Trust TV: Opportunities in the Far East
During the world’s worst crisis since the second world war, countries in the Asia Pacific region reacted swiftly and managed to contain the pandemic through a combination of stringent mobility restrictions and extensive based programmes. As a result, profits and dividends in the region were remarkably resilient compared to the rest of the world.
Today, the outlook for dividends looks even brighter, with the International Monetary Fund forecasting the region to grow 7.5% in 2021, compared to 4.6% growth in Europe and 7.0% growth for both the UK and US. Combined with the fact that dividend cover levels are substantially higher than those found elsewhere, for the income-seeker, the investment case for Asia-Pacific seems particularly compelling
The Asia Pacific region is increasingly becoming a ‘dividend powerhouse’. Whether we look at profit, cash balances, net debts, or cash flow, the region’s companies are showing that the fast-growing dividends they are paying are extremely well supported by fundamentals.
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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.
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- The Company has significant exposure to Emerging Markets, which tend to be less stable than more established markets and can be affected by local political and economic conditions, 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 diversified across more countries.
- The portfolio allows the manager to use options for revenue enhancement purposes. Options can be volatile and may result in a capital loss.
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- Active management techniques that have worked well in normal market conditions could prove ineffective or detrimental 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.
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