29th Apr 2015 16:36
LONDON (Alliance News) - Schroder Oriental Income Fund Ltd said Wednesday it outperformed the MSCI AC Pacific ex Japan Index in the half year to end-February.
It produced a total return of 7.3%, compared to a total return of 2.9% for the MSCI AC Pacific Ex Japan Index.
The company has proposed a second interim dividend of 1.50 pence per share, maintained from the previous year.
The company said that whilst regional markets yielded a "modest" positive return in sterling terms over the first half, a number of key markets were flattered by the weakness of sterling. The Philippines, China and Hong Kong were notable performers during the half year, the trust said.
"The region continues to offer a range of companies with attractive income characteristics across sectors and markets. Earnings growth may be modest, but balance sheets are healthy, cash flow generation good, and cover satisfactory across the companies in the portfolio. We continue to be modestly geared, funding out of the Australian dollar where the balance of risk would still appear to be on the downside," the trust said in a statement.
Shares in Schroder Oriental Income closed down 1.2% at 207.99 pence Wednesday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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