First State Asian Quality Bond Fund

First State Asian Quality Bond Fund
Delivering value through quality
2015 Q1
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The Fund invests in debt securities of issuers organised, headquartered or having their primary business operations in Asia.
The Fund invests in emerging markets which may involve a greater risk than developed markets including sharp price movements, liquidity risk and currency risk. The Fund may invest in below investment
grade and unrated debt securities. This exposes the Fund to greater liquidity risk, default risk and price changes due to change in the issuer’s creditworthiness. The Fund invests in fixed income securities which
may be impacted by movement in interest rates. It is possible that the entire value of your investment could be lost.
For the monthly distributing Shares Class, any fees and expenses relating to this Share Class may be paid out of capital resulting in an increase in distributable income. At times the dividend may be paid out of
capital. This amounts to a partial return of an investor’s original investment, or from any capital gains attributable to that original investment, and may result in an immediate decrease of the Net Asset Value
per share.
You should not base your investment decision solely on this document. You should not invest unless the intermediary who sells it to you has advised you that the Fund is suitable for you and explained how it is
consistent with your investment objectives.
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1. Proven strong performance post-GFC
3. Focus on credit quality
–– The Fund has rebounded strongly by 71.2% after the Global
Financial Crisis (GFC) period.1
–– The Fund also outperformed its benchmark over the same period.
–– The Fund has exposure to Asian investment grade bonds with an
average rating of BBB+.3
–– The Fund diversifies risks by investing in high quality bonds from
various issuers across different Asian countries while seeking to
capture Asia’s growth potential.
Resilient performance rebound since GFC1
Only invest in high quality bonds3
(%)
80
(%)
60
70
50
60
52.8
48.6
Non-investment
grade bond
40
50
32.0
30
40
30
26.8
22.0
20
20
11.9
10
10
0
03/09
Investment grade bond
0
12/09
12/10
The Fund
12/11
12/12
12/13
12/14
Benchmark
AAA
AA
A
The Fund
2. Lower volatility
BBB
BB
Benchmark
4. Highly experienced team with deep root in Asia4
–– The Fund employs a long-term, value-based approach focusing
on the avoidance of loss.
–– The Fund has delivered consistent returns in a comparatively less
volatile environment. 2
Volatility of the Fund vs. peer group average (%)2
The Fund
Peer group average
0.0 1.6
0.7 1.0
1 year
3 years
2.63
3.10
3.97
4.72
5 years 10 years
3.81
5.87
7.03
8.30
–– The team comprises a total of 7 professionals with 15 years of
average investment experience.
–– Focusing on Asian Fixed Income since 2003, with the team based
locally in Hong Kong, Singapore and Jakarta.
–– Our capability extends to 15 Asian countries across three asset
classes, namely interest rates, currency and credit.
Since
GFC
6.45
7.11
Source: 1Lipper, Nav to Nav. Performance since GFC refers to data from 31 March 2009 to 31 December 2014. Benchmark refers to JP Morgan Asia Credit Investment Grade. 2Lipper, as at 31 December 2014.
Volatility refers to annualised standard deviation. Peer group refers to Bond Asia Pacific HC as defined by Lipper. 3First State Investments, as at 31 December 2014. Allocation percentage is rounded to the
nearest one decimal place and the total allocation percentage may not add up to 100%. 4First State Investments, as at 31 December 2014.
Why invest in Asian quality bond?
— Relative to their developed world counterparts, Asian economies are in good health, with lower sovereign
debt-to-GDP ratios and sizeable foreign exchange reserves. The region’s share of the world’s GDP has
continued its upward trend since 1980, increasing from around 9% to an estimate of over 30% in 2015.1
— When compared with the higher volatility observed in other markets, Asian fixed income assets have
tended to offer more reliable and consistent returns over the longer-term.
— Investment grade bonds are worth considering as they have lower default risk when compared to high
yield bonds, in which companies issuing them are less credit worthy.
1
IMF, World Economic Outlook Database, October 2014. GDP based on purchasing-power-parity share of world total.
First State Asian Quality Bond Fund
Investment objective
Fund information
The Fund aims to achieve long term returns through investment in a diversified
portfolio of investment grade fixed income and similar transferable instruments
issued primarily by government and corporate entities in Asia.
Cumulative performance in USD (%)
Since
1yr 3yrs 5yrs inception
3mths YTD
Class I (USD - Acc)*
Benchmark▲
1.6
2.0
6.8
9.0
6.8 13.1 26.0
9.0 18.2 33.8
50.3
86.2
Total fund size
Number of holdings
Dealing
Minimum initial investment
Minimum subsequent investment
Management fee
Initial charge
Weighted average credit rating^
Weighted modified duration^
15
Asset allocation (%)
10
Country
5
China
Singapore
Thailand
Liquidity
0
-5
12/2011
12/2012
12/2013
First State Asian Quality Bond Fund Class I (USD - Acc)*
JP Morgan Asia Credit Investment Grade Index
12/2014
%
31.2 Hong Kong
9.0 Indonesia
4.4 India
2.6
Sector
Corporates
Liquidity
Source: Lipper & FSI, Nav-Nav (USD total return)
%
64.2 Govt Related
2.6
Credit rating#
Calendar year performance in USD (%)
2014 2013 2012 2011 2010
Class I (USD - Acc)*
Benchmark▲
6.8
9.0
-3.0
-2.6
9.1
11.3
2.5
4.9
8.6
7.9
Source: Lipper & FSI, Nav-Nav (USD total return)
Available share classes
Inception
Share class+ date
Nav/per
share
USD - Acc
USD - M Dist
HKD - M Dist
US$15.03
US$10.44
HK$103.97
‡
US$456.9mn
147
Daily
US$1,500
US$1,000
1.0% p.a.
5.0%
BBB+
5.49
^ 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 weighted modified duration represents the average
modified duration of the portfolio of the underlying bonds weighted by reference to their market
value.
20
Percentage growth (%)
December 2014
14 Jul 2003
10 Jul 2013
10 Jul 2013
Distribution
frequency‡
N/A
Monthly
Monthly
ISIN code
IE0032834990
IE00B8GCJK88
IE00B97P8S45
Dividends are not guaranteed and may be paid out of capital.
BBB
AAA
%
52.8 A
0.7 Liquidity
%
21.7 South Korea
8.3 Malaysia
2.4 Philippines
%
29.2 Treasury
%
32.0 AA
2.6
%
12.3
6.9
1.2
%
4.0
%
11.9
Top 10 issuers (%)
Issuer name
Indonesia (Republic of)
Pertamina Persero PT
CNOOC Ltd
Citic Ltd
Overseas Chinese Bk Corp
Sinochem Hong Kong (Group) Co Ltd
Petroliam Nasional Bhd
China Merchants Holdings
China Overseas Land & Investment Ltd
Beijing Enterprises Holdings Ltd
%
4.2
4.1
4.0
3.6
3.2
2.8
2.4
2.4
2.3
2.3
The Fund is a sub fund of Ireland domiciled First State Global Umbrella Plc. * Class I (USD-Acc) is the non-dividend distributing class of the fund, the performance quoted are based on USD total return
(non-dividend distribution). ▲ JP Morgan Asia Credit Investment Grade Index. + Acc represents share class with dividends accumulated. M Dist represents share class with monthly distribution of
dividends.

