First State Asian Bond Fund
Monthly Fund Factsheet
30 June 2011
To achieve long-term returns through investment in a diversified portfolio of
fixed income and similar transferable instruments issued primarily by government – The Fund may invest in both investment grade and non-investment grade
and corporate entities in Asia. debt securities. Investments in the non-investment grade debt securities are
subject to higher risk and volatility than investment grade debt securities.
Fund information (Class I Distributing) The Fund may involve risks listed in “Risk factors” of its offering document,
particularly the Counterparty Risk, Interest Rate Risk and Emerging Markets
Inception Date 21 November 2003 Risks.
Nav/Per Share US$8.29 – The value of the Fund can be extremely volatile according to the change
Total Fund Size US$28.9mn of market situation and could go down within a short period of time. It is
Distribution Policy Every May, August, November and February possible that the entire value of your investment could be lost.
Dealing Daily – You should not invest unless the intermediary who sells it to you has advised
Minimum Initial Investment US$1,500 you that the Fund is suitable for you and explained how it is consistent with
your investment objectives.
Minimum Subsequent Investment US$1,000
Management Fee 1.0% p.a.
Top 10 Issuers Sector %
Initial Charge 5.0%
Weighted Yield^ 4.67% Philippines (Republic of) (Government) 11.1
Weighted Average Credit Rating^ BBB Indonesia (Republic of) (Government) 9.8
Weighted Modified Duration^ 3.85 Wing Hang Bank, Limited (Corporate) 3.4
Hutchison Whampoa Ltd (Corporate) 3.4
Manager’s comment Shinhan Financial Group Co Ltd (Corporate) 3.4
– Asian dollar bond markets declined in June with the JP Morgan Asia Credit
Composite Index (JACI) returning -0.12%. Petroliam Nasional Bhd (Corporate) 3.2
– By country, the Philippines was the strongest performer among the major Korea Electric Power Corp (Corporate) 2.4
economies returning 1.24%, while China was the poorest performer declining Woori Finance Holdings Co Ltd (Corporate) 2.4
by 1.74%. By sector, non-investment grade sovereigns were the strongest
performers while non-investment grade corporates underperformed. Korea (Republic of) (Government) 2.1
– One of the main local highlights in Asia during the month was the performance United Overseas Bank Limited (Corporate) 2.1
and volatility of bonds from the Chinese high yield industrials sector. Early in
the month, China’s largest forestry company, Sino-Forest, was hit by fraud
Cumulative performance since inception
allegations made by researcher, Muddy Waters. Fitch, downgraded the 80
company to BB- from BB+. S&P and Moody’s are taking ‘wait and see’ approach
until the fraud allegations are proven. 70
– Investors were risk averse throughout most of the month, fixated by the 60
ongoing peripheral European sovereign debt crisis and concerns over global
Percentage Growth (%)
economic growth prospects.
Corporate 53.6% 20
Sovereign 23.0% 10
Government Related 21.3%
12/2003 12/2004 12/2005 12/2006 12/2007 12/2008 12/2009 12/2010 06/2011
First State Asian Bond Fund I (Distributing)# 25.1 Source: Lipper,
JP Morgan Asia Credit 70.0 Nav-Nav (USD total return)#
Cumulative performance (USD) Calendar year performance (USD)
3mth YTD 1yr 3yr 5yr inception 2010 2009 2008 2007 2006
Class I (Distributing)# 0.8% 1.6% 5.4% 3.4% 7.9% 25.1% Class I (Distributing)# 8.8% 32.9% -31.8% -1.4% 8.0%
Benchmark 2.1% 3.0% 8.0% 33.1% 50.4% 70.0% Benchmark 10.6% 28.3% -9.8% 5.4% 7.3%
Source: Lipper, Nav-Nav (USD total return)# Source: Lipper, Nav-Nav (USD total return)#
– The Fund is a sub fund of Ireland domiciled First State Global Umbrella Fund Plc.
– # Class I (Distributing) is the dividend distribution class of the fund, the performance quoted are based on USD total return (with dividend reinvested).
– JP Morgan Asia Credit
– ^ The weighted yield is the weighted average current gross yield of underlying bonds in the portfolio. Such yield is not the return or dividend received by investors and
does not take into account any change in value of the underlying bond investments. The weighted average credit rating is derived by taking the weighted average of
the credit rating for each underlying bond in the portfolio. Modified Duration is the percentage price change of a security for a given change in yield. The higher the
modified duration of a security, the higher its risk. The weighted modified duration represents the average modified duration of the portfolio of the underlying bonds
weighted by reference to their market value.
– Investment involves risks, past performance is not indicative of future performance. The price of units and the income from them may go down as well as up. This
document is produced by First State Investments (Hong Kong) Limited, it is exempted from authorisation and has not been reviewed by the SFC in Hong Kong.