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Asia Pacific ex Japan Equity High Dividend

HSBC Global Investment Funds

Important Information

  • The Funds invest in various investments, such as but not limited to equities, bonds, money market instruments, collective investment schemes and alternative investments, each fund with a different investment objective and risk profile.
  • The Funds with exposure to emerging markets, non-investment grade bonds, smaller companies, equity linked instruments or alternative investments are subject to higher risks and volatility.
  • The Funds which invest primarily in a single sector or market are subject to higher concentration risk.
  • Certain Funds may invest more extensively in futures, options, swaps, forward currency contracts and other financial derivative instruments which may involve embedded leverage.
  • The Funds' investments may involve substantial market, currency, volatility, liquidity, credit/counterparty, downgrading, regulatory and political risks. If the issuers default, or the relevant securities or their underlying assets cannot be realised, or perform badly, investors may suffer substantial, or in certain cases, total loss of their investments.
  • Certain Funds may gain exposure to hedge fund and absolute return strategies (which may be extremely volatile) and the private equity and the real estate sectors (which may be less liquid). Because of their special and higher risks, substantial or, in certain cases, total loss may result with respect to investments in those asset classes.
  • The investment decision is yours but you should not invest unless the intermediary which sells you the Funds has advised you that the Funds are suitable for you and has explained why, including how investing in the Funds would be consistent with your investment objectives.
  • Investors should not invest in the Funds solely based on the information provided in this document and should read the offering document of the Funds for details.

 

Awards

For investors feeling trapped in the current low-rate environment, Asia high dividend offers not only a stable stream of attractive income but also enviable potential for capital gain. In addition to policy support and macro tailwinds, our fund managers can, through diligent research and analyses, further boost returns by uncovering exciting investment opportunities amidst Asia’s ongoing economic recovery.

Why consider the Fund?

Strong credit selection process

Strong equity selection process

Comprehensive bottom-up stock-picking process designed to identify both income and growth opportunities.

Solid track record

Solid track record

Managed through a disciplined and repeatable investment process with an active, fundamental approach.

Solid track record

Asia’s stellar recovery

Asia is the only region projected to deliver positive GDP growth in 2020 - a strong recovery from the pandemic-induced recession.

Stands out from peers

ESG integrated into investment process

The fund managers actively gauge ESG impact on company profitability and valuations. Also, UN PRI gave AMG an A+ rating for active equity across multiple criteria in the assessment report in 2019.

Peer group quartile ranking of HSBC GIFs Asia Pacific ex Japan Equity High Dividend

Based on cumulative performance (as of 30 September 2020)

YTD

 1Y 

 3Y 

 5Y 

Peer group quartile

2

2

1

1

Based on calendar year performance (as of 30 September 2020)

2016

2017

2018

2019

Peer group quartile

1

1

2

1

Source: Morningstar, as of 30 September 2020. Quartile rankings measure the fund’s total return performance during the respective period against other funds in the same category - EAA OE Asia-Pacific ex-Japan Equity Income, with 1st quartile as the highest ranking and the 4th quartile the lowest ranking.
Investment involves risks. Past performance is not indicative of future performance. Any forecast, projection or target where provided is indicative only and is not guaranteed in any way. HSBC Global Asset Management Limited accepts no liability for any failure to meet such forecast, projection or target. For illustrative purposes only.


Why invest in Asia high dividend?

Dovish monetary stance globally will keep interest rates low in the foreseeable future.

Quality dividend yield plays will potentially reward investors looking for a stable and reasonable stream of income.

Asia dividend yields vs government bond yields (%)

Dividend as income

Source: Bloomberg, MSCI, as of 18 September 2020
Past performance is not indicative of future performance

Dividend is not guaranteed and may be paid out of capital, which will result in capital erosion and reduction in net asset value. A positive dividend yield does not imply a positive return. The historical dividend yield may be higher or lower than the actual annual dividend yield.

Asian central banks have more room to implement rate cuts to counter the COVID-19-induced downturn.

This points to a potential of continuing injection of liquidity into the Asian equity markets.

YTD changes in interest rates (%) (as of 15 September 2020)

Massive policy easing

Source: Bloomberg, HSBC Global Asset Management, as of 15 September 2020

Past performance is not indicative of future performance.

Asian equities deliver a healthy mix of both dividend return and capital gain.

The Asia Pacific ex Japan region boasts superior equity returns over the past 20 years.

Total return (price + dividends) since 2000

Massive policy easing

Source: Bloomberg, HSBC Global Asset Management, as of 18 September 2020
Past performance is not indicative of future performance

Dividend is not guaranteed and may be paid out of capital, which will result in capital erosion and reduction in net asset value. A positive dividend yield does not imply a positive return. The historical dividend yield may be higher or lower than the actual annual dividend yield.


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