21st Nov 2016 17:47
LONDON (Alliance News) - Schroder Oriental Income Fund Ltd and Schroder Income Growth Fund PLC on Monday said they both achieved growth in net asset value total return in their last financial years.
Schroder Oriental said its produced a total return of 32% in the year ended August 31, boosted by sterling weakness following the UK's decision to leave the European Union. It increased its total dividend to 8.5 pence, up from 8.0p the year before.
"Asia remains a fertile source of companies with well underpinned and growing dividends, combined with the opportunity for capital growth. At a time of such uncertainty in other regions of the globe, these strengths, alongside the inherent diversification benefits for UK investors, support the board's view that this is a strategy which deserves a place in many sterling portfolios," Chairman Robert Sinclair said in a statement.
Separately, Schroder Income reported an 8.4% total return in the year to the same date, although this was lower than its benchmark the FTSE All-Share Index, which reported a 12% total return.
Schroder will pay a total dividend of 10.6p, which is a 2.9% rise on the prior year.
"Whatever the longer-term impact of the referendum, it has had an immediately positive impact - via the fall in sterling - on the stock market and the short-term outlook for dividends. What it has also done, however, is add a new uncertainty in investors' minds, and one unlikely to be resolved for a long time, as the negotiations on the UK's exit from Europe commence," Chairman Ian Barby said.
Shares in Schroder Oriental closed down 0.8% at 225.25p on Monday, while Schroder Income shares closed down 0.2% at 256.50p.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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