Abrdn Asian Income Share Discussion Threads

[bsharman3] 13/1/2016 19:52

Hi, It was me...

I'll copy here - if anyone can help!

Hi,

I'm looking for a bit of advice.

I'm trying to compare HFEL and Aberdeen Asian Income (AAIF) because i'd like to get some income exposure to Asia.

At the moment I'm thinking that AAIF is the better buy because it's

a) on a 9.55% discount as opposed to HFEL's discount of 1.5
b) HFEL has a 12% exposure to China and AAIF only 3.5% (I would prefer a smaller exposure to China)

However the yield on HFEL is greater at 7% rather than the 5.4% on offer at AAIF.
HFEL has a good record of increasing dividends.

Is there a reason(s) I should or shouldn't choose AAIF that i haven't considered ?

Thanks!

[pvb] 13/1/2016 19:13

Somebody on the HFEL thread asking if there are any known downsides to currently investing in AAIF rather than HFEL, apart from the somewhat lower yield. They see this trusts lower % in China as a plus at this time.

[bigwilly1986] 22/12/2015 18:15

Buy backs are getting more aggressive...

[mister md] 11/12/2015 08:59

Aleman/Cerrito - thanks for your feedback. Have some high yielding HGM - may offload a few prior to US interest rate hikes just to rebalance a bit

[cerrito] 10/12/2015 21:30

Certainly worth looking at but something I my bones tells me to wait a bit before adding to my present holding. Interesting as of the half year was trading at a premium to NAV and is now at a 8% discount, despite all the buybacks of the last weeks. Perhaps Investec is continuing to off load.

[aleman] 10/12/2015 16:33

Looks a possible buy but you might also look at HFEL which has a higher yield (prospective looks like 7.0% versus 5.8% here) and a stronger dividend growth record. If you are looking for foreign income, you might also consider ALAI which has just rebased the dividend downwards but which still yields 7.3%. Political risk in Latin America is probably a bit higher, though.

[mister md] 10/12/2015 16:12

anybody buying at these levels ? 5%+ yield. low gearing.

[kiwi2007] 07/10/2015 12:14

Todays FT....



......But what should private investors, who may not have large amounts of money for high-risk investments in uncertain Asian economies, do with all this information?
For those that already hold Asian funds, it could strengthen confidence to hold on, instead of joining the panic selling.
And for investors with enough risk appetite, Asian-focused investment trusts that either offer a high dividend yield or trade at a discount to their net asset value, may be worth exploring.
John Newlands, an investment trusts expert at Brewin Dolphin, is currently recommending Aberdeen Asset Management’s Asian Income trust.

As the chart below shows, the trust is trading at a slight discount to the market value of the stocks that it holds, with a dividend yield of around 5 per cent.
“The presence of a decent dividend yield tends to underpin the [stock’s] rating,” Mr Newlands says, explaining that this — combined with Aberdeen’s “experienced” Asian management team — may attract new investors into the trust, “despite the volatility in this uncertain part of the world”.

[jodi17qad] 08/1/2014 10:48

Sorry mis-read date!

[jodi17qad] 08/1/2014 10:47

Although I hold quite a few of these, they are all held in nominee accounts and I evidently missed any emails about the issue of further shares.

May I ask at what price they were offered, as this may in part account for current weakness?

[bigwilly1986] 15/1/2013 11:12

Yes interesting. I didn't go for any C shares, so am hoping they don't affect the share price too much!

[tiger20] 12/1/2013 16:28

Wondering what the value of the shares will be when c shares will be merging with ordinary shares after fridays close.

[davidbh] 15/9/2009 10:31

Thanks,Asmodeus. That's helpful

[asmodeus] 15/9/2009 08:14

I know that, for a standard-rate taxpayer, like myself, they are atill tax-free, and the dividends from UK-based cos. would already have been taxed before entering the ISA. (And this tax is not reclaimable, inside or outside the ISA),. But would recommend looking this up on the Inland Revenue website for confirmation. P.S. things are different for a higher-rate taxpayer, should you be lucky enough to be one! (There was something about this in today's Daily Telegraph). - DYOR

[davidbh] 14/9/2009 22:33

But if I withdraw AAIF dividends from my ISA, are they subject to tax? And is this withdrawal treated differently from the dividends of other UK based co's?

[asmodeus] 08/9/2009 20:52

Dividends are paid gross, so you are liable to the tax thereon. But that's why I hold them in an ISA, as they are one of the few holdings worth putting therein for income-tax-saving advantage!

[neckygiraffe] 08/9/2009 19:33

I think the key question is whether it is classed as an offshore fund. This is what the HMRC says:

'The dividend tax credit is only available where the shareholding in the foreign company is less than 10% and the foreign company must not be an offshore fund. An offshore fund is an offshore collective investment scheme that may take the form of a non-resident company. Ask your financial advisor or broker if you are not sure whether the shares you hold are in an offshore fund."

Grateful for any advice.

[aleman] 08/9/2009 16:35

I don't think so. The tax voucher quotes zero Jersey tax on a gross dividend that equals the net one. No credit is given against UK tax so I presume it is still due.

[neckygiraffe] 08/9/2009 16:07

Just filling in the self assessment tax return. Does anyone know whether dividends from Aberdeen Asian Income Fund Limited qualify for the UK dividend tax credit as it Jersey domiciled?

Have asked the company, the registras and my broker but no one is willing to give me an answer.

[washbrook] 16/7/2009 13:28

XD-22.7.09
------------------------
The Directors of the Company have today declared a first interim dividend in
respect of the year ending on 31 December 2009 of 2.0p (2008 2.0p) which will be
payable on 28 August 2009 to Ordinary shareholders on the register on 24 July
2009, provisional ex dividend date 22 July 2009.

[aleman] 13/1/2009 00:02

NAV 9/1/09 101.87p (inc. 3.67p acc. income)
CLose 101p
Premium 0.9%
Yield 4.7%

[aleman] 22/12/2008 22:11

NAV 19/12/08 103.04p (inc. 3.75p acc. income)
Close 103.75p
Premium 0.7%
Yield 4.6%

[aleman] 15/12/2008 13:56

NAV 12/12/08 97.12p (inc. 3.46p acc. income)
Close 96.5p
Discount 0.6%
Yield 4.9%