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Income style and quality bias

Aberdeen Asian Income Fund 20 April 2021 Update
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Aberdeen Asian Income Fund

Income style and quality bias

Investment trusts
Asia Pacific Income

20 April 2021

Price

232.0p

Market cap

£407.7m

AUM

£479.9m

NAV*

253.3p

Discount to NAV

8.4%

NAV**

255.3p

Discount to NAV

9.1%

*Excluding income. **Including income. As at 19 April 2021.

Yield

4.0%

Ordinary shares in issue

175.7m

Code

AAIF

Primary exchange

LSE

AIC sector

Asia Pacific Income

52-week high/low*

237.0p

163.5p

263.4p

186.7p

Gearing

Net gearing at 16 April 2021

7.0%

Fund objective

Aberdeen Asian Income Fund (AAIF) aims to provide investors with a total return primarily through investing in Asia Pacific securities, including those with an above-average yield, as well as to grow its dividends. Performance is measured against the MSCI AC Asia Pacific ex-Japan Index and the MSCI AC Asia Pacific ex-Japan High Dividend Yield Index (both in sterling terms), but no formal benchmark is used.

Bull points

Diversified by sector and geography, the income strategy managed by one of the most experienced Asia-based investment teams.

Outperformed the MSCI AC Asia Pacific ex-Japan High Dividend Yield Index over both the short and long term.

Strong revenue (c 50% of full-year dividend) and capital reserves support continued dividend growth.

Bear points

The conservative quality approach resulted in a bottom half ranking within the Asia income peers over the medium term.

Wider than peers’ discount.

The income-focused strategy might lag racier non-yielding growth funds in bull markets.

Analysts

Victoria Chernykh

+44 (0)20 3077 5700

Sarah Godfrey

+44 (0)20 3681 2519

Aberdeen Asian Income Fund is a research client of Edison Investment Research Limited

Aberdeen Asian Income Fund (AAIF) may appeal to investors interested in income. While perhaps less well known than the UK equity income funds, AAIF yields 4.0%, the second highest of the four Asian income peers, and with a solid performance track record. The team targets the income and growth potential of Asia's most compelling and sustainable companies. Income seekers might gain core exposure to the Asia consumption-driven growth story complemented by structural dividend growth. The focus on high-quality businesses creates a relatively defensive tilt in regional equities. The manager expects the ‘value’ rotation that began in Q420 across Asia and boosted AAIF’s performance, to continue in 2021.

AAIF has grown its dividend for 12 consecutive years since FY08

Source: Bloomberg, Edison Investment Research

Why invest for income in Asia and choose AAIF?

FY20 marks the 12th consecutive year that AAIF has increased the dividend, as the chart above illustrates. During this period the cumulative annualised growth rate (CAGR) was 5.7%. Despite the challenges of COVID-19 in 2020, the dividend (which was c 80% covered by portfolio income) grew 0.5% to 9.3p per share. The trust’s revenue reserve is equal to c 50% of the annual dividend payment, as at end-December FY20. The board is committed to the progressive dividend policy and would use revenue and capital reserves accordingly.

The analyst’s view

If inflation picks up in Asia, accompanied by rising input costs, those companies in AAIF’s portfolio with stronger balance sheets and pricing power are well placed for continued outperformance. The trust had a very strong performance over the past 12 months (to end-March), posting 48.2% NAV total return and outperforming both the broad and high dividend yield indices by 3.7pp and 19.9pp respectively. TSMC and Samsung, the top two holdings in the portfolio with a combined weighting of c 21%, posted higher y-o-y 2020 earnings. Many other investees, such as Momo.com, a mobile-based social and entertainment platform often referred to as the ‘Amazon of Taiwan’ and a top 10 holding (2.6%), expect a swift earnings recovery in 2021. Such commercial robustness and financial strength should support AAIF’s future dividend payout.

AAIF is trading at a 9.1% cum-fair discount, close to its three-year average of 9.4%, but wider than the 2.1% average discount of the four Asia Pacific income peers with a higher growth bias than AAIF. A reinstatement of investees’ dividend payments and further rotation into quality and value could trigger a narrowing of the discount.

