schroder asian income maximiserdocuments.financialexpress.net/literature/529c4363eb17680822a4… ·...

Schroder Asian Income Maximiser Interim Report and Accounts

June 2019

Contents

Schroder Asian Income Maximiser June 2019

Fund Information1 ___________________________________________________3

Review of Investment Activities1___________________________________5

Risk Profile1 ___________________________________________________________6

Net Asset Value and Comparative Tables1 ________________________7

Portfolio Statement1________________________________________________11

Summary of Portfolio Transactions1 _____________________________24

Statement of the Manager’s Responsibilities___________________25

Statement of Total Return (unaudited)__________________________26

Statement of Change in Net Assets Attributable to Unitholders (unaudited) ___________________________________________26

Balance Sheet (unaudited) ________________________________________27

Notes to the Accounts (unaudited)_______________________________28

Distribution Table (unaudited)____________________________________29

General Information1_______________________________________________32

2 Schroder Asian Income Maximiser

1 Collectively these comprise the Manager’s report.

Fund Information

3Schroder Asian Income Maximiser

Investment objective and policy

The Schroder Asian Income Maximiser (the ‘fund’) aims to provide income and capital growth by investing in equity and equity related securities of Asian companies, excluding Japan.

The Fund invests at least 80% of its assets in equity and equity related securities of Asian companies, excluding Japan, which are selected for their long term income and capital growth potential.

To seek to enhance the yield, the Investment Manager selectively sells short dated call options over individual securities, portfolios of securities or indices held by the Fund, by agreeing strike prices above which potential capital growth is sold.

The Fund may also invest in collective investment schemes, warrants and money market instruments, and hold cash.

The Fund may use derivatives with the aim of achieving investment gains, reducing risk or managing the Fund more efficiently.

The Fund’s investment strategy will typically underperform a similar portfolio without derivatives in periods when the underlying stock prices are rising, and outperform when the underlying stock prices are falling.

Further Information The Fund aims to deliver a target yield of 7% per year1. The target yield of 7% cannot be guaranteed and could change according to prevailing market conditions. The Manager will notify Unitholders if the target yield changes.

1 The yield is the sum of the four quarterly distributions that comprise the fund year, each calculated by dividing the quarterly distribution amount by the unit price at the start of that quarter.

Financial highlights Dealing price 28.6.19 31.12.18 % change

A Income units 54.63p 50.38p 8.44

A Accumulation units 105.40p 94.49p 11.55

L Income units 54.34p 49.96p 8.77

L Accumulation units 81.39p 72.71p 11.94

S Income units 59.91p 55.01p 8.91

Z Income units 57.73p 53.09p 8.74

Z Accumulation units 111.30p 99.45p 11.92

1.3.19 to 1.3.18 to 31.8.19 31.8.18

Distributions per Z Income unit 1.9258p 2.0677p


Fund Information (continued)

Launch date 1 June 2010

Launch price 50.00p per A Income unit

50.00p per A Accumulation unit

50.00p per Z Income unit

50.00p per Z Accumulation unit

Launch date 1 October 2013

Launch price 50.00p per L Income unit

50.00p per L Accumulation unit

Launch date 31 January 2014

Launch price 50.00p per S Income unit

Quarterly Interim Quarterly Final

Accounting dates 31 March 30 June 30 September 31 December

Revenue allocation dates 31 May 31 August 30 November 28 February

For the period For the year to 30.6.19 to 31.12.18

A Income units 1.68%1 1.71%

A Accumulation units 1.68%1 1.71%

L Income units 0.86%1 0.89%

L Accumulation units 0.86%1 0.89%

S Income units 0.56%1 0.59%

Z Income units 0.93%1 0.96%

Z Accumulation units 0.93%1 0.96%

1 The Ongoing charges figure is annualised based on the fees incurred during the accounting period.

For the period For the year to 30.6.19 to 31.12.18 £000’s £000’s

Total purchases 45,458 72,525

Total sales 42,280 78,189

Ongoing charges figure

Total purchases and sales

Fund information


From 31 December 2018 to 28 June 2019, the price of Z Accumulation units on a dealing price to dealing price basis, which reflects the reinvestment of the distribution paid to unitholders, rose 11.92%. The fund does not measure its performance against a benchmark because the options overlay strategy is expected to result in diverging performance according to market conditions. However, for comparison purposes, the MSCI All Country Pacific ex Japan Index generated a net return of 12.77%1 in sterling terms over the same period.

Pacific ex Japan equities posted strong gains over the period. Shares were boosted by expectations that major central banks would respond with looser monetary policy. Australia and New Zealand were among the strongest markets, while Malaysia underperformed.

Against this backdrop, the fund posted a positive absolute return but slightly lagged the index. Stockpicking in China and Hong Kong detracted value. Meanwhile, stock selection and the underweight allocation in Korea were positive for performance, as was stock selection in Australia. At sector level, stock selection in financials detracted while both stock selection and the overweight in real estate added value.

The fund’s yield strategy (which uses options) continues to perform as we would expect, paying distributions in line with the 7% target this year. The options produce an enhanced income by exchanging some of the potential capital growth on selected holdings (above a certain level) in return for an upfront cash payment on a regular rolling basis. Our aim is to sell just enough potential growth across the portfolio to meet the target, while still benefiting from the first phase of any share price increase. This trade off typically means that the options will be positive for performance in falling markets, but will detract when share prices are rising, which is what we have seen over the past six months.

