Asia equity dividend funds see surge in inflows

Singapore

ASIA dividend-paying equity funds are drawing billions of dollars that could have gone into other equity funds in the region, as investors seek out assets that yield more than bonds but are less risky than direct stock purchases.

In January to May, dividend funds accounted for three of the top five Asia equity funds ex-Japan with the most fund inflows, according to data from Lipper, a Thomson Reuters unit. The OkasanAM Asia Oceania Good Dividend Growth fund pulled in the most capital.