Fidelity Worldwide Investment has launched a fund focused on Asian dividends for portfolio manager Polly Kwan.
The Fidelity Asian Dividend fund will invest 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 aims to generate a sustainable yield of about 10 per cent over the MSCI Asia-Pacific ex. Japan Index’s, which is expected to result in a yield of around 3.4 per cent.
Kwan has 13 years’ of investment experience and has managed the £213.1m Fidelity Funds Asia Pacific Dividend fund since 2010. The fund is ranked first quartile over one and three years to 14 August and third quartile over five years.
The manager comments: ““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.”
Fidelity Asian Dividend, which reside in the IMA Asia Pacific ex Japan sector, will pay quarterly dividends. It has an annual management charge of 1.5 per cent on its A share class and 0.75 per cent on its W share class.