Henderson Far East Income - Consistently high and growing income

Henderson Far East Income (HFEL) continues to reward its investors with a high, rising and fully covered income from a relatively concentrated (c 45 holdings) portfolio of stocks from across the Asia Pacific region. Managers Mike Kerley and Sat Duhra see good opportunities in banks and materials stocks, both of which are set to benefit from the expected economic recovery as the region and the wider world look ahead to life after the pandemic stage of COVID-19. Although recent returns have been relatively muted (given large gains in areas such as Australian banks, which the managers felt were unattractive from an income perspective), Kerley sees strong earnings growth expectations for the region as eminently achievable, which should support further dividend growth.