Latest news with #Schroder
Telegraph
6 days ago
- Business
- Telegraph
This trust's dividend has beaten inflation for a decade – but its share price needs a boost
Questor is The Telegraph's stock-picking column, helping you decode the markets and offering insights on where to invest. The FTSE 100 is in the midst of a record-breaking year. After posting desperately poor returns for what felt like an eternity, it has made several new all-time highs during 2025. Indeed, it appears as though investors are finally beginning to realise that a globally-focused index that trades at a discount to its peers is likely to be a worthwhile prospect. Of course, the chances of the FTSE 100 posting further record highs may seem somewhat distant amid an ongoing global trade war that could yet heat up after an extended pause. This may prompt many investors, particularly those seeking a reliable income, to determine that now is an opportune moment to exit UK large-cap shares while they trade at more generous price levels vis-à-vis their recent past. In Questor's view, though, long-term income investors are being more than fully compensated for the heightened risk of elevated volatility over the coming months. The index, for example, offers a dividend yield of 3.4pc – this is 2.8 times that of the S&P 500. The FTSE 100 also remains cheap relative to other major large-cap indices, with many of its members offering significant long-term capital growth potential, as well as dividend growth, amid the current era of monetary policy easing that is taking place across several developed economies. Therefore, sticking with UK-focused investment trusts such as Schroder Income Growth could prove to be a sound long-term move. It has an excellent track record of dividend growth, with shareholder payouts having risen in each of the past 29 years. Given the scale and variety of geopolitical challenges experienced in that time, it seems to be well versed in overcoming periods of heightened uncertainty. The company's dividends, furthermore, have increased at an annualised rate of 11.3pc over the past decade. This is 50 basis points ahead of annual inflation over the same period, thereby meaning the trust has met its aim to provide positive real-terms dividend growth. And with a dividend yield of 8pc, it offers a substantially higher income return than the FTSE 100 at present. The company also has a solid long-term track record of capital growth, thereby meeting the other part of its aim. Its net asset value (Nav) per share has risen at an annualised rate of 11.3pc over the past five years. This is 50 basis points ahead of the FTSE All-Share index, which is the company's benchmark. Given that its shares currently trade at an 8pc discount to Nav, they appear to offer good value for money and scope for further capital gains over the long run. Of course, a gearing ratio of around 11pc means the trust's share price is likely to be relatively volatile, especially given the aforementioned elevated geopolitical risks. However, given Questor is highly optimistic about the stock market's long-term growth potential, leverage is likely to prove beneficial to overall returns in the coming years. A glance at the weightings of the trust's major holdings may also suggest relatively high share price volatility lies ahead. After all, its five largest positions account for 28pc of total assets, with its portfolio amounting to a relatively limited 45 holdings. However, given the FTSE 100's five largest members account for 31pc of its market capitalisation, this column is not overly concerned about the trust's concentration risk. Moreover, well-known FTSE 100 stocks that are fundamentally sound dominate its major holdings. They include AstraZeneca, Shell and National Grid, with the trust adopting a bottom-up approach that seeks to identify market mispricings when selecting stocks. Since being added to our income portfolio all the way back in December 2016, Schroder Income Growth has produced a capital gain of 18pc. Although this is four percentage points behind the FTSE 100's rise over the same period, which is undoubtedly disappointing, there is scope for index-beating performance as its current discount to Nav likely narrows, the benefits from sizeable gearing in a rising market become more apparent and its focus on fundamentally sound firms catalyses its performance. As well as offering capital return potential, the trust remains a worthwhile income purchase. Its relatively high yield, potential to deliver inflation-beating dividend growth and excellent track record of consistently rising shareholder payouts more than compensate investors for what could yet prove to be a highly volatile and uncertain second half of 2025. Questor says: buy Ticker: SCF Share price at close: £3.12
NZ Herald
6 days ago
- Politics
- NZ Herald
Farm-to-forest limits set to protect rural land, Federated Farmers voice support
