Henderson Far East Income delivers a high yield in an unloved region


Originally published at: http://whichinvestmenttrust.com/henderson-far-east-income-delivers-a-high-yield-in-an-unloved-region/

The trust has proven popular with income seekers and has been growing fast as a result, but will rising US interest rates and an unfriendly US political climate scupper the manager’s efforts? Fast Facts Invests across Asia including Australasia Delivered compound annual dividend growth of 7.6% per annum since 2007 Income is enhanced by…


Interesting thesis the manager is presenting here about falling Chinese interest rates. I haven’t heard about this before, and I’m wondering how likely it is it will happen.

If it does happen I agree the opportunity seems enormous if the Chinese save to the extent that they do this would be a crazily exciting opportunity.


HFEL is really useful as an income diversifier. The article alludes to the concentrated UK stock market resulting in different funds owning the same stocks. This is a big problem, and HFEL performs a bit part role in the solution.

Along with property, infrastructure, fixed interest and income for other areas of the world, it helps protect investors such as me who are forced by low interest rates to seek income away from the traditional sources our parents would have used such as bonds and cash.

I have no idea if the manager’s hope for lower interest rates spurring on a Western style turn to equities will play out as he described, but even without such a scenario, I think this is a really useful contributor to a diversified income portfolio.


The income level is very good here though Schroder Oriental Income is a better overall performer, the Henderson trust produces a far higher level of income, so I agree with the articles conclusion that this is a great option for income seekers.