Henderson Far East Income Ltd (LON:HFEL) is a pan-Asian investment company with a focus on achieving a high and growing income as well as capital growth. While the emphasis on income will naturally lead the management team to focus on some older-economy sectors where there is a long history of rewarding investors with dividends, lead manager Mike Kerley reports that an increasing number of high-growth technology stocks in Asia are now generating healthy cash payouts. However, the manager retains a tilt towards value areas, in line with HFEL’s focus on buying into companies where the current share price does not reflect the underlying business value. The fund has consistently paid a higher dividend than its income-focused peers, supported by an option-writing strategy to generate additional premium income, and currently yields 5.9%.
Investment strategy: Asian income and value
HFEL holds a concentrated portfolio of 40–60 stocks, selected with a focus on well-managed, cash-generative companies whose share prices do not reflect the underlying business value. The management team generates ideas from company meetings, industry research and quantitative screens, and analyses potential holdings using a range of metrics. It aims to achieve a broad balance between stocks on a high starting yield and those with better dividend growth potential.
To read the entire report Please click on the pdf File Below: