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.
This strategy can also be accessed in a Europe Exposure, Global Exposure, Japan Exposure, US Exposure and a UK Exposure
|Asset Class||Weight (%)|
|1. PetroChina Co Ltd||4.59%|
|2. CITIC Ltd||4.31%|
|3. China Petroleum & Chemical Corp||4.24%|
|4. Qinhuangdao Port Co Ltd||3.98%|
|5. Xinhua Winshare Publishing and Media Co Ltd||3.86%|
|6. Sichuan Expressway Co Ltd||3.73%|
|7. PCCW Ltd||3.72%|
|8. Shanghai Industrial Holdings Ltd||3.72%|
|9. CITIC Telecom International Holdings Ltd||3.63%|
|10. HKT Trust & HKT Ltd||3.59%|