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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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James
Can I call you my friend James. I see you used to have discussions on the technicalities of HFEL with me no less.
Then at some point you were simply quoting 'the dividend is paid, all is well nothing to see here' and became hostile towards me. May I ask why?
Jamesmaggs,
You for sure know I totally agree.
I have been dealing with this for 2.5 years while trying to air my opinions on the income generation of HFEL.
Didin't you write a whole post telling me to get off the board or did I not remember that correctly?
Ha ha ha, Argadargada, my cage is indeed well and truly rattled - by laughter. Is the person who gave me the tip down the pub the same person who told you that Mike Kerley has been running HFEL for the past 40 years? I'm pleased you've stepped on to the fact train, but please stop digging the hole deeper. On second thoughts, please keep going - you're hilarious.
ooh, dear me we seem to have rattled damienmoore’s cage. i’m guessing he bought hfel at the top of the market from a tip he’d heard down the pub and now wants to **** off anyone who presents him/her/it with researched facts.
here’s another fact he won’t like. hfel has been a next generation “dividend hero” for 16 years. but hey, don’t let the facts get in the way of a disgruntled investor who knows lots about lobotomies, i’m guessing from experience, but little about proper research.
The one common denominator with anyone who posts here has an interest in shares, prices, movements and debate therein and there are clearly some very opinionated personalities on here and if we can lose the point scoring and verging on insults posts maybe since we all share an interest in this and no doubt other trusts and individual holdings this could become a more ‘go to’ board and whether we disagree or agree to disagree, I believe everyone who’s posted here over time has something they could share and add to the mix?
The recent director buy and the buyback out of nowhere seems to have been missed and I think is relevant for discussion rather than negativity.
My posting in lse began around the financial crash and although sporadic gained me some useful tips and knowledge and friends over the years but all I see here is people having a pop at each other.
Just a thought!
Argadargada, a completely moot point and you're snippeting what you said to protect your ego. Mike Kerley hasn't managed this trust for 40 years, and if you're happy with his performance during his tenure from 2007 you should perhaps see a financial advisor, or if you have a dog they might be better placed to make judgments on your behalf.
THE SHARE PRICE AND NAV IS LOWER NOW THAN WHEN MIKE KERLEY ASSUMED RESPONSIBILITY FOR THIS TRUST IN 2007; 16 YEARS AGO.
Does anyone else want to put their hands up and declare their delight in Mike Kerley's perfmormance?? Perhaps you should send him a gold watch, Argadargada? I have an idea for the card:
"Dear Mike, I enclose herewith a gold watch to celebrate your amazing stock picking performance for the last 40 years, since 2007. In this time you have, somehow, managed to erode the capital over your entire tenure. Many congratulations, and happy retirement. PS. My dog thinks you're a failure, but I don't listen to him".
Sorry to have to correct you Damienmoore but no lobotomy was required and Henderson Far East Income was first incorporated on 30th. May 1930. It pays to do proper research!
Management group(s) Janus Henderson Investors Ltd
AIC sector Asia Pacific Equity Income
ISIN JE00B1GXH751
Launch date 30 May 1930
This is the launch date of the predecessor to HFEL run by Micheal Watt who was regarded as one of the best Managers in the Far East sector.
The successor HFEL was launched in 2007 under Mike Kerley. He changed the ethos and management style of HFEL.
There was in fact a special dividend of 10p/share accompanying the change of company name.
There will be no such largesse when the next change in policy inevitably arrives.
LOL. Incorporation date was 2/1 2006.....
Argadargada, Have you had a labotomy? Mike Kerley hasn't been the manager for 40 years and the trust hasn't even existed for this amount of time. Mike Kerley's stock picking (or trading) has brought the share price and NAV down to levels not seen since the global financial crisis. If you think this is something to be happy about, then perhaps go and see your GP about possible delusional disorder.
In future people will look back on the HFEL yield in 2023 and realise it was the buying opportunity of their lifetime. I have held and bought more HFEL shares for over 40 years and the dividend has reliably increased every year. With a current yield of 11.86% and trading at a discount to NAV of 4.66% it’s a no-brainer. All investment trusts go through periods of out performance and under performance at times but I have been very happy with Mike Kerley’s performance over the last 40 years.
And a director buy, we’re not the only ones who think it’s a good buy at these levels!
Whilst at a good discount
https://www.lse.co.uk/rns/HFEL/transaction-in-own-shares-23v3vnyisevn2g0.html
... a special dividend if/when reserves grow pass a predetermined threshold.
That's my view .... but I traded this share well with an overall average of 208p the past two years so I'm not so bothered. 10% return works for me.
