Threadneedle launches Asian equity income fund

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Asset management firm Threadneedle has revamped its Asian equity fund as an income strategy in order to further expand its existing dividend-based fund range.

The Threadneedle (Lux) Asian Equity Income fund, which will be run by George Gosden, is also intended to cater for investor demand for income in a low-interest rate environment.

This new Luxembourg-based strategy marks a change of approach for the existing Threadneedle (Lux) Asian Equity Income fund. This fund had been run by Vanessa Donegan and Gigi Chan.

It will follow the same broad strategy but with a greater focus on selected, high quality companies from Asia that deliver sustainable growth.

Threadneedle said the repositioning is intended to allow investors access to the long-term growth potential of Asian equities while also generating a good, sustainable income.

Lead manager Gosden, who previously ran Asian equity portfolios at Insight Investments and SWIP, will draw on investment ideas from 11 fund managers and analysts from across Threadneedle’s Asian and emerging market equity teams.

Commenting on the launch, Gosden said: ‘Dividend growth is expected to continue to accelerate in the Asian region over the coming year supported by robust corporate earnings growth and income generating opportunities can be found across the broad spectrum of countries and sectors in the region.’

He added there is expected to be opportunities from companies in ASEAN countries boosting dividends as they benefit from strong domestic consumption growth. This is while elsewhere more cyclical companies are poised to benefit from any recovery in global growth.

It will follow a broadly similar theme to the Threadneedle Global Equity Income fund run by Stephen Thornber.