Richard Sennitt, manager of the Schroder Asian Income fund, tells Joanna Faith how he is protecting his portfolio against a possible hard landing in China and where the best yield opportunities lie in the region.
Why should investors consider an income approach when investing in Asia? I think an income approach is a very attractive way of investing in Asia. For someone wanting income it provides an excellent way of diversifying away from the UK while getting exposure to a higher growth region. Yields are comparable to those found in the UK and the opportunity set of yielding stocks is large. Asian companies make up roughly 12% of global market cap. However, if you look at all the stocks globally that yield more than 4%, you'll find that around 32% of them are in Asia ex Japan. In addition, pay...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
