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HENDERSON FAR EAST INCOME LD

Fund Information / Factsheet Nov 24, 2022

5157_rns_2022-11-24_3caa2e04-e537-4cfb-af72-889b1b05b4df.pdf

Fund Information / Factsheet

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Share price performance (total return)

Dividend history (pence/share)

Performance over (%) 10y 5y 3y 1y 6m Share price (Total return) 55.9 -9.2 -15.6 -11.7 -15.6 Net asset value (Total return) 50.3 -7.6 -13.7 -11.7 -15.7

Discrete year
performance (%)
Share price NAV
30/9/2021 to
30/9/2022
-3.51 -5.84
30/9/2020 to
30/9/2021
4.42 7.65
30/9/2019 to
30/9/2020
-11.13 -11.12
30/9/2018 to
30/9/2019
7.17 6.23
30/9/2017 to
30/9/2018
6.50 6.45

All performance, cumulative growth and annual growth data is sourced from Morningstar.

Source: at 31/10/22. © 2022 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

Commentary at a glance

Contributors/detractors

The key detractors from performance were China consumer exposed companies JD.com, Li Ning and Midea Group as earnings expectations continued to fall and fears of a delayed economic recovery impacted sentiment. The position in Macquarie Group was a key contributor following a strong update. The strength of the energy sector supported the performance of Woodside Energy following a strong quarter and as liquefied natural gas (LNG) supply tightness continues into the winter season.

Outlook

The weaker outlook for the consumer from stubbornly high inflation may create some risk for corporate earnings and the possibility of more downgrades into an already volatile environment of higher interest rates and tighter liquidity from central banks. However, Asian equity valuations appear attractive to us relative to global equities. Inflationary pressures also remain less pronounced in the region. We are more confident on the outlook for dividends considering the excess cash being generated and the low level of dividends paid out compared to earnings. We remain focused on domestically orientated companies with strong cashflows and what we see as sustainable and growing dividends.

See full commentary on page 3.

References made to individual securities do not constitute a recommendation to buy, sell or hold any security, investment strategy or market sector, and should not be assumed to be profitable. Janus Henderson Investors, its affiliated advisor, or its employees, may have a position in the securities mentioned.

Company overview

Objective

The Company seeks to provide shareholders with a growing total annual dividend per share, as well as capital appreciation, from a diversified portfolio of investments from the Asia Pacific region.

Highlights

A portfolio of value orientated Asia Pacific equities with a focus on cash flow generation from companies with the ability to sustain and grow dividends.

Company information

NAV (cum income) 237.7p
NAV (ex income) 235.6p
Share price 242.0p
Discount(-)/premium(+) 1.8%
Yield 9.74%
Net gearing -
Net cash -
Total assets
Net assets
£369m
£369m
Market capitalisation £376m
Total voting rights 155,323,564
Total number of holdings 44
Ongoing charges
(year end 31 August
2022)
1.01%

Benchmark -

Source: BNP Paribas for holdings information and Morningstar for all other data. Differences in calculation may occur due to the methodology used.

Please note that the total voting rights in the Company does not include shares held in Treasury.

Please remember that past performance does not predict future returns. The value of an investment and the income from it can rise as well as fall as a result of market and currency fluctuations, and you may not get back the amount originally invested.

How to invest Go to www.janushenderson.com/howtoinvest Find out more Go to www.hendersonfareastincome.com

Top 10 holdings (%) Woodside Energy Group 4.8 BHP Group 4.4 Macquarie Group 4.3 Santos 4.1 Digital Telecommunications Infrastructure 3.6 United Overseas Bank 3.5 Telkom Indonesia Persero 3.3 Macquarie Korea Infrastructure Fund 3.3 HKT Trust & HKT 3.2 Rio Tinto 3.2

References made to individual securities do not constitute a recommendation to buy, sell or hold any security, investment strategy or market sector, and should not be assumed to be profitable. Janus Henderson Investors, its affiliated advisor, or its employees, may have a position in the securities mentioned.

