With the change of manager and new investment approach everything seems to point to a reset of the dividend Market maybe pricing that in already ? |
"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?"
Exactly.I have no issue with them using reserves to pay dividends as a temporary measure thats what they are there for but in view of the fact they have now said they are focusing more on capital growth, doing this while at the same time not only maintaining but growing a dividend thats currently not even covered (last year cover was only .86) is quite a tall order. |
2sporrans17 Jan '24 - 10:46 - 1825 of 1825
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Thanks - good post. Maybe a combination of both for optimal income size/growth risk with exposure to Asia? Further mitigation of risk/exposure to growth available from FAS. |
 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? |
My glass is always half full. Being a long-term Vodafone holder, one has to be hopeful. |
A happy investor is a fine thing these days |
Dividend Declaration 6.10p. Happy with that! |
I've seen dividend higher than 11per cent . It almost always ends in tears . |
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. |
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. |
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 |
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 |
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 |
lol. It’s always the way! |
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! |
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. |
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. |
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. |
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. |
Give it a rest! |
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. |
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