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.
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. 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.
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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