Henderson Far East Income Share Discussion Threads

[investingdad] 14/8/2023 13:10

That is a problem. I think everyone here believes in a dividend and everyone likes a growing dividend, but it has to be sustainable for the long term.I know what you are saying - 5yr chart is horrific. To put it one way, we are closer to the 2008 price than the ATH.I think I would like the managers to be a bit more present like those in CTY and MRCH are. Hiding away based on their performance no doubt.

[tim 3] 14/8/2023 12:50

Am sure there will be some sort of bounce at some point but looking at the chart will take a considerable bounce to reverse that multi year down trend.I think the final straw for me is how poorly it has performed compared with others in the area and the arrogance of the managers who seem unconcerned about its dismal performance.It's almost as if all they care about is making the dividend attractive regardless of the consequences on capital.

[investingdad] 14/8/2023 12:42

Worrying to see how many retail investors are abandoning this. I hold concerns too - China exposure being one. You look at the top ten and they aren't poor companies, but that 21% exposure to China is a worry. Particularly now that sentiment of the Chinese Market is clear. There is a dwindling appetite in retail investors and hedge funds are moving out following the the China ramp late 22. China have manipulated this market. They have broken it themselves but their fix is yet to materialise. Lowering loans and interest rates doesn't seem to be giving the confidence the population needs. It will be interesting to monitor the next steps.24.4p per share (whilst it lasts), I think I will stick it out for a little longer. There will be some upside, China's economy is likely to grow more than ours for example but not as much as they have targeted.

[tim 3] 14/8/2023 11:38

Morning.

Sold all my shares in these this morning.

Similar reasons to Lord Gnome.

I basically no longer have faith in them and think its quite likely they will fall further.

Wish every one well who is still in.

[scruff1] 14/8/2023 08:11

kiwi
That last paragraph is interesting as I was reading something similar yesterday, cant remember where I'm afraid but the gist was that Xi doesnt understand economics and his wrong decisions and the declining economic conditions are affecting his popularity amongst the population. HFEL however according to their latest factsheet seem fairly satisfied that they are not exposed to the main Chinese black spots such as real estate and I think their most recent asset additions were in Taiwan. Why in 6 months?

[kiwi2007] 14/8/2023 01:57

Interesting to compare it to iShares MSCI AC Far East ex-Japan UCITS ETF (IFFF).
Given that IFFF only pays a 2% dividend I'd imagine that, over many time periods, HFEL outperforms it overall.

As for these large blocks that HFEL regularly sells. I wonder whether some are going to UK councils who borrow large amounts from the government, invest said cash into high dividend stocks, spend the divi but don't have to account for the decrease in capital (lack of auditing)? Any thoughts?

Thirdly, and last. It is thought by those that think they know here in NZ that Xi will be forced to reboot or kickstart the Chinese economy in around 6 months time.

[scruff1] 13/8/2023 17:35

One thing for sure is whoever is buying and however they are buying - they aint buying enough.
Interesting post by 'johnjunior' on LSE (at least I thought so - though I think the monthly factsheets supply some of the answers)

[fabius1] 13/8/2023 13:41

I think the simple trick is to monitor the latest recorded trades (not large worked trades) when the market is open, get a quote from a couple of brokers and factor in the spread and price discount/premium.

[panshanger1] 13/8/2023 12:38

Don't think you can take the ADVFN trading figures at face value Most of the time they get mine wrong!! with buys often listed as sales and vice versa

[scruff1] 13/8/2023 11:18

Only partly. I dont suppose anyone really knows for certain except that there are a lot less of em

[fordtin] 13/8/2023 09:18

Morning scruff1
– re “fordtin
The market makers. Its their job”

I assume you’re joking, otherwise you’d be saying ‘the market makers’, in the pursuit of ‘doing their job‘, have invested over £6.5 million in HEFL shares at an average iro £2.36 over the last two weeks. Presumably, to ‘do their job’, market makers would be obliged to continue investing in even more HEFL shares if the NAV, and consequently the share price, continues to slide.

[scruff1] 12/8/2023 13:07

fordtin
The market makers. Its their job

[pvb] 12/8/2023 11:40

fordtin 12 Aug '23 - 08:30 - 1503 of 1504

scruff1 re "Yesterday according to ADVFN only 1% of HFEL stock traded were bought 99% were sold !"

