193. Investing for income in Asia
Richard Sennitt, manager of Schroder Oriental Income Fund, talks about the regulatory issues in...
As the clock struck midnight on 31 December 2017, every single adult in the world had been born in the 19th or 20th century, and every single child had been born in the 21st century.
I can still remember partying like it was 1999, so it makes me feel ever-so-slightly old when I think that those babies born in 2000 are coming of age this year. As they leave school and either go to university or take up their first job, the thoughts of ‘Generation Z’ are more likely to be on spending money than saving it, but the earlier they can start putting some money aside for their financial future, the better.
Another factoid I came across recently is that it would take 72 years to double your money if you hold it an a cash account paying 1%. Even those millennial babies haven’t got that long until they retire.
But those lucky enough to have had money invested for them – perhaps in a junior ISA – or those who can save just a small amount each month, can afford to take a lot more risk over a 50 year time horizon. So we take a look at some higher-risk funds, which could be very rewarding over the years.
This fund invests in some very volatile, but exciting, Latin American emerging markets. Its unconstrained approach means it can build up large country positions, but the emphasis on quality companies helps it minimise volatility.
This fund invests in the UK’s very smallest companies. Livingbridge has experience of working with businesses and management teams before they even come to the stock market and this can give them an advantage over their peers, allowing them to invest at very early stages of a company’s life.
Like the population, investment opportunities in India are still young and growing. This fund aims to capture the growth potential of the Indian economy by investing in businesses of all shapes and sizes. The team running it are very experienced and based on the ground in India and Singapore.
Matthew Dobbs has run this trust since well before millennial babies were even a glint in their fathers’ eyes! It invests in Asia Pacific companies (excluding Japan, but including Australia and New Zealand) that offer attractive yields and growing dividend payments.
This is an excellent pan-European smaller companies fund run by a very experienced manager, with the backing of a dedicated team and all the resources that T. Rowe Price can provide. The manager describes his ‘mission’ as being early identification of long-term opportunities.