Fidelity launches Asian Dividend fund

Fidelity Worldwide Investment has launched a fund focused on Asian dividends for portfolio manager Polly Kwan.

The Fidelity Asian Dividend fund invests in between 60 and 80 companies in the Pacific ex Japan region, with a focus on strong free cashflow generation, scaleable business propositions and high quality management teams.The fund will be managed by Polly Kwan.

The fund manager will be responsible for an unconstrained, actively managed portfolio of 60-80 income stocks in the Asia Pacific regions, excluding Japan. She will select companies on the basis of either their ability to provide a stable dividend or their potential to increase future dividends.

The index for the new fund will be the MSCI Asia Pacific ex Japan index. The fund will aim to generate a sustainable yield of approximately 10% above that of the index, this is expected to equate to a fund yield of around 3.4%.

Kwan says: “The case for Asian equity income is clearly a compelling one. With the fund, I aim to benefit from the region’s attractive selection of stable dividend-paying multinational companies and stocks that have good dividend growth prospects. In constructing a portfolio with a combination of the two, I seek to deliver long-term total returns with less volatility than other strategies exposed to the Asian growth story.”


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