Friday, 15 November 2013

Henderson Far East - Final Results

I last posted on HFEL back in April following the half-year results. They have today issued full year results to end August 2013.

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...

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