Posted inHead To Head

HEAD-TO-HEAD: First State vs Schroders

FSA compares two Asia-Pacific dividend-focused funds: the First State Asian Equity Plus Fund and the Schroder ISF Asian Equity Yield Fund.
by Fund Selector Asia
Asia Pacific ex-Japan equity fund

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As the search for yield continues, demand for income funds should remain.

One of the big unknowns is whether the policies of president-elect Donald Trump will actually improve the US economy and boost inflation, and in turn the interest rates – which would be bad for fixed income and bond proxies and good for value and growth equities.

“If, as we expect, bond yields were to come down again in 2017, dividend-yielding stocks should come in favour again,” HSBC Private Bank argued in its recent quarterly outlook report. The bank reasons that US interest rates will not rise too quickly and strongly due to the nation’s high debt level.

While US dividend stocks look stretched, “there are big differences in yield potential across regions. The Asia- Pacific and Eurozone regions are currently presenting some of the more attractive yield opportunities,” said SSGA fundamental equity portfolio manager William Killeen in a yearly outlook report.

Against this backdrop, Morningstar’s senior analyst for manager research, Germaine Share (pictured above), provides a comparative analysis of the First State Asian Equity Plus Fund and the Schroders ISF Asian Equity Yield Fund.

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