Henderson Far East Income Share Discussion Threads

[jfinvestments] 16/6/2022 23:05

I'll be happy with 0.0585p if it helps maintain capital and reserves. This will be an attractive trust for the next two years as growth slows. 260p could offer a 9% yield which is a safe enough bet in my eyes. Keeping the powder dry for now.

[gateside] 16/6/2022 22:57

MRCH should be more liquid as well now, as it was promoted to the FTSE250 at the last review.

MRCH along with CTY both currently yield 5% and for each IT the dividend looks very safe in my opinion.

[gateside] 16/6/2022 22:54

The next dividend announcement is due in late June.

Last year it was raised from 5.8p to 5.9p each quarter.

If they raise it to 6p / quarter for the coming year, that will be a forward dividend of an 8.4% yield

On that basis I feel that the share price should not fall much from here.

That is as long as the dividend is safe!

[jfinvestments] 16/6/2022 22:40

If there is one thing the market will do is sell good news. I think the only positive I can think off is US market is closed on Monday. FTSE should wait for direction from there. But we have Friday to get through first. I feel like this market is going to allow people to buy a few dips, and then really go. Allow some liquidity to be lost, then when no one can buy the dip. It goes. (I hope I'm wrong in all of this). I will be setting price targets, and looking for discounts and probably just buying higher yielding trusts. I still think higher dividend paying investment trusts will do well here. Providing they can cover for a year or so. HFEL has been robust over the last year - less than 4% decline over the last 6 months, 11% over the last year. I'm going to continue buying small amounts for dividend and I'll be watching for 200-250p for a larger prurchase. I'll also be looking closely at MRCH - once this offers 6% it will be on the buy list.

[scruff1] 16/6/2022 22:16

JF
Yep. I meant my own personal portfolio. I know the general outlook is pretty grim for the forseeable. Even if Putin's war ends tomorrow the damage is huge. I agree with the rest of your comments too. They have been saying for a while that the market was overvalued and I was thinking that this could be the level we have to get used to or as you say there could be more to fall. Today has shocked me more than any other fall so far - I think because as I said earlier I cant really put it down to any particular single issue - just a general collapse of confidence in the whole shebang. The usual 'great time to buy at this level' type comments are beginning to ring a little hollow. SHED yesterday rose by I think about 7%. Today it dropped right back by around 6%. That I found unusual without any specific single issue. It will be interesting to see if it as well as HFEL and others stay at these prices as the new normal or if they creep back - in HFELs cast to anywhere near the 300 mark. We will have a clue tomorrow I reckon. Some good news would be sweet.

[jfinvestments] 16/6/2022 21:48

I'm not sure that I share the opinion that things looked positive. With energy prices still moving up, fertilizer and lots of grain taken out of the global supply, plus China being locked down for so long. Means that the supply side of things is pushing prices up. The prices of foods combined with % of household spending on energy is going to mean severely cut demand. Retail is about to suffer and with it it further slowdown of sales and manufacturing and a recession.I think there is someway to go in this fall too. There might be one last rally before it drops again though. If you are in profits and need cash in the next year then get out.

[scruff1] 16/6/2022 20:37

I was on the verge meself but Ive got to admit Im getting very nervous. Things were looking rosy til last Thursday pm. Then Fri US inflation shock, Mondays GDP shock and todays - WTF was the shock today? I aint quite worked it out Baileys 11% inflation comment, the 15% rise in food prices outlook, the meagre .25% rate rise or just general worrying for worrying sake. Any ideas?

[panshanger1] 16/6/2022 16:00

Oh dear scruff !!Still nibbled a few

[scruff1] 15/6/2022 13:58

pan
Dont start that. So had the Titanic til an iceberg appeared from nowhere - boom

[panshanger1] 15/6/2022 08:38

This has held up well amid the carnage elsewhere over the last week

[panshanger1] 06/6/2022 15:25

Further NAV progress

[woodhawk] 01/6/2022 14:51

Thanks, Skinny, still rising today. Looking forward to the next great quarterly divi.

[skinny] 31/5/2022 13:14

NAV creeping back up.

[woodhawk] 25/5/2022 17:23

I was debating that too, Norry2 - but already have quite a lot tucked away.

[norry2] 25/5/2022 17:16

Took a second tranche today.

[woodhawk] 25/5/2022 16:31

Thanks coxsmn.

[coxsmn] 25/5/2022 16:04

https://www.silicon.co.uk/5g/samsung-to-create-80000-new-jobs-plans-356-billion-investment-459425

[aleman] 23/5/2022 15:52

I think you should also look at income, given the nature of the fund:

FY 2021

China 33.4%
Australia 16.9%
Taiwan 16.1%
South Korea 12.9%
Hong Kong 6.9%
Thailand 3.5%
India 3.0%
Indonesia 2.5%
Singapore 2.3%
New Zealand 1.7%
Vietnam 0.8%

[gateside] 23/5/2022 15:29

In fact 25% of its assets are from Australia

From the April factsheet which was issued today

Australia 24.9
South Korea 16.0
China 14.3
Taiwan 12.2
Singapore 10.3
Hong Kong 5.8
India 3.8
Indonesia 3.6
New Zealand 3.1
Vietnam 3.1

[peterbill] 23/5/2022 09:19

With over 30% of assets based in Australia ... I wonder if the new government green policies will affect business?

[mister md] 23/5/2022 08:46

indeed, I'd be more concerned if it was trading at a significant discount to NAV.
Happy to hold & add, I'm keeping it with a big weighting in my portfolio, with the sizeable dividend an obvious attraction

[norry2] 20/5/2022 09:03

The latest Henderson Report says

"Current discount

HFEL has historically traded between a narrow discount and a small premium to NAV over an extended period, which is narrower than its AIC category peers. This can be attributed to the attractiveness of the high level of income and the diverse shareholder base."

What point are you making myretirementfund?

[peterbill] 20/5/2022 08:53

Top 10 Holdings (31/03/2022) %1 Rio Tinto 5.102 Macquarie Group 4.203 BHP Group 3.804 Samsung Electronics 3.605 Woodside Petroleum 3.606 Telkom Indonesia Perser 3.407 Macquarie Korea Infrast 3.308 Santos 3.309 Spark New Zealand 3.3010 Vinacapital Vietnam Opp 3.00

[scrwal] 19/5/2022 22:53

myretirement

Have a read of the latest EDISON report issued 9 May as this gives info about the discount amongst other things.

[peterbill] 19/5/2022 13:25

NAV 285.1
Yeild over 8%

I'm tempted ... ;-))