Premium/(Discount) of Share Price to NAV at Fair Value (%) 6

Utilities 0.98%

Key information

Stock code HFEL
AIC sector AIC Asia Pacific Equity
Income
Benchmark -
Company type Conventional (Ords)
Launch date 2006
Financial year 31-Aug
Dividend payment May, August, November,
February
Risk rating
(Source: Numis)
Slightly above average
Management fee 0.75% of net assets pa
Performance fee No
(See Annual Report & Key Information Document for more information)
Regional focus Asia Pacific ex Japan
Fund manager
appointment
Michael Kerley 2006
Sat Duhra 2019

The above geographical breakdown may not add up to 100% as this only shows the top 10.

10 year return of £1,000

Please remember that past performance does not predict future returns. The value of an investment and the income from it can rise as well as fall as a result of market and currency fluctuations, and you may not get back the amount originally invested.

How to invest Go to www.janushenderson.com/howtoinvest Customer services 0800 832 832

Fund Manager commentary Investment environment

Global markets rebounded in October with the Asia Pacific ex Japan region the exception as it responded negatively to the lack of announcements on re-opening and support for the property market from China's 20th Party Congress. North Asian markets were the hardest hit with South Korea bucking the trend following the strength of the technology sector, where key index constituents such as Samsung Electronics performed strongly as foreign investors increased their holdings and as the currency appreciated.

China was the worst performing market with all sectors participating as weak economic data and an uncertain outlook negatively impacted investor confidence. The best performing markets, in addition to South Korea, were Thailand and Philippines. The energy sector was the best performing sector with OPEC production cuts contributing to some supply tightness. Chinese property firms were very weak and contributed to the weakness in the real estate sector, which was the weakest sector in the month. Materials was also weak given the lower demand expectations from China, a stronger US dollar and slowing global economic growth.

Pacific ex Japan Index which fell 6.7%.

October was a quiet month for transactions with no trading activity.

Manager outlook

The weaker outlook for the consumer from stubbornly high inflation may create some risk for corporate earnings and the possibility of more downgrades into an already volatile environment of higher interest rates and tighter liquidity from central banks. However, Asian equity valuations appear attractive to us relative to global equities. Inflationary pressures also remain less pronounced in the region. We are more confident on the outlook for dividends considering the excess cash being generated and the low level of dividends paid out compared to earnings. We remain focused on domestically orientated companies with strong cash-flows and what we see as sustainable and growing dividends

Portfolio review

The net asset value fell 5.8% over the month in sterling terms, outperforming the MSCI Asia Pacific ex Japan High Yield Index which fell 6.3% and the FTSE All world Asia

Glossary

Discount/Premium

The amount by which the price per share of an investment trust is either lower (at a discount) or higher (at a premium) than the net asset value per share (cum income), expressed as a percentage of the net asset value per share.

Gearing

The effect of borrowing money for investment purposes (financial gearing). The amount a company can "gear" is the amount it can borrow in order to invest. Gearing is used in the expectation that the returns on the investments bought will exceed the costs of the borrowings that funded the purchase. This Company can also use synthetic gearing through derivatives and foreign exchange hedging and/or other non-fully funded instruments or techniques.

Leverage

The Company's leverage is the sum of financial gearing and synthetic gearing. Details of the Company's leverage limits can be found in both the Key Information Document and Annual Report. Where a company utilises leverage, the profits and losses incurred by the company can be greater than those of a company that does not use leverage.

Market capitalisation

Month end closing mid-market share price multiplied by the number of shares outstanding at month end.

NAV (Cum Income)

The value of investments and cash, including current year revenue, less liabilities (prior charges such as loans, debenture stock and preference shares at fair value).

NAV (Ex Income)

The value of investments and cash, excluding current year revenue, less liabilities (prior charges such as loans, debenture stock and preference shares at fair value).

