Schroders has unveiled a Luxembourg version of its UK-domiciled Asian Dividend Maximiser fund, which will provide exposure to high dividend stocks in Asia- Pacific (ex-Japan).
The Schroder ISF Asian Dividend Maximiser fund aims to provide 7% annual returns by investing in high-dividend Asia-Pacific ex-Japan stocks and a covered call strategy.
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The new fund employs the same two-step ‘Maximiser’ strategy, which adds a covered call option overlay to an actively managed portfolio of higher-yielding Asian stocks to deliver the enhanced level of yield.
The investment team for the new fund will include 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.
The fund will be similar to the existing UK-domiciled fund, Schroder Asian Income Maximiser.
The new fund will focus more on large and mid- cap stocks, with a market cap at the time of initial investment of over US$2billion.
The Maximiser range currently has US$3.9billion (£2.43billion) assets under management.
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By GlobalDataThomas See, co-manager of Schroder Asian Income Maximiser and co-manager of Schroder ISF Asian Dividend Maximiser, said: "For an investor able to accept the inherent risk in an equity investment, the Maximiser strategy has the advantage of drawing from two sources of yield, stock dividends and call option premia, which are both independent of low interest rates, which is depressing investment returns and making it hard for investors to find yield."
Carlo Trabattoni, head of pan-European intermediary distribution and GFIG at Schroders said: "Schroder ISF Asian Dividend Maximiser not only offers investors a high initial yield, but also the prospects of good income and capital growth, so we believe it is a very attractive proposition in the high income space."