If only 1% of the shares traded actually went to a buyer, where did the 99% go?

LOL!

Not that old chestnut yet again?

[tim 3] 12/8/2023 09:49

Yeah there are so many stock market proverbs and for many you have just as many saying the opposite and you are right the risk of keeping winners is they turn into losers but I find that more with individual shares than investment trusts but still am not afraid to take some off the table when prices soar.

Just my own experience is getting rid of poor performers and keeping or adding to performers, usually on pullbacks works far better than the other way round.

Most of my investments are investment trusts or etf's my biggest by far being S&P tracker which I started accumulating after covid.

Historically the S&P returns around 10% a year but of course as said earlier thats no guarantee for the future and valuations are high but when we do get a correction/crash I will add as I believe it will continue to be one of the best investments you can make.

[fordtin] 12/8/2023 08:30

scruff1 re "Yesterday according to ADVFN only 1% of HFEL stock traded were bought 99% were sold !"

If only 1% of the shares traded actually went to a buyer, where did the 99% go?

[scruff1] 12/8/2023 08:15

Tim 1498
Its like all proverbial wisdom - pick one to suit the mood. 'Strike whilst the irons hot' or 'Act in haste and repent at leisure'. Ive had plenty winners I wish I had sold before they suddenly became losers and I was left holding the baggage.
Nothing sudden about HFEL though - its like a form of water torture. To cut and run or stick and twist, That is the question. As always, like Brucie says 'where's that level?
Heres another proverbial that Zac posted when he sold up 'The longer you hold a poorly performing stock the more value it destroys'. Its proved to be the case for me so far here. Yesterday according to ADVFN only 1% of HFEL stock traded were bought 99% were sold !

[brucie5] 11/8/2023 10:56

Extraordinary decline - past Covid lows and not far from 2008/9 level when the world economy was falling off the proverbial. Greatest risk is surely that they cut the dividend and thereby lose credibility. I must say, I hold these as an income staple and don't really look at them much as I trust both to the expertise of the board and the protective function of a diversified trust. So I'm more tempted to add at the right level than cut my losses.

If only I could know where that was! But £2.00 would certainly be tempting.

[scruff1] 11/8/2023 06:29

China's Alibaba Group has reported its strongest domestic growth for 2 years

[spangle93] 10/8/2023 16:35

He sounds like the evil twin of our financial adviser, who says diversification is the key, together with portfolio rebalancing (selling good performers to buy weak ones)

[tim 3] 10/8/2023 14:16

Sorry to hear that LG.The way I feel at present will not be far behind you.As someone once said (generalising) you don't get rich holding onto or worse adding to losing positions it's the winners that you need to hold onto .

[scruff1] 10/8/2023 13:05

I meant to sell out day before record day. Missed it and paying for it now. Looking at the trades you are not on your own - there are virtually no buys. I keep thinking if the bottom is near its worth staying but Im also worrying now about seeing a steady drip down to sub £2.0 and then a divi reduction which could be the signal for the cliff edge pan lid. My stock of greatest concern at the moment. Its hard to see anything to reverse its fortunes at the mo so probably the best move Lord Gnome

[lord gnome] 10/8/2023 10:14

I sold out yesterday. I should have fixed a stop loss long ago but I was seduced by the yield. Crystallises a horrid capital loss which has far exceeded any income received. I can’t see the decline stopping anytime soon, either. Good luck to any that remain.

[scruff1] 08/8/2023 20:55

Gateside
For what its worth thats my opinion too. I think the invasion of Ukraine has been a total and utter disaster for Putin (and the rest of the world). Xi or anyone else would be foolish to repeat it. The world is too interconnected and too informed and opinionated. Social media has made wars more than just the bad idea of one nutter that the rest of his/her electorate have to go along with. With a bit more anti war reaction from the Indian and Chinese folk this war would have been over at least 12 months ago. If china invades taiwan I think there would be a mega anti chinese reaction. It would be catastrophic for the global economy for many years and be especially damaging for the chinese. They would not in any way be immune from the nuclear economic fall out. Obsessed as he is with Taiwan we have to hope that Xi is not as barmy as he sometimes looks but rarely acts. He appears to me to be a smart cookie. Cant the UK find one somewhere