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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


Equity99.26%
Fixed Income0
Commodities0
Cash0.74%

Geo


China60.07%
Hong Kong39.24%

Sector


Financials 11.36%
Industrials19.96%
Consumer Discretionary6.66%
Real Estate5.19%
Consumer Staples
Materials 21.38%
Healthcare
Utilities
Technology3.37%
Energy16.12%
Communications15.95%

Top Holdings

Asset ClassWeight (%)
1. China Shenhua Energy Co Ltd5.15%
2. Shougang Fushan Resources Group Ltd4.51%
3. People's Insurance Co Group of China Ltd/The4.40%
4. Golden Eagle Retail Group Ltd4.18%
5. CITIC Telecom International Holdings Ltd4.18%
6. HKT Trust & HKT Ltd4.17%
7. CITIC Ltd4.01%
8. Sichuan Expressway Co Ltd4.00%
9. China Petroleum & Chemical Corp3.90%
10. Xinhua Winshare Publishing and Media Co Ltd3.89%