Henderson Far East Income Share Discussion Threads

[scruff1] 05/10/2021 13:30

Chinas current economic woes and with its need for Australian coal may just cause it to pause for thought - not that China acts in any predictable fashion

[tim 3] 05/10/2021 13:22

Thank you so much Goldpig really value your input as always.

Was more a question than a statement of fact about them looking cheap was looking for just that type of feedback.

Think I will hold for now was considering adding but I already have decent exposure here, adding would make me overweight and reading that article looks like as a minimum some caution and further research may be prudent.

Thanks again.

[gateside] 05/10/2021 12:41

Only 15% of the Investment Trust is currently invested in China. They have reduced their weighting considerably.

[goldpiguk] 05/10/2021 11:04

Hi tim 3,

Its easy to see why these look cheap.

Over the last few months, apart from the pandemic there is an increasingly dark cloud hanging over Asia. President Xi is known to see it as his duty to gain control over Taiwan before he steps down as President of China, and there are increasingly ominous signs he is now pursuing a more aggressive policy.

The most recent article from the Guardian gives some good information on this. Please do read it and I would be interested to know if you think the shares are still cheap?

Link to Guardian article:



Of course as the situation escalates it will have ramifications for shares globally, but I would expect Asian shares to suffer the most. Asia not only has the potential as a catalyst to greater global prosperity, in my view it also now poses the greatest risk to global peace.

I will not be increasing my weighting in Asian shares because of my concerns, but intend to retain HFEL and AAIF in my portfolio. It is my view that any escalation in tensions will eventually result in HFEL being the first to have to cut its very large dividend.

This is one occasion where I really do hope I have got it badly wrong, but I fear that is not the case.

Goldpig

[tim 3] 05/10/2021 00:00

A small discount to nav as well, unusual.

This looks cheap? mind you I thought that at 3.20!

[gateside] 04/10/2021 22:32

8.2% yield now

[scrwal] 28/9/2021 12:50

HFEL generally trades at a premium , SOI and AAIF trade at discounts - AAIF is c10% . Therefore HFEL won't buy back shares but will issue shares to take advantage of any premium.

[exel] 27/9/2021 13:29

AAIF & SOI are buying their own shares back (notably AAIF) - maybe coz they perceive inescapable 'value'? HFEL (which I hold big, to be clear & transparent) has spent much of the last year or so issuing new equity. Any comments would be welcomed. For the avoidance of doubt, I hold all 3 - so not a terribly happy bunny, right now.

[zac0_4] 20/9/2021 15:10

Let's hope it's safer than our capital!!!

[gateside] 20/9/2021 08:54

With the fall of BHP & RIO and the tension in the region between China and Australia. How safe is the dividend here?

[petewy] 17/9/2021 16:45

hxxps://www.edisongroup.com/publication/consistently-high-and-growing-income/29746/

[exel] 17/9/2021 12:40

It’s almost inevitable that it will! But it’s also highly likely that the Chinese Authorities will act (covertly and/or otherwise) to prevent the potential contagion to which that contributor eloquently refers.

In other news - HFEL has taken its China exposure down from 17.1% to 15.4% (end July’21 to end Aug’21).
SOI & AAIF were each both closer to 10.5% China Exposure (at end Jul'21).

[al101uk] 17/9/2021 09:49

Don't know if this will have any further effect on China stocks:

[rogerramjett] 16/9/2021 13:03

Thanks Lord. I called HL to explain and came to the same conclusion as you have highlighted.

[exel] 16/9/2021 12:40

someone just lost patience with HFEL?
103,655 sold at 298.50p?

[lord gnome] 16/9/2021 07:11

You won't be paying any ongoing charges other than your standard account fees. This is a trust not a fund. You have bought shares like any other, not units.

[rogerramjett] 16/9/2021 06:50

Picked up 5k of these today and believe they are shown as a sell. Waiting to add another 5k should there be any further drop.

Can someone advise how the Hargreaves Lansdown 1.08% Ongoing Charge is covered/paid ? Thanks

[aleman] 15/9/2021 21:42

There's loads of evidence that it's weather dependent but it does tend to get a bit obscured when governments keep changing restrictions on social mobility in ways that have been criticised for not always making sense.

[scruff1] 15/9/2021 21:11

And again thanks Aleman. Just one question. Is there any evidence that Covid is weather dependent yet? I cant see any evidence so far. eg our so called 4th(or is it the 3rd??) wave has occurred over the summer.

[aleman] 15/9/2021 20:42

Some selling in Chinese shares over the last couple of days. Probably down to another Covid outbreak and talk that China might let it run a bit more because they can't keep locking down over and over. Given they've struggled with Delta recently while it's hot, I doubt they'll make it through the winter without a major outbreak. I'd get used to the idea. (There is good news for HFEL in that they have reduced Chinese exposure a bit in recent months. It's 17% now. It was over 25% a year ago.)

[scruff1] 15/9/2021 20:39

Thanks for insight exel.

[exel] 15/9/2021 20:33

Far Eastern Market falls over last night (their wednesday 15/9/21) would be my guess, as these (repeated) pull-backs will kick into reported 'per share' LSE valuations of HFEL AAIF & SOI when reported tomorrow.

[scruff1] 15/9/2021 19:53

Only recently bought in. Notice mon and tues mainly buys and today virtually all sells. Is there a reason for the change of sentiment?

[exel] 12/9/2021 14:43

2sporrans - HUGE thanks for your post 823 (above). As a holder of AAIF, SOI and HFEL you'll readily see why your comments and graphic were SO helpful.

[aleman] 08/9/2021 12:14

Covid falling in Japan and Vietnam and looks to be starting to level out in Australia.