Pictet makes emerging market dividend fund available to UK investors

Pictet Asset Management has made its £20.4m Pictet Emerging Markets High Dividend fund available to UK and European investors.

The firm has managed the fund for Japanese investors since 2007.

The fund is managed by Mark Boulton and Stephen Burrows. The annual distribution level is set conservatively at 4 per cent NAV at launch, which can be distributed to investors monthly.

The average gross yield of the stocks in the fund’s portfolio at the end of August was 5.8 per cent.

Pictet points to the closing gap between the developing and developed world in terms of dividend payouts as a reason why to look to emerging markets for income.

The firm says that in 1998, only 38 per cent of emerging market companies paid dividends but by 2011 this figure rose to 88 per cent.

Boulton says: “The increase in dividend payments is perhaps one sign that emerging market companies are moving toward greater transparency and a fairer treatment of minorities. Dividends are, after all, paid to all shareholders. Russia’s Lukoil and Gazprom for example have not only established credible dividend policies but, in the last 18 months, have moved to increase payouts.”