Forget about GARP, it's all about YARP

ASIAN INCOME

Mike Kerley, manager of the Henderson Asian Dividend Income & Henderson Horizon Asian Dividend Income funds, says investors should be wary of chasing yield.

Growth at a reasonable price (GARP) is a good philosophy when screening equities for investment - striking a balance between strong, consistent earnings and good value. But the hunger for yield, in Asia as elsewhere, means investors risk investing in high yielding companies with limited growth and high multiples. Yield at any price is as illogical as it sounds; better investment decisions are made seeking yield at a reasonable price (YARP). The prolonged low levels of interest rates in the developed world over the last few years, together with the flight by investors towards safe have...