Dividend investing is starting to look attractive again as interest rate expectations moderate. Its strong bias to quality businesses with sound capital structures and strong cash flow generation remains relevant as the nearer term growth outlook remains uncertain. We maintain a bottom-up investment approach and we continue to look for good companies where we can see a strong income case and potential for capital growth.

Review of Investment Activities

1 Source: Thomson Reuters Datastream.

Please remember that past performance is not a guide to future performance and it might not be repeated. The value of investments and the revenue from them may go down as well as up and investors may not get back the amount originally invested. Because of this, you are not certain to make a profit on your investments and you may lose money.

Joined Schroders in 1993 Investment career commenced in 1993 As fund manager for Pacific Equity and Global Small Cap Equity accounts, Richard is co-manager of Schroder Asian Income Maximiser and manager of Schroder Asian Income Fund Associate member of the UK Society of Investment Professionals (UKSIP). Member of the CFA Institute BA, Oxford University

Fund Manager:

Richard Sennitt

Schroders’ Structured Fund Management Team Schroders’ Structured Fund Management team consists of Jeegar Jagani, CFA, Scott Thomson and Ghokhulan Manickavasagar, reporting into Mike Hodgson, Head of Risk Managed Investments and Structured Funds. Mike and the team have over 66 years of combined investment experience in derivatives and structuring, including the management of the GBP5.0bn Maximiser range (as at 31 December 2018). The Maximiser range consists of seven listed funds and two segregated mandates, all of which apply a two-step income enhancement strategy investing in equities


Risk Profile

The risk category was calculated using historical performance data and may not be a reliable indicator of the fund’s future risk profile.

The fund’s risk category is not guaranteed to remain fixed and may change over time.

A fund in the lowest category does not mean a risk free investment.

The fund is in this category because it can take higher risks in search of higher rewards and its price may rise and fall accordingly.

The fund invests in assets which are exposed to currencies other than sterling. Exchange rates may cause the value of overseas investments and the revenue from them to rise or fall.

The fund invests in emerging markets and the Far East. This involves a high degree of risk and should be seen as long term in nature.

The fund is index unconstrained and has the potential for greater volatility.

The fund invest in a wide range of derivatives in order to meet its investment objectives.

The fund uses derivatives for specific investment purposes. The way in which derivatives are used will increase the revenue paid to investors and reduce volatility, but there is the potential that performance or capital value may be eroded.

As a result of the expenses being charged wholly to capital, the distributable revenue of the fund may be higher, but the capital value of the fund may be eroded which may affect future performance.

The target yield quoted is an estimate and is not guaranteed. It is quoted net of basic rate tax, however, higher rate tax payers should note that they may be liable for further deductions.

For these reasons, the purchase of units should not normally be regarded as a short term investment.

Risk and reward indicator Lower risk Potentially lower reward

Higher risk Potentially higher reward

1 2 3 4 5 6 7

Specific risks


Financial year to 31 December A Income units A Accumulation units

Highest Lowest Highest Lowest dealing dealing dealing dealing p p p p

2016 56.42 41.99 91.27 64.14

2017 58.58 53.58 100.80 87.85

2018 57.78 49.17 102.80 92.22

Financial period to 30 June 2019 54.63 48.92 105.40 93.26

Financial year to 31 December L Income units L Accumulation units


2016 55.14 40.84 69.23 48.43

2017 57.57 52.43 77.00 66.73

2018 56.92 48.69 78.92 70.87


Financial year to 31 December S Income units Z Income units


2016 60.40 44.66 58.67 43.48

2017 63.19 57.46 61.23 55.79

2018 62.54 53.59 60.53 51.75


Financial year to 31 December Z Accumulation units

Highest Lowest dealing dealing p p

2016 94.80 66.36

2017 105.40 91.37

2018 108.00 96.94

Financial period to 30 June 2019 111.30 98.16

Net Asset Value and Comparative Tables

Unit price range


A Income units A Accumulation units Financial year to 31 December pence per unit pence per unit

2016 3.6439 5.7235

2017 4.1872 7.0643

2018 4.0071 7.2751


L Income units L Accumulation units Financial year to 31 December pence per unit pence per unit

2016 3.5627 4.3410

2017 4.1120 5.4007

2018 3.9623 5.5630


S Income units Z Income units Financial year to 31 December pence per unit pence per unit

2016 3.8949 3.7863

2017 4.5116 4.3721

2018 4.3566 4.2105


Z Accumulation units Financial year to 31 December pence per unit

2016 5.9439

2017 7.3836

2018 7.6161

Financial period to 30 June 2019 3.6951

Net Asset Value and Comparative Tables (continued)

Net revenue


Net asset Net asset value value per unit Number of As at 31 December £000’s p units in issue