The manager’s view and portfolio positioning

Fund manager Yoojeong Oh is excited about the near- and longer-term prospects of the shareholder-focused companies across Asia Pacific that AAIF holds in the portfolio. She expects them to generate strong long-term capital growth as well as rising income. The Aberdeen Standard (AS) team is known for its quality stock-picking approach and value tilt. Positive news on COVID-19 vaccine candidates in early November 2020 marked a shift in market focus from growth to value. Oh believes that the current environment underlines the need for a broad-based dividend strategy, rather than having a ‘barbell’ portfolio where a fund’s dividends are reliant on a handful of high-yielding names to generate income. At end-February 2021 the portfolio had 59 holdings, with most being steady income generators.

The manager seeks high-quality companies with strong balance sheets, sustainable cash flow generation and the ability to support consistent growth of both profits and dividends and these may be found in a number of different markets. These businesses capture structural shifts in technology, growing healthcare and wealth management demand from Asia’s burgeoning middle class as well as urbanisation and infrastructure investment trends.

The active stock-picking strategy continues to result in wide divergences from the indices, as shown in Exhibit 1. China combined with Hong Kong remains the largest underweight (27.2pp and 21.5pp) for the MSCI AC Asia Pacific ex Japan and MSCI AC Asia Pacific ex Japan HDY indices, respectively. This difference principally stems from not owning Chinese internet stocks as most of them do not pay dividends. Nevertheless, there are a few high conviction Chinese holdings in the portfolio, including the cash-generative Ping An Insurance (top 10 holding, 3.0% weighting at 28 February 2021) and the property company, China Resources Land (top 10 holding, 2.2%).

Exhibit 1: Portfolio geographic exposure versus indices (% unless stated)

 

Portfolio weight

Portfolio weight

 

MSCI AC Asia Pacific ex Japan

MSCI AC Asia Pacific ex Japan HDY

Country/region

28-Feb-21

29-Feb-20

Change

28-Feb-21

Versus index

28-Feb-21

Versus HDY index

Taiwan

18.2

12.4

5.8

13.2

5.0

15.6

2.6

Australia

15.8

16.4

(0.6)

13.5

2.3

20.6

(4.8)

Singapore

15.5

21.8

(6.3)

2.0

13.5

N/A

N/A

South Korea

13.1

9.4

3.7

12.7

0.4

7.3

5.8

China

12.5

11.3

1.2

37.8

(25.3)

24.7

(12.2)

Thailand

5.6

8.0

(2.4)

1.8

3.8

N/A

N/A

India

5.3

3.4

1.9

8.8

(3.5)

N/A

N/A

Hong Kong

4.6

6.2

(1.6)

6.5

(1.9)

13.9

(9.3)

New Zealand

4.6

3.1

1.5

0.5

4.1

N/A

N/A

Japan

2.3

2.8

(0.5)

0.0

2.3

N/A

N/A

Indonesia

1.0

1.1

(0.1)

1.2

(0.2)

N/A

N/A

Malaysia

0.8

2.7

(1.9)

1.4

(0.6)

N/A

N/A

Philippines

0.0

0.0

0.0

0.6

(0.6)

N/A

N/A

Other

0.0

0.5

(0.5)

0.0

0.0

17.9

(17.9)

Cash

0.7

0.9

(0.2)

N/A

N/A

N/A

N/A

Total incl. cash

100.0

100.0

 

100.0

 

100.0

 

Source: Aberdeen Asian Income Fund, MSCI, Edison Investment Research

Singapore’s weighting has dropped to third versus first position (21.8%) 12 months ago, and is down 6.3pp y-o-y to 15.5%, principally due to market movements. The team owns three Singaporean banks (Oversea-Chinese Banking Corporation, DBS Group, within the top 10 holdings, 3.0% and 2.4% respectively, and United Overseas Bank). All three stocks were hit harder than the indices during the sharp correction in March 2020. Singapore remains the largest overweight at 3.5% versus MSCI AC Asia Pacific ex Japan and exposure is diverse by sectors and business models. Historically, the team has highlighted the quality of the Singaporean businesses it picked for AAIF, and the business cases for many investees stand. During 2020 the team increased its weighting to the Singaporean banks’ basket, having added to DBS and positioning this portfolio segment for the recovery in 2021. These investments have paid off well ytd, with the share prices recovering strongly with the three banks posting a c 30% total return (TR) over the past six months to end-March 2021, compared to c 10% TR for the MSCI Asia Pacific ex Japan index. The team is hopeful that the banks’ dividends will be restored in 2021. Another notable holding is Venture (top 10, 3.0%), a leading technology company in the electronic manufacturing space. It supplies components to Illumina that makes genome sequencing machines. Venture also produce COVID-19 diagnostic kits and supplies developers of 5G technology. Venture was one of the very few companies that raised dividends in 2020, being a beneficiary of supply chain shifts.

