Hong Kong equity portfolio that offers above-average dividend income and defensive characteristics.
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.
|Asset Class||Weight (%)|
|1. China Shenhua Energy Co Ltd||5.15%|
|2. Shougang Fushan Resources Group Ltd||4.51%|
|3. People's Insurance Co Group of China Ltd/The||4.40%|
|4. Golden Eagle Retail Group Ltd||4.18%|
|5. CITIC Telecom International Holdings Ltd||4.18%|
|6. HKT Trust & HKT Ltd||4.17%|
|7. CITIC Ltd||4.01%|
|8. Sichuan Expressway Co Ltd||4.00%|
|9. China Petroleum & Chemical Corp||3.90%|
|10. Xinhua Winshare Publishing and Media Co Ltd||3.89%|