Fund of the week: Why Asia should be on your radar

Investors rarely look to Asian stocks for income. But with this fund yielding 4.9%, and up 62% in a year, it can be found.

Investors rarely look to Asian stocks for income. "But it's not that difficult to find them," says Jason Pidcock, manager of the Newton Asian Income fund. The FTSE All World Asia (Ex Japan) index yields 2.7%, "and we look for stocks that yield more than that. There are literally hundreds to choose from"." With the fund yielding 4.9%, and up 62% over one year, he seems to be doing a good job.

Guided by themes such as rising domestic consumption and population growth in the East, Pidcock "will only consider a stock if its prospective yield is 35% higher than the FTSE AW Asia Pacific ex-Japan Index", says Andy Parsons at the Share Centre. Current favourites include CNOOC, the Chinese state oil company, and Macquarie Airports, which yields 9.5%. Its biggest asset is a large stake in Sydney airport, but it also owns parts of Copenhagen and Brussels airports. "Flight numbers to Sydney will continue to grow and it has recently refurbished the airport so retail sales will be better."

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Macquarie Korea Infrastructure Fund6.4
Telstra Corporation5.7
CNOOC5.0
APA Group3.7
QBE Insurance Group3.3
Keppel Corp3.3
Hong Kong Land Holdings3.2
Advanced Info Service Public Co3.2
AMP3.2
Macquarie Airports3.0
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