Salient to Investors:
Jesper Madsen at Matthews Intl Capital Mgmt said global investors have been seeking dividend-payers to the point where some areas of the market are overvalued, while more cyclical businesses are selling at significant discount. Madsen said Asia is a very fertile environment for yield, as well as being one of the fastest-growing regions in the world. The Matthews fund has more than tripled its stake in Chinese companies since the end of 2007 to 22 percent as of the end of 2012.
Madsen seeks companies that increase their dividends and says there is nothing safe about buying overvalued assets – stable or not, gravity applies.
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