Investors in search of diversified performance and income amid today’s volatile market are seeing the potential benefits of dividend index strategies of different types, says Jason Ye, director of factors and thematics indices in APAC at S&P Dow Jones Indices (S&P DJI).
Companies worldwide are suspending shareholder payouts amid the Covid-19 outbreak. How worried should institutional investors be about the situation in Asia?
Cathay Life and Shin Kong Life have been upping their exposure to emerging market bonds. They and Fubon Life have also generated strong returns from high-dividend stocks.
This year, Japan’s investment trusts will pay around ¥4 trillion in dividends, forcing many to slash payouts or suffer negative cashflows, says Nomura Research Institute.
Europe isn’t going to get past its problems, but Asia and the US present attractive opportunities to buy dividend-paying companies, says MFS IM boss Robert Manning.
S&P has further expanded its range of Asia-focused indices with two dividend products it has developed for providers of exchange-traded funds, one of which is set to underlie the first dividend ETF in Hong Kong.