HFEL seeks to provide a high level of dividends, as well as capital appreciation over the long term, from a diversified portfolio of investments - currently around 60 - traded on the Pacific, Australasian, and Indian stock markets.
Building on last years total return of 8.8%, the Company have reported a share price total return increase of 11.9% compared to the benchmark index increase of 9.9%.
The results are very similar to SOI which issue full year results for the same period last week - here's the write-up. The share price performance of HFEL over the past year is slightly ahead despite the higher yield -(however SOI is ahead over the longer period.)
|12m comparison HFEL -v- SOI|
HFEL is the highest yielder of my 3 Asia-focussed investment trusts. Over the year, dividends (paid quarterly) have been lifted by 6.3% from 16p to 17p giving a yield of 5.2% at the current price of 328p. The dividend was comfortably covered by revenue income of 18.05p per share and the surplus has further strengthened reserves which currently stand at 96% of dividends paid in the past year.
Welcome news on charges - Henderson have agreed to take a reduction in their annual management fee from 1.0% to 0.9% of the total value of the fund's net assets - there is no performance fee. Fees and expenses for the past year were £4.5m - just under 1.4% of NAV.
As ever, slow & steady steps...