2016

A Income units 57,702 53.00 108,868,759

A Accumulation units 12,536 87.04 14,403,762

L Income units 27,524 51.86 53,077,593

L Accumulation units 13,333 66.10 20,171,205

S Income units 6,738 56.83 11,857,702

Z Income units 158,558 55.18 287,367,054

Z Accumulation units 22,558 90.51 24,923,410

2017

A Income units 67,512 56.31 119,901,272


L Income units 68,999 55.46 124,418,909


S Income units 15,125 60.92 24,828,500

Z Income units 162,763 58.97 276,004,642


2018

A Income units 58,891 49.48 119,015,024


L Income units 78,703 49.06 160,410,491


S Income units 15,211 54.03 28,155,130

Z Income units 146,142 52.14 280,286,585


2019 at 30 June

A Income units 57,188 53.43 107,036,758


L Income units 103,048 53.15 193,872,472


S Income units 15,707 58.60 26,804,499

Z Income units 157,457 56.47 278,844,366



Net asset value

Net asset Net asset value per unit value per unit p p as at 30.6.19 as at 31.12.18 % change

A Income units 53.43 49.48 7.98

A Accumulation units 105.37 94.31 11.73

L Income units 53.15 49.06 8.34

L Accumulation units 81.35 72.58 12.08

S Income units 58.60 54.03 8.46

Z Income units 56.47 52.14 8.30

Z Accumulation units 111.23 99.26 12.06



Please remember that past performance is not a guide to future performance and it might not be repeated. The value of investments and the revenue from them may go down as well as up and investors may not get back the amount originally invested. Because of this, you are not certain to make a profit on your investments and you may lose money.

Fund performance


Portfolio Statement

Holding at Market Value % of net 30.6.19 £000’s assets

Equities 98.50% (97.46%)

Australia 16.21% (15.29%)

Brambles 446,710 3,180 0.80

Crown Resorts 383,632 2,639 0.67

Iluka Resources 477,706 2,845 0.72

Incitec Pivot 2,799,792 5,276 1.34

Mirvac Group REIT 2,891,639 4,987 1.26

National Australia Bank 698,802 10,313 2.61

Orica 465,664 5,215 1.32

Suncorp Group 763,716 5,685 1.44

Telstra 2,903,538 6,160 1.56

Transurban Group 691,488 5,632 1.43

Westpac Banking 376,535 5,896 1.49

Woolworths Group 338,799 6,223 1.57

64,051 16.21

Bermuda 1.37% (1.25%)

Kerry Properties 1,638,000 5,421 1.37

5,421 1.37

Cayman Islands 6.03% (5.83%)

CK Hutchison Holdings 501,988 3,901 0.99

Pacific Textiles Holdings 3,426,000 2,133 0.54

Sands China 1,945,600 7,323 1.85

Shenzhou International Group Holdings 710,000 7,670 1.94

Xinyi Glass Holdings 3,370,000 2,784 0.71

23,811 6.03

China 10.11% (11.41%)

China Construction Bank H 7,775,000 5,271 1.34

China Petroleum & Chemical H 16,830,000 9,018 2.28

China Yangtze Power A 4,137,449 8,497 2.15


China (continued)

Industrial & Commercial Bank of China H 6,011,000 3,450 0.87

Midea Group A 856,177 5,099 1.29

Midea Group (UBS) Warrant 20/05/2020 982,475 5,850 1.48

PetroChina H 6,330,000 2,753 0.70

39,938 10.11

Hong Kong 14.26% (13.80%)

BOC Hong Kong Holdings 3,592,000 11,130 2.82

China Mobile 1,394,000 10,006 2.53

Hang Lung Properties 2,601,000 4,871 1.23

HKT Trust & HKT 5,720,000 7,162 1.81

Link REIT 595,000 5,766 1.46

Sun Hung Kai Properties 513,500 6,866 1.74

Swire Pacific A 1,088,000 10,534 2.67

56,335 14.26

Indonesia 0.93% (0.65%)

Telekomunikasi Indonesia Persero 15,899,400 3,669 0.93

3,669 0.93

Ireland 1.16% (0.00%)

James Hardie Industries 444,625 4,590 1.16

4,590 1.16

New Zealand 0.78% (0.84%)

Fletcher Building 1,204,251 3,088 0.78

3,088 0.78

Singapore 14.37% (11.92%)

CapitaLand Commercial Trust REIT 3,316,600 4,193 1.06

CapitaLand Mall Trust REIT 3,106,900 4,741 1.20

Portfolio Statement (continued)




Singapore (continued)

Fortune Real Estate Investment Trust 5,486,000 5,934 1.50

Keppel 1,555,100 6,031 1.53

Mapletree Commercial Trust REIT 3,264,649 3,975 1.01

Mapletree Industrial Trust REIT 3,249,300 4,240 1.07

Oversea-Chinese Banking 1,219,542 8,094 2.05

Singapore Telecommunications 3,838,900 7,805 1.97

United Overseas Bank 382,100 5,812 1.47

Venture 629,600 5,966 1.51

56,791 14.37

South Korea 8.87% (9.83%)

Hyundai Motor Preference 43,117 2,540 0.64

LG Chem Preference 43,141 5,758 1.46

Samsung Electronics 181,070 5,805 1.47

Samsung Electronics Preference 631,086 16,463 4.17

SK Innovation 41,264 4,479 1.13

35,045 8.87

Taiwan 11.62% (12.96%)

