Threadneedle Investments, the UK based asset management firm, has teamed up with Singapore’s DBS Bank to give the bank’s customers access to the Threadneedle (Lux) Developed Asia Growth and Income Fund.

The fund, launched in April this year, aims to deliver dividend returns of at least 3 per cent per annum. It is designed to provide consistent dividend returns at the portfolio level, plus capital growth. It will use an active total return strategy by investing in companies across developed Asia in Singapore, Hong Kong and Australia, the firm said in a statement.

The Developed Asia Growth and Income Portfolio consists of 35 to 50 companies, set against a customised benchmark (40 per cent MSCI Hong Kong, 40 per cent MSCI Singapore, 20 per cent MSCI Australia).

“As corporates focus more on growing profits and less on chasing after business expansion, we expect companies to have better cash flow positions and offer dividend payouts. Companies that are reaping these rewards are predominantly found in the developed Asian markets of Hong Kong, Singapore and Australia, where corporate cultures are more shareholder-friendly,” said Christine Seng, co-portfolio manager, Threadneedle (Lux) Developed Asia Growth and Income Fund.

“Investors also should seek out the growing opportunities for quality growth as the new era will be characterised by economic sustainability at a stabilised level, anchored by more level-headed government and corporate behaviour. Asia’s secular growth will likely stretch for longer, translating into a prolonged harvesting period for resilient return opportunities in companies that are geared towards secular themes,” said Ng Soo Nam, head of Asian equities and co-portfolio manager, Threadneedle (Lux) Developed Asia Growth and Income Fund.