Fill in the fields below with your contact's details and an optional message to email your PDF.
The New Capital Asia Pacific Equity Income Fund aims to produce total returns for investors by owning the region’s highest-yielding shares.
In support of this approach, companies that sit in the top quintile of dividend-paying stocks have consistently and substantially outperformed lower-yielding shares in recent years.
We believe this tends to happen because investors are tempted to pay too much for stocks the market believes have strong growth potential. This is particularly the case in Asia and other emerging markets, so the outperformance gap between high dividend and growth stocks is exaggerated.
In composing the portfolio, we do consider dividend yield as part of our stockpicking but would not buy companies based on that alone. We want to avoid value traps and are careful to look for stocks with the ability to pay sustainable and consistent dividends in the future.
At the same time, we also attach great importance to valuations. At the lower end, if we like a stock because it has a very good yield and great potential, we may well buy it when others consider the timing to be too early.
At the upper end, if a stock we hold gets too expensive, we are likely to sell as the yield retreats to market levels.
Tony Jordan, Senior Portfolio Manager, explains why now is the time for investors to move into high-yielding Asia Pacific equities
Sign up to receive thelatest investment news, perspectives & insights
Issued by EFG Asset Management (UK) Limited. Registered in England and Wales 7389736.Registered Office: Leconfield House, Curzon Street, London, W1J 5JB. Authorised and regulated by the Financial Conduct Authority.
T +44 (0)20 7412 3847 | E firstname.lastname@example.org