Oct 282011
 

This is the second part of a review of Asian income funds and emerging market income funds for UK investors, focusing on investment trusts. Click here for Asian income funds – unit trust and oeics.

Asian income funds – investment trusts

There are three Asian income investment trusts in the UK market. And it shows how keen investors now are on the income theme that none trade at a significant discount to net asset value (NAV) – for most ITs, a small discount to NAV is normal.

The Aberdeen Asian Income Fund (LN:AAIF) has a rather different geographic focus to the funds we’ve already looked at in part one – it’s much more geared to Southeast Asia. Singapore is the single biggest holding at 20%, followed by Australia and then Malaysia and Thailand. It doesn’t include a sector breakdown in its factsheet, but I estimate that the biggest holdings are the familiar duo of financials and telecoms at 25% and 20% respectively

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Oct 282011
 

Asian income funds and emerging market income funds may sound like a contradiction. After all, Asia and emerging markets are supposed to be growth investments. So why turn to a growth market for income?

In fact, Asian income and emerging market income are themes that make a lot of sense when choosing funds, for several reasons.

First, emerging market dividends are no myth. Many emerging markets stocks now have a culture of paying high dividends, so they make up a major part of investment returns in several countries. Dividends accounted for 30% of Asia ex Japan returns over the past decade – about the same as in developed markets.

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International stock brokers for the rest of the world

 

Introduction | UK brokers | US brokers | Hong Kong brokers | Singapore brokers | Other

The final section of this guide lists a few international stock brokers that may be of interest to investors in some of the less accessible markets. In general, these relate to markets that I am not personally involved in and know relatively little about the options for foreign investors. The stock brokers have been suggested to me by people who are, but I have generally not had the opportunity to get full details of what they offer. If you can recommend stock brokers or share useful information on investing in these countries, please email me.

Very important note: Some of these firms below operate out of well-regulated financial centres or are subsidiaries of major financial institutions. Other may offer much less investor protection and are included here because they represent the most promising solution that I’ve received for accessing more difficult markets. While I try not to include firms I believe to be suspect or suggest unregulated or lightly regulated firms where better regulated options are available, you should take considerable care and exercise due diligence in dealing with any firm in many of these markets. Be aware that in some countries it could be easier to invest than bring your money back home. As with the rest of this guide, I do not endorse any particular firm and details below are provided only to assist your own research. Continue reading »