The board of the Schroder Oriental Income investment trust, managed by Asian specialist Matthew Dobbs, is undertaking a £100m C-share issue to meet investor demand.
Over the past year the trust's asset base has swelled, jumping from £258m last May to £378m, prompting the board to issue a wave of new shares in an attempt to stop the company trading at a high premium to NAV. According to broker Numis, over the past year 15.5m shares have been issued, but the trust has remained on a premium to net asset value. Over one year it has traded on an average 2.5% premium to NAV, although Numis said the volatility of the trust's premium has been lower than some of its peers. In a letter to investors, the board outlined its proposals to raise £100m via a ...
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