Schroder Oriental Income Fund Limited
What are the risks?
- Exchange rate changes may cause the value of overseas investments to rise or fall
- Less developed markets are generally less well regulated than the UK, they may be less liquid and may have less reliable custody arrangements
- Investments in the Far East involve an above average degree of risk and should be seen as long term in nature
- Potential investors in the emerging markets and the far east should be aware that this involves a high degree of risk and should be seen as long term in nature
- Investment trusts may use a certain amount of borrowing to purchase additional holdings, which is known as gearing. This investment trust is currently geared as can be seen under the Technical and other information section. Gearing will increase returns if the value of the investments purchased rises faster than borrowing costs, or reduce returns if they fail to do so. Gearing would result in any market movement being amplified in the NAV and performance of the fund
- Investment in warrants, participation certificates, guaranteed bonds, etc will expose the fund to the risk of the issuer of theseinstruments defaulting
- Deducting charges from capital can result in the income paid by the fund being higher than would otherwise be the case and the growth in the capital sum being eroded
