Endowus has selected the Fund as it:
Fund Objective: Aims to achieve long term capital growth primarily through investing in securities of companies quoted on some or all of the stock markets in countries in Asia, including Australia and New Zealand but excluding Japan. The portfolio of the Fund will be broadly diversified with no specific industry or sectoral emphasis.
Suitability: Investors who are seeking long-term capital growth, and understand the risks associated with investing in Asian equities.
Fund Inception: 8 May 1991
Share Class Inception: 8 May 1991
Benchmark: MSCI All Country Asia ex-Japan
Fund AUM: SGD 2.40bn
Source: MorningStar as of 23 July 2021. Please refer to the FMC page for the most updated AUM.
Source: MorningStar as of 30 June 2021. Allocation data indicate actual exposure as a percentage of the Fund's total Net Asset Value. Please refer to the Fund Manager Page for the most updated information on Fund Holdings and Breakdown.
Endowus has selected the Schroder Asian Growth Fund as it has displayed a clear and consistent track record of outperformance against both its peers and benchmark. This includes off-benchmark countries and lesser known small and mid-cap companies. The team believes that returns over the long term are determined by economic and corporate fundamentals, and that the analysis of those factors should be the foundation of the managers' investment strategy.
The Fund adopts a “go-anywhere” approach, in that opportunities are invested wherever they are spotted. The distinctive focus of their research is to identify companies that have robust business models, good corporate governance, and strong management teams to drive shareholder returns. Schroders terms this the “Shareholder Return Classification (SRC) approach”, adopted nearly 20 years ago as the main lens through which Schroders assesses the strength and sustainability of a company’s franchise. An ESG filter is applied to exclude companies that the team believes will be detrimental in the medium to long term as a result of weak business models, weak or untrustworthy corporate governance or as a consequence of their exposure to activities that impose an unacceptable (and therefore unsustainable) cost on society or the environment.
The Fund has been managed by Portfolio Manager Toby Hudson since 2007, and is supported by a strong team of around 25 analysts focusing on Asian equities. In addition, Schroders has a deep bench of 13 other Asian-focused fund managers that can both offer support and as a source of investment ideas. The combination of the Portfolio Manager’s strong management of the Fund and the thorough investment process has allowed the Fund to generate an impressive long-term return that outshines its benchmark and peers, which also easily puts the fund in the top quartile of its peer group.
However, this strong level of returns comes accompanied with an equivalent level of high risk. The Fund’s standard deviation over the last 10 years ranks in the medium quartile of its peer group, while its largest maximum drawdown over the least 10 years also sits in the middle range. All in all, the Fund performs well on a risk-adjusted basis, with its 10-year Sharpe ratio being amongst the highest among its peers as well. Investors looking to have a broad-based exposure to Asian equities can consider the Fund as a core position, although as with most Asian-focused strategies the Fund may experience periods of heightened volatility.
Updated by Endowus: July 2021
** Disclaimer: Past performance should not be taken as an indication or guarantee of future performance and no representation or warranty, express or implied, is made regarding future performance. Any opinions expressed reflect a judgment at the original date of publication by us and are subject to change without notice.
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