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aims to provide a high level of dividend as well as capital appreciation from a diversified portfolio
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Certainly getting more comfortable with the move xd , way to go but hopeful
2 maximum tranches in ISA currently onside by 6% and Invest account the balance at plus 4%
Primarily bought for income obviously but any movement higher is a big bonus not that have any intention of selling
Part 2
"The investment gain follows a move by the board to adopt a more flexible, total return approach in which Duhra will seek growth as well as high income.
It also reflects the managers’ earlier decision to cut exposure to China, due to what Duhra said were ‘flagging economic growth and an ineffective response to key domestic structural issues’.
Following signs of stabilisation in the country’s property and better consumer and travel data the manager said he had ‘tentatively’ added back to his positions in China, saying they offered ‘compelling valuations’, although he was comfortable at remaining ‘underweight’ compared with his benchmark with a 14% allocation topped up with 11% in Hong Kong.
Duhra added Chinese gaming group NetEase to the portfolio due to its ‘outstanding pipeline of new games, an established reputation in the sector, and the prospect of increasing dividends’.
The best performing country over the six months was India, where 10% is invested, thanks to positive macroeconomic data, robust corporate results, and hopes for continued supportive economic policy after state elections.
Taiwan, where 14.4% was held at 31 March, also performed well thanks to its exposure to technology names, including TSMC and other artificial intelligence (AI) beneficiaries.
Duhra said the government’s corporate governance reforms in Korea, where he has 16.7% invested, were ‘very exciting’ and meant companies were demonstrating higher dividend growth.
‘We remain focused on opportunities arising from this reform with the purchase of insurers DB Insurance and Samsung Fire & Marine and the auto companies Hyundai Motor and Kia Corp,’ he said.
‘All of these companies have performed strongly following the government’s reform announcements.’ "
Part 1
"Half-year results from Henderson Far East Income (HFEL) demonstrate an early improvement in performance following the decision in November to relax its focus on high yields.
The £373m Asia Pacific trust – for which co-manager Sat Duhra is taking full responsibility once Mike Kerley, its lead manager for 17 years, retires in June – achieved an 8.2% total return in the six months to 29 February according to half-year results.
The increase in net asset value (NAV) beat the 5.1% return from the FTSE World Asia Pacific ex-Japan index, although it lagged the 10% return of the MSCI All Companies Asia Pacific ex-Japan High Dividend Yield index.
Over the past 12 months the NAV has risen 3.4%, somewhat of a turnaround from the 7% decline over three years and the weak 55.7% return over 10 years.
Shares in the 10%-yielder have responded with a 13% advance this year to stand on a 2% premium over asset value. They offer a high 11% dividend yield after the board declared two interim dividends of 6.1p per share, an increase of 1.7% on a year ago......."
Would be nice to see the prices the person ‘closely associated’ with the director paid again 280 in 2022, we can but hope eh?
Ticking back up nicely xd, subject to the vagaries of the wider market this can continue…. One hopes!
Security Name Yield Weighting Yield*Weighting Weighted Yield
Taiwan Semiconductor Manufacturing1 1.64% 5.07% 0.0831%
Samsung Electronics2 1.88% 3.52% 0.0662%
Hyundai Motor2 5.03% 3.17% 0.1595%
Samsonite 2.98% 3.13% 0.0933%
Samsung Fire & Marine 5.17% 3.11% 0.1608%
DB Insurance 5.32% 2.86% 0.1522%
MediaTek 5.42% 2.86% 0.1550%
Midea Group 4.29% 2.69% 0.1154%
BHP Group Limited 5.46% 2.66% 0.1452%
VinaCapital Vietnam Opportunity Fund 2.36% 2.47% 0.0583%
Top Ten Investments 31.54% 1.1889%
Totals Simple yield 3.96% Weighted Yield 3.75%
NAV 223.20
Share price 227.00 Yield 10.84%
Dividend 24.40
We have a simple yield of 3.96% and a weighted yield of 3.75% from top 10 holdings.
"As at close of business on 23 April 2024, the unaudited net asset value per share, calculated in accordance with the AIC formula (including current financial year revenue items and excluding shares held in treasury), was 227.8p.
As at close of business on 23 April 2024, the unaudited net asset value per share (excluding current financial year revenue items and shares held in treasury) was 224.7p."
Pre xd earnings are 3.1p
"As at close of business on 26 April 2023, the unaudited net asset value per share, calculated in accordance with the AIC formula (including current financial year revenue items), was 248.4p.
As at close of business on 26 April 2023, the unaudited net asset value per share (excluding current financial year revenue items) was 246.8p."
In 2023 the pre pre xd earnings were 1.6p.
So 3.1p earned pre May dividend compared to 1.6p in 2023 certainly looks good without digging into the numbers. We might check how those earnings are generated in the report.
Also note that the majority of HFEL earnings are earned in the second half of the year 22p or so of earnings required here to cover the dividend.
Realist - agree, getting China wrong would be a serious error
Thanks for posting the link LTI, I read it as steady recovery along with today’s update.
GLA.
Thanks longtimeinvestor. In contrast, this article suggest sentiment is moving back to China. Let us hope they get the timing correct for this fund.
https://www.scmp.com/business/banking-finance/article/3260348/global-fund-managers-build-significant-exposure-chinese-stocks-sentiment-shift-hsbc-says
Bt
maybe if you had thought a bit more you would have known.
RNS posted on the 11th stated a NAV of 233p.
The share price has been at a discount for many months, but is currently back to what has been the norm most of the time - a premium.
Given today’s NAV of 227.50 I’m not sure where you’re getting that figure?
''its normal small premium ''
currently that would need a share price of about 237p
Potential to move back to its normal small premium if this can be sustained
Looking like a steady (if bumpy) rise back, with good divi happy to hold for now
Not necessarily, dividends are starting to feed through as per RNS today. Expect a small retrace monday given last nights Asia performance but NAV of 234 is getting back to normal. Nasty sell of the six month year end of 2023 but average 201p now so not complaining too much.
Has to retrace now to cover the divi.
Some positive news from HSBC at least:
https://www.cnbc.com/2024/03/14/hsbc-is-very-positive-about-the-future-of-chinas-economy-cfo-says.html
Hi LTI, good to see the nav creeping back up. Recent div most welcome and the buybacks I assume because they also think they’re too cheap!
The SP seems to trail the nav around 10p these days and hopefully in time they’ll narrow the gap from when we always seemed to be 10p over!
Good to see it now over 230p for first time in a while
229p -
not so long ago the share price would have been at about 235p on that nav
Https://markets.ft.com/data/announce/detail?dockey=1323-16358226-300P959R6U6OOTTTP6E7EQ0LL5
......upside on capital. Given geo-political tensions coupled with the recent announcement that BABA has significantly more state ownership than previously disclosed I think HFEL should now be treated closer to a bond proxy, albeit they'll need to work hard to maintain their dividend. I like the stock at this price and will add if it drops below 200. They've clearly been working to reduce their exposure to China but the stocks they've moved into are speculative to say the least.