Asustek Computer 697,000 3,946 1.00

Far EasTone Telecommunications 2,567,000 5,111 1.29

Hon Hai Precision Industry 2,240,680 4,413 1.12

Largan Precision 49,000 4,811 1.22

Mega Financial Holding 7,685,969 6,041 1.53

Taiwan Semiconductor Manufacturing 3,556,000 21,596 5.46

45,918 11.62

Thailand 4.84% (5.20%)

Bangkok Bank NVDR 597,900 3,026 0.77

Bangkok Bank F 1,218,000 6,225 1.57

Intouch Holdings NVDR 3,298,700 5,318 1.35

Intouch Holdings F 607,800 992 0.25



Thailand (continued)

Land & Houses NVDR 12,600,200 3,560 0.90

19,121 4.84

United Kingdom 7.95% (8.48%)

BHP Group 824,455 16,609 4.20

HSBC Holdings 1,740,400 11,381 2.88

Standard Chartered 486,000 3,421 0.87

31,411 7.95

Equities total 389,189 98.50

Options (1.08)% ((0.42)%)

Written Options

Asustek Computer Call 256.06 18/07/2019 (115,000) 0 0.00

Asustek Computer Call 225.5 24/07/2019 (130,000) (2) 0.00

Asustek Computer Call 216.5 29/08/2019 (120,000) (15) (0.01)

Asustek Computer Call 218 11/09/2019 (130,000) (17) (0.01)

BOC Hong Kong Holdings Call 35.823 04/07/2019 (426,500) 0 0.00

BOC Hong Kong Holdings Call 36.128 18/07/2019 (375,000) 0 0.00

BOC Hong Kong Holdings Call 32.37 24/07/2019 (449,000) (5) 0.00



CapitaLand Commercial Trust REIT Call 2.04 04/07/2019 (839,600) (64) (0.02)


CapitaLand Commercial Trust REIT Call 2.199 24/07/2019 (539,200) (7) 0.00






Written Options (continued)

CapitaLand Mall Trust REIT Call 2.479 04/07/2019 (727,900) (64) (0.02)




China Construction Bank H Call 6.969 04/07/2019 (971,000) 0 0.00

China Construction Bank H Call 7.182 18/07/2019 (855,000) 0 0.00

China Construction Bank H Call 6.734 24/07/2019 (971,000) (3) 0.00

China Construction Bank H Call 6.294 29/08/2019 (894,000) (26) (0.01)

China Construction Bank H Call 6.429 11/09/2019 (971,000) (23) (0.01)

China Mobile Call 82.084 04/07/2019 (250,500) 0 0.00

China Mobile Call 78.327 18/07/2019 (220,500) 0 0.00

China Mobile Call 74.784 24/07/2019 (124,000) (2) 0.00

China Mobile Call 73.265 29/08/2019 (230,500) (22) (0.01)

China Mobile Call 71.529 11/09/2019 (250,500) (36) (0.01)

China Petroleum & Chemical H Call 6.498 04/07/2019 (3,786,000) 0 0.00

China Petroleum & Chemical H Call 6.256 18/07/2019 (2,588,000) 0 0.00

China Petroleum & Chemical H Call 5.794 24/07/2019 (2,226,000) (2) 0.00

China Petroleum & Chemical H Call 5.741 29/08/2019 (2,304,000) (14) 0.00

China Petroleum & Chemical H Call 5.422 11/09/2019 (1,764,000) (22) (0.01)

CK Hutchison Holdings Call 88.759 04/07/2019 (92,000) 0 0.00

CK Hutchison Holdings Call 84.696 18/07/2019 (82,500) 0 0.00

CK Hutchison Holdings Call 81.406 24/07/2019 (60,500) (1) 0.00






Crown Resorts Call 13.786 18/07/2019 (59,842) 0 0.00

Crown Resorts Call 12.95 24/07/2019 (86,316) (4) 0.00

Crown Resorts Call 13.535 29/08/2019 (43,739) (2) 0.00

Crown Resorts Call 12.595 11/09/2019 (93,990) (21) (0.01)

Far EasTone Telecommunications Call 78.2 29/08/2019 (590,000) (3) 0.00

Far EasTone Telecommunications Call 78.1 11/09/2019 (418,000) (3) 0.00

Fletcher Building Call 4.942 24/07/2019 (143,423) (4) 0.00

Fortune Real Estate Investment Trust Call 10.475 04/07/2019 (527,000) (15) 0.00



Hang Lung Properties Call 19.991 04/07/2019 (509,000) 0 0.00

Hang Lung Properties Call 19.269 18/07/2019 (348,000) (5) 0.00

Hang Lung Properties Call 19.605 24/07/2019 (494,000) (6) 0.00

Hang Lung Properties Call 18.095 29/08/2019 (358,000) (36) (0.01)

Hang Lung Properties Call 18.258 11/09/2019 (410,000) (40) (0.01)

HKT Trust & HKT Call 12.833 24/07/2019 (1,215,000) (7) 0.00

HKT Trust & HKT Call 12.967 11/09/2019 (1,215,000) (11) 0.00

Hon Hai Precision Industry Call 99.19 18/07/2019 (310,000) 0 0.00

Hon Hai Precision Industry Call 81.63 24/07/2019 (280,000) (5) 0.00



HSBC Holdings Call 67.584 04/07/2019 (217,200) 0 0.00

HSBC Holdings Call 68.323 18/07/2019 (191,200) (1) 0.00






HSBC Holdings Call 66.689 24/07/2019 (217,200) (6) 0.00

HSBC Holdings Call 65.351 29/08/2019 (200,000) (21) (0.01)

