What is the dividend yield of the Aberdeen Asian Income fund?

The Aberdeen Asian Income fund offers an attractive annual dividend yield of 5.8 percent.

How does the Aberdeen Asian Income fund avoid AI bubble risks?

The fund invests in companies providing essential services for AI models, trading at lower valuations than US AI stocks, thus reducing exposure to bubble burst risks.

Which countries is the Aberdeen Asian Income fund increasing exposure to?

The fund is increasing its exposure to Chinese and Indian companies while reducing positions in Singapore and Taiwan.

Home / Business and Economy / Far East Funds: Stable Income Amidst AI Hype

Far East Funds: Stable Income Amidst AI Hype

23 Nov

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Summary

Aberdeen Asian Income fund offers 5.8% dividend yield.
Fund prioritizes companies paying dividends, avoiding AI bubble risks.
Manager shifts portfolio towards China and India for diverse income.

Far East Funds: Stable Income Amidst AI Hype

Equity income funds offer a potential buffer against stock market corrections through regular dividend payments. Far Eastern equity income funds are gaining traction due to regional companies' strong dividend payouts. The London-listed Aberdeen Asian Income fund, for instance, has derived over half its returns from dividends in the past five years and has a 5.8% annual dividend yield.

Manager Isaac Thong highlights that income provides a steadier investment path, countering market volatility. He expresses concern over potential US AI stock market bubbles, but believes the fund's portfolio, featuring companies like Taiwan's Accton and South Korea's Samsung, is more resilient. These companies trade at lower earnings multiples, offering a safer alternative to highly inflated US AI firms.

Thong has recently reshaped the fund's geographic focus, increasing investments in China and India while reducing exposure in Singapore and Taiwan. This diversification includes companies with varying dividend yields, such as China's Tencent and Indonesia's Bank Mandiri, aiming to deliver consistent income despite market fluctuations.

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