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Schroders targets high dividend Asian stocks with fund launch
by Chris Sloley on Sep 23, 2013 at 11:11
Schroders is seeking to capture high dividend paying stocks in the Asia Pacific ex Japan region with the launch of its latest fund.
The Schroder ISF Asian Dividend Maximiser, which is Luxembourg-domiciled, will target a regular monthly yield of around 7% per annum.
It will operate in a similar approach to the existing Schroder Asian Income Maximiser , which is a UK-domiciled fund. This fund focuses on large and mid-cap stocks with a market cap typically in excess of $2 billion at the time of investing.
The new fund employs the same two-step ‘Maximiser’ strategy as the UK fund but also has a covered call option overlay to help deliver an enhanced level of yield. The proportion which is overwritten with call options will depend on prevailing market conditions.
Commenting on the launch, Sennitt, co-manager of the fund, said: ‘Asia, as a region, offers investors good diversification in the form of more companies from which to draw income.’
‘Opportunities in Asia are driven by strong fundamentals despite current talk of tapering and slower global growth dynamics. We also continue to believe that a focus on dividends remains one of the strongest equity strategies over the long term.’
The Maximiser strategy is currently used across seven UK-listed and Luxembourg-domiciled funds, with a combined total of $3.9 billion in assets under management.
The Schroder Asian Income Maximiser A Acc fund returned 34.3% over the three years to the end of August 2013. This compares to a rise of 21.94% by its Citywire benchmark, the FTSE All-World Asia Pacific TR USD, over the same period.
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