Despite dramatic increases in the standards of living in Asia over the past decades, the headline equity market has not always delivered the returns you would expect. We believe this is because the composition of the equity market often has a large weighting to the more cyclical businesses which are more reflective of the old Asia, rather than the up and coming ‘new Asia’ which is made up of more entrepreneurial type businesses. But not only is the headline growth rate in Asia changing, the make-up of that growth and the companies leading the charge is changing and the benchmarks are often failing to keep up with the pace of change.
However, while it is a good strategy to be invested in the fastest growing part of the world, you might not see any of the end benefit unless you are aligned with businesses that will share this growth with you. At Matthews Asia, we believe dividends can signal strong management, intelligent allocation of capital and an alignment with shareholders. So where can you find companies that pay a sustainable and growing dividend in Asia today?
Watch our latest video with Robert Horrocks, Matthews Asia’s Chief Investment Officer and Lead Portfolio Manager, to hear which sectors and countries are fertile grounds for long-term investors and whether Asia is able to withstand tighter monetary policy in the U.S.
For our latest views on dividend investing in Asia visit our website or contact:
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