Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
aims to provide a high level of dividend as well as capital appreciation from a diversified portfolio
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Mm99
25 Oct 2023 10:29
''180p will get me interested in this one.''
does this qualify you as being shifty?
Pretty standard for most active managed funds, lesson is steer away from them, most always lose money long term. Only ones that make money is the shifty fund managers.
Btw HFEL invest in businesses not an index
Sk1
incorrect
Hfel had a high china exposure years before the peak in which it sold into .
exposure was increased again at the end of 2022 way off of highs. this was then quickly reversed.
Chinal/Hong Kong still make up about a quarter of the portfolio.
India investment made well before the current high index values
Piled into China near the top... Piling into India near a top... Sounds good...
Lost the faith here. Previously posted here i thought China would come back and lift nav later on this year. No longer think that. Sadly lost about £8k after dividends. Good luck to all those still invested but personally no longer see hfeit as a short term capital gain candidate sadly
My problem is a dividend cut would be disastrous for me as it forms a large part of my pension drawdown, if it's cut then the chance of a rise in SP won't offset the drop so I'd have to sell shares at below purchase price so a double whammy. I need the div to at least stay and hope the SP recovers over time, happy to see a reduction in China as I cannot see it recovering any time soon and MK was sure it would??? A good move for him to stand down but lets hope the new direction works (fingers crossed)
But are they going into India as a time when it is peaking? Some believe the Nifty-50 is 20% overvalued. They should have been in there five years ago.
https://www.business-standard.com/finance/personal-finance/nifty-50-20-overvalued-expect-time-correction-in-6-months-kotak-securities-124010200125_1.html
Coming out of China and going into India Indonesia and more in Australia would be good interesting as politically less obnoxious but question the extent. Would be annoying to miss a Chinese rebound -admit bottom fishing hazardous but obviously trading scope in China if not long holds. Always thought these worth 2.97 when will they ever get back there?
Notwithstanding the dividend discussion, where many investors seem aligned, I was pleased to hear the rotation from China to India and Indonesia. This appears to be a good decision supposedly suggested by the new manager. But the idea that they somehow can cleverly time the divesture/investing and trade around the dividends, I don t believe. That's also not sustainable. Again, at the moment the risk to the share price must be heavily in favour of the downside. A modest cut in dividend surely should alleviate at least some of that risk?
So I've only had a chance to skim-read the most recent annual report and statements from the Chairman and Manager. Putting aside their comments why dividend/option income has fallen in sterling terms for another discussion, from what I can gather their is a plan to reposition the fund with a greater share of investments with growing dividends. By defintion this must be at the expense of shares already paying a high dividend (that doesn't grow or grows v.slowly). There are also multiple references to "reaffirming the committment to the dividend" and using the reserves where necessary.
So what's the plan here?
Is it to use the reserves (what were they, 13pps ish?) to cover the shortfall and hope that in those interim 3 or 4 years the refreshed focus and "return to trend" has lifted the absolute dividends enough to cover it properly again? How realistic is this? It feels a bit like saying I'll spend more than my income now because I am pretty sure I'll be earning more in the future! Is this a better plan than the pain of a dividend cut now?
Given that the Nifty Fifty has doubled in the past five years, they have seriously been asleep on their watch.
Exactly Scandi
At a certain point, like it or not, the dividend becomes unsustainable given the track record of this share over the last few years.
Incredibly disappointing performance even with all macro factors considered.
After the meeting yesterday the most conservative outlook on this share is "hope for the best"...
The explanation of how they turn 5% natural yield into 11% was rather magic. Seems to me that it is not sustainable and the share may benefit from cutting the dividend 25%... But they indicated, quite strongly, that it is not in the cards. Yet.
Yes I have to admit I dropped a few this morning too, about 25% of my holding
Took 209 this morning for a bunch … currently averaging 10p below NAV to looking for 203p re-entry. We will see.
For those who wish to listen in to the live broadcast, they can do so here:
https://www.janushenderson.com/en-gb/investor/product/henderson-far-east-income-limited/
Well, 12:00 - 14:00 today is the AGM so we should hopefully be enlightened shortly.
I'm holding on and invested more today, seems to have bottomed out recently but all IMHO.
Good luck with your investments.
So am I but I know that the day I sell, the price will go up.
Not encouraged here at all so after a long and painful hold will look to reduce
All down to next Wednesday's meeting now.
At 6.1p
Maybe you should post that on all companies/trusts with a China investment. Might help them cope.
Sk1
''Not good news for HFEL at the start of the new year.''
Should be a good year after you making this post.