From Morningstar: 2024-05-21 06:31:00

In a shift towards income investing in Asia, BNY Mellon’s Zoe Kan predicts the next decade will focus on income over growth. She advises diversification in companies with strong balance sheets from countries like Singapore and technology opportunities in Taiwan. The emphasis on dividends aims to stabilize total returns amidst market volatility.

The traditional focus on growth rather than income in Asian investing might be changing. Companies offering dividends play a crucial role in total returns for investors. With the potential for higher interest rates and inflation, a dividend-focused approach could provide better risk and reward characteristics. Selectivity within such strategies is key to navigating market fluctuations.

Zoe Kan, portfolio manager of the BNY Mellon Asian Income fund, emphasizes the importance of income strategies in Asia’s evolving market dynamics. With demographic shifts and changing investor perspectives, focusing on dividends over capital growth could offer more consistent total returns. Companies with strong balance sheets and economic moats are favored for their ability to pay dividends and sustain profitability.



Read more at Morningstar: Manager: Investing For Growth Over Income in Asia…