Henderson Far East Income Share Discussion Threads

[makinbuks] 08/12/2023 11:43

They don't pay a dividend on them

[superiorshares] 07/12/2023 20:46

This purchase of shares to be held in treasury.
I don't understand what benefit they get from it ? I have obviously seen others do it .
What does it actually achieve?

[tim 3] 04/12/2023 20:09

Makinbuks.

That's exactly my point.

Corporate gibberish.

A classic case of many words but saying very little.

[makinbuks] 04/12/2023 17:16

Tim 3, I completely agree with you. What precisely do they mean. We know they sell options which limit capital growth but generate additional income. Are they going to do less of that? Or are they admitting that they have been churning for the sake of dividend entitlement and intend to stop? Or are they saying they have been invested in too many income traps and are now concentrating on businesses that pay a sustainable and growing dividend? Those are the three strategic policies I can think of that they could refer to. Possibly a combination of all. However, the point is that any such action will reduce income at the expense of capital gain (you hope). Given that, how can the dividend be sustainable?

I actually think running a "Income Maximiser Plus" strategy in the Far East is a good idea. But I don't think I'd market it with a sustainable 11% dividend. 6 - 8% would make a lot more sense

[kiwi2007] 03/12/2023 18:26

China has bankruptcy problem

Overall, China's economic performance remains problematic, and along with the implied criticism he received from Party elders during their summer retreat, it now looks like President Xi is delaying a major set-piece economic conference (the "third plenum"), one where Xi's new team (the one appointed at the "second plenum") releases its longer-term economic plans.

Meanwhile, Chinese borrowers are defaulting in record numbers as their economic troubles extend. More than 8.5 mln people are sharply downgraded in their 'social credit' which essentially means they are blacklisted, after missed payments on mortgages and business loans. That is about 1% of working-age Chinese adults, and is up from 5.7 mln defaulters in early 2020.

And another Chinese property developer is scrambling to save itself - Gemdale.

[...]

[superiorshares] 02/12/2023 21:22

Investment.
It's all about timing .

[aleman] 01/12/2023 09:23

Looks like the push into China was aggravated by a (badly timed?) £12m increase in debt as interest rates rose that nearly quarupled finance costs. There's also a modest increase in tax. Comments on these would have helped rather than double-speak on the dividend. Why not just say it might have to be trimmed if markets remain difficult and we don't pick stocks better? I also note Net Assets says £632m instead of £362m so they might have to reissue the results with a correction.

[tim 3] 01/12/2023 00:00

"Our analysis has now led us to revise the way in which we capture dividends, an approach that has too often led to diminished capital growth. We have now largely restructured the portfolio to allow the renewed growth in portfolio company dividends to come through along with better capital growth returns"Would anyone care to explain what this actually means in terms of what they have actually done?

[gateside] 30/11/2023 17:47

I think you mean 11.6% yield

[skinny] 30/11/2023 17:40

Wrong thread .

[makinbuks] 30/11/2023 17:37

But surely the yield on NAV (forget premiums or discounts) is absurd for an equity income fund. Shouldn't a sensible re-basing be part of their more balanced recovery strategy?

[scruff1] 30/11/2023 17:25

kenmitch
Yep lot of agreement with that post but one things for sure if that divi cant be maintained theres gonna be a lot of heart tremors

[makinbuks] 30/11/2023 16:37

But they haven't said HOW they are going to achieve that. Nor have they adequately explained the NAV fall. Sound a bit like a magic wand to me

[kenmitch] 30/11/2023 16:05

I agree with all the criticism as performance has been terrible and it’s inexcusable that it’s been allowed to be the case for so long. Obvious thing to is to replace obviously incompetent Manager or even the whole team and it should have happened ages ago.

Where I disagree is on selling now just when AT LAST there’s acceptance that it’s gone so wrong along with first steps to rectify it. I should have sold ages ago but didn’t only because the dividend was the one saving grace.

Now could well be a very good buy opportunity for NAV and share price recovery. They clearly want to maintain the long record of annual dividend increases.IF they achieve that AIM then anyone buying or averaging down now will be locking in a double digit dividend yield paid quarterly, along with possibly decent capital gains too.

[tim 3] 30/11/2023 12:51

Yep more or less halved in the last few years and trading near all time lows.Well done old chap!

[speedsgh] 30/11/2023 12:33

Mike Kerley preparing to ride off into the sunset happy in the knowledge that he has done an excellent job and left HFEL in a strong position [note my irony]...

"We have worked closely with our Fund Managers to address our capital performance challenges and devise an effective path forward. As part of this process, we have agreed that now is the right time to pass the fund management leadership role to Sat Duhra. The Board has full confidence in Sat's ability to manage the portfolio going forward, and he has been part of a long-standing succession plan having been co-manager since 2019. Mike Kerley will be retiring from the asset management industry in June 2024 and will support Sat to ensure a smooth transition process. Mike has played a critical role in the Company's historical development and the Board would like to thank him for his many contributions over the years and wish him well in all his future endeavours."

[aleman] 30/11/2023 09:33

It seems a bit late to decide to go for India. This is a UK-listed Indian trust. It looks a bit frothy now after a good run. Had they put 10 or 20% here, we'd probably not be having any of this discussion.

[tim 3] 30/11/2023 09:10

"valuation tended to matter less, and our Fund Managers valuation-focused investment style has therefore been out of favour"Wasn't that what Woodford said!

[panshanger1] 30/11/2023 09:04

Dipping in to the reserves atm to support the dividend but think they will have to rebase at some point All the changes going on likely to give them that opportunity

[wskill] 30/11/2023 08:45

Poor indeed if they carry on with the nonsense writing options they will have no assets left,someone is profiting from this option writing and it’s not shareholders in HFEL .
Little wonder the Chairman is departing after this destruction of value.

[bluemango] 30/11/2023 08:45

Measures are in place to address the underperformance and hopefully we are over the worst.

Happy to stick with it.