We have published a
new Morningstar Qualitative Rating and Research Report for Schroder ISF Asian Equity Yield.
"This fund employs top-down country and sector allocation mixed with stock-level research. That’s quite common, but the focus on yield and the manner in which it’s applied pique our interest. The most interesting aspect of the fund is how dividends are classified into three categories--steady dividend payers (such as Korea Tobacco and Ginseng), dividend surprises (where the payout ratio is increasing; Chunghwa Telecom and TSMC are examples), and dividend growers (rising dividend streams due to earnings growth; BHP Billiton is an example here). Typically the fund inv
ests equally across the three types although there are no set limits and the weighting will change over time given the manager’s view of the market."
The full four page pdf report can be accessed here. It is free to users of Morningstar.co.uk.
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