257. Generating an income by investing in Asia

Singapore-based manager Jochen Breuer talks us through the key objectives of the Fidelity Asian Dividend fund — and it’s not just about producing an income. Jochen explains the types of companies held in this concentrated portfolio, why they tend to outperform in falling markets and the prospects for dividend growth in Asia. We consider two examples, firstly the technology sector through the lens of Samsung and secondly, the financial sector using Singapore Exchange as an illustrative as to why the manager favours non-bank financial companies. What’s covered in this episode: The three targeted outcomes of this fund Why the Fidelity Asian Dividend fund tends to outperform in falling marketsThe types of companies held in the portfolioWhy technology can be both a cyclical and defensive The investment case for SamsungThe manager’s preference for insurance companies over banksWhy you need to be selective about investing in banks in AsiaHow long-term holding Singapore Exchange could benefit from rising interest ratesHow the reopening of China impacts the portfolioThe prospects for dividend growth in Asia More about the fund: The Fidelity Asian Dividend fund consists of between 30-50 holdings and pays a decent yield of around 30-40% more than the wider market, offering the opportunity for capital and dividend growth. While the manager favours high quality companies, he will not invest in them at any price and this value-aware mindset, coupled with the yield target, gives the fund a value tilt. Learn more on fundcalibre.comPlease remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.Learn more on fundcalibre.comPlease remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.