The fund focuses on companies that create and grow shareholder value, which tend to pay out steady dividend streams and grow dividend payouts over time. It invests in a well balanced portfolio of stocks exhibiting at least one of following characteristics:
Dividend cow – steady dividend stream secured on stable earnings
Dividend grower – rising dividend stream driven by growth in earnings
Dividend surprise – rising dividend stream driven by improving payout ratio
Over time, good quality stocks with high dividends often perform better than stocks that pay low dividends. This is because companies with higher dividends often have superior earnings prospects compared to their counterparts.
Dividends have historically been the largest component of long term equity returns
Source: Factset, MSCI, IMF, Schroders, 30/06/2017
The Asia Pacific is a region that holds tremendous opportunities for long term investors. China and India’s economies rank amongst the top 5 economies globally, and Asia is also home to over half of the world’s population, where rising wealth and affluence is helping to drive consumption and services in many of these key economies. Dividend return tends to have a stronger correlation with existing economic conditions than price appreciation.
With interest rates staying relatively low, income on assets will continue to be one of the important components of investors’ returns. The fund’s A distribution class (USD) offers investors a regular monthly payout.
Schroders’ Asian team consists of 13 fund managers and 28 analysts based in the Asia ex Japan region who conduct more than 4,200 company visits per year~. This expertise ensures we have in-depth knowledge, embedded in local markets, as well as breadth of coverage, enabling us to identify unique opportunities within the region. With proven track records in Asian markets and awards earned from Benchmark Awards and Bloomberg Awards, the team is well-positioned to capture the growth opportunities across Asia.
Schroder International Selection Fund is referred to as Schroder ISF.
^The monthly distribution is applicable to A, A1 class USD distribution classes (in respect of GBP distribution class, there is neither a guarantee that such distributions will be made nor will there be a target level of distribution payout). The manager will make distributions in respect of distribution classes. The manager has the sole and absolute discretion to vary the rate and/or frequency of distributions, subject to one month’s prior notice to the relevant unitholders. Distribution yield is not indicative of the return of the fund. Distribution may be paid from capital of the fund. Investors should note that where the payment of distributions are paid out of capital, this represents and amounts to a return or withdrawal of part of the amount you originally invested or capital gains attributable to that and may result in an immediate decrease in the value of units.
~Year 2016, data as of May 2017.