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


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…


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.


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).


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: