Schroder Oriental Income Fund (SOI) has been shortlisted in the Best country / regional / emerging category of QuotedData’s 2026 Investors’ Choice Awards. With voting now underway, we take a closer look at what makes this Asian equity income trust stand out and why it might deserve your vote.

Asia is home to some of the world’s fastest-growing economies, leading technology companies and an increasingly affluent consumer base. However, it is not necessarily the first place that UK investors may look when seeking income. That is a shame because the region has a well-established dividend culture, and there are plenty of companies offering attractive yields alongside the potential for long-term growth.

That is the opportunity that Schroder Oriental Income (SOI) is designed to exploit. Launched in 2005, the trust invests across the Asia Pacific region, excluding Japan but including Australia, with the aim of delivering a combination of income and capital growth. It has grown into an investment company, with assets of more than £1bn, and has established an impressive long-term track record.

The trust is managed by Richard Sennitt, who draws on Schroders’ extensive network of analysts across Asia. His approach is straightforward. Rather than simply buying the highest-yielding shares, he looks for good-quality businesses with sound balance sheets, sensible management teams, attractive valuations and the ability to pay sustainable, preferably growing, dividends.

That distinction matters. A high dividend yield can sometimes be a warning sign that investors expect a company’s profits or dividends to fall. Richard is more interested in companies where dividends are supported by cashflow generation and where there is scope for both the income and the value of the business to grow over time.

More than just an income story

I met Richard last October as part of a series of meetings with Schroders’ Asian investment trust managers. One of the points he was keen to get across was that investors often underestimate the income available from Asian equities.

He explained that average dividend yields across Asia ex-Japan at the time were around 2.5% to 3.0%. That is below the levels typically available in the UK and Europe, but comfortably ahead of the US and Japan. Importantly, dividends are often underpinned by relatively modest payout ratios and low corporate leverage, leaving companies with room to reinvest into their businesses and increase distributions as profits grow in the future.

There is also a governance angle. Companies that pay regular dividends are returning cash to shareholders rather than allowing it to accumulate on their balance sheets or spending it on questionable mergers and acquisitions. That does not guarantee good management, but it can encourage greater capital discipline, something that is particularly valuable in markets where minority shareholder interests have not always been given sufficient attention.

Richard’s focus on both quality and valuation gives SOI a different character from many Asian growth fundsChinese internet companies, for example, have historically been an area where the portfolio has had relatively limited exposure.

That does not mean missing out on Asia’s growth story. Quite the opposite. The trust can participate in the regions growth through companies that are already profitable, generating cash and sharing some of that success with their shareholders.

A diverse range of opportunities

One of Asia’s attractions is that it is not a single economic story. The region encompasses developed markets such as Australia, Singapore, Taiwan and South Korea, alongside emerging economies including India, Indonesia and other Southeast Asian countries. These markets have different economic drivers, demographics and stages of development, giving an active manager plenty of scope to find opportunities.

Technology is an obvious example. Taiwan and South Korea are central to the global semiconductor industry, supplying components that are essential to everything from smartphones to artificial intelligence. These businesses can provide exposure to powerful structural growth trends, although the manager must balance their prospects against valuations, cyclicality and dividend sustainability.

Financial services offer a different opportunity. Rising incomes, urbanisation and the expansion of the middle class are increasing demand for banking, insurance and other financial products across much of the region. Richard highlighted low insurance penetration as a particularly interesting long-term growth opportunity when we met, while selected banks can offer attractive dividends alongside respectable returns on capital.

Elsewhere, the portfolio can benefit from growing domestic consumption, improving digital connectivity and manufacturing excellence.  

Australia adds another dimension. Its more mature equity market provides access to established businesses in sectors such as financial services and resources, where dividends are an important part of shareholder returns.

The result is a portfolio exposed to a broad range of growth drivers rather than relying on any single country, industry or investment theme.

A record that speaks for itself

Of course, an attractive investment philosophy is only worthwhile if it delivers results, and SOI has a strong track record of delivering.

Using data as at 9 October 2026, SOI delivered five-year annualised NAV and share price total returns of 16.6% and 16.5%, respectively, ranking first in its Asia Pacific Equity Income peer group on both measures. This was well ahead of the sector averages of 11.5% for NAV and 9.9% for share price. SOI also ranked first for NAV returns over one, three and 10 years, and for share price returns over one and three years, while placing third over 10 years.

Short-term performance has also been strong. Over the past six months, SOI delivered NAV and share price total returns of 19.8% and 18.5%, respectively, outperforming the peer group averages and ranking first on both measures.

In its latest published interim results, covering the six months to 28 February 2026, SOI reported a NAV total return of 35.3%, outperforming its reference index by 4.6 percentage points. Stock selection in technology, resources and selected financial companies supported this performance.

These are impressive returns for an income-focused strategy, showing that investing in dividend-paying companies can also deliver meaningful capital growth.

Naturally, past performance is no guarantee of future returns, and Asian markets can be volatile. Nevertheless, the trust’s record suggests that its combination of valuation discipline, dividend focus and stock selection has worked well over the longer term.

An alternative to relying on UK dividends

For UK investors, SOI has another attraction that should not be overlooked: diversification.

Many income portfolios rely heavily on UK equities, often concentrated in a small number of large banks, energy, mining and pharmaceutical companies. Although these businesses may offer attractive yields, this concentration can leave investors more exposed to particular sectors and economic risks than they realise.

SOI provides access to a different pool of dividend-paying businesses, with exposure to different economies, currencies and structural growth trends. It could therefore complement a traditional UK equity income portfolio rather than simply replicating it.

The trust pays quarterly dividends, which may also appeal to investors seeking a regular income stream. Its investment company structure allows it to retain some income in stronger years and draw on revenue reserves when conditions are more difficult, potentially helping to smooth distributions over time.

The trust carries risks. Asian dividends are not guaranteed, currency movements can affect the sterling value of income and investments, and geopolitical tensions—particularly between China and the US—may influence regional markets. Gearing can boost returns when markets rise but also amplify losses when they fall.

For investors comfortable with these risks, however, SOI provides access to Asia’s growth potential while also offering an income return rather than relying solely on capital gains.

Does SOI deserve your vote?

Schroder Oriental Income has much to recommend it: a clearly defined investment approach, exposure to a diverse and growing region, a focus on sustainable dividends and a strong record of shareholder returns.

Its greatest appeal may be that investors need not choose between income and growth. SOI has shown that a disciplined, valuation-conscious approach can capture both opportunities in Asia.

This helps explain its place on the shortlist for Best country / regional / emerging in this year’s QuotedData Investors’ Choice Awards.

As we explained when launching the awards earlier this month, the shortlists combine quantitative analysis with scrutiny by a panel of experienced professional investors. The final decision, however, rests with private investors putting their own money to work.

SOI is among the contenders, but whether it deserves to win is for you to decide.

If you already hold SOI, do its approach and track record merit recognition? If it is new to you, does its blend of Asian growth and income appeal—and how does it compare with the other shortlisted funds?

We would encourage you to take a look at the shortlist and cast your vote. There is also a £5,000 prize for the investor who does the best job of predicting the winners across the awards’ categories.

The judges have done their bit. Now it is over to you.Vote in the QuotedData Investors’ Choice Awards 2026

Marten & Co (which is authorised and regulated by the Financial Conduct Authority) was paid to produce this article on Schroder Oriental Income Fund Limited.