Asia is a region associated with high growth, but as increasingly mature Asian companies pay out more in dividends, investors are turning towards the region’s income-focused funds.
According to data from EPFR, the fund tracker, income-focused funds in Asia excluding Japan have seen 10 weeks of inflows since June. Overall equity funds in Asia excluding Japan have seen just seven weeks of inflows.
Dividends have been gaining popularity among Asian companies in recent years, according to analysts at CLSA, the Asia-Pacific-focused brokerage. This year, 87 per cent of the Asia ex-Japan stocks under CLSA’s coverage will pay dividends, up from 60 per cent in 2000. Technology companies in Taiwan as well as Australian groups offer the highest dividend pay-outs.