Schroders offers Asian Dividend Maximiser fund via ISF

Schroders is to offer investors across different markets access to a strategy already implemented for the UK market, in the form of its Schroder ISF Asian Dividend Maximiser fund.

The strategy is focused on high dividend stocks in the Asia Pacific ex-Japan, and targets a monthly yield equivalent to 7% annually.

The ‘Maximiser’ in the name reflects a method of using a covered call option overlay to an actively managed portfolio, to enhance yield. As the fund reflects an already existing UK fund strategy, it will use the same management team, of Thomas See, head of Structured Fund Management, responsible for the overlay strategy, and Richard Sennitt, fund Manager of Schroder Asian Income Fund, responsible for stock selection.

Stock selection will be slightly different from the existing strategy, with a focus on mid and large cap stocks, with market cap typically above $2bn. A portion of the portfolio will be managed without call options, meaning the managers can invest in stocks and markets where option activity is limited.

“The proportion overwritten will depend on the prevailing market conditions and will be used by the managers to deliver the enhancement required for the 7% target yield,” Schroders said.

The ISF Asian Dividend Maximiser fund is domiciled in Luxembourg domiciled, and will be available across Europe subject to registration in individual markets.The time to complete this registration may vary.

 

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