Newton Asian Income adds Taiwan

The manager of the Newton Asian Income fund has added to its holdings in Taiwan based on the strength of company balance sheets, and expectations of strong earnings growth.

Since mid May, Jason Pidcock has boosted the £440m fund's exposure to the country from 12.5% to 15%, using new inflows into the portfolio. Pidock was already overweight Taiwan compared to his benchmark, the FTSE Asia Pacific ex Japan index, of which Taiwan represents 10.5%. He explains: "A lot of companies in Taiwan are net cash, and have very high dividends. The market as a whole yields 2.4%." The manager has added to positions in High Tech Computer Corp, yielding 6%; Taiwan Semiconductor Manufacturing Company (TSMC), yielding 4.7%; and Taiwan Mobile, yielding 7.6%. Newton Asia...