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Edison issues update on Henderson Far East Income (HFEL): Repositionin...
Edison Investment Research Limited Edison issues update on Henderson Far East Income (HFEL): Repositioning to raise total returns 25-Apr-2024 / 12:25 GMT/BST The issuer is solely responsible for the content of this announcement. London, UK, 25 April 2024 Edison issues update on Henderson Far East Income (HFEL): Repositioning to raise total returns Henderson Far East Income (HFEL) has consistently delivered on its objective to provide a rising dividend. However, like many investors, HFEL’s managers overestimated the potential for a post-pandemic rebound in China. The trust...
- Pedro Fonseca
Henderson Far East Income - Repositioning to raise total returns
Henderson Far East Income (HFEL) has consistently delivered on its objective to provide a rising dividend. However, like many investors, HFEL’s managers overestimated the potential for a post-pandemic rebound in China. The trust’s resultant overweight to Chinese consumer and other cyclicals led to a fall in portfolio revenues and underperformance in the financial year ended 31 August 2023 (FY23). With a view to improving future returns, HFEL’s board has since indicated an increased willingness t...
Henderson Far East Income Ltd: 2 directors
A director at Henderson Far East Income Ltd bought 6,000 shares at 210p and the significance rating of the trade was 51/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two yea...
- Pedro Fonseca
Henderson Far East Income - A fully covered 10% dividend yield.
Henderson Far East Income (HFEL) is managed by Mike Kerley and Sat Duhra, who are genuine income investors. This is evidenced by the trust’s very attractive double-digit dividend yield, which is well above its peer group, and is a ‘natural’ distribution as it is fully paid out of income. HFEL’s managers have been increasing the trust’s allocation to Chinese-listed companies in anticipation of a post-COVID economic recovery in the country; China now makes up around a quarter of the fund. Meanwhil...
- Pedro Fonseca
Henderson Far East Income - Cautious of continued volatility but value...
In our last review of Henderson Far East Income (HFEL) in July, Attractive yield despite modest dividend increase, we drew attention to the dividend increase from what is comfortably the highest yielding fund in the AIC Asia Pacific Equity Income sector. It was pleasing to see that in the company’s published full year results to the end of August, the dividends paid by the company were covered and that over £1m was added to the revenue reserves over this period. In this note we examine the drive...
- Pedro Fonseca
Henderson Far East Income - Attractive yield despite modest dividend i...
Henderson Far East Income’s (HFEL) board recently announced that the quarterly dividend has been increased from 5.9p to 6p per share, broadly in line with the last increase. While the increase is modest, it is in the context that the board seeks sustainability in distributions and that HFEL is yielding 8.6%, a substantial premium to peers and the index. Despite the latest modest increase, since launch in 2006 to the end of December 2021 HFEL’s dividend has grown at an annual compound rate of 5.8...
- Pedro Fonseca
Henderson Far East Income - A strong recovery in dividend income for H...
Henderson Far East Income (HFEL) focuses on providing investors with a high and growing level of income, with capital appreciation an important consideration within the investment objective. The trust has met these goals on a total return basis, with a dividend yield premium of around 50% over its Association of Investment Companies (AIC) peers. This is funded predominantly via underlying dividend income, which increased by 14.7% in H122 (31 August 2021 to 28 February 2022) versus H121.
- Pedro Fonseca
Henderson Far East Income - Compelling income and recovery potential
Henderson Far East Income (HFEL) is differentiated from its Asian income peers by its high dividend yield (c 8% versus a peer average of c 4%), fully covered by income in each of the last 10 years except FY21 (99% covered). During the COVID-19 period, HFEL’s capital performance has come under pressure as investors have eschewed the sort of cash-generative companies with high or growing dividends favoured by manager Mike Kerley, preferring the allure of companies promising future growth. However,...
- Pedro Fonseca
Henderson Far East Income - Compelling income and recovery potential
Henderson Far East Income (HFEL) is differentiated from its Asian income peers by its high dividend yield (c 8% versus a peer average of c 4%), fully covered by income in each of the last 10 years except FY21 (99% covered). During the COVID-19 period, HFEL’s capital performance has come under pressure as investors have eschewed the sort of cash-generative companies with high or growing dividends favoured by manager Mike Kerley, preferring the allure of companies promising future growth. However,...
