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  • FIRST POST
    • Sally57
    • By Sally57 26th Aug 17, 11:51 AM
    • 85Posts
    • 18Thanks
    Sally57
    Schroder Oriental Income (SOI)
    • #1
    • 26th Aug 17, 11:51 AM
    Schroder Oriental Income (SOI) 26th Aug 17 at 11:51 AM
    I've noticed in several threads that Schroder Oriental Income (SOI) seems to be a popular IT in the Asia Pacific Ex Japan sector - is this purely down to the yield/dividend payments?

    I hold Fidelity Asian Values (FAS) which has had a few bumpy months recently but overall as performed really well for me over the years. My partner holds Invesco Asia Trust (IAT) but is considering selling to switch to SOI because he feels IAT shares are too expensive to add to at the moment so SOI could be a solution for him.

    Anybody else hold SOI and have any views?
    Last edited by Sally57; 26-08-2017 at 12:33 PM.
Page 2
    • StellaN
    • By StellaN 31st Aug 17, 9:14 AM
    • 178 Posts
    • 52 Thanks
    StellaN
    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?.
    • ColdIron
    • By ColdIron 31st Aug 17, 11:56 AM
    • 3,374 Posts
    • 3,948 Thanks
    ColdIron
    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?.
    Originally posted by StellaN
    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
    • By MPN 31st Aug 17, 8:36 PM
    • 220 Posts
    • 70 Thanks
    MPN
    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
    Originally posted by ColdIron
    So would it not be feasible to maybe hold a mix of regions so have IAT or FAS complimented with SOI or HFEL?
    • ArchBair
    • By ArchBair 1st Sep 17, 2:19 PM
    • 26 Posts
    • 1 Thanks
    ArchBair
    So would it not be feasible to maybe hold a mix of regions so have IAT or FAS complimented with SOI or HFEL?
    Originally posted by MPN
    I hold IAT and SOI for this reason, so that India is covered in my overall holding in this region.
    • Sue58
    • By Sue58 15th Sep 17, 4:15 PM
    • 78 Posts
    • 11 Thanks
    Sue58
    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
    • By ColdIron 15th Sep 17, 5:10 PM
    • 3,374 Posts
    • 3,948 Thanks
    ColdIron
    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
    • By Sue58 16th Sep 17, 12:29 PM
    • 78 Posts
    • 11 Thanks
    Sue58
    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
    Originally posted by ColdIron
    Thanks for that ColdIron, although (and excuse my thickness) I'm still not sure what that actually means.
    • ColdIron
    • By ColdIron 16th Sep 17, 12:39 PM
    • 3,374 Posts
    • 3,948 Thanks
    ColdIron
    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
    • By Sally57 16th Sep 17, 2:36 PM
    • 85 Posts
    • 18 Thanks
    Sally57
    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
    • By Eco Miser 16th Sep 17, 5:06 PM
    • 2,977 Posts
    • 2,757 Thanks
    Eco Miser
    Thanks for that ColdIron, although (and excuse my thickness) I'm still not sure what that actually means.
    Originally posted by Sue58
    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
    • By MonroeM 16th Sep 17, 11:06 PM
    • 111 Posts
    • 31 Thanks
    MonroeM
    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.
    Originally posted by Eco Miser
    Thank you for that simple explanation, I was also a bit confused.
    Last edited by MonroeM; 17-09-2017 at 10:38 AM.
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