Henderson Far East Income Share Discussion Threads

[2sporrans] 17/1/2024 10:46

While there is plenty of doom & gloom to be read wrt economic and investment situation in the Asia Pacific region, especially if China focused, i keep finding positive news in the mix.

I realise that posting up on another fund's performance isn't quite what some here want to read but i hope the underpinning +ve message, one of robustly growing dividend payouts across Asia, is well received.



"The total dividend for 2023 amounts to 11.75p, representing an increase of 17.5% compared to the previous year (2022: 10.00p), and the Board is pleased to note that this represents the fifteenth consecutive year of annual dividend increases and means that the Company continues to be a "next generation dividend hero" as recognised by the Association of Investment Companies. The dividend for the year equates to a dividend yield of 5.8% based on the closing share price of 201p on 12 January 2024 and is expected to be fully covered by earnings for the year ended 31 December 2023."

I still keep a reduced holding in HFEL; building in AAIF the past 2 years.
AAIF, with a greater focus on "Quality" companies, has a substantially better total return performance and the [fully covered] dividend growth is far faster.
Also AAIF trades at 13% discount to NAV, HFEL 4 to 5% lately.

The question remains with HFEL:
How much of the very high - now ~12% - divi is paid out of fund income and how much from capital, or capital sacrifice?

[veryniceperson] 16/1/2024 08:11

My glass is always half full. Being a long-term Vodafone holder, one has to be hopeful.

[scruff1] 16/1/2024 08:07

A happy investor is a fine thing these days

[veryniceperson] 16/1/2024 07:40

Dividend Declaration 6.10p. Happy with that!

[superiorshares] 09/1/2024 17:40

I've seen dividend higher than 11per cent . It almost always ends in tears .

[brucie5] 09/1/2024 10:52

Painful for holders I realise, but looks to me like extraordinary value now. At a share price last seen during GFC you get 11.55% dividend at 4.5% discount. I'm tempted to say that £2 may prove to the bottom, if only because I'm not sure how much higher the market would allow the dividend. This gives more than a pure debt instrument like SMIF.
But wdik.

[aleman] 04/1/2024 11:21

Chinese slowdown over? Services PMI rises for 3rd consecutive month - to 52.9 in Dec from 51.5 in November. New Orders were highest for 7 months.

[superiorshares] 01/1/2024 06:32

Purplepelmets.
Yes could be the floor ? . It held the 2 pound .I just wouldn't personally put any fresh money in .
The middle East is going to bubble up .
SS

[purplepelmets] 31/12/2023 16:07

Dont disagree SS but holding tight here. I think we will be back above 3 quid by the end of 3rd quarter. Dsrkest hour just before dawn yadda yadda

[superiorshares] 31/12/2023 12:05

Now this comment isn't for you highly intelligent Lefties .
The Yanks are starting to engage actively outside of the Israel/ Hamas arena .
This is going to add huge pressure to the markets.
The wedge will be driven in further between the middle East/ China and Russia .
China could be univestible within 5 years should the present Situation continue

[novision] 31/12/2023 10:34

lol. It’s always the way!

[apparition1] 31/12/2023 10:07

Hi Novision. Just before Christmas I made an early New Years resolution to clear out the real dogs in my portfolio. After holding HFEL since 2016 I was sat on a loss of 16.5% after accounting for dividends so completely sold out. Not that that was the worst - EWI doesn't even pay dividends but was a much larger capital loss so out it went too. Luckily there are quite a few active trusts with more of an emphasis on the supposedly dire Footsie 350 that are serving me rather nicely so personally I'll drink a toast this evening to the UK markets. Which probably means the emerging markets will do much better next year!

[novision] 30/12/2023 17:13

Main Takeaway

It's also notable that the team will focus more on India, Indonesia and Taiwan, countries in which it has tended to have an underweight allocation. The team will also continue to focus on China, an allocation that has helped contribute to poor performance in recent years.

There are certainly reasons to be cautious about this shift in strategy. For one, it invites the risk of bad market timing. As Stifel analysts put it a few weeks ago: "While we think a rethink a strategy is welcome to allow greater flexibility in terms of investing, we wonder whether doing it now may lead to a rotation out of some names which have now already fallen and are now cheap."

The analysts also worried about the dividend being uncovered and argued that trusts such as Abrdn Asian Income (AAIF) looked more appealing. The Abrdn fund recently came with a share price dividend yield of 5.3 per cent and a double-digit discount.

As with other changes in strategy, investors might wish to wait and see how it works rather than diving straight in. But those who have already invested on the back of HFEL's huge yields might give the team the benefit of the doubt, for the time being.

[novision] 30/12/2023 17:10

Inv Chron view on HFEL. I think it's free, but if not, just search the title in private mode and you should be able to access.



I'm sat on a big capital loss here but "only" down 7% after divs... so holding on for now.

[advfndean] 30/12/2023 16:31

A second for Aleman's post - folks that are crude / rude will invariably not be adding anything constructive to ANY thread they post on. They are more likely than not to be lacking any intelligent thoughts or ideas and rather than post well rounded well researched articles they will be posting rubbish with their wild speculations of share price direction or copying and pasting stuff from other BBs. You're unlikely to miss anything of any real value by filtering out such posters.

[aleman] 30/12/2023 15:41

When nuisance posters get filtered, it does not help if other posters keep feeding them. Just press the filter button and ignore rather than spoil the thread in the same way they do.

[carpingtris] 29/12/2023 17:35

Give it a rest!

[guitarsolo] 29/12/2023 12:57

Purple, you display extraordinary ignorance.
Amanda Blanc comes from the Rhonnda valley, from a coalmining family. After studying at those "hoyty toyty" universities like Liverpool and Leeds she entered the insurance world on a graduate scheme with Commercial Union, as it was then. She has worked her way up from there and had a stellar career in insurance (and some banking) and is regarded extremely highly in the market.
The fact you haven't even understood a word of what she said shows how ignorant you are. From that we can deduce that you probably are one of those white men who got to wherever they got to because you were a white man and not because of your ability.
Try understanding what she said about the process. If you can't understand it, ask your children or grandchildren and they might be able to help.
Bon chance.

[superiorshares] 28/12/2023 23:04

Amanda Blanc
She is Blank all right !
I would say the top ten Investors of all time are men ..Nasty White ones
I would say also the biggest companies listed on the US stock exchange have all been created by men .. Nasty White ones .
Anyway must dash Luvvies, I'm reading some articles written by
Davina Solomon
SS

[rogerrail] 28/12/2023 13:07

To be perfectly blunt I don't care for all these hangars on, men or women. They are just on a corrupt gravy train. Hence the reference to jobs for the girls. The key person(s) is /are the fund manager(s), everyone else is an expense, though I grudgingly accept sometimes unavoidable to keep the fund manager in check and perform all the mundane red tape functions for which they are overpaid.