As the dawn of 2025 approaches, the financial landscape continues to be shaped by the interplay of low-interest rates and market volatilityThis convergence has ignited renewed interest in dividend funds, which are emerging as lucrative investment vehicles within this investing eraFund houses like Silver Fund, Taiping Fund, and Western Gain Fund are among those getting set to launch new dividend-focused financial productsIndustry experts argue that given the declining yields in traditional income-generating assets, there is a rising demand for high-dividend and low-volatility investmentsThis trend positions dividend assets as a pivotal opportunity for investors looking towards the future.

This surge in dividend fund launches is no coincidenceJanuary 2025 marks the concentrated debut of many such fundsNotably, on January 10 and 13, the Galaxy Shanghai Stock Exchange State-Owned Enterprise Dividend ETF Launch-link Fund and the Taiping CSI Dividend Index will commence their issuance

Additionally, existing funds such as the Huabao S&P Hong Kong Stock Connect Low-Volatility Dividend Index and the Rongtong CSI Chengtong Central Enterprise Dividend ETF have already entered their issuance phasesInterestingly, certain funds that do not specifically mention "dividend" or "high yield" in their names are also positioned within this investment strategy spaceFor instance, the Western Gain Consumer Select Mixed Fund is capitalizing on a consumer dividend strategy that prioritizes assets with high dividends and improving Return on Equity (ROE).

Data from Choice indicates that, out of the funds set to launch from January 9 to 13, a significant portion—close to half—are indeed dividend-focused productsZhang Ziquan, the anticipated fund manager for Taiping's CSI Dividend Index, notes that the current valuation levels of dividend assets are lower in a historical context

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This not only presents favorable odds from a long-term investment perspective, but it is also noteworthy that first-quarter dividend assets typically yield the highest average excess returns due to a phenomenon known as "calendar effects."

The allure of dividend funds stems largely from their performance historyOver the past year, as of January 7, more than 80% of equity and mixed funds bearing “dividend” in their titles reported positive returns, with an average yield of around 10%. Some funds even boasted returns nearing 30%, attracting a fresh infusion of capital as the new year commencedAs a testament to this growing popularity, numerous funds have announced temporary suspensions on large-scale subscriptionsFor example, Mid-European Dividend Selection Mixed Fund announced on January 8 a temporary cap on subscriptions, restricting investment amounts to 1 million yuan to ensure stability for current fund holders

Similarly, the Jianxin Dividend Selected Stock Fund declared a pause on subscriptions exceeding 10 million yuan starting January 10.

The data highlights a robust support system for dividend assets, as stakeholder organizations have made hefty financial commitments, underscoring the unwavering demandIn the first five trading days of the new year, dividend-labeled ETFs saw a net increase in subscriptions amounting to 2.372 billion shares, signaling strong investor sentimentAmong these, the Huatai-PB CSI Dividend Low-Volatility ETF and the Southern S&P Chinese A-Share Large-Cap Dividend Low-Volatility 50 ETF recently attracted net subscriptions exceeding 300 million shares.

Zhang Ziquan emphasizes that the decline in yields for traditional fixed-income assets creates a fertile ground for investors seeking high dividends and low volatilityThe sizable market liquidity is likely to propel favorable conditions for the unfolding market landscape

Within today’s investment environment, high-quality assets with solid dividends showcase a unique appeal that has captured the attention of diverse market participantsThis interest is particularly evident among long-term funds, which tend to adopt a more strategic investing approachThey value the characteristic stability and potential long-term appreciation of dividend assets, integrating them integral to their portfolio strategies and holding them for the long-haul to ensure consistent and substantial returns.

Additionally, numerous asset management firms have astutely recognized the significant investment value of dividend assets, positioning them as one of the central investment themes for 2025. As shared by Xu Tuo, the manager of Yongying Dividend Selected Fund, there are multifaceted reasons behind the inclination towards high-quality assets in the current marketHe elaborates on the broader industry trends suggesting that economic development is navigating into a new phase, accompanied by shifts within market structures

Many industries are undergoing varying degrees of transformation and upgradesThus, high-quality dividend assets, which demonstrate substantial competitive strengths and resilience amid the changing tides of time, should be focal points of attention and investment for savvy investors.

From the perspective of industry dynamics, different sectors display unique developmental trajectories and inherent logicsHigh-quality assets typically emerge as frontrunners that align with industry evolution and excel in competitive landscapesThey possess advantages such as advanced technologies, efficient operational management, and significant brand equity— factors that secure their dominant market positions, ensuring stable value creationConsequently, these assets become preferred targets for investment.

In light of the current market characteristics, investors find themselves navigating a relatively complex phase filled with uncertainties