Trustnet Magazine 95 May 2023 | Page 38

YOUR PORTFOLIO Asian income

8.1 %

- Annualised dividend growth rate of the Asia ex-Japan region over 10 years
It is also worth noting that the broader MSCI Asia Pacific ex Japan index does not accurately represent Asian income portfolios . It has around one-third of its assets in China , with technology names such as Alibaba and Tencent making up a significant proportion of its exposure . In the MSCI AC Asia Pacific ex Japan High Dividend Yield index , however , China isn ’ t even the largest weighting – it sits just behind Taiwan , which is on 25.1 %. Oh says she is underweight China – her largest positions are in Singapore , Taiwan and Australia
– as its companies either offer low dividends or don ’ t meet her quality criteria . However , she finds that she can obtain exposure to its economy through less direct methods – Singaporean banks , for example . Jason Pidcock , manager of the Jupiter Asian Income fund , takes a similar view . He prefers Australia and India , highlighting Chinese government interference and geopolitical tensions as reasons to be wary of the world ’ s second-largest economy .
Broaden your horizons Equally , Asian income strategies offer exposure to a broader range of sectors compared with those in the US , UK or Europe . “ The Janus Henderson Global Dividend Index shows that , over time , investors have done best by being in structurally growing sectors for dividend growth ,” says Lofthouse . “ That ’ s been more important than regional allocation .” Among the sectors producing the highest dividend growth are technology and consumer staples .
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