Schroder Oriental Income Fund boosts dividend, net asset value rises
Schroder Oriental Income Fund Ltd on Wednesday hailed its 20th consecutive annual dividend increase and said it outperformed its benchmark over the year.
The fund, which focuses on Asia-Pacific equities, declared a fourth interim dividend of 5.80 pence per share for the 12 months ended August 31, bringing the total annual dividend to 12.80 pence per share, up 4.9% from 12.20 pence a year earlier.
Schroder Oriental Income said this is the 20th consecutive increase in its annual dividend since the company's launch.
The fund said it retains significant undistributed reserves to support future dividends.
For the year, Schroder Oriental Income reported that net asset value per share increased 47% to 468.63 pence, up from 319.47 pence a year earlier.
Shares in Schroder Oriental rose 2.4% to 430.46 pence on Wednesday in London.
NAV total return in the year was around 52%, outperforming the MSCI AC Pacific ex Japan Index, which returned about 44%.
Schroder Oriental Income said its performance was driven by "exceptional" equity market strength across Asia.
The fund said its "disciplined investment approach" helped it navigate a volatile market, amid developments in the Middle East and concerns over the sustainability of investment linked to artificial intelligence.
The fund pointed out increasingly concentrated returns in AI-linked stocks and its decision to lock in profit in the technology sector, which moved from an overweight to the largest underweight sector over the year.
Looking ahead, the fund said opportunities in the region remain compelling, with many countries benefiting from a favourable economic growth outlook, rising domestic consumption, and increasing commitment from many companies to return capital to shareholders.
Chair Nick Winsor said: "The long-term outlook for the Asia Pacific region and the opportunities it presents for income-focused investors remains compelling."
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