Schroder said the Rotorua-Taupō region, among others, had a mix of high-performing sheep and beef farms and marginal land, making it attractive for forestry investment. 'While forestry has a useful place in our primary sector, the rapid conversion of entire farms has raised concerns amongst the community about rural depopulation, loss of food production and the erosion of local community infrastructure,' he said. 'The proposed legislation goes some way to getting the balance right.' The Government planting proposal is chiefly based on land-use capability (LUC), ranging from one (highest) to eight. Legislation would restrict conversions to exotic ETS forests on high to medium-versatility farmland (LUC classes 1-6) and introduce a limit of 15,000ha per year for exotic conversions on medium-versatility farmland (class 6). The annual limit will be allocated by a ballot process, while allowing for up to 25% of a farm's LUC 1-6 land to still be planted in exotic forestry for the ETS. Land protection Schroder said capping ETS eligibility on LUC 6 land and excluding LUC 1-5 from conversion helped protect the most productive land. 'Allowing up to 25% of a farm to be planted in exotic forestry means landowners still have the flexibility and choice to diversify and manage erosion-prone areas. 'However, the 15,000ha annual cap may still allow significant change, and the ballot system could create uncertainty for landowners.' Schroder said if the ETS made a clearer distinction between long-term carbon storage and forestry plantations for harvest, it might be easier to balance environmental goals with the needs of rural areas. Federated Farmers acknowledged the value in maintaining flexibility for landowners, he said. 'This legislation doesn't oppose forestry; it supports more strategic long-term thinking about how we use our land. 'The challenge is protecting the future of rural communities while still allowing room for diversification when it makes sense. 'This legislation is a more balanced approach and is a positive step forward for rural communities.' Long-time forestry consultant Jeff Tombleson said the proposed legislation had been signalled before the last election and 'imposes little surprise' on the industry. Since the 1990s, he said farm forestry had not occurred on any scale. 'It almost ceased. Land prices became prohibitive.' Based in Rotorua, he said the current harvest of the 1990s plantings was 75% complete. The land involved has largely been replanted, along with a second planting 'spike' of up to 300,000ha of new forests on sheep and beef country from 2018-2025. With relatively high returns for carbon, Tombleson predicted this 'spike' would have continued if restrictions were not introduced. He said the largest areas of new forests in New Zealand were in Auckland/Northland, Southland and the Central Plateau (Rotorua/Taupō). The Government bill proposes a start date of October 31. 'We will process applications to register in the ETS under the current rules until the restrictions come into effect,' McClay said at Fieldays.
Yahoo
08-07-2025
- Sport
- Yahoo
Kings steal Dennis Schroder from Pistons with $45 million contract in free agency
The post Kings steal Dennis Schroder from Pistons with $45 million contract in free agency appeared first on ClutchPoints. Veteran point guard Dennis Schroder and the Sacramento Kings, came to an agreement in free agency on Monday evening, league sources told ClutchPoints. As the Kings continued to look for ways to maximize their offer for Schroder, discussions about whether they would do a sign-and-trade loomed large. Advertisement Ultimately, after trading Jonas Valanciunas to the Denver Nuggets on Tuesday, the Kings were able to finalize a three-year, $45 million contract with Schroder to become the newest face of their backcourt. Malik Monk, who was brought up in multiple sign-and-trade scenarios between the Kings and Detroit Pistons, will remain own Sacramento's roster for the moment. ESPN was first to report the terms of Schroder's contract on Tuesday. Schroder, 31, had become a free-agent target for multiple contending teams around the league this offseason. Although Schroder made it clear he was seeking a new contract with the Pistons, who he had been traded to during the 2024-25 season, the organization wasn't prepared to wait for him with other players available on the open market. The Pistons acquired Schroder from the Utah Jazz immediately after he was traded by the Golden State Warriors in a multi-team deal that sent All-Star forward Jimmy Butler to the Dubs. Before going to Detroit or Utah, Schroder was traded from the Brooklyn Nets to the Warriors for De'Anthony Melton, who had suffered a torn ACL, and three second-round picks. Advertisement No matter where he has been throughout his 12 years in the NBA, Schroder has been a productive factor for his team in the backcourt, either in or out of the starting lineup. During the 2019-20 season when he was with the Oklahoma City Thunder, Schroder finished second in the voting for Sixth Man of the Year to Montrezl Harrell. In 75 combined games with the Nets, Warriors, and Pistons last season, Schroder averaged 13.1 points and 5.4 assists per game while shooting 40.6 percent from the floor and 34.2 percent from 3-point range. He will immediately become a contributing factor for the Kings, who have other questions to address this offseason outside of finding a lead guard in their backcourt. The Kings, run by new GM Scott Perry, are operating with all doors open regarding the future of the franchise. After missing the playoffs for the second straight year and trading De'Aaron Fox to the San Antonio Spurs, the Kings are expected to make further changes to their roster. More specifically, DeMar DeRozan and Monk continue to appear in trade rumors around the league. Advertisement Numerous teams have also called Sacramento to express interest in All-Star big man Domantas Sabonis, yet the Kings have not given any indications that they want to move on from their star big man, sources said. Still, a lot of uncertainty surrounds his future with this organization. By adding Schroder, the Kings are hopeful that he will help bridge some gaps that exist between Sabonis, Zach LaVine, and others on the roster. He has always been a solid presence in the backcourt, and Schroder is more than capable of leading his team's offense at any speed. The Kings will be the 10th different organization that Dennis Schroder has played for in the NBA. Related: Best free-agent destinations for Damian Lillard after Bucks waived him Related: Nuggets continue dazzling offseason in Jonas Valanciunas trade with Kings