HSBC Holdings Call 66.184 11/09/2019 (217,200) (20) (0.01)

Hyundai Motor Preference Call 86,460 04/07/2019 (4,147) (3) 0.00

Hyundai Motor Preference Call 96,509 18/07/2019 (6,295) 0 0.00



Iluka Resources Call 10.497 04/07/2019 (89,569) (16) 0.00

Iluka Resources Call 10.231 18/07/2019 (78,821) (28) (0.01)

Iluka Resources Call 10.927 29/08/2019 (82,404) (21) (0.01)

Iluka Resources Call 11.254 11/09/2019 (89,569) (17) 0.00

Incitec Pivot Call 3.437 04/07/2019 (551,629) (9) 0.00



Incitec Pivot Call 3.553 29/08/2019 (405,342) (18) (0.01)


Industrial & Commercial Bank of China H Call 5.953 04/07/2019 (751,000) 0 0.00

Industrial & Commercial Bank of China H Call 6.062 18/07/2019 (661,000) (1) 0.00




James Hardie Industries Call 18.753 04/07/2019 (54,321) (6) 0.00








Keppel Call 6.722 04/07/2019 (70,200) (2) 0.00

Keppel Call 6.898 18/07/2019 (242,400) (7) 0.00

Keppel Call 6.924 24/07/2019 (258,900) (9) 0.00

Keppel Call 6.245 29/08/2019 (292,700) (80) (0.02)

Keppel Call 6.495 11/09/2019 (286,500) (54) (0.01)

Kerry Properties Call 36.53 04/07/2019 (192,000) 0 0.00

Kerry Properties Call 33.658 29/08/2019 (188,000) (21) (0.01)

Kerry Properties Call 33.916 11/09/2019 (177,000) (18) (0.01)

Largan Precision Call 5,449.51 18/07/2019 (5,000) 0 0.00

Largan Precision Call 4,576.14 24/07/2019 (6,000) (1) 0.00

Largan Precision Call 4,123.83 29/08/2019 (5,000) (16) (0.01)

Largan Precision Call 4,376.99 11/09/2019 (6,000) (13) 0.00

LG Chem Preference Call 231,000 04/07/2019 (1,698) 0 0.00

LG Chem Preference Call 227,136 18/07/2019 (4,804) 0 0.00

LG Chem Preference Call 204,918 29/08/2019 (2,276) (4) 0.00

LG Chem Preference Call 206,356 11/09/2019 (1,888) (4) 0.00

Link REIT Call 94.172 04/07/2019 (155,000) (32) (0.01)

Link REIT Call 93.967 18/07/2019 (138,500) (40) (0.01)

Link REIT Call 99.608 29/08/2019 (115,500) (19) (0.01)

Mapletree Commercial Trust REIT Call 1.891 18/07/2019 (926,200) (108) (0.03)

Mapletree Commercial Trust REIT Call 2.106 24/07/2019 (674,700) (10) 0.00



Mapletree Industrial Trust REIT Call 2.065 18/07/2019 (524,500) (54) (0.01)

Mapletree Industrial Trust REIT Call 2.09 29/08/2019 (492,100) (40) (0.01)






Mega Financial Holding Call 31.51 24/07/2019 (1,921,000) (12) 0.00

Mega Financial Holding Call 30.7 29/08/2019 (1,767,000) (37) (0.01)

Mirvac Group REIT Call 2.771 04/07/2019 (698,221) (139) (0.04)

Mirvac Group REIT Call 2.858 18/07/2019 (543,602) (83) (0.02)

National Australia Bank Call 25.17 04/07/2019 (131,025) (113) (0.03)

National Australia Bank Call 27.491 24/07/2019 (129,716) (8) 0.00



Orica Call 18.671 04/07/2019 (105,374) (93) (0.02)

Orica Call 19.412 18/07/2019 (47,255) (25) (0.01)

Orica Call 21.199 24/07/2019 (21,865) (1) 0.00

Orica Call 21.264 29/08/2019 (92,201) (12) 0.00

Orica Call 21.568 11/09/2019 (93,263) (11) 0.00

Oversea-Chinese Banking Call 11.848 04/07/2019 (154,900) 0 0.00

Oversea-Chinese Banking Call 11.998 18/07/2019 (249,600) (3) 0.00

Oversea-Chinese Banking Call 11.855 24/07/2019 (155,100) (5) 0.00

Oversea-Chinese Banking Call 10.905 29/08/2019 (202,000) (59) (0.02)

Oversea-Chinese Banking Call 10.992 11/09/2019 (192,700) (53) (0.01)

PetroChina H Call 5.5 04/07/2019 (1,350,000) 0 0.00

PetroChina H Call 5.386 18/07/2019 (1,162,000) 0 0.00

PetroChina H Call 4.716 24/07/2019 (846,000) (1) 0.00

PetroChina H Call 4.719 29/08/2019 (1,076,000) (5) 0.00

Samsung Electronics Call 51,058 04/07/2019 (31,497) 0 0.00

Samsung Electronics Preference Call 41,580 04/07/2019 (86,638) 0 0.00




Samsung Electronics Call 48,961 18/07/2019 (21,274) (3) 0.00

Samsung Electronics Preference Call 40,154 18/07/2019 (85,246) (12) 0.00


Samsung Electronics Preference Call 40,858 24/07/2019 (109,247) (14) 0.00

Samsung Electronics Call 45,865 29/08/2019 (31,234) (46) (0.01)

