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HK Equity Income

Hong Kong equity portfolio that offers above-average dividend income and defensive characteristics.

Strategy Description

In a global investment landscape that features scarcity of income yield in public equities, HK Equity Income aims to generate sustainable and above-average dividend income streams via investments in high quality HK listed companies. 

The portfolio is composed of defensive equities with a heavy tilt towards defensive sectors such as Industrial and Communication Services. As such, HK Equity Income features lower sensitivity (low beta) to the broad global equity indices and its low volatility profile enables strong downside protection.

Portfolio construction is based on quantitative scoring of our Hong Kong equity universe with a focus on Value, Quality, Safety, Payout, Technical and Sentiment metrics, as well as ESG traits. In particular, the Quality and Safety metrics ensure that stock selection is geared towards low-risk companies that exhibit high levels of profitability and low financial leverage.

This strategy can also be accessed in a Europe ExposureGlobal Exposure, Japan ExposureUS Exposure and a UK Exposure

PrintFact Sheet

Portfolio Performance

202020212022YTD
Portfolio (%)15.52-4.01-15.818.56
Annualized ReturnStandard DeviationDividend Yield
Portfolio0.59%20.51%9.1%

Allocation Breakdown

Asset Class


Equity99.49%
Fixed Income0
Commodities0
Cash0.51%

Geo


China52.02%
Hong Kong47.47%

Sector


Financials 16.01%
Industrials21.62%
Consumer Discretionary6.02%
Real Estate9.96%
Consumer Staples
Materials 19.33%
Healthcare
Utilities
Technology3.37%
Energy9.95%
Communications13.75%

Top Holdings

Asset ClassWeight (%)
1. China Hongqiao Group Ltd3.98%
2. CITIC Ltd3.91%
3. Yuexiu Real Estate Investment Trust3.87%
4. Shenzhen Investment Holdings Bay Area Development Co Ltd3.68%
5. HKT Trust & HKT Ltd3.61%
6. PCCW Ltd3.55%
7. Qinhuangdao Port Co Ltd3.53%
8. Asia Cement China Holdings Corp3.52%
9. Sichuan Expressway Co Ltd3.49%
10. PetroChina Co Ltd3.48%