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What is the Premium Asia Income fund?

Premium Asia Income The Fund aims to generate regular income with some long-term capital growth. The Fund provides exposure to a concentrated portfolio of fixed interest securities issued by companies in Asia and the Middle East. The Fund may also invest in cash, money market instruments and derivatives including over-the counter participatory notes and foreign exchange contracts.

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Premium Asia Income Fund Commentary September 30, 2023

The Asian credit market was softer in September, led by investment grade credits as UST curve steepened with the benchmark 10y UST yield rose more than 40bps for the month. Asian High Yield credits fared better due to their shorter durations and hefty credit spreads. During the month, we were active trading the investment grade new issue market, and took some profits on our Macao gaming exposure. We also trimmed select China property names.

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Product Snapshot

Product Overview
Performance Review
Peer Comparison
Product Details

Product Overview

Fund Name	APIR Code ? A Product Code is unique a identifier code issued by a group or governing body, to reference products in a large group. For an example, APIR codes are commonly used for Funds and Ticker codes are commonly used for Securities such as ETFs and Stocks.	Structure ?	Asset Class ? An Asset Class breakdown provides the percentages of core asset classes found within a mutual fund, exchange-traded fund, or another portfolio. Asset classes (in microeconomics and beyond) generally refer to broad categories such as equities, fixed income, and commodities.	Asset Category ? An Asset Category is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations. Asset categories (or a sub-asset class) are made up of instruments which often behave similarly to one another in the marketplace, looking down to the Asset Category level is important if looking to build a diversified portfolio.	Peer Benchmark Name ? A Peer Index (benchmark) refers to a peer group of investment managers who have the same investment style or category. It is used to compare the performance of one manager to their peer group, which makes it simpler for investors to choose between the vast number of investment managers.	Broad Market Index ? A Market Index (benchmark) refers to a hypothetical portfolio of investments that represents a segment, asset or category of an investable market. Market Indices are used to benchmark managers performance, to assist their style reliability and ability to provide excess returns.	FUM ? Funds/Assets under management (AUM) is the total market value of the investments that a person or entity manages on behalf of clients. Assets under management definitions and formulas vary by company.	Management Fee ? A management fee is a charge levied by an investment manager for managing an investment fund. The management fee is intended to compensate the managers for their time and expertise for selecting finanical products and managing the portfolio.	Performance Fee ? A performance fee is a payment made to an investment manager for generating positive returns. This is as opposed to a management fee, which is charged without regard to returns. A performance fee can be calculated many ways. Most common is as a percentage of investment profits, often both realized and unrealized. It is largely a feature of the hedge fund industry, where performance fees have made many hedge fund managers among the wealthiest people in the world.	Spread ? A spread can have several meanings in finance. Basically, however, they all refer to the difference between two prices, rates or yields. In one of the most common definitions, the spread is the gap between the bid and the ask prices of a security or asset, like a stock, bond or commodity. This is known as a bid-ask spread.
Premium Asia Income	MAQ0782AU	Managed Funds	Fixed Income	High Yield Credit	Fixed Income - High Yield Credit Index	Global High Yield Credit Hdg Index	50.87 M	0.98%	0	1%

Performance Review

Fund Name	Last Month ? Returns after fees in the most recent (last) month).	3 Months Return ? Returns after fees in the most recent 3 months.	1 Year Return ? Trailing 12 month returns.	3 Years Average Return ? Average Annual returns from the last 3 years.	Since Inc. Average Return ? Average (annualised) returns since inception	1 Year Std. Dev. (Annual) ? The standard deviation (or annual volatility) of the last 12 months.	3 Years Std. Dev. (Annual) ? The average standard deviation (or annual volatility) from the last 3 years.	Since Inc. Std. Dev. (Annual) ? The average standard deviation (or annual volatility) since the fund inception.	1 Year Max Drawdown ? The maximum drawdown in the last 12 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.	3 Year Max Drawdown ? The maximum drawdown in the last 36 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.	Since Inc. Max Drawdown ? The maximum drawdown since inception - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Premium Asia Income	1.74%	3.36%	0.71%	-5.74%	5.83%	7.88%	12.31%	8.2%	-8.47%	-33.43%	-33.43%

Peer Comparison

Fund Name	Peer Index Name ? A group of individuals who share similar characteristics and interests are called peer groups. Peer group analysis is an essential part of assessing a price for a particular stock in investment research. The emphasis here is on making a comparison, meaning that the peer group constituents should be more or less identical to the company being examined, especially in terms of their main business and market capitalization areas.	12 Months Excess Return ? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.	Excess Return Annualised Since Inception ? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.	12 Months Alpha ? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market return over 12 months. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.	Alpha Annualised Since Inception ? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market annualized since inception. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.	12 Months Beta ? Rolling 12Month Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).	Beta Annualised Since Inception ? Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).	12 Months Tracking Error ? 12Month Tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark over the last 12 months. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.	Tracking Error Since Inception ? Since Inception tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark since inception. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.	12 Months Correlation ? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.	Correlation Since Inception ? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
Premium Asia Income	Fixed Income - High Yield Credit Index	-8.25%	-0.93%	-0.97%	0.08%	0.08%	1.58	5.41%	7.28%	0.81	0.56

Product Details

Fund Name	Verifed by SMSF Mates	Manager Address	Phone	Website	Email
Premium Asia Income	Yes		-	https://www.premiumchinafunds.com.au/	-

Product Due Diligence

What is Premium Asia Income

Premium Asia Income is an Managed Funds investment product that is benchmarked against Global High Yield Credit Hdg Index and sits inside the Fixed Income - High Yield Credit Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The Premium Asia Income has Assets Under Management of 50.87 M with a management fee of 0.98%, a performance fee of 0 and a buy/sell spread fee of 1%.

