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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 ExposureJapan ExposureUS Exposure and a UK Exposure

Allocation Breakdown

Asset Class


Equity99.49%
Fixed Income0
Commodities0
Cash0.51%

Geo


China53.71%
Hong Kong46.29%

Sector


Financials 17.53%
Industrials29.45%
Consumer Discretionary
Real Estate6.41%
Consumer Staples 4.73%
Materials 4.2%
Healthcare5%
Utilities
Technology4.12%
Energy12.46%
Communications22.52%

Top Holdings

Asset ClassWeight (%)
1. China Medical System Holdings Ltd4.85%
2. Xinhua Winshare Publishing and Media Co Ltd4.84%
3. WH Group Ltd4.77%
4. PCCW Ltd4.66%
5. Jiangsu Expressway Co Ltd4.62%
6. Qinhuangdao Port Co Ltd4.53%
7. Industrial & Commercial Bank of China Ltd4.39%
8. Shougang Fushan Resources Group Ltd4.39%
9. China Construction Bank Corp4.38%
10. China Tower Corp Ltd4.38%