211. Why the structural growth story in Asia is alive and well

Matthews Asia ex Japan Dividend fund manager Yu Zhang talks to us about the benefits of investing in dividend paying companies in Asia versus their more developed peers in the Western world. He also explains why the structural growth story in Asia remains strong and how companies are getting used to living with Covid. He also highlights some of the value that is starting to appear in Chinese equities and why he is also bullish on Vietnam. We also discuss the role of sustainability in the portfolio, including a business making synthetic diamonds.
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Matthews Asia ex Japan Dividend fund blends stocks exhibiting dividend growth with more stable, established yielders. Managed by Yu Zhang, the fund invests in companies across numerous countries, sectors and sizes. The resultant yield is an outcome of the process, rather than a target for the 50-80 stock portfolio.

What’s covered in this episode:

  • The re-opening in Asia and how companies are getting used to living with COVID
  • Why the structural growth story in Asia remains strong
  • Targeting fast growing companies who also pay a dividend
  • Finding secular growth stories in China and targeting the likes of industrial automation, biotechnology and the semiconductor manufacturing sectors
  • Why long-term value embedded in businesses is starting to emerge in China
  • Why he is bullish on the investment outlook in Vietnam and the sectors he is targeting
  • The benefits of income investing in Asia versus the Western world
  • Investing in a company making synthetic diamonds – and where the demand is coming from for this product
  • The role of sustainability in the investment portfolio
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