Schroder Oriental Income (SOI)

Sally57

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?

Linton

The suggestion that IAT shares are too expensive whereas something like SOI isnt seems arguable. A major difference between the funds appears to be that IAT invests much more heavily in South Korea than SOI and much less heavily in Australia. Google tells me that South Korea has seen high growth in the past 12 months. This seems a more likely reason for the difference between the funds than IAT becoming inherently too expensive.

IAT is currently trading at an 11% discount to NAV whereas SOI is at a slight premium which would tend to imply IAT is cheaper.


As regards dividends, yes SE Asia is a good place to look. But there are higher yielding ITs in the area, so why SOI should be mentioned in particular, if it is, I dont know.

Sally57

Linton wrote: »

As regards dividends, yes SE Asia is a good place to look. But there are higher yielding ITs in the area, so why SOI should be mentioned in particular, if it is, I dont know.

I think there is only one IT Aberdeen Asian Income AAAIF) that pays a higher dividend in the Asia Pacific Ex Japan region at 4.13% rather than SOI at 3.38. Invesco Asia Trust (IAT) yield is just 1.4% - these figures are according to Trustnet.

ColdIron

Henderson Far East Income has been paying 5% to 7% for at least 5 years

Sally57

ColdIron wrote: »

Henderson Far East Income has been paying 5% to 7% for at least 5 years

Yes, you're quite right I missed that although the performance over1, 5 & 10 years is quite a way down on SOI, IAT and FAS.

ColdIron

It's not a growth fund, it 'seeks to provide a high level of dividends'

As regards SOI, I notice it has a performance fee which I think it is currently levying, might be something you want to take into consideration

dividendhero

SOI has a nice blend of yield, growing dividend and capital growth - maybe a bit unscientific, but it just "feels better" than HFEL & AAIF, though I do know it' initial yield is lower than either and HFEL sits in John Barron's income portfolio.

Bottom line is that any of the Far East funds are going to be better than their UK counterparts in the long run. The Asian economies don't have the debt 's, aging population etc that the UK has...

StellaN

dividendhero wrote: »

SOI has a nice blend of yield, growing dividend and capital growth - maybe a bit unscientific, but it just "feels better" than HFEL & AAIF, though I do know it' initial yield is lower than either and HFEL sits in John Barron's income portfolio.

Bottom line is that any of the Far East funds are going to be better than their UK counterparts in the long run. The Asian economies don't have the debt 's, aging population etc that the UK has...

What about IAT?

dividendhero

StellaN wrote: »

What about IAT?

i'll be honest, that one's not been on my radar - like most I've only o much time!

Had a quick look, while it's growth has been great - it's yield at 1.5% is a bit low for my liking

Sally57

dividendhero wrote: »

SOI has a nice blend of yield, growing dividend and capital growth - maybe a bit unscientific, but it just "feels better" than HFEL & AAIF, though I do know it' initial yield is lower than either and HFEL sits in John Barron's income portfolio.

Bottom line is that any of the Far East funds are going to be better than their UK counterparts in the long run. The Asian economies don't have the debt 's, aging population etc that the UK has...

We have decided to switch from IAT to SOI as we too feel it has a nice blend of yield, growing dividend and growth so it looks good to us. It was between SOI and HFEL (the yield/ dividends are very tempting) but in the end we went with SOI.

dividendhero

ColdIron wrote: »

As regards SOI, I notice it has a performance fee which I think it is currently levying, might be something you want to take into consideration

As I understand it, with an investment trust the charges are effectively included in the yield/price for a share. If the charges are placed against income the yield is reduced - but the yield quoted is what you get, any charges against capital will be reflected in the NAV (and by implication the price)

Stand to be corrected though!