Schroder Asian Income Maximiser Z

Asian equity fund with yield enhancing derivative overlay targeting a 7% yield.

  • 54.06p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • 118.70p
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 0.75%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 0.96%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 6.70%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 20 January 2021, fund data last updated 24 September 2010

An Asian equity fund investing in higher yielding stocks in the region, while looking to capture some capital growth. The fund had a 7% target yield at launch, enhancing the dividends on the underlying stocks by using a covered call overlay strategy. This is the same strategy utilised by the Schroder Income Maximiser (UK) fund - essentially the managers are giving up some potential capital growth to boost the yield.

Fund summary

Sector Asia Pacific Excluding Japan
Structure UNIT TRUST
Launched June, 2010
Size £243m
Yield 6.70%
Charging basis
Dividends paid 28 Feb, 31 May, 31 Aug, 30 Nov

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.75%
Ongoing charges figure 0.96%

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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.

Manager research

Average monthly relative returns

  • 16/17 -0.32%
  • 17/18 0.42%
  • 18/19 0.67%
  • 19/20 0.24%
  • 20/21 0.00%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.31%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 99.70%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Richard Sennitt

Sennitt joined Schroders in 1993 as a trainee analyst on the Japanese desk, before moving to a fund management role. He joined the Pacific Basin team at the start of 1997 and then became a fund manager with the Asian Emerging Markets team. Sennitt graduated from Oxford University and is a CFA Charterholder.

Track record

Richard Sennitt has 8.2 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.31%. During the worst period of relative performance (from March 2008 - December 2008) there was a decline of 12% relative to the index. The worst absolute loss has been 34%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is more than 99%.

Periods of worst performance

Absolute -34.00% (October 2007 - November 2008)
Relative -12.00% (March 2008 - December 2008)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

Allocation

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Top 10 holdings

Data accurate as at 31 July 2020

9.69% Taiwan Semiconductor Co
8.39% Samsung Electronics Co
4.44% Bhp Group Plc
2.95% Sands China Ltd
2.49% Media Corp Plc
2.46% China Mobile Ltd
2.39% Hong Kong Exchanges & Clearing
2.35% Delta Electronics Inc
2.23% Hon Hai Precision Industry
2.13% Venture Corp
Source: Trustnet

Sector breakdown

Information Technology 29.00%
Financials 19.00%
Real Estate 12.00%
Materials 12.00%
Communications 11.00%
Consumer Discretionary 9.00%
Consumer Staples 3.00%
Utilities 2.00%
Energy 2.00%
Money Market 1.00%

Portfolio

60-80 stocks. The portfolio has around 80% commonality with the Schroder Asian Income fund.

Key Investor Information - Income

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Key Investor Information - Accumulation

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