Asia: The structural growth story remains intact
Sat Duhra, Portfolio Manager of Henderson Far East Income, talks about the performance of Asian markets year-to-date, areas where he is finding opportunities, sentiment around China, and the impact of inflation on businesses. Sat also touches on the dividend trends in the region.
PODCAST:
29 Sep 2022
Key takeaways:
- Inflation across the Asia Pacific region has generally been lower compared to Developed Markets: a more gradual reopening has led to fewer demand shocks compared to the West. Though we expect inflation to rise over the coming months, it’s starting from a much lower base.
- We focus the “enablers” of some of the key global themes: electric vehicles, artificial intelligence, and renewables. This means investing in chip and material companies required to build electric vehicles, for example.
- We remain confident about the outlook for dividends considering the excess cash being generated and the low level of dividends paid out compared to earnings. We remain focused on domestic-orientated companies with strong cash flows and sustainable and growing dividends.
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These are the views of the author at the time of publication and may differ from the views of other individuals/teams at Janus Henderson Investors. Any securities, funds, sectors and indices mentioned within this article do not constitute or form part of any offer or solicitation to buy or sell them.
Past performance does not predict future returns. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.
The information in this article does not qualify as an investment recommendation.
Marketing Communication.
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Please read the following important information regarding funds related to this article.
Before investing in an investment trust referred to in this document, you should satisfy yourself as to its suitability and the risks involved, you may wish to consult a financial adviser. This is a marketing communication. Please refer to the AIFMD Disclosure document and Annual Report of the AIF before making any final investment decisions. Henderson Far East Income Limited is a Jersey fund, registered at Liberté, 19-23 La Motte Street, St Helier, Jersey JE2 4SY and is regulated by the Jersey Financial Services Commission] Ref: 34V
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Specific risks
29 Sep 2022
- Inflation across the Asia Pacific region has generally been lower compared to Developed Markets: a more gradual reopening has led to fewer demand shocks compared to the West. Though we expect inflation to rise over the coming months, it’s starting from a much lower base.
- We focus the “enablers” of some of the key global themes: electric vehicles, artificial intelligence, and renewables. This means investing in chip and material companies required to build electric vehicles, for example.
- We remain confident about the outlook for dividends considering the excess cash being generated and the low level of dividends paid out compared to earnings. We remain focused on domestic-orientated companies with strong cash flows and sustainable and growing dividends.