11th Nov 2021 15:04
Schroder Oriental Income Fund Ltd - Asia Pacific-focused investor - Net asset value per share at August 31 year end rises 17% annually to 280.94 pence from 239.28p. Annual NAV total return was 22%, topping benchmark's 12%. Schroder Oriental notes its total return in first half was 21%, before easing to 1.2% in second half. "This more muted return in the second half reflected growing unease in markets regarding Chinese social and economic policy, Asia's slower vaccine programmes and some tempering of economic growth as lockdowns persisted in the region," company adds. Total dividends for year amounts to 10.50p, up 1.9% from 10.30p.
Company adds: "Outside of regulation in China there continue to be concerns over the indebtedness of some property companies, especially the residential developer Evergrande. Given the closed capital account and that the state effectively controls the banks and state owned developers, we believe the issue is manageable. However, policy error remains a risk given the importance of property to GDP and that, unlike many other countries, China has been deliberately keeping policy relatively tight post the Covid crisis. Therefore, given China's economy is slowing, we would expect to see some easing going forward."
Current stock price: 263.35 pence, up 1.6% on Thursday
Year-to-date change: up 0.7%
By Eric Cunha; [email protected]
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