Sky News AU
04-07-2025
- Business
- Sky News AU
'Ridiculous, stupid, insane': Leading fund manager lashes Labor's tax on unrealised gains proposal as PM remains certain on plan
Wilson Asset Management founder Geoff Wilson has fiercely opposed Labor's controversial plan to tax unrealised gains, branding it 'ridiculous,' 'stupid,' and 'insane'. The proposal by the Albanese government to double the tax rate on super accounts above $3m and target unrealised gains on assets came under the microscope at The Australian's Australia's Economic Outlook on Friday. Prime Minister Anthony Albanese, who presented the keynote address at the event, remained steadfast on the superannuation tax proposal. 'The proposal that was put forward, we put forward in the last term. It would affect just a very small number (of people),' Mr Albanese said, regarding Labor's proposed super tax changes. Questioned about whether he would consider indexing the tax or removing the tax on unrealised gains, the Prime Minister declined. Following Mr Albanese's appearance at the event on Friday, Mr Wilson told Sky News he agreed with sentiments expressed by the Prime Minister in his speech that businesses should be the primary source growth in the economy. But Mr Wilson described the current economic environment for Australian businesses as 'incredibly tough' and urged the Albanese government to 'not overtax and overregulate'. 'And that's the problem I think all Australian companies have got at the moment,' he said. 'Effectively, we don't want any more pleasantries. Our small, medium-sized and even large companies in Australia need some action by this government. We are one of the highest-taxed OECD countries.' Mr Wilson said he hoped to see reductions in both income and corporate tax within the government's tax reform plans, before he took aim the controversial unrealised tax gains proposal. 'One of the things that needs to be off the table is the ridiculous, or stupid, or insane tax on unrealised gains, which really is incredibly negative for medium long-term productivity,' he said. 'Any small growth company in Australia that's looking for patient capital from the superannuation sector, and there's $1.1 trillion in self-managed super funds, that's going to evaporate if this tax comes in.' AustralianSuper chief executive Paul Schroder, who also spoke at this year's Australia's Economic Outlook, also pushed back against the tax plan. Questioned by Sky News' Business Editor Ross Greenwood if he thought the tax was bad policy, Mr Schroder did not give an explicit answer. However, Mr Schroder did say AustralianSuper "prefers less changes than more changes" and that he "would never do anything to anyone else who's trying to make good super".
Sky News AU
04-07-2025
- Business
- Sky News AU
AustralianSuper CEO Paul Schroder pushes back against Labor's unrealised gains tax during Australia's Economic Outlook
The boss of Australia's largest superannuation fund has pushed back against Labor's controversial plan to to double the tax rate of super accounts above the $3m threshold and target unrealised gains on assets. The Albanese government's proposal has drawn backlash from business leaders, economists and an array of politicians who argue the tax will hurt business growth and eventually capture ordinary Australians. AustralianSuper CEO Paul Schroder was questioned about the tax during a Q&A at Sky News and The Australian's Australia's Economic Outlook. Sky News' Business Editor Ross Greenwood pressed the boss on whether he felt this was bad policy, but Mr Schroder did not explicitly reply. However, he did say AustralianSuper "prefers less changes than more changes". He also said he "would never do anything to anyone else who's trying to make good super". Prime Minister Anthony Albanese was also pressed about the superannuation tax earlier on in the event, but he remained certain. 'The proposal that was put forward, we put forward in the last term. It would affect just a very small number (of people),' Mr Albanese said of Labor's proposed super tax changes. Asked if he would consider indexing the tax or removing the tax on unrealised capital gains, Mr Albanese declined. A new report from Wilson Asset Management shows Labor faces an almost $20b blow from its controversial proposal to tax unrealised gains in a self-inflicted setback against its productivity agenda. It says an array of companies that are either small growth businesses or startups will forego $19.73b in tax revenue to the government over four years as fewer firms reach profitable maturity. The report states there are 611,823 companies in Australia that turn over less than $2m per year and would need financing through a self-managed super fund or via personal contributions. If each small company contributed an average of $15,015.91 in tax per year to the government, the total tax revenue would be $9.19b of annual corporate tax from these companies. WAM estimates the taxing of unrealised gains would lead to a potential 53.7 per cent decline in tax revenue from innovative companies, bringing the corporate tax from these small companies down to $4.93b per year. This brings the total losses to $19.73b over four years due to Labor's decision to target unrealised gains. Alongside the unrealised gains tax, other areas of tax reform were also touched on during the forum. Mr Schroder demanded reform for small businesses which struggle with a complex array of taxes. 'If you're a business in Australia, there's about 100 different taxes you have to pay,' he said. 'How stupid is that.' He said the government needed to introduce tax reform that bolstered productive small-medium size businesses.
