State Street Global Advisors has gained an index licence from S&P Dow Jones and plans an exchange-traded fund linked to it that will invest only in Asian companies which have increased dividends forat least seven consecutive years.
The S&P Pan Asia Dividend Aristocrats Index lists a subset of 46 companies from the S&P Pan Asia Broad Market Index. As of April 1, 2013, 20 of the companies had their listing in Japan, eight in Australia, six in China and four in Hong Kong.
The index is part of a series from S&P designed to give investors exposure to the best income-paying stocks.
“Unlike indices that focus only on high dividend yields that are typically from the financials and utility sectors, this series is well diversified across all sectors,” says S&P Dow Jones.
Investors in Asia have traditionally focused on investing in growth stocks, but a maturing of the market and a desire among investors to find yields in a challenging environment, has led to an increased interest in investing for income.
©2013 funds europe