News

Dividends growth “slowdown underway”

Dividends_fileThe slowdown in global dividends is underway – but the dividends still grew on a headline basis throughout the third quarter, according to fund manager Janus Henderson Investors. On a headline basis, global dividends grew by 2.8% reaching a total of $355.3 billion (€416.4 billion). Dividends were up 5.3% in underlying terms, according to the firm’s latest Global Dividend Index. The slowdown of growth began in the second quarter and continued into the third. Despite their slower pace, dividends are still growing comfortably, Janus Henderson said. US dividends reached an all-time high for the index: up 8% on an underlying basis. European dividends rose 7%. Chinese dividends showed signs of weakness, increasing by 3.7% year-on-year on an underlying basis. If it wasn’t for oil and gas company Petrochina’s large increase, total dividends would have been lower, the fund manager said. Jane Shoemake, investment director of global equity income at Janus Henderson Investors, said: “A softening global economy is beginning to have an impact on corporate earnings and, in turn, on dividends.” She added: “For next year, slower profit growth will impact dividends but with interest rates at their current low levels, equities will continue to provide a valuable source of income for investors, even if the rate of dividend growth is less eye-catching than in the recent past.” Separate research recently showed that fund managers were more confident about the global economy. ©2019 funds global asia

Sponsored Profiles

Sponsored feature: Asset allocators – How do you track your decisions?

Apr 06, 2020

Mark Barry, Head of Asset Allocation at Milestone Group, explores how a simple question can highlight opportunities to automate and streamline your asset allocation investment process.

Sponsored feature: How is DLT changing the global securities services landscape?

Oct 17, 2019

By Jeslyn Tan, global head of product management, securities services, at Deutsche Bank

Sponsored feature: A new base for fund distribution

Oct 16, 2019

To get the most value out of the digitisation of investment fund distribution, a blockchain-based infrastructure is fundamental. By Olivier Portenseigne, Managing Director and Chief Commercial Officer, Fundsquare.

Sponsored profile: Bridging the gap

Mar 11, 2019

Private equity is a core part of the business for Caceis’ Hong Kong office, which looks after clients in China and Europe. David Li, chief executive officer, explains why private equity enjoys strong client demand and how it is being used to fund China’s international infrastructure ambitions.

Executive Interviews

Executive interview: ‘China is the 800-pound gorilla’

Aug 04, 2020

Just over a year into his new role, Wai-Kwong Seck, chief executive officer at Eastspring Investments, discusses his business goals, the Covid-19 pandemic and China.

Executive interview: Understanding geographies

Apr 06, 2020

Margaret Harwood-Jones, co-head financing and securities services at Standard Chartered, shares her insights on platform standardisation, opportunities in Asia and regulatory change to encourage...

Roundtables

Hong Kong roundtable: A ‘fragile Goldilocks situation’

Apr 06, 2020

With the global economy at a crossroads, our panel of experts share their thoughts on the market conditions, geopolitical volatility and growth opportunities. Chaired by Romil Patel in Hong Kong.

Singapore roundtable: A horizon to hold long-term assets

Dec 12, 2019

Panellists discuss the geopolitical fractures concerning asset owners, Singapore as a hub for fintech start-ups and why it makes sense to raise capital from a Variable Capital Company (VCC). Chaired by Romil Patel in Singapore.