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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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''the question of what is ‘normal’ ''
Look at the price/NAV graph -NAV currently at 223p per share
https://www.hl.co.uk/shares/shares-search-results/h/henderson-far-east-income-ltd-ord-npv
Longtimeinvestor, you say, “The shares may well return to 'normal ' again in the near future,with the share price at a premium.” This does of course beg the question of what is ‘normal’, although you might be right that buying now will eventually provide a capital gain. But this is not a growth company, making bigger and bigger profits. It is in fact struggling to keep its head above water, in the sense that its only object is to provide an income from its investments, which is needed to satisfy an ever-growing body of investors. In that respect, it now seems to me that it is rather like a Ponzi scheme, inasmuch as it is constantly seeking new investors in order to grow its dividend; this inevitably means that the quality of its assets will deteriorate, thus limiting the potential for a ‘return to normal’. When HFEL began, it could focus on quality, but as Monkeyman99 has observed, that gets more difficult as the portfolio grows, as illustrated by the rising audit cost, from £35,000 in 2018 to £58,000 in 2022, an increase of two thirds.
In 2018 there were 121,13mn shares, but at 31.8.22 there were 154.95mn, an increase of 27.9% more mouths to feed. This activity raised an additional £107.3mn, but by the end of last August investment value had actually fallen, by £24.1mn. If investments had instead risen in line with new capital, the value would have been £818.0mn and the DPS be touching 39p. However, as the figures I quoted yesterday show, only one quarter of increased profit after tax has been converted to EPS/DPS. HFEL has become a value trap, just because of the DY. DPS for the 4 years since 2018, plus those for 2023 to-date, total 110.7p, but the share price in that time has dropped by 143p, from 361 to 218. Those buying in 2018 haven't even had their money back.
Ade, Just ignore them and don't engage their childishness. Anyone can participate in free speech and debate irrespective of whether they own shares in the company or buy-to-let beach huts in Bognor Regis. Don't even spend a second justifying yourself. LTI's inner chimpanzee appears to be running riot. He needs to get a grip or move to China and join the totalitarian regime there.
This trust has been chasing its tail for years. Assuming the dividend is maintainable it should have virtually bottomed out. Over the last 3 years a fixed rate bond would have been far more profitable. A hold for me .
Mr. Guitarsolo
I can post whatever I like.
China will always be a gamble due to the political implications. So only a fool would ever go big on exposure there. Having said that did buy this last year day of the Truss budget at 242p and then sold out at 285p. At 200p I will be looking for a position again buying down at 25%,35%,40%..
Whatever ade2a......someone who spends as much time and energy as you do posting about a company that they don't even hold says you have an agenda. You're not even doing it as a "guys, I've sold out of this because of XYZ....". You ONLY post about HFEL, which you don't even hold!
For that reason, you're filtered.
Schools go back next week so hopefully the relevance should improve
Mr Guitarsolo
Maybe you are one of them.
We do not know what percentage of your portfolio is HFEL.
Or perhaps you have sold and are one of us depends how you look at it.
Out of interest I sold after I started posting on this board.
At the time of my early posts I was larger share holder. Everyone seems so interested in my personal finances now.
LTI
You clearly do not understand 'implications'.
Ade
''You say you want me to answer why you want to ration my percentage of comments.''
A completely nonsensical statement.
You clearly cannot understand straightforward English.
what percentage of your posts on this site are on this board where you have 1.4% of your portfolio invested, and what percentage of posts are on other boards involving your other 98.6% of investments?
Not just yet (:
Zac
BTW totally correct.
I just hope you don't want me in a concentration camp!!!
LTI
You say you want me to answer why you want to ration my percentage of comments.
FFS
And now more people are joining the party.
" . . . What I see if you buy this you are gambling that China recovers again . . ."
if that's your view, and you don't consider that likely to happen . . . then don't invest here! Simple.
Ade
I want you to answer the questions
LTI
You want to ration my posts by percentage of portfolio
FFS
Ade
you appear not to be able to answer simple questions.
Percentage posts on a 1.4% of portfolio stock board
and percentage of posts on boards that involve the other 98.6 ?
Mon
''gambling that China recovers again''
not much of a gamble is it. GDP growth in 2023 is expected to be at about 4.5%
UK growth expected to be at a fraction of a percent
LTI
Maye you repeat but suppose I don't want to leave????
FFS
LTI
Maybe I don't want leave
FFS
Ade
I repeat-
what percentage of your posts on this site are on this board, that you have very very little financial interest in?
and what percentage are on other boards?
What I see if you buy this you are gambling that China recovers again, which at this moment is a very big if. The world just don't fancy investing in China anymore at least for the time being. I would like to had seen more Japan added over the past year.
Ade
'' there is a simpler solution''
yes for you to leave the board to those who have invested a good amount, rather than you continuously talking down (for some strange reason) /HFEL when its fortunes have virtually no consequences for you.
LTI
You want to ration my level of commenting depending on what percentage the assets are in my portfolio?
FFS