Opportunity to get 7% yielding Asian trust on a rare discount


#1

Originally published at: http://whichinvestmenttrust.com/opportunity-to-get-7-yielding-asian-trust-on-a-rare-discount/
Henderson Far East Income has slipped to a small discount, despite the fact the trust is still experiencing high dividend growth, the manager thinks could get in to double digits this year. Edison’s Sarah Godfrey has issued a report on Henderson Far East Income (LON:HFEL), pointing to the discount opportunity and considering the reason for…


#2

Looks like discounts are widening as the Brexit vote nears. If we vote yes all these narrow discounts will grow exponentially.

I wonder if it is just best to wait and see what happens rather than buying this and other trusts like it on a narrow discount.


#3

What this article doesn’t state is this is a great little income diversifier. What I mean by that is a lot of the income funds you might own hold the same sticks in varying amounts, but just by owning a little bit of this you’re diversifying your underlying sources of income.

I think Mike Kerley has done a top job here and this is a great fund for yield and a little bit of growth when things get back to normal in Asia (as they always do).


#4

It certainly does bang out a yield but this is at the expense of growth since some of the income is derived from derivatives. I only recommend this to clients who need high levels of income rather than say younger growth orientated ones where the income would be reinvested. I must find out why so much is in Australia :astonished: