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Why Asia for equity income investing?
Asia has more higher-yielding stocks than other regions, providing a wide range of possibilities for income investing.
Long-term dividend and earnings growth in Asia are compelling, while current valuations are more attractive than other markets.
What are the benefits of an Asian Equity portfolio with a High-Income focus?
As Asia is a favourable market for equity income investing, we believe a high income-oriented portfolio could bring extra benefits to investors:
Higher income: generating income from both dividend and option premium.
Lower volatility: delivering 2.6 times the income of MSCI Asia Pacific ex-Japan with 7.8% less volatility over the past 10 years6.
Differentiated risk profile with consistently higher income: capturing higher income than other asset classes while avoiding credit risks from bonds.
JPMorgan Asia Equity High Income Fund Highlights
Investment Insights
- Source: FactSet, MSCI, J.P. Morgan Asset Management, as of end-March 2024.
- EM Asia: emerging markets Asia Pacific ex-Japan. DM Asia: developed markets Asia Pacific ex-Japan. CAGR: compound annual growth rate. Source: Jefferies, FactSet, as of end-March 2024. Dividend index uses local currency. Past performance is not a reliable indicator of current and future results.
- Source: FactSet, MSCI, J.P. Morgan Asset Management, as of end-March 2024. Price-to-book (P/B) ratios are in local currency terms. 15-year range for P/B ratios are cut off to maintain a more reasonable scale for some indices. Past performance is not a reliable indicator of current and future results.
- Source: FactSet, U.S. Federal Reserve, J.P. Morgan Asset Management, as of end-March 2024. 5 hiking cycles are Feb ‘89 - Jun ‘89, Feb ‘95 - Jul ‘95, May ‘00 - Jan ‘01, Jun ‘06 - Sep ‘07, Dec ‘18 - Aug ‘19. Past performance is not a reliable indicator of current and future results.
- For illustrative purposes only. There is a potential to forego some capital appreciation as a result of selling call options. Estimated income is not guaranteed and does not imply positive return.
- Source: J.P. Morgan Asset Management, from 31.10.2013 to 31.10.2023. Asian equities: MSCI AC Asia Pacific ex-Japan Index (MSCI APxJ). High income-oriented Asian equities: a portfolio with 20% dividend yield premium to MSCI APxJ and option premium income generated from overwriting 30% of MSCI APxJ at 40% delta. For illustrative purposes only. Exact allocation of portfolio depends on each individual's circumstances. Investors should consult professional advice before investing. It should not be construed as offer, research, investment recommendation or advice. Yield is not guaranteed. Positive yield does not imply positive return. Indices do not include fees or operating expenses and are not available for actual investment. Past performance is not a reliable indicator of current and future results.
- Source: J.P. Morgan Asset Management, from 31.12.2015 to 31.10.2023. Asian equities: MSCI AC Asia Pacific ex-Japan Index (MSCI APxJ). High income-oriented Asian equities: Yield generated by a portfolio with 20% dividend yield premium to MSCI APxJ and option premium income generated from overwriting 30% of MSCI APxJ at 40% delta. Asian bonds: yield-to-worst of J.P. Morgan Asia Credit Index. US equities: MSCI US Index. World equities: MSCI AC World Index. For illustrative purposes only. Exact allocation of portfolio depends on each individual's circumstances. Investors should consult professional advice before investing. It should not be construed as offer, research, investment recommendation or advice. Yield is not guaranteed. Positive yield does not imply positive return. Indices do not include fees or operating expenses and are not available for actual investment. Past performance is not a reliable indicator of current and future results.
Provided for information only based on market conditions as of date of publication, not to be construed as investment recommendation or advice. The manager seeks to achieve the stated objectives. There can be no guarantee the objectives will be met.
Diversification does not guarantee investment return and does not eliminate the risk of loss. Yields are not guaranteed. Positive yield does not imply positive return.
Investment involves risk. Not all investments are suitable for all investors. Past performance is not a reliable indicator of current and future results. Please refer to the offering document(s) for details, including the risk factors. Investors should consult professional advice before investing. Investments are not similar to or comparable with fixed deposits. The opinions and views expressed here are as of the date of this publication, which are subject to change and are not to be taken as or construed as investment advice. Estimates, assumptions and projections are provided for information only and may or may not come to pass. This document has not been reviewed by the SFC. Issued by JPMorgan Funds (Asia) Limited.