Samsung Electronics Preference Call 37,723 29/08/2019 (108,862) (126) (0.03)


Samsung Electronics Preference Call 39,266 11/09/2019 (40,595) (32) (0.01)

Sands China Call 45.995 04/07/2019 (364,800) 0 0.00

Sands China Call 46.864 18/07/2019 (320,800) 0 0.00

Sands China Call 40.789 24/07/2019 (243,600) (5) 0.00

Sands China Call 39.015 29/08/2019 (292,000) (37) (0.01)

Sands China Call 41.29 11/09/2019 (274,400) (21) (0.01)

Shenzhou International Group Holdings Call 124.921 04/07/2019 (142,000) 0 0.00

Shenzhou International Group Holdings Call 118.242 18/07/2019 (124,900) (7) 0.00

Shenzhou International Group Holdings Call 118.539 24/07/2019 (84,400) (7) 0.00

Shenzhou International Group Holdings Call 104.83 29/08/2019 (125,800) (98) (0.03)

Shenzhou International Group Holdings Call 111.131 11/09/2019 (58,400) (29) (0.01)

Singapore Telecommunications Call 3.544 24/07/2019 (861,200) (17) 0.00

Singapore Telecommunications Call 3.35 11/09/2019 (579,900) (39) (0.01)

SK Innovation Call 198,180 04/07/2019 (7,943) 0 0.00






SK Innovation Call 206,483 18/07/2019 (6,738) 0 0.00

SK Innovation Call 168,140 24/07/2019 (9,697) (3) 0.00

SK Innovation Call 177,837 29/08/2019 (7,014) (2) 0.00

Standard Chartered Call 69.312 04/07/2019 (96,150) (8) 0.00



Standard Chartered Call 70.953 11/09/2019 (75,050) (17) (0.01)

Sun Hung Kai Call 138.89 24/07/2019 (93,000) (5) 0.00

Sun Hung Kai Properties Call 146.424 04/07/2019 (109,000) 0 0.00

Sun Hung Kai Properties Call 140.108 18/07/2019 (96,000) (2) 0.00

Sun Hung Kai Properties Call 135.005 29/08/2019 (76,500) (25) (0.01)

Suncorp Group Call 14.072 04/07/2019 (190,929) 0 0.00

Suncorp Group Call 14.052 18/07/2019 (168,017) (4) 0.00



Swire Pacific A Call 105.369 04/07/2019 (203,500) 0 0.00

Swire Pacific A Call 103.872 18/07/2019 (152,500) (1) 0.00

Swire Pacific A Call 99.977 24/07/2019 (156,500) (9) 0.00

Swire Pacific A Call 97.366 29/08/2019 (149,500) (39) (0.01)

Swire Pacific A Call 100.6 11/09/2019 (164,500) (27) (0.01)

Taiwan Semiconductor Manufacturing Call 274.23 18/07/2019 (557,000) 0 0.00

Taiwan Semiconductor Manufacturing Call 253.97 24/07/2019 (666,000) (17) (0.01)



Telstra Call 3.406 04/07/2019 (362,942) (89) (0.02)

Telstra Call 3.59 18/07/2019 (319,389) (48) (0.01)




Telstra Call 4.009 24/07/2019 (362,942) (4) 0.00

Telstra Call 3.717 29/08/2019 (333,906) (31) (0.01)

Telstra Call 3.951 11/09/2019 (362,942) (14) 0.00

Transurban Group Call 13.15 04/07/2019 (74,825) (66) (0.02)


Transurban Group Call 15.379 24/07/2019 (54,159) (1) 0.00



United Overseas Bank Call 26.539 04/07/2019 (82,908) (3) 0.00



United Overseas Bank Call 25.144 11/09/2019 (88,900) (59) (0.02)

Venture Call 20.334 04/07/2019 (91,600) 0 0.00

Venture Call 22.168 18/07/2019 (93,000) 0 0.00

Venture Call 17.84 24/07/2019 (78,700) (3) 0.00

Venture Call 17.003 29/08/2019 (72,400) (22) (0.01)

Venture Call 18.849 11/09/2019 (78,400) (9) 0.00

Westpac Banking Call 26.23 04/07/2019 (74,984) (88) (0.02)


Westpac Banking Call 28.956 24/07/2019 (63,710) (6) 0.00

Westpac Banking Call 28.498 29/08/2019 (48,112) (17) 0.00


Woolworths Group Call 31.381 04/07/2019 (63,524) (65) (0.02)


Woolworths Group Call 34.246 24/07/2019 (46,872) (4) 0.00



Xinyi Glass Holdings Call 10.57 18/07/2019 (534,000) 0 0.00

Xinyi Glass Holdings Call 8.991 24/07/2019 (606,000) (2) 0.00

Xinyi Glass Holdings Call 8.621 29/08/2019 (558,000) (9) 0.00

Options total (4,269) (1.08)




Market Value % of net £000’s assets

Portfolio of investments 384,920 97.42

Net other assets 10,212 2.58

Net assets attributable to unitholders 395,132 100.00


The comparative percentage figures in brackets are as at 31 December 2018.

