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.
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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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.