I'll agree the HFEL dividend should be cut:
Results 2023
"Revenue
Dividend income from companies held in the portfolio fell 8.2% and income from options was flat compared to last year. The fall in revenue was partly due to the strength of sterling, but also from the lower levels of distribution from energy and materials companies as the price of oil and industrial metals declined."
In paying say 90% of earned income each year, with reserves boosted by 10% each year and
"Well at least they have now admitted to artifically boosting dividend income by "rebalancing" the portfolio in cum dividend stocks (thus causing capital depreciation). Thank you again for alterting me to this destructive strategy, which prompted me to sell my holdings in January."
Always impressive when some are able to predict the future with flawed reasoning ... if not a little sad in trying to reason otherwise.
HFEL Results 2022:
"our portfolio companies achieved a good rebound in dividend payments and our forecast for dividends in the current year is cautiously positive. After paying the dividend, we will once again be adding a moderate amount to the revenue reserve, which we use to smooth the dividend when market conditions are severe."
Revenue
"Dividend income from the region was strong over the period, boosted by the weakness of sterling. Revenue from dividends received was up 9.2% compared to a year earlier while option premium declined 5.8%. Total income was up 8.0% and revenue per share rose 5.1% reflecting the increased number of shares in issue."
This is the fund held by HFEL. It says the second largest shareholder wanted to discontinue the trust but does not name them.
https://www.investmentweek.co.uk/news/4154077/vietnam-opportunity-fund-survives-attempt-discontinue-trust
Hi Daminemoore,
Well at least they have now admitted to artifically boosting dividend income by "rebalancing" the portfolio in cum dividend stocks (thus causing capital depreciation). Thank you again for alterting me to this destructive strategy, which prompted me to sell my holdings in January.
Damienmoore
Why not tell the Managers of your frustrations I cannot help you.
Do you still hold HFEL?
Out of interest.
Damienmoore
"How can you say they are not that bad? Previously you lamented how bad they are compared to a better era under the previous manager, Michael Watt, and you have spoken out about the dividend stripping. Moreover, the manager has not been constrained by a mysterious external force. They are empowered to set the level of dividend and protect the trust's capital. They were not forced to churn the portfolio and erode capital. "
To be clear I did not and will not disagree with those comments.
I posted the numbers on the sister fund for reference you can challenge those if you like.
Again to be absolutely clear I do not agree with the morals of both the Managers and the board and I have stated my support of your position. Hopefully I don't need to do it again.
Damienmoore,
I am deliberately trying to be as generous as I possibly can.
I am only referring to their stock picking skills.
I do genuinely think if they were not inhibited by;
1. The desire to trade at a premium.
2. Grow the funds under management by issuing more shares at a premium.
3. 1 & 2 leading to an unsustainable yield they are reluctant to cut.
The managers would have a chance to produce better performance.
As for their morals I know exactly where you stand and have indicated my support.
Not everyone here is like you, Actuary63 and perhaps myself.
I aim to write forward looking posts with as much optimism as possible I am sure you can see through that but I usually post the numbers so everyone can analyse for themselves.
Any challenges are welcome so long as they are not personal of course.
I do not feel it is my place to just state the fund is rubbish and the Managers are bad. I just post the numbers and give the ananlysis as I see it.
Happy to see you here this board was a little different 2.5 years ago when I first started posting.
Ade, you confuse me with your inconsistency and capriciousness:
"The Mangers are actually not that bad but they have been constrained by having to produce an unrealistically high dividend."
How can you say they are not that bad? Previously you lamented how bad they are compared to a better era under the previous manager, Michael Watt, and you have spoken out about the dividend stripping. Moreover, the manager has not been constrained by a mysterious external force. They are empowered to set the level of dividend and protect the trust's capital. They were not forced to churn the portfolio and erode capital. They have managed the trust "badly".
You change your tune as quickly as a nightclub deejay, Ade.
Ade, you confuse me with your inconsistency and capriciousness:
"The Mangers are actually not that bad but they have been constrained by having to produce an unrealistically high dividend."
How can you say they are not that bad? Previously you lamented how bad they are compared to a better era under the previous manager, Michael Watt, and you have spoken out about the dividend stripping. Moreover, the manager has not been constrained by a mysterious external force. They are empowered to set the level of dividend and protect the trust's capital. They were not forced to churn the portfolio and erode capital. They have managed the trust "badly".
You change your tune as quickly as a nightclub deejay, Ade.
I do sympathize with long standing holders I am one myself though my holding is now only nominal.
When the new Manager takes over I would expect a change in dividend policy or a re basing of the dividend.
The Mangers are actually not that bad but they have been constrained by having to produce an unrealistically high dividend.
Unfortunately this will result in a widening of the discount.
Ironically not taking these actions will be far worse for the capital account of HFEL.