock market vs global stock market; Jan 1990 – Dec 2019
Asia ex-Japan Equities
Annualised returns: 8.69% p.a.
Cumulative returns: 1117.03%
World Equities
Annualised returns: 8.26% p.a.
Cumulative returns: 981.86%
Asia ex-Japan Equities
Annualised returns: 8.69% p.a.
Cumulative returns: 1117.03%
World Equities
Annualised returns: 8.26% p.a.
Cumulative returns: 981.86%
The information contained herein: (1) is proprietary to Bloomberg and/or its content providers; (2) may not be copied or distributed; (3) may not be accurate, complete or timely; and (4) has not been checked or verified by Schroders in any way. None of Bloomberg, its content providers or Schroders shall be responsible for any damages or losses arising from any use of the information in any way.
For illustration purposes only.
Discover a wealth of opportunities in Asia with the RHB Asia Dynamic Fund.
Why Asia Equity?
Long-term secular growth trends exist in Asia that help drive the region forward. Let’s delve into each of these themes:
TECHNOLOGY INNOVATORS AND DISRUPTORS
Asia is presently home to some of the world’s most technology-advanced countries, with an enormous pool of digitally savvy consumers.
There are now 2.37 billion connected internet users in Asia (as of 31 Mar 2020)3.
This represents a penetration rate of 55.1% of the population, up from 23.2% in 20103.
This lays the foundation for an accelerated pace of digitalisation and innovation in the economies within Asia. The imminent launch of 5G networks in many Asian markets will speed up the adoption of new technologies, which are expected to proliferate in the years to come.
Examples of new technologies:
It is clear that Asia is at the forefront of global innovation, which is likely to bode well for key Asia technology stocks at the heart of such developments.
SHIFTS IN THE ASIAN CONSUMPTION STORY
There is a massive shift in demographics within Asia – a growing and increasingly wealthy Asian middle class.
Taking China as an example, the number of affluent and upper middle-class households is projected to increase from 17% of the total in 2012 to 63% by 2022, a meteoric rise in a short 10-year period4.
4Source: McKinsey & Company, June 2013.
And in India, there will be 500 million people moving into the middle- and high-income bracket by 2030. With the increase in income growth, India would see consumption spending tripling in size from $1.5 trillion to a massive $5.7 trillion5.
5Source: consultancy.asia, as of April 2019.This shift in economic power and a change in spending habits increased consumption across the board, particularly creating a strong demand for higher-end discretionary goods and services. We have already seen effects of rising wealth6 with consumers spending more in areas of:
6Source: Schroders, as of August 2020.
Home improvement
Education
Insurance
Tourism
More interestingly and lesser known to people, is that the middle-class are predominantly young with a median age of 32 in Asia7. This is where the real economic power resides. Leading Asian brands which are able to penetrate this consumer market through trendy and premium product offerings have been clear winners of the Asia consumption story.
7Source: Worldometer, as of 16 September 2020.ASIAN COMPANIES TAKING ON THE WORLD STAGE
In the 2018 Fortune Global 500 ranking, close to half (210) of the world’s 500 biggest companies by revenue were Asian8.
8Source: McKinsey Global Institute, as of July 2019.Recognising the importance of being competitive with global counterparts, Asian firms have focused on expanding top-line growth over the years and have now made their way up the ranks to become market leaders of their industries8.
Such emergence of Asian multinational corporations can be seen across various sectors such as e-commerce, biotechnology, and personal products9, just to name a few.
Additionally, Asian corporations that see demand for their goods elsewhere around the world stand to benefit from Asia's position as a global trading hub.
9Source: Forbes Asia’s Fab 50 Companies list, 2018 ranking. Why RHB Asia Dynamic Fund?
Aside from capturing the key growth themes in Asia as highlighted above, the RHB Asia Dynamic Fund (“the Fund”) is well-positioned and attractive to investors for the following reasons:
ACCESS TO EMERGING OPPORTUNITITES
With the continuous development and progress within Asian markets, the Fund identifies new, emerging opportunities in selected countries or thematic investment ideas, such as:
Chinese Equity market for alpha generation (includes China H-shares, China B-shares and the onshore China A-shares market)
Growth opportunities within the technology sector and in Greater China, through investments in Taiwanese companies
Quality Indian companies that are able to sustain profitable growth and generate long term returns
MITIGATE POTENTIAL DOWNSIDE RISKS
The ability to invest across several geographies, sectors, and asset classes allows the manager to shift allocations depending on market conditions, and as a result deliver consistent returns and lower risk through market cycles.
For example, during a volatile environment, the fund can invest into fixed income instruments, dividend-paying equities and cash, which may potentially mitigate overall portfolio volatility and risk.
BACKED BY STRONG AND EXPERIENCED INVESTMENT CAPABILITIES
The Fund draws on expertise of the award-winning Schroders Asian Equity and Multi-Asset teams, who possess deep experience and research capabilities.
