Schroder ISF* Asian Equity Yield

Finding the most attractive dividend opportunities in Asia Pacific

Our approach centres on dividend investing. We believe the opportunity is especially attractive in Asia Pacific (ex Japan) where dividend yields are among the highest in the world with some of the best prospects for future growth.

Schroder ISF* Asian Equity Yield aims to generate stable long-term returns through a combination of capital growth and income by investing in equities of Asia Pacific companies (excluding Japan).

*Schroder International Selection Fund is referred to as Schroder ISF.

Why invest?

Boost equity returns and dividend growth

Dividends are highly correlated to economic growth. Therefore, increasing levels of urbanisation, a sizeable rising middle class and ongoing infrastructure investment should, in turn, boost equity returns and dividend growth.

Long term equity returns

Dividends have always constituted the majority of long-term equity returns in Asia, accounting for 2/3 of the total return over the last 30 years.

Focusing on dividends

Strategy volatility is minimised as most of a stock’s volatility come from the capital-return portion which is 1/3 of the total return over the long term. As such, for any long-term investor in Asia focusing on dividends, it is almost indispensable in order to benefit from the economic growth story in Asia.

Meet the Fund Manager

King Fuei Lee

Co-Head of Asian Equity Alternative Investments

Find out more about Schroder ISF* Asian Equity Yield

For more information including literature and performance data, visit our fund centre.

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Risk considerations

Counterparty risk: The fund may have contractual agreements with counterparties. If a counterparty is unable to fulfil their obligations, the sum that they owe to the fund may be lost in part or in whole.

Currency risk (including Onshore renminbi): The fund can be exposed to different currencies. Changes in foreign exchange rates could create losses. Currency control decisions made by the Chinese government could affect the value of the fund's investments and could cause the fund to defer or suspend redemptions of its shares.

Derivatives risk: Derivatives, which are financial instruments deriving their value from an underlying asset, may be used to manage the portfolio efficiently. A derivative may not perform as expected, may create losses greater than the cost of the derivative and may result in losses to the fund.

Emerging markets & frontier risk: Emerging markets, and especially frontier markets, generally carry greater political, legal, counterparty, operational and liquidity risk than developed markets.

Higher volatility risk: The price of this fund may be more volatile as it may take higher risks in search of higher rewards, meaning the price may go up and down to a greater extent.

Liquidity risk: In difficult market conditions, the fund may not be able to sell a security for full value or at all. This could affect performance and could cause the fund to defer or suspend redemptions of its shares, meaning investors may not be able to have immediate access to their holdings.

Market risk: The value of investments can go up and down and an investor may not get back the amount initially invested.

Operational risk: Operational processes, including those related to the safekeeping of assets, may fail. This may result in losses to the fund.

Performance risk: Investment objectives express an intended result but there is no guarantee that such a result will be achieved. Depending on market conditions and the macro economic environment, investment objectives may become more difficult to achieve.

Stock Connect risk: The fund may be investing in China "A" shares via the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect which may involve clearing and settlement, regulatory, operational and counterparty risks.

Sustainability risk: The fund has environmental and/or social characteristics. This means it may have limited exposure to some companies, industries or sectors and may forego certain investment opportunities, or dispose of certain holdings, that do not align with its sustainability criteria chosen by the investment manager. The fund may invest in companies that do not reflect the beliefs and values of any particular investor.