Asia may not be the first region that springs to mind when investors think of income , but they may want to give it a closer look . The MSCI AC Pacific ex Japan index has an average dividend yield of 3.3 %, well above the 2.3 % from the MSCI ACWI , although it is still below the FTSE All Share ’ s figure of 3.5 %. However , by investing in Asian dividend-paying companies , the
Schroder Asian Income fund offers a yield of 4.7 %. The trust ’ s manager Richard Sennitt is not afraid to add value by taking a different allocation from his peers . For example , a 14.9 % weighting to China , compared with 34.5 % from his MSCI AC Pacific ex Japan benchmark , helped him eke out a return of 0.2 % last year while the IA Asia ex Japan sector dropped 6.9 %. However , analysts at FE Invest warned Sennitt ’ s strategy won ’ t work in all conditions . “ The fund is biased towards quality companies , so it should hold up better in down markets but may not capture the upside fully in rising ones ,” they explained . Nevertheless , it has done enough to make the FE Invest Approved Funds List , as well as Square Mile ’ s Academy of Funds . “ Sennitt believes that income generation provides a substantial portion of the total return over the long run ,” said Square Mile ’ s analysts . “ While looking for incomegenerating opportunities , he follows
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