Schroder Oriental first half NAV beats benchmark but falls annually

(Alliance News) - Schroder Oriental Income Fund Ltd on Thursday said net asset value fell on an ...

Alliance News 23 May, 2024 | 11:07AM
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(Alliance News) - Schroder Oriental Income Fund Ltd on Thursday said net asset value fell on an annual basis but was up from six months earlier, while beating its comparator benchmark.

The Asia Pacific-focused investor said NAV per share at February 29 stood at 267.12 pence, down 2.4% from 273.73p a year earlier but up 4.3% from 256.01p on August 31.

Across the first half of its financial 2024 ending August 31, Schroder Oriential enjoyed a NAV total return of 7.5%, beating the MSCI AC Pacific ex Japan return of 1.9%.

Pretax profit multiplied to GBP46.8 million from GBP10.4 million.

During the first half, Schroder Oriental declared two interim dividends totalling 7.8p per share, up from 7.6p a year earlier, noting it has an "18-year track record of progressive and significant dividend growth", having grown its dividend every year since launch.

Shares in Schroder Oriental fell 0.7% to 271.00 pence each in London on Thursday midday.

"The company has enjoyed significant outperformance of the wider markets in recent years and this latest period builds upon that. [Our performance is] testament to the fact that a skilful active management approach in Asia has the ability to deliver significant value to investors...the company has exceeded the Reference Index notably over one, three, five and 10 years, as well as since inception in 2005. Similarly, that outperformance is reflected against our peers where clear blue water lies between us and our nearest competitor," said Chair Paul Meader.

Looking ahead, Schroder Investment Management Ltd, Schroder Oriental's investment manager, commented: "Although uncertainties remain around China's outlook, the region's inexpensive aggregate valuations, alongside potentially easing global interest rates, a weaker US dollar and a recovering goods export cycle does set up a more constructive backdrop for Asian markets in 2024, barring a global hard landing, or a more extreme geopolitical risk event."

By Greg Rosenvinge, Alliance News senior reporter

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Schroder Oriental Income Ord 268.00 GBX 0.37

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