The different economic trajectory of many emerging market economies makes them an interesting place for equity income investing right now, says Jacob de Tusch-Lec, manager of the Artemis Global Income fund.
The fund manager was speaking on the latest FTAdviser Despatches video, noting: “In times of higher interest rates, you need to be thinking about the level of debt companies have.
"Debt hurts when interest rates are high. And when inflation is high, you need to think about dividend growth, because dividends are likely to be a greater part of total return in future.”
He also finds emerging markets to be interesting right now. This is on the basis that many of those economies raised interest rates last year, and so are “ahead of the curve”, relative to Europe.
De Tusch-Lec said another factor is that if emerging market economies slow down, policymakers there can cut rates to stimulate growth, and this is not currently an option in the US and Europe.
You can watch the full video by clicking on the link above.
david.thorpe@ft.com
