Henderson Far East Income Share Discussion Threads

[carterit] 15/1/2016 16:24

bsharman3 - am in pretty much the same boat myself,and am now holding both. AAIF as you say is at a larger discount of approx 10% currently,though historically it had been trading at a 2-5% above its NAV,and is now yielding just under 6%,so i think both of them are good ones to hold. During the crises of 2008,both these fund fell approx 30%,which was good considring that most markets at the time fell >50%,so i am hoping that this could be an indication that we are close to the bottom this time round as well - as both these funds are again approx 30% or so off their highs. Over the period 2007 to date,AAIF has performed slightly the better,and is at a greater discount,so i do have a few more of AAIF than HFEL,but i do think that both are good trusts to have

[aleman] 14/1/2016 14:23

Is the Chinese slowdown being exaggerated?

[droid] 14/1/2016 13:20

HFEL's much lower discount is probably due to it being more popular with investors. Probably fairer to ask the same question on the AAIF thread.

[mozy123] 14/1/2016 12:29

Buy both? :)

[bsharman3] 13/1/2016 18:24

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!

[lord gnome] 08/1/2016 08:30

Hi GoldpigUK,
Thanks for the link. This had been on my watch list for a couple of years, but it had only just reached the top of the buy list. I have no fears for my investment, just minor frustration for bad timing of my purchase. I could have saved myself quite a bit of cash if I had waited a bit longer.

[goldpiguk] 08/1/2016 00:38

Hi Lord Gnome,

I am watching Asian markets closely as I want to add to my holding here. I expect some more downside with a possible retest of August lows. Hoping to buy around the 250 mark as a long term hold.

The video of the shareholder meeting in December is well worth viewing.
Link below

hxxps://www.henderson.com/ukpi/content/trustslive?o_cc=c3926

Goldpig

[droid] 05/1/2016 16:16

LG, not only is the yield superb but the rate of divi growth is also well above average. been topping up all last year.

[lord gnome] 05/1/2016 16:04

In for a few today at 281.15 to provide a yield of 6.96%. Happy with that. LTBH all being well.

[rogerbridge] 29/10/2015 22:34

I will drink to that.

[masurenguy] 29/10/2015 16:26

Thanks - let's hope that the annual dividend growth continues for the foreseeable future.

[soupdragon55] 29/10/2015 12:25

Welcome Masurenguy.

[masurenguy] 29/10/2015 10:20

Took an initial position here today as a yield contributor within my equity ISA portfolio.

[aleman] 21/10/2015 16:44

21 October 2015


HENDERSON FAR EAST INCOME LIMITED


Fourth Interim Dividend



The directors have declared a fourth interim dividend of 4.90p (four point nine zero pence) per ordinary share in respect of the year ending 31 August 2015. The dividend will be paid on 30 November 2015 to shareholders on the register (the record date) on 6 November 2015. The shares will be quoted ex-dividend on 5 November 2015.

[carterit] 16/10/2015 17:23

I have been topping up on several emerging market and global investment trusts over the last few weeks. Until the last few months many of them were at between 5 and 10% premium to NAV,and most are now at or below NAV.

I have HFEL,AAIF yielding 5+%,SOI yielding 4.5+%,UEM yielding 4+%,MYI yielding 5+%,as well as taking positions in a couple of commodity trusts as they hit their 2008 lows ie approx 60-75% off their highs of the last couple of years,and yielding (for now) some 8-10% ie BRCI and BRWM.

Also have some property (MCKS,SREI,PCTN,FCRE),infrastructure HICL,BBOX,private equity FPEO,HGT,smaller companies such as AIF,SDV,ASCH,DIVI,INV that all give 4%+ yield an offer the chance of growth as well,as well as EDIN with a yield of approx 5%,and a couple of wildcards with RUSP in Russia,and a yield of approx 9-10%,and BRLA (latin America) with a 5% yield.

So am fairly well diversified. I just need to make sure sometimes that i top slice some of them,when 20%+ up,rather than watch profits disappear again,such as has happened over the last few months. I also reinvest dividends and have held most of these for 3+ years now

Have got a reasonable time frame so am hoping to see good results over the next 5 years or so

[jonwig] 15/10/2015 07:18

Citywire article on HFEL:

[masurenguy] 15/10/2015 00:02

Hi Goldpig, I've been watching from the sidelines here but have yet to invest. I've been invested in CLIG for many years and their yield is even higher than HFEL. You might like to check it out.

[goldpiguk] 14/10/2015 19:15

Hi Masurenguy,

I am gradually accumulating HFEL in my equity ISA and more than doubled my holding in the 260's.

The Far East looks as though it will be in for a bumpy ride so I am drip feeding money into HFEL with a target holding of 5,000 shares. (My current holding is about 3,300)

The macro picture look mixed. Many emerging market currencies are under pressure and there are fears that when US interest rates rise problems will only intensify. Many of these countries are highly exposed to dollar debt.

The contrarian view (which I subscribe to) is that the US Fed have rather missed the opportunity to start raising US interest rates and any interest rate rises may not happen until next year. Any rises are likely to be small.

The dividend at HFEL looks safe as it has about 9 months accumulated in reserve which should see it through potentially difficult periods.

I wanted exposure to emerging markets and HFEL gives me that broad spread of risk. Longer term Far East emerging markets offer great potential returns so I will continue to accumulate on any dips.

Goldpig

[masurenguy] 14/10/2015 14:39

On my radar as a yield stock for my equity ISA. Interesting summary from Citywire today.

Is Henderson Far East Income's 6.3% yield too good to be true?
The investment trust's strong yield may appear too good to be true but its dividend is fully covered and hasn't been cut in 25 years.

[goldpiguk] 08/10/2015 10:25

Hi pvb,

I am building a position here, so yes. My investment is for the longer term (at least five years) so I expect to add on future dips.

Goldpig

[pvb] 07/10/2015 19:20

Anyone catch that drop?

[skinny] 14/9/2015 16:25

As at close of business on 11th September 2015, the unaudited net asset value per share, calculated in accordance with the AIC formula (including current financial year revenue items) was 270.7p.

As at close of business on 11th September 2015, the unaudited net asset value per share (calculated excluding current financial year revenue items) was 264.5p.

[pvb] 02/9/2015 10:59

Sure, it makes sense to buy at a discount if possible if it makes sense in arbitrage situations, but the fund is really only tracking the markets in principle and a big discount may be a warning.

Yes... However I think there is more to it than that. Even if an IT does just "track the market" it is the demand for its shares that effects the discount. If the market is not a fashionable one people will not be buying, if it is, they will. HFEL in the past used to be at a discount. Like many ITs (even generalist ones) the discount closed when income investing became all the rage a couple of years ago.

[pvb] 02/9/2015 10:54

Buyer beware!