Allocation percentage is rounded to the nearest one decimal place and the total allocation percentage may not add up to 100%.
#
Where available, the credit rating assigned by one of the 3 major external rating agencies (S&P, Moody's or Fitch) will be used. An internal rating assigned by First State Investments will be used where
the security is not externally rated.
Unless otherwise specified, all information contained in this document is as at 31 December 2014. Investment involves risks, past performance is not a guide to future performance. Refer to the
offering documents of the respective funds for details, including risk factors. The information contained within this document has been obtained from sources that First State Investments ("FSI") believes
to be reliable and accurate at the time of issue but no representation or warranty, expressed or implied, is made as to the fairness, accuracy or completeness of the information. Neither FSI, nor any of
its associates, nor any director, officer or employee accepts any liability whatsoever for any loss arising directly or indirectly from any use of this. It does not constitute investment advice and should not
be used as the basis of any investment decision, nor should it be treated as a recommendation for any investment. The information in this document may not be edited and/or reproduced in whole or
in part without the prior consent of FSI. This document is issued by First State Investments (Hong Kong) Limited and has not been reviewed by the Securities and Futures Commission in Hong Kong. First
State Investments is a business name of First State Investments (Hong Kong) Limited. The Securities and Futures Commission has not reviewed the contents of www.firststateinvestments.com.
www.firststateinvestments.com

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