Exciting - Asia income
In 2010 we predicted that by 2020 the retired in the UK might be surprised at the extent to which they become dependent on Asia for income.
Newton Asian Income (net yield 5%) is the old hand. An outstanding track record of growth and holding the payout through thick and thin.
There is an interesting angle which isn’t well understood. Most of the Asian income funds have 25-30% invested in Australia, where there is a good selection of dividend stocks. This has given a positive kicker to performance vs growth funds - in large part this is due to a currency gain.
Henderson Asian Dividend Income is an exception, with less in Australia and more in China (approx. 20%). This has dented performance over the last 12 months, but with China looking on the cheap side, it gives this fund an interesting edge over the next 12-24 months.
This fund has a higher yield than most (5.9%). though the Schroder Asian Income Maximiser has a yield of 6.6%, perhaps without the same upside potential for capital growth.