Global equity income funds
The low interest rate environment has been driving the hunt for yield, which has made income-oriented funds popular among Asia’s investors.
For example, in Hong Kong, two income-focused funds, the HSBC Asia High Income Bond Fund and the JP Morgan Multi Income Fund (a mixed-asset fund), gathered the most assets among all mutual funds available for sale in Asia during the first half this year, according to data from Morningstar.
Johan Jooste, Bank of Singapore’s chief investment officer, advised investors to get into strategies that provide income, such as dividend-paying stocks or high-yield bonds, now that the global economy has entered into a “period of moderation”.
However, the attractiveness of income-oriented funds has started to decline in the US as interest rates rise and in Europe, as the central bank’s asset buying programme tapers off, according to Mark Hinton, London-based head of equity strategies at Allfunds Bank.
Against this backdrop, Hinton, together with Yusuf Durmaz, fund analyst at Allfunds Bank also based in London, compare two global equity income funds, the BNY Mellon Global Equity Income Fund and the Deutsche Invest Top Dividend Fund.
