Identifying the best Commonwealth investments
Some 71 nations and territories – representing one-third of the world’s population...
Schroder Asian Income
This fund gives equity investors access to the higher growth Asian economies, excluding Japan but including Australia and New Zealand. The fund's income-focused mandate means it is likely to be less volatile than most other Asian funds and could add diversification to an income portfolio.
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. This fund may add diversification to an income portfolio, but the fund as a standalone investment is more risky than most other equity income funds.
Company description
Founded in London in 1804, today Schroders operates in more than 25 countries, employing more than 3,500 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 2017.
Fund manager
Richard Sennitt joined Schroders in 1993 and has managed this fund since 2001, although the fund 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
Fundamental company analysis drives stock selection. Valuation and the sustainability of the dividend are important factors, and also contribute to the manager's sell discipline. Suitable candidates are then subjected to qualitative analysis, including company visits. The portfolio typically holds 60-80 stocks.
Risk
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.
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