ADIV hunts for sustainable dividend payers across Asia Pacific markets, targeting companies with consistent profit growth and disciplined capital allocation. Unlike yield-chasing strategies, it prioritizes dividend growth potential over current yield, aiming for companies that can compound distributions over time.
How It Works
The fund screens for companies with at least 10 years of positive returns on capital, then narrows to those maintaining consistent dividend payments. Holdings are equally weighted and rebalanced annually, avoiding the mega-cap concentration typical of market-cap weighted Asia funds. The portfolio spans developed markets like Japan and Australia plus emerging economies including China and India, with no currency hedging.
Key Features
- Equal weighting prevents single-stock blowups from derailing returns, unlike cap-weighted Asia funds
- Quality screen requiring decade-long profitability history filters out speculative dividend traps
- 3.11% yield beats most Asia equity funds while maintaining growth focus
Risks
- Unhedged currency exposure means a 10% yen or yuan drop directly hits returns regardless of stock performance
- Equal weighting can underperform when mega-caps like Samsung or TSMC lead rallies
- Asia dividend culture varies wildly — Chinese firms can slash payouts overnight unlike Japanese blue chips
Who Should Own This
Best for investors seeking Asia exposure without the tech concentration of standard indexes, who can stomach currency volatility for higher yields. Works as a 5-10% satellite holding for income-focused portfolios or as core international equity for those believing Asia's growing middle class will drive dividend growth. Not for traders — the equal weight rebalancing creates tax drag in taxable accounts.