Schroder Oriental Income Fund Limited

Asia Equities

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
Name
Schroder Oriental Income Fund Limited
Manager
Schroders Investment Management
Type
Closed Ended Investment Company
ISIN
GB00B0CRWN59
Sector
Asia Pacific - Excluding Japan
Launched
28/07/2005
OCF
0.86 %
Risk Rating
2
3 Year Sharpe
0.83
3 Year Alpha
4.55
Yield
3.8 %
Benchmark
MSCI AC Pacific Ex Japan GR USD
Fund Size
£ 647.7 million
NAV
251
Gearing
106
Discount Premium
1
The Company aims to invest in a diversified portfolio of investments, primarily equities and equity-related investments, of companies which are based in, or derive a significant proportion of their revenues from, the Asia Pacific region. The portfolio is diversified across a number of industries and a number of countries in that region. The portfolio may include government, quasi-government, corporate and high yield bonds and preferred shares.
Holding %
Taiwan Semiconductor Manufacturing Co Ltd 5.51 %
HSBC Holdings PLC 4.34 %
Samsung Electronics Co Ltd Participating Preferred 4.31 %
Fortune Real Estate Investment Trust 3.79 %
Ubs Ag London 2.90 %
Venture Corp Ltd 2.79 %
BHP Billiton PLC 2.71 %
National Australia Bank Ltd 2.64 %
Standard Chartered PLC 2.38 %
Intouch Holdings PCL Shs Foreign Registered 2.03 %
Region %
Asia - Developed 46.85 %
Asia - Emerging 19.62 %
Australasia 16.01 %
United Kingdom 9.73 %
Sector %
Financial Services 24.68 %
Technology 20.92 %
Real Estate 16.99 %
Basic materials 9.12 %
Communication Services 7.88 %
Consumer Cyclical 7.42 %
Industrials 6.54 %
Name
Schroders Investment Management
Address
London, United Kingdom
Legal Structure
Closed Ended Investment Company

Managers

Matthew Dobbs
Joined 07/28/2005

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.

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