SCHRODER ASIAN INCOME MAXIMISER - Fund overview

Portfolio

• Asset Allocation
• Equity Geographic
• Equity Capitalisation

Allocation		Proportion
	Equity	100%
	High yield bonds	–
	Quality bonds	–
	Property	–
	Commodities	–
	Hedge	–
	Fund cash	–

Allocation		Proportion
	UK	–
	Europe	–
	Nth America	–
	Japan	–
	Pacific	100%
	Other Equity	–

Allocation		Proportion
	Large Caps	80%
	Mid Caps	15%
	Small Caps	5%

View all performance data for SCHRODER ASIAN INCOME MAXIMISER

Investment process

The fund’s investment objective is to provide income with potential for capital growth primarily through investment in equity and equity related securities of Asian (ex Japan) companies. The target yield at launch was 7%. The Schroder Asian Income fund forms the basis for the equity portion of the portfolio. However, the fund also incorporates a derivative overlay strategy to achieve the yield target. This involves the sale of three month call options on portfolio stocks in exchange for upfront cash payments, which are paid out as part of the dividend. However, by selling call options on its stocks the fund limits their capital upside and hence the fund's capital growth prospects.
Stock selection is valuation based and companies that do not provide a high enough yield benefit from the derivative overlay to bring them in line with portfolio yield requirements.
The fund is still able to invest in markets where yield may not be high enough and the derivative overlay is not available. Around 20% of the portfolio is likely to remain outside the covered call overlay.