Schroder Oriental Income Fund Limited

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Seeking an increasing income and total return through the Asian Growth story

The opportunity

Provides exposure to Asia’s superior long-term growth potential by identifying attractive investment opportunities across the region’s equity markets.
Has delivered a growing dividend each year since launch in 2005.
Managed by the same investment professional since launch, who has run Asian specialist investment portfolios for Schroders for more than 30 years.

The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested.

Meet the manager

Matthew Dobbs

Asian Equities Fund Manager and Head of Global Small Cap

Matthew has been running Asian specialist investment portfolios since 1985, and has managed the Schroder AsiaPacific Fund and Schroder Oriental Income Fund since launch. He is also the firm’s Head of Global Small Cap Equities. Matthew started at Schroders in 1981 as a UK investment analyst, and since then has worked in New York and Singapore as well as London where he is currently based.

Q&A with Matthew Dobbs, Fund Manager

Investment objective

The investment objective of the Company is to provide a total return for investors primarily through investments in equities and equity related investments, of companies which are based in, or which derive a significant proportion of their revenues from, the Asia Pacific region and which offer attractive yields.

There is no guarantee that the Company will achieve its investment objective.

Investment policy

The investment policy of the Company is to invest in a diversified portfolio of investments, primarily equities and equity-related investments, of companies which are based in, or derive a significant proportion of their revenues from, the Asia Pacific region. The portfolio is diversified across a number of industries and a number of countries in that region. The portfolio may include government, quasigovernment, corporate and high yield bonds and preferred shares.

Equity-related investments which the Company may hold include investments in other collective investment undertakings (including real estate investment trusts and related stapled securities),
warrants, depositary receipts, participation certificates, guaranteed performance bonds, convertible bonds, other debt securities, equity-linked notes and similar instruments (whether or not investment grade) which give the Company access to the performance of underlying equity securities, particularly where the Company may be restricted from directly investing in such underlying equity securities or where the Manager considers that there are benefits to the Company in holding such investments instead of directly holding the relevant underlying equity securities. Such investments may be listed or traded outside the Asia Pacific region. Such investments may subject the Company to credit risk against the issuing entity. The Company may also participate, subject to regulatory and tax implications, in debt-to-equity conversion programmes.

The Manager may consider writing calls over some of the Company's holdings, as a low risk way of enhancing the returns from the portfolio, although it has not written any to date. The Board
has set a limit such that covered calls cannot be written over portfolio holdings representing in excess of 15% of gross assets. However, the Company may only invest in derivatives for the
purposes of efficient portfolio management. Investors should note that the types of equity-related investments listed above are not exhaustive of all of the types of securities and financial instruments in which the Company may invest, and the Company will retain the flexibility to make any investments unless these are prohibited by the investment restrictions applicable to the Company.

Although the Company has the flexibility to invest in bonds and preferred shares as described above, the intention of the Directors is that the assets of the Company which are invested (that is to say, which are not held in cash, money funds, debt securities, interest bearing gilts or treasuries) will predominantly comprise Asia Pacific equities and equity-related investments.

Investment philosophy and process

Investor profile

May be suitable for investors who:

are seeking a potentially higher income
are willing to accept possible short-term losses for the benefit of potential long-term gains
are looking for exposure to the potential growth from Asian equities
are comfortable with the risks associated with an equity-based investment
have a medium- to long-term investment horizon of three to five years or more

May not be suitable for investors who:

are seeking a lower-risk fund
don’t want to put their capital at risk
are uncomfortable with the level of risk associated with equity-based investment
have a short-term investment horizon
can’t tolerate short-term volatility

What are the risks?

Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amount originally invested.

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. Less developed markets are generally less well regulated than the UK, they may be less liquid and may have less reliable arrangements for trading and settlement of the underlying holdings.

The Company invests in smaller companies that may be less liquid than in larger companies and price swings may therefore be greater than investment trusts, companies and funds that invest in larger companies.

The Company holds investments denominated in currencies other than sterling, investors should note that exchange rates may cause the value of these investments, and the income from them, to rise or fall.

The Company may borrow money to invest in further investments, this is known as gearing. Gearing will increase returns if the value of the investments purchased increase in value by more than the cost of borrowing, or reduce returns if they fail to do so.

Investment in warrants, participation certificates, guaranteed bonds, etc will expose the fund to the risk of the issuer of these instruments defaulting. Deducting charges from capital can result in the income paid by the company being higher than would otherwise be the case and the growth in the capital sum being eroded.

As a result of the fees being charged partially to capital, the distributable income of the Company may be higher, but the capital value of the Company may be eroded.

Getting started

Investment trusts offer a flexible and effective way to gain exposure to some of the world's most dynamic markets and regions, and can be used to meet a variety of investment outcomes. For more information on how Schroder Oriental Income Fund Limited shares can be bought and sold, visit our How to invest page.

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Latest insights

Learn more about our approach to managing investment trusts and access the latest ideas and opinions from our investment teams.

Contact Schroders

Schroders is a world-class asset manager operating from 35 locations across Europe, the Americas, Asia, the Middle East and Africa.

Worldwide locations

For any further questions, please contact us.

Please remember that the value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested.

Marketing material.

Issued by Schroder Unit Trusts Limited, 1 London Wall Place, London EC2Y 5AU. Registered Number 4191730 England.

Schroder Unit Trusts Limited is an authorised corporate director, authorised unit trust manager and an ISA plan manager, and is authorised and regulated by the Financial Conduct Authority.

Please note: for the Schroder UK Public Private Trust plc, the important information is below:

Schroder Investment Management Limited, 1 London Wall Place, London EC2Y 5AU. Registration No. 1893220 England. Authorised and regulated by the Financial Conduct Authority.

Schroder UK Public Private Trust plc is incorporated in England and Wales, company number 09405653. Registered as an investment company under section 833 of the Companies Act 2006. Registered address Beaufort House, 51 New North Road, Exeter, EX4 4EP.

On 17 September 2018 our remaining dual priced funds converted to single pricing and a list of the funds affected can be found in our Changes to Funds. To view historic dual prices from the launch date to 14 September 2018 click on Historic prices.

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"While by no means universal, many Asian companies are increasingly focused on dividends as a substantial contributor to shareholder returns."

Matthew Dobbs

Asian Equities Fund Manager and Head of Global Small Cap

The opportunity

Meet the manager

Matthew Dobbs

Asian Equities Fund Manager and Head of Global Small Cap

Q&A with Matthew Dobbs, Fund Manager

Q&A with Matthew Dobbs, Fund Manager

Q&A with Matthew Dobbs, Fund Manager

Q&A with Matthew Dobbs, Fund Manager

Q&A with Matthew Dobbs, Fund Manager

Q&A with Matthew Dobbs, Fund Manager

Investment objective

Investment policy

Investment philosophy and process

Investor profile

May be suitable for investors who:

May not be suitable for investors who:

What are the risks?

Getting started

Never miss an update

Latest insights

Learn more about our approach to managing investment trusts and access the latest ideas and opinions from our investment teams.

Contact Schroders

Important Information