Schroder Oriental Income (SOI)

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  • ColdIron
    ColdIron Posts: 9,054 Forumite
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    StellaN wrote: »
    I've noticed that SOI and indeed HFEL have no holdings in India which is quite surprising bearing in mind the rate of growth in the country. Whereas, other IT's in the region including IAT and FAS seem to include India and have an overall good balance of other Asian countries?

    I realise that HFEL and SOI are very popular for the yield/dividend payments but is it also worth considering the overall allocations to the different regions in Asia?.

    HFEL does have about 2% in India as opposed to 8% last year. It's in the top 50 holdings not the top 10

    ITs are actively managed so they will be affected by the fund manager's outlook and reaction to global or local events. If you look at HFEL's latest report (Feb 2017) it says India was a noteable disappointment following Modi's decision to remove 500/1,000 rupee notes. IAT's report (Apr 2017) cites India as one of it's best performing markets as the fears of demonetisation recede. As an aside I noticed reports yesterday declaring the move as an 'Epic Failure' as 99% of the notes, including the 'black' ones it was supposed to remove from circulation, have been deposited in the banks anyway, so it's a rocky road. A growing economy doesn't necessarily translate into high dividends and a long term growth fund will have a different view to one that focusses on a high level of income for its investors

    But to be honest I don't usually go down to this level of detail as it's a fluid world and it could encourage one to constantly chop and change with inevitable consequences. Like any actively managed fund you should have confidence in it's approach and as long as it's broadly achieving it's objective without alarm bells, income in my case, I'm a happy investor. But it's all about opinion, horses for courses and all that
  • MPN
    MPN Posts: 365 Forumite
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    ColdIron wrote: »
    HFEL does have about 2% in India as opposed to 8% last year. It's in the top 50 holdings not the top 10

    ITs are actively managed so they will be affected by the fund manager's outlook and reaction to global or local events. If you look at HFEL's latest report (Feb 2017) it says India was a noteable disappointment following Modi's decision to remove 500/1,000 rupee notes. IAT's report (Apr 2017) cites India as one of it's best performing markets as the fears of demonetisation recede. As an aside I noticed reports yesterday declaring the move as an 'Epic Failure' as 99% of the notes, including the 'black' ones it was supposed to remove from circulation, have been deposited in the banks anyway, so it's a rocky road. A growing economy doesn't necessarily translate into high dividends and a long term growth fund will have a different view to one that focusses on a high level of income for its investors

    But to be honest I don't usually go down to this level of detail as it's a fluid world and it could encourage one to constantly chop and change with inevitable consequences. Like any actively managed fund you should have confidence in it's approach and as long as it's broadly achieving it's objective without alarm bells, income in my case, I'm a happy investor. But it's all about opinion, horses for courses and all that

    So would it not be feasible to maybe hold a mix of regions so have IAT or FAS complimented with SOI or HFEL?
  • ArchBair
    ArchBair Posts: 153 Forumite
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    MPN wrote: »
    So would it not be feasible to maybe hold a mix of regions so have IAT or FAS complimented with SOI or HFEL?

    I hold IAT and SOI for this reason, so that India is covered in my overall holding in this region.
  • Sue58
    Sue58 Posts: 288 Forumite
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    SOI has an ongoing charge of 0.89 which is fine but it also levies a performance fee of 1.18 which makes it an expensive choice at a total cost of 2.07%?

    Does anybody know the criteria as to when the performance fee kicks in?
  • ColdIron
    ColdIron Posts: 9,054 Forumite
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    HTH :)

    The performance fee is only payable in respect of any period to the extent that the closing adjusted net asset value per ordinary share, taking account of the performance fee, exceeds the higher of 100p or the highest adjusted net asset value per ordinary share (reduced to the level at which any cap as described below applied) in respect of which a performance fee was previously paid. The total amount of any performance fee payable in respect of any one accounting period is capped at 1% of the net assets of the Company calculated at the end of that period.

    Have a look at the annual report, it goes into further detail
  • Sue58
    Sue58 Posts: 288 Forumite
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    ColdIron wrote: »
    HTH :)

    The performance fee is only payable in respect of any period to the extent that the closing adjusted net asset value per ordinary share, taking account of the performance fee, exceeds the higher of 100p or the highest adjusted net asset value per ordinary share (reduced to the level at which any cap as described below applied) in respect of which a performance fee was previously paid. The total amount of any performance fee payable in respect of any one accounting period is capped at 1% of the net assets of the Company calculated at the end of that period.

    Have a look at the annual report, it goes into further detail

    Thanks for that ColdIron, although (and excuse my thickness) I'm still not sure what that actually means.
  • ColdIron
    ColdIron Posts: 9,054 Forumite
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    It is quite dense isn't it, I just copy pasted it :) In general I avoid funds that charge performance fees. Nothing wrong with the theory but in practice they seem to reward the fund manager more often than they do the investor. As ever DYOR
  • Sally57
    Sally57 Posts: 205 Forumite
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    Although in general I'm not keen on performance fees, I feel in the case of SOI if the results are good (which I believe they have to be to introduce the additional fee) then I'm OK with the performance fee.
  • Eco_Miser
    Eco_Miser Posts: 4,708 Forumite
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    Sue58 wrote: »
    Thanks for that ColdIron, although (and excuse my thickness) I'm still not sure what that actually means.
    I think it means that the performance fee is based on the increase in NAV since the last time a performance fee was charged (or the increase over £1 per share if no performance fee has been charged yet) with a cap of 1% of NAV.
    Eco Miser
    Saving money for well over half a century
  • MonroeM
    MonroeM Posts: 174 Forumite
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    edited 17 September 2017 at 10:38AM
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    Eco_Miser wrote: »
    I think it means that the performance fee is based on the increase in NAV since the last time a performance fee was charged (or the increase over £1 per share if no performance fee has been charged yet) with a cap of 1% of NAV.

    Thank you for that simple explanation, I was also a bit confused.
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