Dividends in Asia remain attractive
Sat Duhra, Portfolio Manager of Henderson Far East Income talks about the Trust’s performance year-to-date, areas where he is finding opportunities, and looks at the risks emanating from China. Sat also looks at how Asian countries are approaching decarbonisation.
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- The Trust has held up relatively well so far this year, benefitting from exposure to the telecommunications, materials, and financials sectors. However, we have recently been reducing exposure to the materials and financials sectors due to lower growth expectations.
- We have been increasing our exposure to China as valuations have fallen to more attractive levels. Improving economic data following the roll-back of Covid-19 lockdown restrictions has also lifted sentiment.
- Though the performance gap between value and growth stocks remains quite wide, value stocks have been having a renaissance over the last 18-months. Investors have been looking to value and income investments to insulate them from higher interest rates and elevated levels of inflation.
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.
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.
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- The portfolio allows the manager to use options for efficient portfolio management. Options can be volatile and may result in a capital loss.
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