T Bailey is building on the theme of dividends in Asia and the Pacific by adding the Somerset emerging dividend growth fund to the T Bailey growth fund and increasing its existing holding in the Newton Asian income fund.
The firm is investing in emerging markets on the back of various themes, including the dividend story. Senior fund manager Richard Martin, manager of the T Bailey growth fund, says as emerging economies grow, the companies based in those regions also grow and mature. He says it makes sense for those companies to build up their investor relations by paying dividends, with many companies paying some of the highest dividend yields that are available to investors.
The T Bailey growth fund has a 4.17 per cent allocation to Jason Pidcock’s Newton Asian income fund and 3.81 per cent in the Somerset emerging markets dividend growth fund.
The Newton fund has a broad geographical remit across Asia Pacific ex Japan, including Australia and New Zealand. At over 25 per cent of the portfolio, Australia currently comprises its highest regional weighting. Somerset Capital’s emerging markets dividend growth fund has 40 stocks across regions such as South Africa and Brazil.
T Bailey senior fund manager Richard Martin says: “T Bailey was early in to emerging markets and investing in the emerging market dividend story is a continuation of that.”