15th Nov 2019 09:29
(Alliance News) - Recently promoted FTSE 250-constituent Schroder Oriental Income Fund Ltd on Friday boosted its annual dividend and reported a full-year rise in net assets.
In the year ended August 31, the trust's net asset value grew by 3.0% to GBP661.8 million from GBP642.7 million.
Due to an increased number of share in issue however, net asset value per share rose by 0.4% to 251.94 pence per share from 252.94p.
The stock, which was promoted to the FTSE 250 index on September 17, was 0.4% higher at 254.00p apiece in London on Friday.
At the year end, Schroder Oriental had 262.7 million shares in issue, compared with just 254.1 million last year.
The company said: "The net asset value total return for the financial year to August 31 was 3.7%, an improvement from the prior year of 1.5%. The two factors driving this return were the performance of Asian equity markets and the Brexit related weakening of sterling. The share price produced a total return of 5.4%."
Schroder has paid four interim dividends totalling 10.1p per share, up 4.1% year-on-year from 9.7p.
The trust added: "With the notable exception of Malaysia, emerging Association of Southeast Asian Nations markets were leading performers, with the markets seen as less sensitive to trade and benefitting from increased scope to ease monetary conditions given quiescent inflation and relatively high real interest rates.
Schroder has a "substantial exposure" to Hong Kong, which has recently been mired in street protests.
Schroder explained: "While respecting the political motivations behind the protests, there is also an economic backdrop as the squeezed middle classes articulate their dissatisfaction. The local administration has considerable fiscal fire power should they elect to use it, while strong corporate balance sheets should provide some re-assurance as to shareholder returns."
By Eric Cunha; [email protected]
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