The search for income in the current environment can be daunting for investors. Schroder Asian Income is an active multi-asset strategy designed to adapt to various economic cycles to capture income and growth opportunities wherever they are in Asia.
We expect Asia to do well in 2025. Asia remains a key support to global growth, with stable fundamentals, strong earnings growth and attractive valuations notably relative to developed markets. Economies with robust domestic demand should stand firm amid tariffs overhang.
Schroder Asian Income is well positioned to benefit from the Asia growth story, with exposure to important growth markets including India, Taiwan and China, which present ample opportunities. We remain tilted towards domestic businesses, and in the case of exporters, we are positioned in securities that have better pricing power through their competitive positions (e.g. strong IP, advanced chip manufacturing technology, and consistent focus on R&D).
The Asian Income strategy refers to an investment approach that generates income from Asian assets. Diversification through an Asian Multi-Asset income strategy offers access to a range of asset classes, lowering risk and providing stability during market volatility while delivering an attractive yield.
Income remains a primary focus for investors. As the Trump administration is perceived as reflationary, interest rates are expected to remain higher for longer. Investors searching for higher income may consider the merits of dividend-paying shares and bond coupons, especially Asian assets which are among the highest rates globally.1
While there is uncertainty around Trump’s widespread tariffs, we would expect more monetary stimulus from Asian trading partners, such as China, to offset this.
The region is likely to experience varying degrees of impact, but countries with a stronger domestic focus and robust growth, such as India and Indonesia, are expected to remain resilient.
Selectivity remains crucial and an Asian Income strategy which focuses on strong dividend names and high-quality corporate with growth potential will help to deliver a more stable path of returns.
Navigate today’s challenging markets and find your investment flow with Schroder Asian Income.
1Any reference to sectors/countries/stocks/securities are for illustrative purposes only and not a recommendation to buy or sell any financial instrument/securities or adopt any investment strategy.
This advertisement has not been reviewed by the Monetary Authority of Singapore.
This is prepared by Schroders for information and general circulation only and the opinions expressed are subject to change without notice. It does not constitute an offer or solicitation to deal in units of any Schroders fund (the “Fund”) and does not have regard to the specific investment objectives, financial situation or the particular needs of any specific person who may receive this. Investors may wish to seek advice from a financial adviser before purchasing units of any Fund. In the event that the investor chooses not to seek advice from a financial adviser, he should consider whether the Fund in question is suitable for him. Past performance of the Fund or the manager, and any economic and market trends or forecast, are not necessarily indicative of the future or likely performance of the Fund or the manager. The value of units in the Fund, and the income accruing to the units, if any, from the Fund, may fall as well as rise. Investors should read the prospectus, available from Schroder Investment Management (Singapore) Ltd or its distributors, before deciding to subscribe for or purchase units in any Fund. Funds may carry a sales charge of up to 5%.