Which region’s dividends held up best in 2020?
In what was an extraordinary year, global dividends showed remarkable resilience in 2020. According...
Schroder Asian Income
Schroder Asian Income fund uses the experience and depths of Schroder’s regional presence and research team to find companies that offer attractive yields and growing dividend payments. The fund will invest in the Asia Pacific region, including Australia and New Zealand, but excluding Japan. Manager Richard Sennitt has a flexible mandate and aims to maintain a well-diversified portfolio of income streams to generate a 3.5% to 4% yield.
Our opinion
The investment process is well thought out and has been implemented with diligence and skill. Richard's experience, combined with the strength and depth of Schroders' analyst team, make this fund stand out. Asia Pacific is often overlooked for income, despite having higher yields than many other regions in the world. This is potentially a core holding for those looking for Asian income.
Company description
Founded in London in 1804, today Schroders operates in more than 25 countries, employing more than 5,000 people, close to the markets in which they invest. Schroders is listed on the London Stock Exchange and invests in a range of asset classes including equity, fixed income, multi-asset and alternatives. The group was awarded the Elite Equities Provider Rating in 2015, 2016 and 2017.
Fund manager
Richard Sennitt joined Schroders in 1993 and has managed the Schroder Asian Income fund since 2001, although it has only been in its current form since 2009. He has a wealth of experience managing Asian equities and is supported by Schroders' analyst resources, some of whom are based in the region.
Asian markets remain an attractive hunting ground for income seekers. We look for good quality, competitively priced businesses that are able to grow and maintain their dividend payouts.
Richard SennittFund manager
Investment process
Richard benefits from the large Schroders research team, whose analysts are based on the ground across Asia. Ideas are generated from company visits, sell-side research and quantitative screens. Fundamental company analysis drives stock selection in the portfolio. Suitable candidates are subjected to detailed qualitative analysis. Valuation and the sustainability of the dividend are important factors, and also contribute to the manager's sell discipline. The quality of the management is also an important consideration. The team will also look for potential catalysts which can drive a stock’s performance. Schroder Asian Income is a pragmatic fund, and Richard employs a macro-economic country framework to help mitigate potential risks.
Risk
The portfolio is well diversified and typically holds 60-80 stocks. As the fund invests in the Asia region, which consists of many developing markets, it is likely to be more risky than an investment in a developed market equity fund, such as the UK. However, the manager's preference for income-paying stocks means the fund is likely to be less volatile than some other Asian-focused funds. Investors should also be aware of the currency risk.
Read more about this fund
The information, data, analyses, and opinions contained herein (1) include the proprietary information of FundCalibre, (2) may not be copied or redistributed without prior permission, (3) do not constitute investment advice offered by FundCalibre, (4) are provided solely for informational purposes and therefore are not an offer to buy or sell a fund, and (5) are not warranted to be correct, complete, or accurate. FundCalibre shall not be responsible for any trading decisions, damages, or other losses resulting from, or related to, this information, data, analyses, or opinions or their use. The Elite Fund rating is subjective in nature and reflects FundCalibre’s current expectations of future events/behaviour as they relate to a particular fund. Because such events/behaviour may turn out to be different than expected, FundCalibre does not guarantee that a fund will perform in line with its FundCalibre benchmark. Likewise, the Elite Fund rating should not be seen as any sort of guarantee or assessment of the creditworthiness of a fund nor of its underlying securities and should not be used as the sole basis for making any investment decision. FundCalibre disclaims any responsibility for trading decisions, damages or other losses resulting from any use of the Elite Fund rating. All performance data, as well as fund size, OCF, AMC, annual income (historic), share price discount or premium, is sourced directly from FE Analytics, and will change periodically.