Henderson Far East Income Share Discussion Threads

[brucie5] 24/4/2024 14:08

HFEL going great guns; and BRWM looking distinctly promising as well.

[hastings] 24/4/2024 13:31

Good post Ken, nice to see you here and hope you're keeping well.

[kenmitch] 24/4/2024 13:25

The dividend looks secure. Read page 3 of the factsheet for why.

What many investors might have missed is that this year HFEL has gone from being by far the worst sector performer to the BEST performer. It’s up 12% over 6 months and next best AAIF is up 10%. HFEL has also outperformed them all over 1 month and year to date.

And the dividend is still 10.4% with next ex 6.1p quarterly dividend tomorrow.

[carpingtris] 24/4/2024 12:46

If the share price and NAV increase then the yield comes down naturally and therefore a rebase isn't needed? Am I missing something?

[bluemango] 24/4/2024 12:43

If they rebase the dividend, you can say goodbye to the current momentum and uptrend.

[speedsgh] 24/4/2024 12:25

Encouraging share price performance since end of last year but we have been here before (cf. Q4 2022) so not out of the woods yet. Really need to break out of the long term downtrend dating back to the high in mid-2019 to confirm reversal.

I would be happy for the dividend to be rebased to a more sustainable level if required, even if it means giving up their 'Next Generation of Dividend Heroes' status. While income will be a primary focus for many here, it seems sonewhat pointless if the income consistently forms part of a negaive total return.

Fingers xxd that the current momentum can be maintained.

[panshanger1] 24/4/2024 11:16

That's a fair call I've also held AAIF for many years aswell as DIG and MUT from an old Aberdeen investment trust plan which did very well for me Does look like the holdings here are being reshaped Can't help thinking the yield will be rebased at some stage - still have a reasonable holding though and hoping for better times (TR)

[panshanger1] 24/4/2024 11:09

Ex div tomorrow

[2sporrans] 24/4/2024 11:04

panshanger

now on a premium of ~2%.

sp risen to 234p; NAV declined a little further to 226p.


decided, this am, to sell ~45% of my holding; the above being the immediate spur.
tbh, i remain skeptical that Sat [Durha] is going to do much to improve the relative performance of the fund, which in Total Return terms has been abysmal over any timeframe of a year or more since the pandemic collapse, early 2020.

trade was lucky enough to coincide with a bit of a dip in AAIF; so i reallocated 90+% of the HFEL proceeds into that.
AAIF also goes XD tomorrow.
A mere 5.7% yield but the divi has been rising much faster than HFEL's and far better TR.
Plus, its on about 11% discount to NAV.

Still have over £45k in HFEL.
See how it goes over the next year, especially relative to peers.

[carpingtris] 24/4/2024 10:46

Looking better here finally. Let's hope it lasts!

Do worry abit about that 10%+ dividend but if the share price rises that falls abit and might not put some investors off.

[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.