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]

This article is provided for information only. The views of the author and any people quoted are their own and do not constitute financial advice. The content is not intended to be a personal recommendation to buy or sell any fund or trust, or to adopt a particular investment strategy. 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. Past performance is not a reliable guide to future returns. Market and exchange-rate movements may cause the value of investments to go down as well as up. Yields will fluctuate and so income from investments is variable and not guaranteed. You may not get back the amount originally invested. Tax treatment depends of your individual circumstances and may be subject to change in the future. If you are unsure about the suitability of any investment you should seek professional advice. Whilst FundCalibre provides product information, guidance and fund research we cannot know which of these products or funds, if any, are suitable for your particular circumstances and must leave that judgement to you. Before you make any investment decision, make sure you’re comfortable and fully understand the risks. Further information can be found on Elite Rated funds by simply clicking on the name highlighted in the article.

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