On a global search for yield

Some investors going for "cyclical yields", noting cyclical valuations are at 10-year low relative to defensives; Reits deemed pricey, with forex loss and hedging cost risks


WHEN traders sold off shares of container port owner Hutchison Port Holdings Trust on Monday following news of a HK$19 billion (S$3.3 billion) impairment charge, Margaret Weir was busy buying.

"I'm very confident of this business," says Ms Weir, who manages US$5.6 billion in Asia-Pacific dividend strategies at Eastspring Investments, the asset management unit of insurer Prudential. She cites increasing port throughput and room for ports to increase tariffs, as low oil prices increase shipping activity.

"Impairment is a non-cash item. It doesn't affect their debt position or ability to pay dividends," she says.

Ms Weir considers HPH Trust, which is trading at an expected dividend yield of...

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to