(Schroder Investment Management (Singapore) Ltd. is the investment advisor of the Fund.)
15 Asian Equity fund managers, of which 13 are based in Asia. An average of 23 years of experience and 15 years with Schroders
One of the largest Asia equity research team in the region with 38 analysts across 6 offices covering broad range of sectors and geographies
Manages over US$45billion of Asian Equity AUM as of 30 June 2020
Manages over US$20 billion of AUM in Asian multi-asset strategies as of 30 June 2020
More than 100 investment professionals located across 6 locations worldwide
12 investment managers and 10 product managers based in Asia with 14 years of average industry experience
Award-winning investment teams and Underlying Funds
The Underlying Funds and investment teams have won multiple awards in recent years.
Equity Asia Pacific ex Japan – 5 & 10 Years
Schroder Asian Growth SGD
Equity India – 3 Years
Schroder ISF Indian Opportunities A Acc
Singapore
Best Asia-Pacific Equity Fund
Schroder ISF Asian Opportunities A Dis USD
Fund of the Year Awards Singapore
House Awards - Asian Equity
Outstanding Manager Award
Singapore
Best Greater China Equity Fund
Schroder ISF Greater China A Acc USD
Fund of the Year Awards Singapore
India Equity - Outstanding Achiever
Schroder ISF Indian Opportunities A Acc
Fund of the Year Awards Singapore
Outstanding Achiever in Asia Allocation
For illustration purposes only.
Find out more
| RHB Asia Dynamic Fund | |||||||||||||||||||||||||||
| USD | RM | RM Hedged | SGD Hedged | AUD Hedged | GBP Hedged | RMB Hedged | EUR Hedged | ||||||||||||||||||||
| Launch Date | 15 September 2020 | EUR Hedged – TBC | |||||||||||||||||||||||||
| Trustee | TMF Trustees Malaysia Berhad | ||||||||||||||||||||||||||
| Investment Adviser | Schroder Investment Management (Singapore) Ltd | ||||||||||||||||||||||||||
| Fund Category | Equity (Fund-of-Funds) | ||||||||||||||||||||||||||
| Base Currency | USD | ||||||||||||||||||||||||||
| Benchmark | MSCI AC Asia Ex-Japan | ||||||||||||||||||||||||||
| Sales Charge1 | Up to 5.00% of investment amount | ||||||||||||||||||||||||||
| Redemption Charge1 | None | ||||||||||||||||||||||||||
| Annual Management Fee1 | Up to 1.80% per annum of the NAV of the respective classes of units | ||||||||||||||||||||||||||
| Annual Trustee Fee1 | Up to 0.04% per annum of the NAV of the Fund (includes local custodian fees but excludes foreign custodian fees and charges) | ||||||||||||||||||||||||||
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| Switching Fee1 | USD 10.00 per switch | RM 25.00 per switch | RM 25.00 per switch | SGD 10.00 per switch | AUD 10.00 per switch | GBP 10.00 per switch | RMB 10.00 per switch | EUR 10.00 per switch |
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| or the difference in sales charge between switching funds, where applicable. | |||||||||||||||||||||||||||
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| Transfer Fee1 | USD 5.00 per transfer | RM 5.00 per transfer | RM 5.00 per transfer | SGD 5.00 per transfer | AUD 5.00 per transfer | GBP 5.00 per transfer | RMB 10.00 per transfer | EUR 10.00 per transfer | |||||||||||||||||||
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| Minimum Initial Investment | USD 1,000.00 | RM 1,000.00 | RM 1,000.00 | SGD 1,000.00 | AUD 1,000.00 | GBP 1,000.00 | RMB 1,000.00 | EUR 1,000.00 | |||||||||||||||||||
| Minimum Additional Investment | USD 1,000.00 | RM 1,000.00 | RM 1,000.00 | SGD 1,000.00 | AUD 1,000.00 | GBP 1,000.00 | RMB 1,000.00 | EUR 1,000.00 | |||||||||||||||||||
| General And Specific Risk | General and specific risks of investing in the Fund: Fund Management Risk, Redemption Risk, Inflation Risk, Loan/Financing Risk, Risk Of Non-Compliance, Return Are Not Guaranteed, Risk of Termination Of The Fund, Counter Party Risk, Market Risk, Liquidity Risk, Financial Derivative Risk, Collective Investment Risk, Credit/Default Risk, Interest Rate Risk, Currency Risk, and Country Risk. Specific risks related to the Underlying Funds: Equity Risk, Interest Rate Risk, and Credit/Default Risk. |
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| Distribution Policy | Incidental. Distrubution, if any, is declared at the end of each financial year, or any other period | ||||||||||||||||||||||||||
| Cooling-off Period | Unit Holders have the right to request for a refund of their investment within six (6) business days# which shall be effective from the date of receipt of the application by the Manager, subject to eligibility. # These are the working days when the Manager is open for business. |
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