236. Why more investors should consider Asia for income

Richard Sennitt, manager of Schroder Asian Income fund, explains both the structural and cyclical reasons for recent Chinese equity underperformance, including the shift away from the zero-Covid policy. He tells us what impact this has had on the fund’s positioning going into 2023 and explains more about why he’s underweight not only China but also India, instead looking towards South Korea, Taiwan, and Singapore for investment opportunities.

Schroder Asian Income fund aims to provide an income, with potential for capital growth, primarily through investment in the shares of Asian companies that offer attractive yields and growing dividend payments. The emphasis of the fund will be investment in the Asia Pacific excluding Japan region (including Australia and New Zealand).

What’s covered in this episode: 

  • Why Chinese equities have underperformed the last 12 months
  • The policies affecting Chinese markets
  • How the swift move away from the zero-Covid policy has changed investor sentiment in China
  • The income opportunities in China vs Hong Kong
  • Value or growth: considering style in fund construction
  • Why the manager remains underweight in India
  • Why investors should add Asian equities to a portfolio
  • Long-term opportunities in South Korea, Taiwan, and Singapore
  • Why some commercial property and telco’s look attractive
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