Henderson Far East Income Share Discussion Threads

[2sporrans] 02/11/2020 11:00

Further to post above:

At 30Jun20 the top 3 holdings were in Chinese banks, ~4.3% weighting for each.
China Const. Bank one of them.

None of those 3 banks feature in the 'current' top 10 [10th rank BHP 2.7% weighting].
Can't find holdings info. deeper than top 10 beyond 30Jun20.
When find time will peruse monthly reports to find out how much and when those holdings were sold down.
Looks like a move into insurance and non-banking stuff within financials lately.

[purplepelmets] 30/10/2020 21:52

Ex div. Added on the drop yesterday.

[aleman] 30/10/2020 15:36

Must be a big sell to come since there is plenty of regular buying going on but the price is not moving like usual. It might explain today's mark down to below NAV.

[novision] 30/10/2020 15:16

CHC15 - might be a read across from HINT annual report which includes:

"in the half year report, we noted the fact that some of the companies held in the portfolio had been asked by their respective governments or regulators to delay or moderate their dividends until the impact of the current pandemic was clearer. We also indicated that the board intended to utilise the Company's revenue reserves to smooth any temporary shortfall between the Company's distributions and portfolio income. Whilst the majority of the portfolio's holdings have paid dividends, a number have reduced or withheld dividends and it has been necessary to use a relatively moderate amount of the reserves to support dividend payments this year (£917,000 of the £8,081,000 at the start of the year). Earnings have been retained every year since launch for a rainy day, so it is appropriate that they are used now in these unprecedented times.

We continue to recognise the importance of dividend income to our shareholders and will continue to use reserves to complement the income generated by the portfolio. The current revenue reserves would provide several years of dividend support based on 2020 results."

[andyj] 30/10/2020 13:27

Yes after moving to JAGI, I am rebuilds position here. Happy to keep adding below £3. Good income and capital appreciation prospects in time.

[chc15] 30/10/2020 13:20

Wow what's happening here, big drop

[panshanger1] 30/10/2020 12:15

Happy to add at this level

[2sporrans] 15/10/2020 12:40

The capital appreciation was decent with HFEL until about 3 years ago.

I do wonder whether the bar ought to have been progressively lowered as to the 'qualifying' level of income for the shares held by HFEL.
Quite apart from the pervasive crushing of yields thinning the prospect field, the balance of reward between growth and 'value' stocks has ever more favoured the former as discount rates have also been crushed.
All but a few growth stocks will be screened out, rapid future divi growth notwithstanding.

Wonder how big the HFEL reserves are and how much is being consumed to sustain the high payout, currently fully 7.5%.
Will we ever be enlightened?

Still, the HFEL portfolio is highly [net] cash generative; to be treasured in these times.
And East-SE Asia looks to be best region to invest, by some margin.

[zac0_4] 09/10/2020 17:54

carpingtris - I also hold Rathbone Global Opps. Another excellent performer! My holding in Fundsmith Equity fund is directly with Fundsmith. It's my largest holding by far. I've set up an automatic withdrawal payment with them. They pay a set amount, from my capital, to me on a quarterly basis. Just like a dividend payment. In that way I haven't got the psychological barrier of having to sell units myself! To date it's worked well. I've had payments made to me equivalent to 5.8% of my initial investment and my capital is still 27% up! Another possible option for consideration. Good Luck.

[carpingtris] 09/10/2020 08:54

Thanks for the opinions - interesting.

I'm looking for growth in my pot as well as reliable Divi payers 'a mixture'.

My Rathbone Global Opps. and Bailie Gifford Global Income Growth have both performed well this year - but I wouldn't stick all my eggs in one basket.

[danieldruff2] 09/10/2020 08:46

I've come to a similar opinion but over the years I have found the steady state of this fund useful when the rest of the market drops. I sell 25-50% of my HFEL, invest in bombed out stocks, then top it up again. Has worked well.

[zac0_4] 08/10/2020 23:11

carpingtris - the >5% dividend does look attractive. But the harsh reality is that overall, over 10 years, total returns are nothing to get excited about. A £10,000 investment 10 years ago here is worth £9,454 today, although you have picked up £5,845 in dividend payments.

Compare that to £10,000 invested in the Fundsmith Equity fund. Assuming you took capital annually to the same value of the annual HFEL dividend payment, your capital today is worth . . . £37,490! And you've withdrawn the same £5,845 over the period!!

I continue to hold, and at present add, here. But once the time is right for me I intend to sell and reinvest my capital across my portfolio of global equity funds. This recent period has clearly highlighted to me the shortcomings of income investing.

[shalder] 08/10/2020 22:01

Is the last bit the perils of autocomplete or the voice of experience?;-)

[panshanger1] 08/10/2020 21:23

Japan ( which is relatively COVID light ) too I hold JPS which has been on a tear and pays a nice divorce

[panshanger1] 08/10/2020 21:20

Think the China / Asia Pacific area is likely to be where you want a decent slice of your money in the next couple of years too

[carpingtris] 08/10/2020 19:58

Maybe but >+5% Divi is a damn site more than you'd have got from any bank since 2008... might not be for growth but relatively safe and paying.. can't complain.

And imo I don't think you'll see >+5% anywhere banking wise anytime soon.

So long as they keep paying I'm happy to accumulate.

[lord gnome] 08/10/2020 18:43

The dividend is good here, but the capital performance has been dire across the years. It has spent ten years going nowhere.

[zac0_4] 08/10/2020 15:57

Me too. Dividend income from all my UK dividend paying trusts and shares is currently being invested here at present. Good luck.

[panshanger1] 08/10/2020 08:48

Been adding at these levels Nice diversification and trust backing the dividend

[speedsgh] 06/10/2020 11:18

Dividend Declaration -

The directors have declared the fourth interim dividend of 5.80p (five point eight pence) per ordinary share in respect of the year ending 31 August 2020. The dividend will be paid on 27 November 2020 to shareholders on the register on 30 October 2020 (the record date). The shares will be quoted ex-dividend on 29 October 2020.

[carpingtris] 28/9/2020 08:56

Thanks Masurenguy

[masurenguy] 28/9/2020 08:03

"The Board expects dividends to recover in the Asia Pacific region but stands ready to utilise the Company's revenue reserves should the need arise. Revenue reserves are shareholders' money held back to smooth distributions in times of stress and the Board feels that the current environment is an appropriate time to utilise this benefit of the closed ended structure." RNS: 25 June: 2020

[carpingtris] 27/9/2020 21:03

Anyone think the current Divi of ~7% is sustainable? Pretty good compared to everything else that's available to savers/investors.