Report Wall Street italia
Of Mariangela Tessa
Singapore and Taiwan are probably the most interesting investment opportunities in the 2018. He is convinced of it Jason Pidcock, manager of the Jupiter Asia Pacific Income fund (SICAV), which in a note today highlights how the two countries will benefit from the long-term structural growth of sectors such as travel, turismo, entertainment or healthcare. The manager added that technology hardware production will likely remain a key driver for the region.

“Over the next twelve months, earnings and dividend growth are likely to continue across the region and the political landscape is expected to be more stable”says the manager in a note, specifying the two countries are interesting both from the point of view of valuations and from the point of view of solid balance sheets

From a macro point of view, Pidcock points out that:

“After a prolonged period of relatively low growth in Singapore,the economy is recovering and there are several listed companies that boast dividend yields around double those of local government bonds at 10 years. A Taiwan, the yield on the 10-year government bond is lower and we can find attractive businesses with significant yield premiums and liquidity on the balance sheet. These are generally companies in the tech sector, which is generally quite cyclical, but which today benefits from some structural growth factors, such as the increased number of microchips used in vehicles and required to increase connectivity between various products (the so-called “internet of things”). While the United States is the undisputed leader in terms of software development, And Asia dictates the rules in terms of hardware technology – whether it is the production of products or microchips designed in Asia itself or elsewhere”.

Currently, the three largest positions in the Jupiter Asia Pacific fundIncome are all three Asian companies producing hardware technologies:T.S.M.C. and Hon Hai in Taiwan and Samsung Electronics in South Korea.

“All of these companies have great liquidity and have demonstrated that they are capable of paying reasonable dividends and have the intention to do so (although only recently, in the case of Samsung). In my opinion, In the 2018 these companies are destined to experience another positive year: their yields remain attractive compared to local bond yields, have excellent dividend growth potential and maintain strong balance sheets.”.
Source: http://www.wallstreetitalia.com/mercati-emergenti-chi-spicchera-il-volo-nel-2018/?utm_source=newsletter&utm_medium=email&utm_campaign=Newsletter:+WallStreetItalia&utm_content=03-01-2018+mercati-emergenti-chi-spiccher-il-volo-nel-2018+primo-piano