Schroder Oriental Income Fund Limited
Rated Fund 2013, 2015-2018. A trust with a solid and growing income
This trust has been managed since its launch in 2005 by Matthew Dobbs, who is based in London. It was highly commended in Money Observer's trust awards in 2014. It has a yield of 3.5 per cent and pays income quarterly. Despite price volatility, dividend growth has been consistent. Over the life of the trust, dividends in Asia have grown at twice the rate seen in the UK, enabling the fund to grow its dividend every year since inception.Dobbs has long experience of Asian markets and can draw on Schroder's team of analysts based in the region. He looks for quality companies with strong balance sheets, and good cash flows and corporate governance, which he can purchase at attractive valuations.
Dobbs believes Asia is an attractive place to invest thanks to the scope for growth and its dynamism. He points out that the region is home to more than half the world's population and is very diverse, ranging from developed economies such as Hong Kong and Singapore to developing countries including India and Vietnam.His focus is on looking for companies that can pay sustainable dividends. He says a large and increasing number of companies in the region understand the importance of providing dividend returns to shareholders, and that the trend towards higher yields will continue as Asian companies mature.
Shares in the trust have traded within a range of a premium of 3 per cent to a discount of 7 per cent over the past three years. At the end of 2017, they could be bought at par, which means they reflected the value of underlying assets.
Narrative and ratings content all as of 01 January 2018.See all Money Observer rated funds
|Taiwan Semiconductor Manufacturing Co Ltd||6.83 %|
|Samsung Electronics Co Ltd Participating Preferred||4.13 %|
|Fortune Real Estate Investment Trust||3.96 %|
|HSBC Holdings PLC||3.50 %|
|BHP Billiton plc - STND OPT Jan. 18, 2013 Call 1700||3.20 %|
|China Petroleum & Chemical Corp H Shares||2.90 %|
|Swire Pacific Ltd Class A||2.82 %|
|National Australia Bank Ltd||2.34 %|
|China Mobile Ltd||2.28 %|
|Hon Hai Precision Industry Co Ltd||2.13 %|
|Asia - Developed||49.59 %|
|Asia - Emerging||23.25 %|
|United Kingdom||6.62 %|
|Financial Services||22.10 %|
|Real Estate||20.33 %|
|Communication Services||10.95 %|
|Basic materials||7.99 %|
|Consumer Cyclical||6.34 %|
Matthew Dobbs is Head Global Small Companies/Specialist Asia at Schroders, which involves running a range of specialist equity portfolios and funds. He joined Schroders in 1981 and is based in London.
Data provided by Morningstar.
The Content is only for your general information and use and is not intended to address your particular requirements. The Content does not constitute any form of advice, recommendation or arrangement by Money Observer and is not intended to be relied upon by you in making (or refraining from making) any specific investment or other decisions. Appropriate independent advice should be obtained before making any such decision.
This information is sourced from our partner Morningstar. We believe the data to be correct however you should take care in using any information.
You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.