Vol. July 2026 – Income Innovation Fund Factsheet.
The Fund aims to deliver returns via investing in yield assets and income from derivatives overlay. To achieve these objectives, the fund will invest in a portfolio of yield assets including, but not restricted to, global dividend generating equities, government bill and bonds, corporate bonds, and with yield enhanced via derivative overlay.
The main drivers of returns are
- 1) Dividend Yield;
- 2) Stock Price Appreciation; and
- 3) Alternative Income Source (e.g. asset-backed REITS).
Global equities were volatile in July as easing inflation and resilient corporate earnings competed with renewed geopolitical risks and continued scrutiny over the returns on elevated AI investment. While earnings remained broadly supportive, performance was increasingly differentiated as investors became more selective on valuations and the sustainability of AI-related capex. Asian technology and semiconductor stocks also saw heightened volatility, creating opportunities to rotate into areas offering attractive risk-reward.
Against this backdrop, the Fund added approximately 3% exposure to HK Tech, where we see attractive valuations as the AI rally broadens beyond U.S. technology leaders. Within semiconductors, we switched from Micron Technology into SK Hynix, our preferred exposure to the AI memory cycle given its leadership in high-bandwidth memory (HBM) and improving conventional DRAM pricing. The Fund continues to balance participation in structural growth themes with its focus on dividend income and attractive total returns. For July, Alibaba, PICC Group and HKEX were the largest contributors to performance, partly offset by weakness in our Korean exposures, including Samsung Electronics and the iShares MSCI Korea ETF.
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