- Pedro Fonseca
Henderson Far East Income - Consistently high and growing income
Henderson Far East Income (HFEL) continues to reward its investors with a high, rising and fully covered income from a relatively concentrated (c 45 holdings) portfolio of stocks from across the Asia Pacific region. Managers Mike Kerley and Sat Duhra see good opportunities in banks and materials stocks, both of which are set to benefit from the expected economic recovery as the region and the wider world look ahead to life after the pandemic stage of COVID-19. Although recent returns have been r...
- Pedro Fonseca
Henderson Far East Income - Keeping the faith and covering the dividen...
Henderson Far East Income (HFEL) has experienced a tough period of capital performance as market participants have focused ever more on growth and momentum rather than cash flows and dividends. However, in a year where the majority of investment trusts have needed to dip into reserves to avoid cutting their dividends, HFEL stands out in that it not only delivered year-on-year dividend growth of 2.7% for FY20, it fully funded its dividend from portfolio income and even made a small contribution t...
- Pedro Fonseca
Henderson Far East Income - Access to Asian growth with solid 6% yield
Henderson Far East Income (HFEL) performed strongly in 2019, unusually outperforming a rising market while continuing to achieve a well-covered dividend and a yield in excess of 6%. The trust, managed by Mike Kerley and Sat Duhra at Janus Henderson Investors, has a relatively concentrated (c 50 stock) portfolio that is split roughly equally between high-yielding stocks and those offering superior dividend growth prospects. Drivers of positive performance during the year included stocks from both...
- Sarah Godfrey
Henderson Far East Income - Finding high yields and dividend growth in...
Henderson Far East Income (HFEL) continues to reward its investors with a c 6% dividend yield, fully covered by revenues and growing year-on-year (4.9% CAGR over five years), as well as capital growth (total returns of c 8–14% a year over three, five and 10 years). Manager Mike Kerley notes that payout ratios across the Asia-Pacific region are increasing, supported by the strong cash position of many companies, although at an index level it is hard to observe the improvement, because of the ...
- Sarah Godfrey
Henderson Far East Income - Asian income fund with 5.9% dividend yield
Henderson Far East Income (HFEL) is a pan-Asian investment company with a focus on achieving a high and growing income as well as capital growth. While the emphasis on income will naturally lead the management team to focus on some older-economy sectors where there is a long history of rewarding investors with dividends, lead manager Mike Kerley reports that an increasing number of high-growth technology stocks in Asia are now generating healthy cash payouts. However, the manager retains a tilt ...
- Mel Jenner
High income and capital growth potential
Henderson Far East Income (HFEL) is a relatively concentrated portfolio of 40-60 Asian equities, aiming to generate high income with the potential of long-term capital growth. Since February 2007, HFEL has been managed by Michael Kerley. Against a backdrop of the recent rebound in Asian stock markets, he suggests that the attraction of income from Asian equities has not diminished even though he believes investors have been focusing on growth rather than income. HFEL’s 5.7% dividend yield is the...
Review: Asian income specialist at a rare discount
Henderson Far East Income (HFEL) seeks to blend the superior growth prospects of investing in Asia with a focus on generating a high income. With a current dividend yield of 6.9%, it is comfortably the highest yielding of its close peer group, and manager Michael Kerley also sees potential for double-digit dividend growth in the portfolio over the next 12 months. Capital performance has been more muted in a period of volatility as investors have focused on the risks arising from a slowdown in Ch...
Review: High-yield Asian specialist with growth potential
Henderson Far East Income (HFEL) has a high yield (c 6%) and a focus on achieving total returns from a portfolio spread across the Asia Pacific region, including India and Australia. While it has no official benchmark, it has outperformed the FTSE AW Asia Pacific ex Japan index over three of the last four discrete years to 30 June. The bottom-up portfolio aims to achieve a balance of dividend yield and dividend growth, with modest gearing in place and the ability to enhance income through select...
Review: Asian total return portfolio with a near-6% yield
Henderson Far East Income (HFEL) aims for a high dividend and long-term capital growth from a focused (c 50 stocks) portfolio of companies across the Asia Pacific region. It has the highest yield in its sector (5.6% at 4 December), which it can support partly through selective option writing. The fund has issued 4.65m shares so far in 2014 in response to high demand, yet has still managed to increase both its full-year dividend (to 18.2p) and the size of its revenue reserve for FY14.
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