How Asia measures up against the wider world
1 minute read
Sat Duhra, Portfolio Manager of Henderson Far East Income, discusses the key findings from the latest edition of the Henderson Far East Income Dividend Index report – highlighting how resilient dividends and profits in Asia-Pacific ex-Japan were compared to the rest of the world.
Watch the video to hear Sat Duhra talk through the key findings from the report.
Key Takeaways
- Outside Asia-Pacific, the first year of the pandemic had a severe impact on dividends. They fell 8.8% in sterling terms in 2020/21, with the most severe impact in the UK, Europe, and Emerging Markets. In contrast, dividends in Asia were more resilient with payouts falling by just 2.7%.
- As household budgets come under pressure, companies we consider “upstream” sitting at the top of supply chains, are likely to do better than those ‘downstream’, which are closest to the consumer. Equally, global brands like Samsung have more protection than the commodity consumer firms with no pricing power.
- Our analysis of consensus estimates suggests that profit growth of 5-7% this year. We also expect dividends from the region to rise between 6-8% in 2022/23, to a total of £333 billion – a new record.
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. References made to individual securities do not constitute a recommendation to buy, sell or hold any security, investment strategy or market sector, and should not be assumed to be profitable. Janus Henderson Investors, its affiliated advisor, or its employees, may have a position in the securities mentioned.
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.
Important information
Please read the following important information regarding funds related to this article.
- The Company has significant exposure to Emerging Markets, which tend to be less stable than more established markets. These markets can be affected by local political and economic conditions as well as variances in the reliability of trading systems, buying and selling practices, and financial reporting standards.
- If a Company's portfolio is concentrated towards a particular country or geographical region, the investment carries greater risk than a portfolio that is diversified across more countries.
- The portfolio allows the manager to use options for efficient portfolio management. Options can be volatile and may result in a capital loss.
- Where the Company invests in assets that are denominated in currencies other than the base currency, the currency exchange rate movements may cause the value of investments to fall as well as rise.
- This Company is suitable to be used as one component of several within a diversified investment portfolio. Investors should consider carefully the proportion of their portfolio invested in this Company.
- Active management techniques that have worked well in normal market conditions could prove ineffective or negative for performance at other times.
- The Company could lose money if a counterparty with which it trades becomes unwilling or unable to meet its obligations to the Company.
- Shares can lose value rapidly, and typically involve higher risks than bonds or money market instruments. The value of your investment may fall as a result.
- The return on your investment is directly related to the prevailing market price of the Company's shares, which will trade at a varying discount (or premium) relative to the value of the underlying assets of the Company. As a result, losses (or gains) may be higher or lower than those of the Company's assets.
- The Company may use gearing (borrowing to invest) as part of its investment strategy. If the Company utilises its ability to gear, the profits and losses incurred by the Company can be greater than those of a Company that does not use gearing.
- All or part of the Company's management fee is taken from its capital. While this allows more income to be paid, it may also restrict capital growth or even result in capital erosion over time.
Specific risks
1 minute read