Unless otherwise stated, all securities are admitted to official stock exchange listings.


Summary of Portfolio Transactions

Cost For the six months ended 30 June 2019 £000’s

Singapore Telecommunications 7,236

Midea Group (UBS) Warrant 20/05/2020 5,537

Hang Lung Properties 4,592

James Hardie Industries 4,424

China Yangtze Power A 2,698

Hangzhou Hikvision Digital Technology (UBS) Warrant 09/04/2020 2,563

BOC Hong Kong Holdings 1,828

United Overseas Bank 1,527

Crown Resorts 1,454

SK Innovation 1,109

Proceeds For the six months ended 30 June 2019 £000’s

Midea Group (UBS) Warrant 19/06/2019 5,537

Taiwan Mobile 3,582

NCSoft 2,950

Haier Smart Home A 2,935


Link REIT 2,298

Industrial & Commercial Bank of China H 2,157


Standard Chartered 1,962

Glow Energy F 1,853

Largest purchases

Largest sales


Statement of the Manager’s Responsibilities

The Financial Conduct Authority’s Collective Investment Schemes sourcebook (COLL) requires the Manager to prepare accounts for each annual and half yearly accounting period, in accordance with United Kingdom Generally Accepted Accounting Practice, which give a true and fair view of the financial position of the fund and of its net revenue and the net capital gains on the property of the fund for the period. In preparing the accounts the Manager is required to:

– select suitable accounting policies and then apply them consistently;

– comply with the disclosure requirements of the Statement of Recommended Practice (SORP) for UK Authorised Funds issued by the Investment Management Association (IMA (now the Investment Association (IA))) in May 2014;

– follow generally accepted accounting principles and applicable accounting standards;

– prepare the accounts on the basis that the fund will continue in operation unless it is inappropriate to do so;

– keep proper accounting records which enable it to demonstrate that the accounts as prepared comply with the above requirements;

– make judgements and estimates that are prudent and reasonable.

The Manager is responsible for the management of the fund in accordance with its Trust Deed, the Prospectus and the COLL, and for taking reasonable steps for the prevention and detection of fraud, error and non-compliance with law or regulations.

The Manager’s report and accounts for the period ended 30 June 2019 were signed on 14 August 2019 on behalf of the Manager by:

J.A. Walker-Hazell P. Middleton Directors


Statement of Total Return (unaudited)

For the six months ended 30 June 2019

30.6.19 30.6.18

£000’s £000’s £000’s £000’s

Income

Net capital gains/(losses) 30,349 (14,424)

Revenue 15,482 15,560

Expenses (1,922) (1,985)

Net revenue before taxation 13,560 13,575

Taxation (1,651) (1,737)

Net revenue after taxation 11,909 11,838

Total return before distributions 42,258 (2,586)

Distributions (13,210) (13,219)

Change in net assets attributable to unitholders from investment activities 29,048 (15,805)

Statement of Change in Net Assets Attributable to Unitholders (unaudited)

For the six months ended 30 June 2019

30.6.19 30.6.18

£000’s £000’s £000’s £000’s

Opening net assets attributable to unitholders 351,5101 381,118

Amounts receivable on issue of units 34,575 37,569

Amounts payable on cancellation of units (22,053) (40,754)

12,522 (3,185)

Dilution adjustment 9 47

Change in net assets attributable to unitholders from investment activities 29,048 (15,805)

Retained distribution on Accumulation units 2,043 1,928

Closing net assets attributable to unitholders 395,132 364,1031

1 The Opening net assets attributable to unitholders for the current period do not equal the Closing net assets attributable to unitholders for the comparative period as they are not consecutive periods.


Balance Sheet (unaudited)

As at 30 June 2019

30.6.19 31.12.18

£000’s £000’s

Assets

Investments 389,189 342,570

Current assets

Debtors 6,612 1,202

Cash and bank balances 13,994 16,403

Total assets 409,795 360,175

Liabilities

Investment liabilities (4,269) (1,480)

Provisions for liabilities (25) (12)

Creditors

Distributions payable (7,308) (4,883)

Other creditors (3,061) (2,290)

Total liabilities (14,663) (8,665)

Net assets attributable to unitholders 395,132 351,510


Notes to the Accounts (unaudited)

The accounts have been prepared under the historical cost basis, as modified by the revaluation of investments, and in accordance with the SORP for UK Authorised Funds issued by the IMA in May 2014 and in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 (The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102)).

The accounting policies applied are consistent with those of the annual accounts for the year ended 31 December 2018 and are described in those annual accounts.

