Henderson Far East Income Share Discussion Threads

[kimboy2] 08/8/2023 15:34

I make the Trustnet chart show a 6.7% return over 5 years with dividend reinvested. How does that compare to other dividend payers?

[tim 3] 08/8/2023 14:53

Make that a 14 year low.

Through support and still no sign of life.

[scruff1] 08/8/2023 07:53

Its not getting any better

'China's trade slumps more sharply than expected'

I thought we had got off lightly on divi day but we have continued down the pan since. At a 5 year low now I think

[tim 3] 01/8/2023 19:05

Fair comment but do you have a reason to think things will change?To me it looks like whatever strategy they are using to boost income is having a direct (negative )affect on the share value,as has be said before the net yield of the companies in the trust is lower than the dividend paid.Either that or for the last 5 years maybe longer they have made poor selections.

[bluemango] 01/8/2023 15:52

Which is fine as an argument if you assume historic performance extrapolates and continues perfectly the same into the future. It's a guide, one factor of many, but no more than that.

[zac0_4] 01/8/2023 14:48

to back up tim3's point the Legal & General Pacific Index Trust has produced a total return of 31% over the last 5 years. HFEL has produced a total return (loss) of -4% over the same period with dividends reinvested.

[tim 3] 01/8/2023 13:52

With dividend reinvestment,tried to post link but advfn's silly rules won't let me but if you google "HFEL trustnet" then its easy to see on trustnets site.

[makinbuks] 01/8/2023 11:44

What is the basis of that? Dividends reinvested, excluding dividends, including but not reinvesting dividends?

[tim 3] 01/8/2023 10:40

Well whatever they are doing its not helping the share price.

Pointless doing things to get the dividend high if it results in capital going down.

Looking at trustnet its underperformed the IT Asia Pacific Equity Income sector by over 25% over the last 5 years.

[kiwi2007] 01/8/2023 10:27

China not doing well and exporting it's internal problems throughout the region that HDFL specilises in is affecting share prices.

Here in NZ log and A2 milk powder exports to China are well down. Just two examples of what's happening.

Interesting though how these guys make a turn earning enough to pay the pretty impressive dividend. Some cute options trading and loaning out of shares going on I'd imagine?

[scruff1] 29/7/2023 07:37

Nice little fillip yesterday. Anybody know of a reason? Pleasant surprise anyway so soon after the divi drop.

[gateside] 27/7/2023 21:45

Good discussion of recent, but don't fathom all the negative comments here. I agree the share price performance has been abysmal. But I'm looking forward not back, and see this severe weakness of share price as an excellent opportunity. I believe in the growth of China and the Pacific region, this makes me feel the dividend is safe. Yielding 10.25% I see that as bargain territory.You pay your money and take your chance.

[skinny] 27/7/2023 12:53

Well done to anyone who bought at the Monday low.

[scruff1] 27/7/2023 12:48

Now now Zac. Dont be rubbing it in. To be honest I expected a bigger drop for the reason Tim mentions. still time I guess but the fact that it hasnt - wellhope springs eternal an all that.

[tim 3] 27/7/2023 12:44

Absolutely and would not surprise me if it drops further without the dividend to attract buyers!

[zac0_4] 27/7/2023 12:24

"XD today. 6.1p per share payable on Friday 25th August" . . . covered by a 7.0p loss of capital per share!

[jong] 27/7/2023 10:58

XD today. 6.1p per share payable on Friday 25th August

[scruff1] 26/7/2023 21:56

I know :-)

[fabius1] 26/7/2023 21:53

scruff1. A little mischievous and not what I said :).

[scruff1] 26/7/2023 21:33

So we could be looking at 190 - 390 from tomorrow. Mmmmm. Now thats what you call a spread

[fabius1] 26/7/2023 21:14

There is longstanding support/resistance zone @239-232 running back to Oct 2005 which has proven to be a useful support from Aug 2015 onwards. Seems to me the XD price movement will be a useful indication. If the price falls through we could be looking at @200-190. If the support holds we could see resumption of the trading range to 390-380.

[tim 3] 26/7/2023 20:23

Spot on as usual Zac0

[scruff1] 26/7/2023 19:26

Zac
Im in absolutely total agreement with that post. My own thoughts exactly

[zac0_4] 26/7/2023 19:06

My sale today in my Sipp has resulted in a 30.4% decline in capital, offset by divs to date of . . . 30.4% of my initial cost of investment. So break even.

Not so lucky in my ISA, which I intend to continue to hold, as currently sitting on an overall loss of 3.7%.

I know some on here see the far east staging a recovery. However, I think something has changed with regards to the investing strategy here that has damaged the trusts value.

If I look at a graph over the last 5 years and compare it with a pacific region tracker fund (L&G Pacific Index), the period from July 2018 to July 2020, had both trusts, despite differing yields, pretty much tracking each other.

From July 2020 to Feb 2021 HFEL staged a 10% recovery, whilst the region staged 35% recovery. From that date both trusts have mirrored each other in terms of ups and downs.

I am only prepared to wait so long for 'jam tomorrow' whilst receiving an annual dividend that is less than the capital erosion on an annual basis.