24th Apr 2020 14:29
(Alliance News) - Henderson Far East Income Ltd said Thursday it underperformed against its comparative indices in the first half of its financial year, as dividend yields as a theme did not perform well over the period.
For the six months to the end of February, the trust reported a net asset value negative return of 8.0%, compared to a negative 1.2% return from the FTSE All-World Asia Pacific ex Japan Index over the same period.
Henderson Far East's net asset value per share as at February 29 was 319.60 pence, down from 335.79p as at February 28, and 358.99p at August 31.
The trust's share price at the end of February was 310.00 pence, reflecting a 3.0% discount to net asset value.
Shares in Henderson Far East Income were down 1.9% at 302.05 pence on Friday in London.
Henderson said its weaker performance was due to stock selection, as holdings in higher dividend yield sector such as telecoms, property and materials were disappointing, compounded by a minimal exposure in high flyers such as the internet, healthcare and consumption.
Henderson Far East declared an interim dividend of 11.40 per share, up 3.6% from 11.00p the prior year.
"We are experiencing the most severe economic shock in living memory. The most recent forecast from the IMF suggests global growth in 2020 will be minus 3%, signalling the worst recession since the Great Depression. As expected, stock markets have fallen but the speed of the fall has been truly frightening," said Chair John Russell.
"As we go through the crisis we can expect enhanced volatility and perhaps further instances of panic. However, in a world of ultra low interest rates the case for equity income investment remains strong and Asia Pacific provides opportunity," Russell added.
By Dayo Laniyan; [email protected]
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