Guinness Asian Equity Income Fund
The Guinness Asian Equity Income Fund is designed to provide investors with exposure to high quality dividend-paying companies in the Asia Pacific region. The Fund aims to provide long-term capital appreciation and a source of income that has the potential to grow over time.
The Asian region is made up of a mix of advanced, high-income economies and newly industrialised countries that are home to 54% of the world’s population. Industrialisation brings with it increased wealth, improved standards of living and a vast consumer market that attracts both domestic and international brands.
China‘s 19 million passenger car market makes it a magnet for US, European and Japanese carmakers. Its manufacturing capabilities are unmatched in cost and scale, from clothes to electronics to ships. They make China the world’s largest trader of goods valued at over $4 trillion. South Korean and Taiwanese companies dominate the production of computer chips and personal electronic devices. India has 900 million mobile phone subscribers but only 110-120 million have a smartphone. This is the next big smartphone market. But high growth and rapid development is often accompanied by volatility and risk.
They focus on profitable companies (in cash terms) that have generated persistently high return on capital over the last eight years, demonstrating stability and resilience. Historically, companies in our universe have gone on to deliver significant dividend growth. They believe strong cash generation and its distribution as dividends also provide a degree of downside protection against volatility in local markets.
They maintain a high conviction portfolio of around 30-40 equally-weighted positions with a minimum market capitalisation of $500 million, with low turnover and no benchmark-driven constraints on sector and regional weightings.
For more information on how this can become part of your portfolio, please Contact Me.
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