Henderson Far East Income Share Discussion Threads

[panshanger1] 19/4/2024 19:12

NAV was up to 234 but dropped back somewhat Still a much better trend here

[panshanger1] 19/4/2024 19:11

Yes I saw that discount closed again now

[bluemango] 16/4/2024 10:08

Well, 'only' 10.8% if you calculate using the offer price, but yes - excellent yield.

And for chart enthusiasts, on the lower trendline of the uptrend.

[brucie5] 16/4/2024 09:57

So this is yielding just over 11%.

[bluemango] 16/4/2024 09:49

Good, dividend declared sticking to new quarterly level 6.10p, payable 31st May.

[superiorshares] 16/4/2024 07:50

The problem is going to be housing.
I understood China has allowed excess capacity to be built, 30 years of it!
This will Impact on the whole region for decades.

TRUMP2024
SS

[aleman] 11/4/2024 10:24

Philippines exports +15.7% in Feb from +9.1% in Jan and -0.5% in Dec. Most of 2023 was negative. So the Philippines are late to the party but joining a growing number of Asian countries that seem to be booming. Asia Development bank has just reiterated growth of 6.0% this year abd 6.2% next for Vietnam, after 5.05% in 2023.

[brucie5] 08/4/2024 17:50

njb678 Apr '24 - 14:12 - 1889 of 1891
--------------------------------
Thanks.

[carpingtris] 08/4/2024 17:43

TSMC news might have helped here a little?



Certainly won't hurt.

[speedsgh] 08/4/2024 14:55

Yes, I would agree with all of that @njb67

[njb67] 08/4/2024 14:12

Within Asia Pacific, I mainly hold AAIF. Share price and NAV have beaten benchmark over 1, 3 and 5 years. Pays 5.7% yield and has increased dividend for last fifteen years.

HFEL dividend is imv more a sign of poor management over recent years than a reflection on the health of the underlying business. HFEL appear to have chased annual dividend increases to the detriment of total share price and NAV return. Recent acknowledgment of this issue and a commitment to change approach have brought me back to HFEL. I have for now a small position and will wait and see if overall performance improves. I would prefer to see the dividend consistently fully covered by income, even if this means a reset of the dividend to something more sustainable. A 7% yield would still be sector leading.

[brucie5] 08/4/2024 12:38

All good points. I notice it holds slightly less of the Taiwan Semiconductor and slightly more Australian mining; also some VOF. Of course one can also buy many of these discretely.

Taiwan Semiconductor Manufacturing Co Ltd ADR 4.3
Macquarie Korea Infrastructure Ord 4.0
Samsung Electronics Co Ltd Participating Preferred 3.6
VinaCapital Vietnam Opp Fund Ord 3.4
BHP Group Ltd 3.2
Samsonite International SA 2.9
MediaTek Inc 2.9
Rio Tinto Ltd 2.8
Macquarie Group Ltd 2.7
Lenovo Group Ltd 2.6

[speedsgh] 08/4/2024 12:31

Likewise my only exposure to this sector has been/continues to be HFEL. Have had a decent income since first bought in 2018 but if I'm honest the total return has been a bit of a disaster. If I were selling today, it looks like I would have been better off in one of the others. But I'm not planning on selling. If i were to add further to the sector, I would definitely buy one of the others based on a) risk diversification; b) relative past performance over 5-10 years.

[brucie5] 08/4/2024 12:14

Thanks speedgh, yes I'm aware of the excellent AIC site; my request was more towards specific recommendations based on investors' experience and thoughts on how best to ride what appears to be a new geographical bull market. I've been been in HFEL for years one way or another and it seems like a very good default. Perhaps there is no better, though the high dividend might make it less nimble.
But I will certainly check through these other ideas.

[speedsgh] 08/4/2024 11:53

@Brucie5 see here -

[brucie5] 08/4/2024 09:33

Consolidation at 2.20 with next target £3. While paying 10% dividend.
Any other recommendations for similar ITs in this space..?

[aleman] 06/4/2024 21:02

Pretty much what I said above:

[aleman] 22/3/2024 11:43

I'm bullish on Asia, where several stockmarkets look to have been motoring for a while. Less sure about China specifically.

Nice jump in NAV to 234.6p.

[brucie5] 21/3/2024 13:30

Aleman, are you now bullish on China? The chart of JGCI looks interesting, but I thought China was a basket case c/o Evergrande and Taiwan. Happy to be told different?

In the meantime this looks very good indeed, though we had false chart reversal EOY 2022.

JCGI is now a quarter of its 2020 peak; HFEL by a marginally smaller percentage but with the stonking dividend apparently in tact.

[aleman] 18/3/2024 16:02

3rd consecutive month of strong Chinese industrial output bodes well for Asia (though a few Asian countries already seemed to be on the road to a good recovery before this).

[veryniceperson] 15/3/2024 10:53

I'm happy to hold Gateside. Shan't be selling, love the dividend. Didn't check the spread. Would it be that they are short on shares?

[aleman] 15/3/2024 09:34

8gggggggg
9 Mar '24 - 09:27 - 1871 of 1874

Delighted to read yesterday HFEL buying back shares at 10p discount…

Buy back too many, income falls, fixed/rising expenses become too high relative to income, eats into performance as fund shrinks, and fund eventually winds up or merges with another trust. Buy-backs at investment trusts can become a problem if they are not used only to overcome a short-term excessive discount.

Discount is up to nearly 7% now - a widening of about 10%+ since its peak of around 3%+ premium. How high could the discount go? It seems strange it's rising still. Discounts usually compress as NAV rises and vice versa. Maybe it's just slow to react to NAV recovering.