Abrdn has launched the Asia Pacific Dynamic Dividend strategy.
The strategy, which is available to retail investors in Singapore and professional investors in Hong Kong, is designed to achieve both capital growth and offer a consistent and sustainable yield.
The strategy takes a bottom-up approach, typically holding between 50 and 90 companies. The core sleeve, which accounts for about 95% of the strategy’s weight, focuses on long-term investments in high-quality companies expected to provide capital appreciation and dividends.
The remaining allocation is dedicated to the dividend capture sleeve, which rotates into regular and special dividend events, utilising analysis of business cycles, asset sales and special cash windfalls.
“We are seeing a growing demand among investors for products that generate high income without compromising on capital growth by using excessively complex derivative instruments,” said David Hanzl, head of wholesale for Asia Pacific at Abrdn,
“This product builds on our success of running our Global Dynamic Dividend Strategy, which has a proven track record, by taking advantage of the tremendous growth opportunities present in the Asia-Pacific region to deliver long term capital appreciation and income for investors.”
“Asia is an attractive place for both earnings and dividend growth. In fact, dividend reinvestment contributes to over half of the total returns earned by investors in Asia Pacific ex Japan,” said Yoojeong Oh, investment director of Asian equities at Abrdn.
“The region is underpinned by strong macroeconomic fundamentals, which supports cash flow generation and upwards earnings revisions. In our view, this can help to sustain dividend payouts.”
“Whilst often overlooked as a purely growth market, more than half of the companies in Asia offer a dividend yield greater than 2.5% p.a.. We see a growing trend across corporates to enhance total shareholder returns through more formalised dividend policies and share buyback programmes.”
