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Schroder Oriental Income outperforming

Over the six months ended 28 February 2015, Schroder Oriental Income produced a total return on net assets of 7.3% and the share price produced a total return of 6.7%. This compares to a total return of 2.9% for the MSCI AC Pacific ex Japan Index. They paid a first interim dividend of 1.5p in January and a second, also of 1.5p is payable tomorrow. Returns were flattered by the weakness of sterling particularly vis a vis currencies which have broadly matched the dollar’s strength such as those of Hong Kong, China, Taiwan, Thailand and The Philippines. Notable exceptions to this have been Australia, New Zealand and Malaysia where currencies depreciated versus sterling.

They say the Philippines, China and Hong Kong were the notable performers over the period. The report says their outperformance was primarily due to strong stock selection, but with a modest positive impact from country weightings. The main contributors in terms of stock selection were Hong Kong, Taiwan and Australia, with lesser contributions from Thailand and Singapore (sic) – it’s a bit weird that no individual companies are mentioned in this context. In terms of allocation, key contributors to relative performance were the nil weight in Malaysia, the underweighting in Korea and the overweighting in Hong Kong. The principal headwinds for the Company were stock selection in China, and also the underweight stance in that market.

SOI : Schroder Oriental Income outperforming

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