Henderson Far East Income Share Discussion Threads

[masurenguy] 29/10/2015 10:20

Took an initial position here today as a yield contributor within my equity ISA portfolio.

[aleman] 21/10/2015 16:44

21 October 2015


HENDERSON FAR EAST INCOME LIMITED


Fourth Interim Dividend



The directors have declared a fourth interim dividend of 4.90p (four point nine zero pence) per ordinary share in respect of the year ending 31 August 2015. The dividend will be paid on 30 November 2015 to shareholders on the register (the record date) on 6 November 2015. The shares will be quoted ex-dividend on 5 November 2015.

[carterit] 16/10/2015 17:23

I have been topping up on several emerging market and global investment trusts over the last few weeks. Until the last few months many of them were at between 5 and 10% premium to NAV,and most are now at or below NAV.

I have HFEL,AAIF yielding 5+%,SOI yielding 4.5+%,UEM yielding 4+%,MYI yielding 5+%,as well as taking positions in a couple of commodity trusts as they hit their 2008 lows ie approx 60-75% off their highs of the last couple of years,and yielding (for now) some 8-10% ie BRCI and BRWM.

Also have some property (MCKS,SREI,PCTN,FCRE),infrastructure HICL,BBOX,private equity FPEO,HGT,smaller companies such as AIF,SDV,ASCH,DIVI,INV that all give 4%+ yield an offer the chance of growth as well,as well as EDIN with a yield of approx 5%,and a couple of wildcards with RUSP in Russia,and a yield of approx 9-10%,and BRLA (latin America) with a 5% yield.

So am fairly well diversified. I just need to make sure sometimes that i top slice some of them,when 20%+ up,rather than watch profits disappear again,such as has happened over the last few months. I also reinvest dividends and have held most of these for 3+ years now

Have got a reasonable time frame so am hoping to see good results over the next 5 years or so

[jonwig] 15/10/2015 07:18

Citywire article on HFEL:

[masurenguy] 15/10/2015 00:02

Hi Goldpig, I've been watching from the sidelines here but have yet to invest. I've been invested in CLIG for many years and their yield is even higher than HFEL. You might like to check it out.

[goldpiguk] 14/10/2015 19:15

Hi Masurenguy,

I am gradually accumulating HFEL in my equity ISA and more than doubled my holding in the 260's.

The Far East looks as though it will be in for a bumpy ride so I am drip feeding money into HFEL with a target holding of 5,000 shares. (My current holding is about 3,300)

The macro picture look mixed. Many emerging market currencies are under pressure and there are fears that when US interest rates rise problems will only intensify. Many of these countries are highly exposed to dollar debt.

The contrarian view (which I subscribe to) is that the US Fed have rather missed the opportunity to start raising US interest rates and any interest rate rises may not happen until next year. Any rises are likely to be small.

The dividend at HFEL looks safe as it has about 9 months accumulated in reserve which should see it through potentially difficult periods.

I wanted exposure to emerging markets and HFEL gives me that broad spread of risk. Longer term Far East emerging markets offer great potential returns so I will continue to accumulate on any dips.

Goldpig

[masurenguy] 14/10/2015 14:39

On my radar as a yield stock for my equity ISA. Interesting summary from Citywire today.

Is Henderson Far East Income's 6.3% yield too good to be true?
The investment trust's strong yield may appear too good to be true but its dividend is fully covered and hasn't been cut in 25 years.

[goldpiguk] 08/10/2015 10:25

Hi pvb,

I am building a position here, so yes. My investment is for the longer term (at least five years) so I expect to add on future dips.

Goldpig

[pvb] 07/10/2015 19:20

Anyone catch that drop?

[skinny] 14/9/2015 16:25

As at close of business on 11th September 2015, the unaudited net asset value per share, calculated in accordance with the AIC formula (including current financial year revenue items) was 270.7p.

As at close of business on 11th September 2015, the unaudited net asset value per share (calculated excluding current financial year revenue items) was 264.5p.

[pvb] 02/9/2015 10:59

Sure, it makes sense to buy at a discount if possible if it makes sense in arbitrage situations, but the fund is really only tracking the markets in principle and a big discount may be a warning.

Yes... However I think there is more to it than that. Even if an IT does just "track the market" it is the demand for its shares that effects the discount. If the market is not a fashionable one people will not be buying, if it is, they will. HFEL in the past used to be at a discount. Like many ITs (even generalist ones) the discount closed when income investing became all the rage a couple of years ago.

[pvb] 02/9/2015 10:54

Buyer beware!

[asmodeus] 02/9/2015 10:48

I wrote to ADVFN to report the discrepancy in the NAV for HFEL, and this was their reply:

"Thank you for your email.
I apologise for taking long to respond.

According to the way we make the calculation the figure is correct.
However we provide a disclaimer note underneath that says that this figure might be exposed to inaccuracies.

Please let me know if you need any additional information."

[fabius1] 26/8/2015 16:43

I think people get a bit hung up on premium/discounts on IT's. It really just reflects investor sentiment on the management/strategy/underlying investments etc. Most of the income IT's are running at a premium which tells us something about the holders. Sure, it makes sense to buy at a discount if possible if it makes sense in arbitrage situations, but the fund is really only tracking the markets in principle and a big discount may be a warning. BRWM holders need not reply...

[droid] 26/8/2015 11:13

Fortune favours the brave Rodders !

[rcturner2] 26/8/2015 09:50

This is actually at a premium at the moment.

Brave buying this right now.

[rogerbridge] 25/8/2015 15:15

Bought some for SIPP early today

[rcturner2] 24/8/2015 21:02

NAV is 266p chaps, don't use advfn figures, very misleading.

[pvb] 24/8/2015 18:59

Couple of directors buying today.

[rcturner2] 24/8/2015 10:54

Yes, 20% in China and 20% in Australia isn't great either.

The August factsheet should be available soon.

[skinny] 24/8/2015 10:49

According to the the top 10 holdings are :-

Top 10 holdings (%)
Coal India 2.7
Korea Electric Power 2.7
Bharti Infratel 2.5
Suncorp Group 2.5
Telstra 2.5
Commonwealth Bank of Australia 2.5
HKT Trust & HKT 2.5
Casetek 2.4
Spark Infrastructure Group 2.4
Scentre Group 2.4

[rcturner2] 24/8/2015 10:37

I held this share in the past and it pays a good yield.

The NAV will fall and the discount will widen, so this is dangerous at the moment.

I think the main thing is to understand the shares that are actually owned by the trust, as last time I looked it was some pretty solid companies. If that is still the case then this will be a good option for exposure to a rebound in the Far East. Multi-year lows hit though.

[rcturner2] 24/8/2015 10:05

Please use up-to-date NAV figures before making investment decisions here.

[clausentum] 24/8/2015 09:59

IMO the only relevant question now is whether the EM dividends can be maintained, if so the share price is good value in the long term.

[daveofdevon] 24/8/2015 09:53

ENOUGH !!!

Lets have no more morons, no apologies and focus on the deep do-do that is washing over our shares.