Schroder Oriental Income (SOI)

MPN

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...

Therefore, there could be an argument to hold both SOI and HFEL in a portfolio?

Does anybody hold both?

dividendhero

MPN wrote: »

Therefore, there could be an argument to hold both SOI and HFEL in a portfolio?

Does anybody hold both?

Yes, bit of a long term bear on the UK especially since Brexit - now very much focussed on investing overseas with Far East as a particular point of interest and both SOI & HFEL are both in my portfolio

Sally57

dividendhero wrote: »

Yes, bit of a long term bear on the UK especially since Brexit - now very much focussed on investing overseas with Far East as a particular point of interest and both SOI & HFEL are both in my portfolio

We've had a re-think and now decided to invest 50/50 between SOI and HFEL, it seems to make sense and then we can add to them as and when.

Sue58

ColdIron wrote: »

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

When you look at the performance charts on Trustnet etc for HFEL, do these figures include the dividends re-invested or dividends withdrawn as income?

dellboy102

Sue58 wrote: »

When you look at the performance charts on Trustnet etc for HFEL, do these figures include the dividends re-invested or dividends withdrawn as income?

Kind of a related question from me, are the performance figures after all the fees etc of the funds?

ColdIron

Sue58 wrote: »

When you look at the performance charts on Trustnet etc for HFEL, do these figures include the dividends re-invested or dividends withdrawn as income?

Depends on the chart, if it quotes the share price then no. Trustnet will let you chart with and without dividends reinvested, look at the Chart Basis dropdown under the Create a custom chart link. You can do this with their comparison tool as well, try SOI and HFEL. The performance without reinvestment of SOI is almost double HFEL over 5 years at 57%/30% but with income reinvested it's much closer at 93%/73%, but that's what you would expect for a high dividend income fund

Kind of a related question from me, are the performance figures after all the fees etc of the funds?

They are after the fees deducted by the fund manager but do not reflect platform purchase and custody etc costs

Sue58

ColdIron wrote: »

The performance without reinvestment of SOI is almost double HFEL over 5 years at 57%/30% but with income reinvested it's much closer at 93%/73%, but that's what you would expect for a high dividend income fund

So basically, if I was not interested at this stage in taking any income (from a high dividend fund such as HFEL), then on these current performance figures I would be better off with SOI for potential growth?

ColdIron

Reinvesting dividends is a valid strategy but if I was looking for long term total return I'd probably go with something like SOI over HFEL. Of course how the directors choose to reward their shareholders isn't the only factor, you should also consider fees, gearing, premium/discount, composition etc

dividendhero

Sue58 wrote: »

So basically, if I was not interested at this stage in taking any income (from a high dividend fund such as HFEL), then on these current performance figures I would be better off with SOI for potential growth?

You're trying to steer a ship by its wake! It's very easy to assume that current growth will mirror past growth - but this not necessarily be the case, it is conceivable that HFEL will outgrow SOI in future (though personally I think SOI will be the winner)

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?.