How has the investment product performed recently?

The recent investment performance of the investment product shows that the Premium Asia Income has returned 1.74% in the last month. The previous three years have returned -5.74% annualised and 8.2% each year since inception, which is when the Premium Asia Income first started.

How is risk measured in this investment product?

There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since Premium Asia Income first started, the Sharpe ratio is 0.49 with an annualised volatility of 8.2%. The maximum drawdown of the investment product in the last 12 months is -8.47% and -33.43% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.

What is the relative performance of the investment product?

Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The Premium Asia Income has a 12-month excess return when compared to the Fixed Income - High Yield Credit Index of -8.25% and -0.93% since inception.

Does the investment product produce Alpha over its Peers?

Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. Premium Asia Income has produced Alpha over the Fixed Income - High Yield Credit Index of -0.97% in the last 12 months and 0.08% since inception.

What are similar investment products?

For a full list of investment products in the Fixed Income - High Yield Credit Index category, you can click here for the Peer Investment Report.

What level of diversification will Premium Asia Income provide?

Premium Asia Income has a correlation coefficient of 0.56 and a beta of 1.58 when compared to the Fixed Income - High Yield Credit Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.

How do I compare the investment product with its peers?

For a full quantitative report on Premium Asia Income and its peer investments, you can click here for the Peer Investment Report.

How do I compare the Premium Asia Income with the Global High Yield Credit Hdg Index?

For a full quantitative report on Premium Asia Income compared to the Global High Yield Credit Hdg Index, you can click here.

Can I sort and compare the Premium Asia Income to do my own analysis?

To sort and compare the Premium Asia Income financial metrics, please refer to the table above.

Has the Premium Asia Income been independently verified by SMSF Mate?

This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.

How can I invest in Premium Asia Income?

If you or your self managed super fund would like to invest in the Premium Asia Income please contact via phone or via email .

How do I get in contact with the Premium Asia Income?

If you would like to get in contact with the Premium Asia Income manager, please call .

Comments from SMSF Mates

SMSF Mate does not receive commissions or kickbacks from the Premium Asia Income. All data and commentary for this fund is provided free of charge for our readers general information.

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Historical Performance Commentary

Performance Commentary - August 31, 2023

The Asian credit market was marginally soft for most of August, with high yield issues lagging the broader market. However, a strong rally followed, which narrowed the losses, towards the end of the month after easing measures were announced by the Chinese government in the last week of the month. During the month, we reduced our China property and convertible bond positions and reinvested some beaten-down names that offer good value. We were also active in the investment grade new issue market.

Performance Commentary - July 31, 2023

The Asian credit market remained stable in July. High yield credit spreads widened, delivering negative total returns, while investment grade bonds were roughly flat. After the rate hike pause in the June meeting, the FOMC resumed a +25bps rate hike in July while leaving the door open for future rates increase, depending on future data. During the month, we switched some of the portfolio’s short-dated issues into longer-dated ones, which should support the fund as rates peak.

Performance Commentary - June 30, 2023

The Asian credit market was stable in June, with high yield issues outperforming investment grades. During the month, the Fed temporarily paused its rate hike but hinted a few more could be coming for the rest of the year to control inflation. The US Treasury market was little changed.

We added some long-dated investment grade bonds as valuations have become attractive.

Performance Commentary - May 31, 2023

In May, the disappointing economic data from China impacted risk sentiments in both the equities and credit markets. The HSI shed more than 8% during the month, while the credit markets fared better, with the JACI composite finishing the month down by about 0.8%. Meanwhile, JACI High Yield Index gave up roughly 3%. We took advantage of the higher US Treasury yield and added some long-dated investment grade issues with attractive valuations. Other than that, there was little change in our portfolio positions.

Performance Commentary - April 30, 2023

After a strong year-to-date rally, the Asian credit markets took a breather in April with mixed performance. Investment grade bonds outperformed, while high yield performance was flat to slightly negative. There was some profit-taking in the China property high yield space, while the rest of the market was relatively quiet for the month.

Performance Commentary - March 31, 2023

The collapse of Silicon Valley Bank and the hastily arranged acquisition of Credit Suisse by rival UBS sent risk appetite sharply lower in March. The benchmark 10-year US treasury rallied strongly, but the banks’ additional tier-1 capital (AT1) space suffered. The Asian credit markets performed relatively better, posting positive monthly gains. China credits gave up some YTD gains due to profit-taking. We turned slightly defensive and raised our cash level. Managing the quality and liquidity of our portfolio remains one of our priorities.

Performance Commentary - February 28, 2023

The Asian credit markets took a breather in February, as rising US Treasury yields once again triggered inflation concerns and the upcoming Fed’s rate decision. The lack of further positive catalysts in the market also brought out some profit-taking activities. The universe of both investment grade and high yield credits was down by more than 1% for the month. We took profits on some positions with high dollar prices and reinvested into others with lower prices. We also continue to focus on managing the quality and liquidity of our portfolio.

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Premium Asia Income (MAQ0782AU) Report & Performance