91. Why emerging market dividends are holding up better than in the UK

With emerging market equities experiencing outflows every single week of 2020, Ian Simmons, manager of Magna Emerging Markets Dividend fund, explains why investors have been shunning the asset class but have missed out on relatively good performance. He also talks about how the outlook for dividends is better than in the UK, and tells us about opportunities in Asia, Latin American and Russia.
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A hidden gem among other better known emerging markets funds, Magna Emerging Markets Dividend offers exposure to emerging market companies that pay higher-than-average dividends in the short term and that are also able to grow those dividends over the long term. This results in a slightly lower risk profile than its peers and an attractive yield.

Read more about Magna Emerging Markets Dividend

What’s covered in this podcast:

• Why investors have been shunning emerging markets [0:31]
• Performance of emerging markets vs most developed markets [2:09]
• Why domestic investors are turning to equities [3:38]
• How emerging market dividend payments are holding up [5:10]
• Why two-thirds of the fund is invested in Asian companies [8:27]
• Where the manager is finding opportunities in Latin America [10:46]
• Why dividends are improving in Russia [12:32]

The views of the author and any people interviewed are their own and do not constitute financial advice. However the knowledge that professional analysts have analysed a fund or trust in depth before assigning them a rating can be a valuable additional filter for anyone looking to make their own decisions. Before you make any investment decision make sure you’re comfortable and fully understand the risks. If you invest in fund or trust make sure you know what specific risks they’re exposed to. Past performance is not a reliable guide to future returns. Remember all investments can fall in value as well as rise, so you could make a loss.

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