12th May 2016 14:21
LONDON (Alliance News) - Schroder Oriental Income Fund Ltd on Wednesday said it outperformed its benchmark in the first half, helped by stock selection by its fund manager.
The fund, which invests in Asian equities, said it delivered a net asset value total return of 8.6% in the six months to the end of February, compared to a 4.3% total return for the MSCI AC Pacific ex Japan Index.
Schroder Oriental declared a 1.60 pence per share second interim dividend for the half, added to the 1.50p dividend it paid for the first quarter. In total, its payout has increased to 3.10p from 3.00p.
The fund said its positive returns from Asian markets in pound terms were due entirely to the weakness of sterling during the half, but underlying markets were weaker in constant currency terms.
The main factors driving the fund's outperformance were stock selection in Hong Kong, Singapore and Korea, with weaker contributions from holdings in Australia, Indonesia and Taiwan. The only significantly weak market was Thailand, hit by regulatory uncertainty and "chaotic spectrum auctions" which hit the fund's telecoms holdings.
Shares in the fund were down 0.1% to 189.18p.
By Sam Unsted; [email protected]; @SamUAtAlliance
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