4th Nov 2020 13:49
Henderson Far East Income Ltd - closed-end investment company - Net asset value per share falls to 301.02 pence as at August 31 from 358.99p a year before. NAV total return of negative 9.9% underperforms MSCI AC Asia Pacific ex Japan High Dividend Yield index and FTSE All-World Asia Pacific ex Japan index. Chair John Russel notes: "The weakness of the NAV performance, although disappointing, is understandable as high-yielding stocks have been out of favour compared to more growth-orientated companies, which are less well represented in the portfolio." For financial year, total dividend amounts to 23.0p per share, up 2.7% from the year before.
Fund managers Mike Kerley and Sat Duhra say: "We remain positive on the outlook for Asia in the years ahead but expect volatility in the short term as the world digests the virus impact and potentially navigates a 'second wave', while the US election and relations between the US and China remain events that are difficult to predict. Although global equity markets are currently feasting on the liquidity provided by central government support, this can't last forever and eventually the stimulus will have to be withdrawn.
"Asia is well positioned to weather these impending storms with an income story that shines like a beacon of stability compared to other regions. We will continue to focus on attractive companies which are beneficiaries of this relative stability with strong balance sheets and cash flow, and sustainable and growing dividends. The portfolio is poised to take advantage in more structural growth areas if volatility provides opportunities."
Current stock price: 295.00 pence
Year-to-date change: down 19%
By Anna Farley; [email protected]
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