Edison issues review on Henderson Far East Income

RNS Number : 5802B
Henderson Far East Income Limited
07 June 2019
 

 

London, UK, 7 June 2019

Edison issues review on Henderson Far East Income (HFEL)

Henderson Far East Income (HFEL) continues to reward its investors with a c 6% dividend yield, fully covered by revenues and growing year-on-year (4.9% CAGR over five years), as well as capital growth (total returns of c 8-14% a year over three, five and 10 years). Manager Mike Kerley notes that payout ratios across the Asia-Pacific region are increasing, supported by the strong cash position of many companies, although at an index level it is hard to observe the improvement, because of the huge growth of non-yielding Chinese internet stocks. The manager holds a relatively concentrated (c 50 names) portfolio of stocks that are broadly evenly split between those with a high starting yield and those offering good dividend growth prospects, and are diversified by sector and geography.

 

At 6 June 2019, HFEL's shares traded at a 1.4% premium to cum-income NAV. On average the shares have traded at a premium over one, three, five and 10 years. HFEL regularly issues shares to meet demand and control the premium, yet it has still consistently managed to cover its dividend, grow the distribution year-on-year, and transfer money into its revenue reserve, in spite of having to spread its income (current yield of 6.3%) over an ever-increasing share base.  


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About Edison: Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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Sarah Godfrey, +44 (0)20 3681 2519

Mel Jenner, +44 (0)20 3077 5720

Investmenttrusts@edisongroup.com

 

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