WHY ASIAN DIVIDENDS?
1. Asia – improved economic environment with opportunities from developed and emerging markets
A combination of improved global growth and mild global inflation provides a supportive backdrop for risk assets in general. Meanwhile, the diversity of Asian economies presents varying dividend opportunities from both developed and emerging worlds.
Home to key REIT markets, the developed Asia is characterised by a strong dividend culture. Meanwhile, investors in the emerging Asia are set to benefit from dividend reforms with Korea and China pushing for enhancement in shareholder returns.
2. Asia as the go-to place for equity dividends
The Asia Pacific ex-Japan region comfortably outpaces Japan, the US and Europe in terms of number of companies distributing yields ranging from 1% to 7%, making it the most fertile ground for high dividend opportunities among all regions.
3. Asian valuations remain reasonable
Relative to the developed markets, emerging market equities continue to enjoy a valuation advantage after years of underperformance. Currently, Asia ex-Japan valuations still look reasonable with the price-to-book ratio below the long-run average.
4. Weaker US Dollar supports Asian equities
Historically, Asian equities tend to outperform developed markets when the US Dollar depreciates. With a retracement in the US Dollar, the backdrop for Asian equities has become more favourable.
WHY INVEST IN JPMORGAN ASIA EQUITY DIVIDEND FUND?
Income opportunities in a rising rate environment
While the US Federal Reserve has started to raise rates gradually, Asia continues to provide ample income opportunities as there are more cyclicals and financials than defensives in the region's high dividend universe.
"Value" and "low-beta" strategies to offer income and upside potential
Typically, attractively valued stocks offer higher capital appreciation potential while low-beta stocks provide a measure of cushion against market fluctuations. This combination allows for opportunities to capture upside and brace for downside.
Tap into opportunities from both developed and emerging Asia
Free from country or sector constraint, the fund managers seek to tap into the varying opportunities available from developed and emerging Asian markets.
Focus on risk-adjusted returns
With a focus on dividend yield strategy, the fund managers seek to offer competitive risk-adjusted returns. They may also use hedging techniques to reduce the impact of currency volatility.
WHO MIGHT CONSIDER INVESTING IN THIS FUND?
Exposure to Asia's strong dividend plays
Income opportunities with upside potential
Multiple currency choices ranging from USD and HKD to AUD, EUR and RMB ^
Investors should seek professional advice regarding the suitability of any investment products.
^The RMB Hedged (mth) Class is not available on the J.P. Morgan eTrading platform.
For more information, please call or email us. You can also contact your J.P. Morgan representative.