By JANE KOTCHKINA 23/04/2010
Although Asian income is not a large sector at present, the region does have significant potential, with improved corporate governance and a focus on generating shareholder returns.
With a traditionally conservative attitude to saving and a view on dividends more in line with the UK than the US, Asia may indeed present opportunities for beleaguered UK income seekers. At the moment, there are only a small number of funds available, but with the background of strong Asian economies and the ongoing need for income, we could well see this sector grow. However, the yield from Asian equity income funds may not always match that of their UK peers, which means that Asian funds may be used to supplement existing income streams rather than having them as core holdings.
Following a review of the Asian income sector, we have decided to award Henderson Asian Dividend Income a 4 star rating. The fund is managed by Mike Kerley, who has experience managing Asian equities, particularly in the equity income sector. Kerley is supported by an experienced team who spend a lot of time in the region and have over £600 million under management. Kerley runs a focused portfolio of approximately 40 stocks which are split equally between dividend growth and high income companies. Income is also boosted by his use of derivatives, although this strategy is capped at 7%.
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