Henderson Far East Income — Repositioning to raise total returns
hxxps://www.edisongroup.com/research/repositioning-to-raise-total-returns/33520/
Appreciate this is usually paid for info by the relevant company, but thought it might be useful for some. |
As at close of business on 24 April 2024, the unaudited net asset value per share, calculated in accordance with the AIC formula (including current financial year revenue items and excluding shares held in treasury), was 230.3p. As the Company's shares are now ex-dividend, the dividend has been deducted from the net asset value.
As at close of business on 24 April 2024, the unaudited net asset value per share (excluding current financial year revenue items and shares held in treasury) was 227.2p.
Er, no it hasn't. The 3.1p difference is the same as yesterday. I think they've made a booboo and it will probably be deducted from tomorrow's published number for today. Maybe they should not have added the emboldened sentence until tomorrow and the NAV difference will alter then. |
Buy-backs are bad for investment trusts. They shrink the size of the invested pool, meaning costs rise as a proportion of revenues so some dividend growth is lost, offsetting the gain from fewer shares in circulation. We've already seen a few small trusts merged into larger ones this year because they have become unsustainably small. Buy-backs would just accelerate the trend. Do we really want poorer dividend performance and fewer trusts to choose from? |
 Thanks for the good wishes Hastings. Not well but hopefully getting there.
Fair point about HFEL share price performance being enhanced by reduced discount. NAV is up around 10% from the low though, so definite hints of improvement.
There are STILL so many shares and Investment Trusts paying huge and often sustainable dividends, reflecting the undervaluation of a lot of UK shares. E.g just today Serica surprised by paying a 14p final (7% just for that 1 dividend) and the overall dividend is 11.5% and higher than last year.
Here’s a bit of info for those keen on seeing dividend cuts and more buybacks. Our portfolios have now reached the stage where all new investments can be paid for from the dividend income month after month.
AND it means the portfolios now fund themselves too.
And right now is still a good time to build a portfolio of shares and Trusts paying exceptionally high and sustainable dividends. It’s only when the dividends flow in like the current 10.4% HFEL yield, that we investors seem to realise what a bonus they are. |
kenmitch
you have to factor in that that 12% share price uplift was accompanied by a shift [mostly the past few weeks] from 4% discount to 2% premium; therefore just a 6% rise in NAV over those 6 months.
Some investors pay close attention to the NAV performance.
On the +ve side, you could argue that HFEL is yielding about twice what av. of peers payout; so maybe, as much as 3% EXTRA yield over 6 months, had one bought at last autumn lows. [HFEL yielded ~12% at its October nadir.]
Taking your 12% cap. gain and adding 6% for 2 divvis makes a TR of 18%, from the nadir.
It will be interesting to see how close to 6p the share price drops at tomorrow open; moreso if the premium fades over the next week or 3.
Perhaps it will......maybe it won't. |
HFEL going great guns; and BRWM looking distinctly promising as well. |
Good post Ken, nice to see you here and hope you're keeping well. |
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. |
If the share price and NAV increase then the yield comes down naturally and therefore a rebase isn't needed? Am I missing something? |
If they rebase the dividend, you can say goodbye to the current momentum and uptrend. |
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. |
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) |
Ex div tomorrow |
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. |
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. |
NAV was up to 234 but dropped back somewhat Still a much better trend here |
Yes I saw that discount closed again now |
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. |
So this is yielding just over 11%. |
Good, dividend declared sticking to new quarterly level 6.10p, payable 31st May. |
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 |
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. |
njb678 Apr '24 - 14:12 - 1889 of 1891
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Thanks. |
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