EFG Asia income fund to distribute in Europe
EFG Private Bank has launched an Asia Pacific equity income fund to seek both income and capital gain primarily from companies based in the region.
The New Capital Asia Pacific Equity Income fund will be broadly distributed in Europe and has appropriate local currency share classes.
Manager Tony Jordan will aim to take advantage of growth in emerging markets dividends to generating a “relatively high level of income” exceeding yields on the MSCI Asia Pacific ex Japan index. He will also look for capital growth.
As well as investing in companies based in Asia Pacific ex Japan, his universe extends to companies that do most business there.
He will buy equities, but also has leeway for a “nominal amount” in convertible bonds.
The Dublin-domiciled, Ucits-compliant fund will make distributions twice a year, and allow re-investment of them in the fund.
Jordan joined EFG Private Bank in 2010, having co-founded Atlantis Investment Management. He managed the Asian Recovery fund. Before that he was at Schroders managing the Far East Growth fund, and at Sun Hung Kai Securities in Hong Kong.
He said: “Investors are starting to look beyond low-yielding developed markets for enhanced income returns.
“Asian economies continue to grow at a faster rate than most developed countries, and the same can be said of Asian dividends. The new fund offers investors the prospect of significant capital growth combined with a steady and meaningful income stream.
“It is being launched at a time when stocks in the Asia-Pacific region are attractive in both value and growth terms.”
Investors must commit at least Eur10,000, or Chf10,000, or can opt for other currency classes. They will incur a 1.5% annual management fee.
EFG Private Bank is part of the EFG International business, headquartered in Zurich.