Basis of preparation

Accounting policies


Distribution Table (unaudited)

Group 1 Units purchased prior to 1 January 2019 Group 2 Units purchased on or after 1 January 2019

Net Distribution Distribution revenue Equalisation paid paid

2019 2019 31.5.19 31.5.18 p per unit p per unit p per unit p per unit

A Income units

Group 1 0.6531 – 0.6531 0.7058

Group 2 0.0773 0.5758 0.6531 0.7058

A Accumulation units

Group 1 1.2443 – 1.2443 1.2476

Group 2 0.8092 0.4351 1.2443 1.2476

L Income units

Group 1 0.6477 – 0.6477 0.6952

Group 2 0.3002 0.3475 0.6477 0.6952

L Accumulation units

Group 1 0.9581 – 0.9581 0.9339

Group 2 0.4625 0.4956 0.9581 0.9339

S Income units

Group 1 0.7132 – 0.7132 0.7637

Group 2 0.3538 0.3594 0.7132 0.7637

Z Income units

Group 1 0.6882 – 0.6882 0.7392

Group 2 0.3256 0.3626 0.6882 0.7392

Z Accumulation units

Group 1 1.3100 – 1.3100 1.2854

Group 2 0.8160 0.4940 1.3100 1.2854

Corporate unitholders receive the dividend distribution payments as detailed below:

42.79% of the total distribution is received as franked investment income.

56.09% of the distribution is deemed to be an annual payment (non-foreign element) received after deduction of income tax at the lower rate and is liable to corporation tax. It is not franked investment income.

1.12% of the distribution is deemed to be an annual payment (foreign element) received after deduction of income tax at the lower rate and is liable to corporation tax. The associated deemed tax is treated as foreign tax in the hands of the investor, who may be able to claim double tax relief. Investors cannot reclaim any of this deemed tax on the foreign element from HM Revenue & Customs.

Quarterly distribution for the three months ended 31 March 2019

Corporate unitholders


Distribution Table (unaudited) (continued)

Group 1 Units purchased prior to 1 April 2019 Group 2 Units purchased on or after 1 April 2019

Net Distribution Distribution revenue Equalisation payable paid

2019 2019 31.8.19 31.8.18 p per unit p per unit p per unit p per unit

A Income units

Group 1 1.1727 – 1.1727 1.2663

Group 2 0.7477 0.4250 1.1727 1.2663

A Accumulation units

Group 1 2.2625 – 2.2625 2.2671

Group 2 1.2996 0.9629 2.2625 2.2671

L Income units

Group 1 1.1647 – 1.1647 1.2496

Group 2 0.6664 0.4983 1.1647 1.2496

L Accumulation units

Group 1 1.7441 – 1.7441 1.7367

Group 2 1.0281 0.7160 1.7441 1.7367

S Income units

Group 1 1.2832 – 1.2832 1.3735

Group 2 0.7524 0.5308 1.2832 1.3735

Z Income units

Group 1 1.2376 – 1.2376 1.3285

Group 2 0.7006 0.5370 1.2376 1.3285

Z Accumulation units

Group 1 2.3851 – 2.3851 2.3759

Group 2 1.3160 1.0691 2.3851 2.3759

Corporate unitholders receive the dividend distribution payments as detailed below:

66.48% of the total distribution is received as franked investment income.

31.48% of the distribution is deemed to be an annual payment (non-foreign element) received after deduction of income tax at the lower rate and is liable to corporation tax. It is not franked investment income.

2.04% of the distribution is deemed to be an annual payment (foreign element) received after deduction of income tax at the lower rate and is liable to corporation tax. The associated deemed tax is treated as foreign tax in the hands of the investor, who may be able to claim double tax relief. Investors cannot reclaim any of this deemed tax on the foreign element from HM Revenue & Customs.

Interim distribution for the three months ended 30 June 2019

Corporate unitholders


Equalisation applies to units purchased during the distribution period (Group 2 units). It is the average amount of revenue included in the purchase price of Group 2 units and is refunded to the holders of these units as a return of capital.

Being capital it is not liable to income tax but must be deducted from the cost of units for capital gains tax purposes.

Distribution Table (unaudited) (continued)

Equalisation


General Information

Manager Schroder Unit Trusts Limited 1 London Wall Place London EC2Y 5AU Authorised and regulated by the Financial Conduct Authority

Investment Adviser Schroder Investment Management Limited 1 London Wall Place London EC2Y 5AU Authorised and regulated by the Financial Conduct Authority

Trustee J.P. Morgan Europe Limited Chaseside Bournemouth BH7 7DA Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority

Registrar Schroder Unit Trusts Limited 1 London Wall Place London EC2Y 5AU Authorised and regulated by the Financial Conduct Authority

Administration Details Schroders FREEPOST RLTZ-CHSY-HBUT PO Box 1102 Chelmsford Essex CM99 2XX

Investor Services 0800 718 777 [email protected] Dealing 0800 718 788 Fax 0870 043 4080

Independent Auditors PricewaterhouseCoopers LLP Atria One 144 Morrison Street Edinburgh EH3 8EX

The fund is an authorised unit trust and is constituted pursuant to the COLL and is structured as a trust. The fund is a UCITS scheme for the purpose of the categorisation of the COLL.

The Prospectus, the Key Investor Information Document and details of investment charges and costs are available on request or can be downloaded from our website www.schroders.co.uk.

Other information

Authorisation

schroders.com

@schroders

For further literature please contact Schroder Investor Services on 0800 718 777 or at [email protected], or visit our website at www.schroders.co.uk.

Issued in August 2019 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. For your security, communications may be taped and monitored.

schroder asian income maximiserdocuments.financialexpress.net/literature/529c4363eb17680822a4… ·...

Documents