abrdn has launched an emerging markets income equity strategy, which mirrors the strategy of a UK domiciled vehicle that launched in 2012.
The strategy is available to accredited investors and institutional investors in Singapore and professional investors in Hong Kong.
The strategy aims to achieve a combination of growth and income by investing in emerging markets equities. It prioritises companies on their ability to pay dividends, with half of the portfolio invested in high dividend companies and half in dividend growers.
The strategy aims to deliver a premium and growing income stream over various types of market environments in addition to attractive upside and downside capture characteristics.
“We understand income is an evergreen demand of Asian investors. The launch demonstrates our commitment as a specialist asset manager to expand our diversified income solutions which are designed to address the growing income needs of an aging population in this region,” said David Hanzl (pictured), head of Asia Pacific wholesale at abrdn.
“The proportion of emerging market companies paying dividends is now comparable to developed markets. Therefore, we believe the strategy will provide a new option for investors, presenting long-term opportunities to benefit from high-growth markets and enjoy compelling income yields in the meantime.”
“Emerging market investing is often associated with growth rather than income. However, data shows that there are now as many companies paying dividends in emerging markets as in developed markets,” said Matt Williams, senior investment director at abrdn.
“Having managed the relevant UK domiciled vehicle for over a decade, we can see a uniquely appealing income universe for active investors with a total return mindset. The growth of earnings and the compounding of dividends in emerging market equities can make for a powerful combination in portfolios and we’re delighted to launch the strategy bringing this opportunity to more investors.”