Only selective Australian businesses, known for their dividend generosity, pass the team’s quality checks and this results in a 4.8pp underweight to the high yield index, but a 2.3pp overweight to the MSCI AC Asia Pacific ex Japan Index. Among the Australian companies that AAIF invests in are Rio Tinto (top 10 holding, 3.2%), which the team regards as a proxy for China and the emerging markets' secular growth story, AusNet Services, an energy delivery service provider, and Commonwealth Bank of Australia, a diversified bank, servicing both corporate clients, including small and medium size enterprises, and individuals.

Taiwan is another notable overweight relative to the indices at 5.0pp and 2.6pp respectively. The team initiated investment in a number of Taiwanese companies. For example, Taiwan's GlobalWafers is a key raw material supplier into both TSMC and Samsung Electronics and generates resilient cash flows at the premium end of the wafer supply market. Other geographic overweights are New Zealand (4.1pp), Thailand (3.8pp) and Japan (2.3pp).

Performance

AAIF outperformed both the MSCI AC Asia Pac ex-Japan and the MSCI AC Asia Pac ex-Japan HDY in two of the three last discrete years, on an NAV TR basis, as Exhibit 2 shows. The trust recovered better than the MSCI AC Asia Pac ex-Japan Index from the March 2020 lows and outperformed both indices in the past 12 months to end-March 2021, posting a 48.2% NAV TR. Sizeable holdings in and timely additions to a number of value stocks across the sectors, including semiconductors and Singaporean banks, boosted performance.

Exhibit 2: Five-year discrete performance data

12 months ending

Share price
(%)

NAV
(%)

MSCI AC Asia Pac ex-Jpn (%)

MSCI AC Asia Pac ex-Jpn HDY (%)

CBOE UK All Companies (%)

31/03/17

35.6

32.0

36.2

35.2

22.6

31/03/18

2.6

2.5

7.9

7.1

1.2

31/03/19

6.7

5.2

4.2

4.9

6.2

31/03/20

(22.9)

(18.4)

(10.7)

(12.5)

(19.1)

31/03/21

53.6

48.2

42.9

23.6

26.6

Source: Refinitiv. Note: All % on a total return basis in pounds sterling.

As we mentioned in our 23 November 2020 report on the company, given the focus on high dividends the high dividend yield index is arguably a better comparator for AAIF than the broad market index. The company’s NAV consistently outperformed the MSCI AC Asia Pac ex-Japan HDY Index over six months, one year, three, five and 10-year periods, on a TR basis, as Exhibit 3 illustrates.

Exhibit 3: Share price and NAV TR performance, relative to indices (%)

 

One month

Three months

Six months

One year

Three years

Five years

10 years

Price relative to MSCI AC Asia Pac ex-Jpn

1.7

(1.4)

7.0

7.5

(5.0)

(10.1)

(2.5)

NAV relative to MSCI AC Asia Pac ex-Jpn

3.4

2.6

5.2

3.7

(4.3)

(11.9)

5.8

Price rel to MSCI AC Asia Pac ex-Jpn HDY

(3.6)

(6.6)

3.2

24.3

11.4

7.0

10.5

NAV rel to MSCI AC Asia Pac ex-Jpn HDY

(2.0)

(2.9)

1.5

19.9

12.2

4.8

19.9

Price relative to CBOE UK All Companies

(3.5)

(4.9)

3.0

21.3

16.2

30.3

19.7

NAV relative to CBOE UK All Companies

(1.8)

(1.1)

1.3

17.1

17.0

27.6

29.8

Source: Refinitiv, Edison Investment Research. Note: Data to end-March 2021. Geometric calculation.

