Schroder Oriental Income Fund Limited (SOI)

Why we like the fund: This is an investment trust, which gives the manager more freedom to invest than with an open-ended fund. For example, it can borrow money to invest and it does (albeit fairly modest amounts). It also owns smaller companies, which is something that an investment trust can do more comfortably because of its structure. This fund invests in companies across Asia, in countries like China, India and Australia, and it focuses on those that pay dividends. It is run by an Asia expert who has extensive relevant experience, with specialist expertise finding higher quality dividend payers. He is backed up by an experienced and large group of company analysts, many of whom are based in the region. How to use the fund: This is a good addition to any long-term investor’s portfolio that seeks a combination of growth and income. We suggest a long-term view is taken – ten years plus – and that this fund is seen as one of the riskier allocations within a diversified portfolio.