Trustnet Magazine Issue 13 December 2015 | Page 23
SCHRODERS
ASIAN TOTAL RETURN INVESTMENT COMPANY PLC,
SCHRODER ASIA PACIFIC FUND PLC AND SCHRODER
ORIENTAL INCOME FUND LIMITED
INVESTORS IN THE EMERGING MARKETS AND THE FAR EAST
should be aware that this involves a high degree of risk and should be
seen as long term in nature. Less developed markets are generally less
well regulated than the UK, they may be less liquid and may have less
reliable arrangements for trading and settlement of the underlying
holdings. Investment in warrants, participation certificates,
guaranteed bonds, etc will expose the fund to the risk of the issuer of
these instruments defaulting.
ASIAN TOTAL RETURN INVESTMENT COMPANY
THE FUND USES DERIVATIVES TO ACHIEVE ITS INVESTMENT
OBJECTIVE. The way in which derivatives are used will increase
the income paid to investors and reduce volatility, but there is the
potential that performance or capital value may be eroded.
“INVESTING IN ASIAN
SCHRODER ORIENTAL INCOME FUND LIMITED
DIVIDEND STOCKS COULD DEDUCTING CHARGES FROM CAPITAL CAN RESULT IN THE
INCOME PAID by the company being higher than would otherwise
OFFER INVESTORS BOTH be the case and the growth in the capital sum being eroded. As a
result of the fees being charged partially to capital, the distributable
LONG-TERM CAPITAL
income of the company may be higher, but the capital value of the
APPRECIATION AND
company may be eroded.
A STEADY INCOME
SCHRODER JAPAN GROWTH FUND PLC
STREAM”
THE TRUST WILL INVEST SOLELY IN THE COMPANIES OF ONE
differ from country to country.
Korean companies pay low
dividends compared with Australia
or Hong Kong, while some internet
firms in China are at valuations of
80 to 100 times earnings.”
Another difference in Asia is
that, since growth does not always
equate to market performance,
it is necessary to look at the
sustainability of the company’s
business model and how it is
managed. For example, some familyrun businesses in Asia are managed
in the interests of the family, rather
than shareholders.
So, while examining numbers is
important when selecting stocks in
Asia, having local connections and
knowledge is equally invaluable.
COUNTRY OR REGION. This can carry more risk than investments
spread over a number of countries or regions.
Schroders launched its first investment trust in 1924 and our range provides investors
with access to a range of nine distinctive investment opportunities including: UK and
Japanese equities, Pan-Asian equities and property.
To find out more, please visit www.schroders.co.uk/its
What are the risks?
• Past performance is not a guide to future performance and may not be repeated. The
value of investments and the income from them may go down as well as up and investors
may not get back the amount originally invested.
• The funds hold investments denominated in currencies other than sterling, investors
should note that exchange rates may cause the value of these investments, and the
income from them, to rise or fall.
• The funds invests in smaller companies that may be less liquid than in larger companies
and price swings may therefore be greater than investment companies that invest in
larger companies.
• The funds may borrow money to invest in further investments, this is known as gearing.
Gearing will increase returns if the value of the investments purchased increase in value
by more than the cost of borrowing, or reduce returns if they fail to do so.
Important Information: The views and opinions contained herein are