(Alliance News) - Schroder Oriental Income Fund Ltd on Friday boosted its annual dividend despite posting a drop in its net assets for financial 2020.
In the year ended August 31, the FTSE 250-listed trust's net asset value per share fell 5.0% to 239.28 pence from 251.94p at the same time in 2019. Net asset total return was negative 0.9%.
Schroder Oriental's share price as at the end of August was 233.00p, representing a 2.6% discount to NAV. The stock was trading 1.8% lower at 241.00p each on Friday morning in London.
Four interim dividends were declared during the year totalling 10.30p per share, up from 10.10p the year prior.
Looking ahead, investment manager Matthew Dobbs said: "The rate of earnings downgrades has slowed recently, but there is still a lack of visibility on the timing of an end to global lockdowns and travel restrictions, and the likely path of the subsequent recovery in activity. For many companies, this year's earnings are likely to be something of a write-off, so it is important to focus on the longer-term prospects for our investee companies. As performance in the past few months has demonstrated, markets by and large are willing to look beyond this crisis, as long as there is scope for a healthy recovery next year to a more 'normalised' level of profitability."
By Ife Taiwo; ifetaiwo@alliancenews.com
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Schroders (SOI)