Net asset value total return

The theoretical total return on shareholders' funds per share reflecting the change in Net Asset Value (NAV) assuming that dividends paid to shareholders were reinvested at NAV at the time the shares were quoted ex-dividend. A way of measuring investment management performance of investment trusts which is not affected by movements in discounts/premiums.

Net assets

Total assets minus any liabilities such as bank loans or creditors.

Net cash

A company's net exposure to cash/cash equivalents expressed as a percentage of shareholders' funds, after any offset against its gearing. This is only shown for companies that have gearing in place.

Net gearing

A company's total assets (less cash/cash equivalents) divided by shareholders' funds expressed as a percentage.

Ongoing charges

The total expenses for the financial year (excluding performance fee), divided by the average daily net assets, multiplied by 100.

Risk rating

The key measure used to assess risk is volatility of returns, using historic net asset value (NAV) performance of the company over 1 and 3 years. In this instance volatility measures how much a company's NAV fluctuates over time in relation to the UK Equity market. The higher a volatility figure, the more the NAV has fluctuated (both up and down) over time. Please note that risk categorisations are indicative and based principally on historic data and should not be solely relied upon when making investment decisions.

Share price

Closing mid-market share price at month end.

Share price total return

The theoretical total return to the investor assuming that all dividends received were reinvested in the shares of the company at the time the shares were quoted ex-dividend. Transaction costs are not taken into account.

Total assets

Cum Income NAV multiplied by the number of shares, plus prior charges at fair value.

Yield

Calculated by dividing the current financial year's dividends per share (this will include prospective dividends) by the current price per share, then multiplying by 100 to arrive at a percentage figure.

Inflation

The rate at which the prices of goods and services are rising in an economy. The CPI and RPI are two common measures. The opposite of deflation.

Net Asset Value

The total value of a fund's assets less its liabilities.

Valuation metrics

Metrics used to gauge a company's performance, financial health and

expectations for future earnings eg, price to earnings (P/E) ratio and return on equity (ROE).

For a full list of terms please visit: www.janushendersoninvestmenttrusts.com

Company specific risks

  • This Company 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 Company.
  • Active management techniques that have worked well in normal market conditions could prove ineffective or detrimental at other times.
  • The Company could lose money if a counterparty with which it trades becomes unwilling or unable to meet its obligations to the Company.
  • 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.
  • If a company's portfolio is concentrated towards a particular country or geographical region, the investment carries greater risk than a portfolio diversified across more countries.
  • The return on your investment is directly related to the prevailing market price of the Company's shares, which will trade at a varying discount (or premium) relative to the value of the underlying assets of the Company. As a result losses (or gains) may be higher or lower than those of the Company's assets.
  • The Company 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.
  • 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 Company 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.
  • The Company may use gearing as part of its investment strategy. If the Company utilises its ability to gear, the profits and losses incured by the Company can be greater than those of a Company that does not use gearing.
  • All or part of the Company'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.

Not for onward distribution. 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. 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. Tax assumptions and reliefs depend upon an investor's particular circumstances and may change if those circumstances or the law change. Nothing in this document is intended to or should be construed as advice. This document is not a recommendation to sell or purchase any investment. It does not form part of any contract for the sale or purchase of any investment. We may record telephone calls for our mutual protection, to improve customer service and for regulatory record keeping purposes.

Issued in the UK by Janus Henderson Investors. Janus Henderson Investors is the name under which investment products and services are provided by Janus Henderson Investors International Limited (reg no. 3594615), Janus Henderson Investors UK Limited (reg. no. 906355), Janus Henderson Fund Management UK Limited (reg. no. 2678531), Henderson Equity Partners Limited (reg. no.2606646), (each registered in England and Wales at 201 Bishopsgate, London EC2M 3AE and regulated by the Financial Conduct Authority) and Janus Henderson Investors Europe S.A. (reg no. B22848 at 2 Rue de Bitbourg, L-1273, Luxembourg and regulated by the Commission de Surveillance du Secteur Financier). Janus Henderson, Knowledge Shared and Knowledge Labs are trademarks of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc

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