- Yield History-
- 3 Year sharpe-0.01
- 3 Year alpha1.51
- Distribution Typeaccumulation
- BenchmarkMSCI AC Pacific Ex Japan NR USD
- Legal StructureOpen Ended Investment Company
- Fund Size (month end)Open Ended Investment Company
- IA SectorAsia Pacific Excluding Japan
- Manager GroupGuinness
Guinness Asian Equity Income delivers a high yield of around 4%, which is paid half-yearly. It aims to provide investors with exposure to high-quality, dividend-paying companies in the Asia Pacific. Its lead manager is Guinness Asset Management’s Edmund Harris, who has been managing Asian funds for more than 25 years and the Guinness Asian funds from launch in 2013. He is assisted by co-manager Mark Hammonds and analyst Sharukh Malik. Harris and Hammonds run a high-conviction portfolio of around 36 equally weighted stocks and have no benchmark constraints.
The stocks are equally weighted and managed on a disciplined one-in, one-out basis. The duo look for three things: quality, value and dividends. They focus on profitable companies that have generated persistently high return on capital over the last eight years, demonstrating stability and resilience, as well as delivering significant dividend growth. The team believe strong cash generation and distribution as dividends also provide a degree of downside protection against volatility in local markets.
The managers point to the Asian region being a mix of advanced, high-income economies and newly industrialised countries. High growth and rapid development are often accompanied by volatility and risk, but they say strong generation of cash and its distribution as dividends provide a degree of downside protection.