A comparison with the other four Asia Pacific income peers, shown in Exhibit 4, reveals AAIF’s improving relative performance. Its NAV TR exceeds the sector average over one year. The team’s quality income strategy bore the fruits of a robust performance amid economic and geopolitical uncertainty. AAIF ranks third by NAV TR over one year, having outperformed JPMorgan Asia Growth & Income (JAGI). Two racy top five JAGI holdings, Alibaba and Tencent, have corrected in the past few months amid a visible sell-off of Chinese stocks. This correction followed the robust performance of China growth and tech equities during 2020 and the negative news flow about increasing political tensions between the West and China in Q121. Despite being a growth mandate, Invesco Asia (IAT) trust introduced a new enhanced dividend policy in September 2020, so we have included it in our peer group table.

Exhibit 4: Country specialist – Asia Pacific equity income peer group

% unless stated

Market
cap £m

NAV TR
1 year

NAV TR
3 years

NAV TR
5 years

NAV TR
10 years

Ongoing charge

Perf.
fee

Discount (cum-fair

Net gearing

Dividend yield (%)

Aberdeen Asian Income

398.9

48.2

27.6

72.7

132.4

1.1

No

(9.8)

107

4.1

Henderson Far East Income

474.6

22.9

8.9

48.2

85.1

1.1

No

2.2

100

7.0

Invesco Asia Ord

260.1

67.4

47.4

124.6

192.9

1.0

No

(6.1)

100

3.9

JPMorgan Asia Growth & Income

481.5

46.6

41.6

134.0

135.7

0.7

No

2.3

100

3.1

Schroder Oriental Income

748.4

50.3

31.3

82.6

173.5

0.9

Yes

(3.1)

105

3.7

Sector average (5 funds)

472.7

47.1

31.3

92.4

143.9

1.0

(2.9)

102

4.4

MSCI AC Asia Pacific ex Japan HDY

25.0

13.3

56.7

84.9

4.4

Rank in sector

4

3

4

4

4

2

5

1

2

Source: Morningstar, Edison Investment Research, Bloomberg. Note: *Performance data to 31 March 2021 based on cum-fair NAV. TR=total return. Net gearing is total assets less cash and equivalents as a percentage of net assets.

Dividend policy and record

The investment philosophy of AAIF’s management team is to find good quality companies that offer both capital growth and an attractive dividend yield over the long term.

The total dividend for FY20 amounts to 9.30p (2019: 9.25p). In the absence of unforeseen circumstances, the board intends to declare three interim dividends of 2.25p per ordinary share in respect of FY21 (to 31 December 2021). A decision on the level of the fourth interim dividend will be made post the period end, in January 2022.

The board remains keen to continue AAIF’s long-term record of dividend growth and aims to use reserves, accumulated since the launch of the company, where necessary. Aside from revenue reserves (at end-December 2020) amounting to c 50% of the annual dividend payment, AAIF has £223m of capital reserves that the board could draw upon in the years of income shortage from the holding companies within the portfolio.

In the year to 31 December 2020, about £3.3m from the revenue reserves has been used (about 20% of the FY20 dividend payment), as the COVID-19 pandemic affected the level of dividends that were received from portfolio companies during 2020. The net revenue reserve at 31 December 2020, adjusted for the payment of the 4th interim dividend that occurred after the year end, amounted to £7.8m (c 4.4p per share, or just over 50% of the annual dividend payment) and any decision as to whether this will be utilised in 2021 (and by how much) will be taken at the time of each of the quarterly dividend declarations.

General disclaimer and copyright

This report has been commissioned by Aberdeen Asian Income Fund and prepared and issued by Edison, in consideration of a fee payable by Aberdeen Asian Income Fund. Edison Investment Research standard fees are £19,845 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2021 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

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General disclaimer and copyright

This report has been commissioned by Aberdeen Asian Income Fund and prepared and issued by Edison, in consideration of a fee payable by Aberdeen Asian Income Fund. Edison Investment Research standard fees are £19,845 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2021 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

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