For individual investors in the UK

Dividends in Asia remain attractive

Sat Duhra, Portfolio Manager of Henderson Far East Income talks about the Trust’s performance year-to-date, areas where he is finding opportunities, and looks at the risks emanating from China. Sat also looks at how Asian countries are approaching decarbonisation.

Mike Kerley

Mike Kerley

Portfolio Manager


Sat Duhra

Sat Duhra

Portfolio Manager


23 Aug 2022
4 minute watch

 

Key takeaways:

  • The Trust has held up relatively well so far this year, benefitting from exposure to the telecommunications, materials, and financials sectors. However, we have recently been reducing exposure to the materials and financials sectors due to lower growth expectations.
  • We have been increasing our exposure to China as valuations have fallen to more attractive levels. Improving economic data following the roll-back of Covid-19 lockdown restrictions has also lifted sentiment.
  • Though the performance gap between value and growth stocks remains quite wide, value stocks have been having a renaissance over the last 18-months. Investors have been looking to value and income investments to insulate them from higher interest rates and elevated levels of inflation.

 

These are the views of the author at the time of publication and may differ from the views of other individuals/teams at Janus Henderson Investors. Any securities, funds, sectors and indices mentioned within this article do not constitute or form part of any offer or solicitation to buy or sell them.

 

Past performance does not predict future returns. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.

 

The information in this article does not qualify as an investment recommendation.

 

Marketing Communication.

 

Glossary

 

 

 

Important information

Please read the following important information regarding funds related to this article.

Before investing in an investment trust referred to in this document, you should satisfy yourself as to its suitability and the risks involved, you may wish to consult a financial adviser. This is a marketing communication. Please refer to the AIFMD Disclosure document and Annual Report of the AIF before making any final investment decisions. Henderson Far East Income Limited is a Jersey fund, registered at Liberté, 19-23 La Motte Street, St Helier, Jersey JE2 4SY and is regulated by the Jersey Financial Services Commission] Ref: 34V
    Specific risks
  • The trust has significant exposure to Emerging Markets, which tend to be less stable than more established markets and can be affected by local political and economic conditions, reliability of trading systems, buying and selling practices and financial reporting standards.
  • If a trust's portfolio is concentrated towards a particular country or geographical region, the investment carries greater risk than a portfolio diversified across more countries.
  • The portfolio allows the manager to use options for revenue enhancement purposes. Options can be volatile and may result in a capital loss.
  • Where the trust invests in assets which are denominated in currencies other than the base currency then currency exchange rate movements may cause the value of investments to fall as well as rise.
  • This trust is suitable to be used as one component in several in a diversified investment portfolio. Investors should consider carefully the proportion of their portfolio invested into this trust.
  • Active management techniques that have worked well in normal market conditions could prove ineffective or detrimental at other times.
  • The trust could lose money if a counterparty with which it trades becomes unwilling or unable to meet its obligations to the trust.
  • Shares can lose value rapidly, and typically involve higher risks than bonds or money market instruments. The value of your investment may fall as a result.
  • The return on your investment is directly related to the prevailing market price of the trust’s shares, which will trade at a varying discount (or premium) relative to the value of the underlying assets of the trust. As a result losses (or gains) may be higher or lower than those of the trust’s assets.
  • The trust may use gearing as part of its investment strategy. If the trust utilises its ability to gear, the profits and losses incured by the trust can be greater than those of a trust that does not use gearing.
  • All or part of the trust's management fee is taken from its capital. While this allows more income to be paid, it may also restrict capital growth or even result in capital erosion over time.
Mike Kerley

Mike Kerley

Portfolio Manager


Sat Duhra

Sat Duhra

Portfolio Manager


23 Aug 2022
4 minute watch