The Henderson Far East Income Fund (FEIF) is a Hong Kong-based investment fund that offers investors a stable, long-term returns through investments in Asian companies.
FEIF is a sub-fund of the Henderson Global Investors Group plc (Henderson). Established in 1974, Henderson is one of the world’s leading asset management companies. The FEIF has an objective of providing an above average return on investment over the long-term through dividend income and capital appreciation. It invests in large-cap and mid-cap companies based in Greater China, Japan, South Korea and Southeast Asia.
The FEIF has been a notable success since its inception in 1998. It has consistently outperformed the Morgan Stanley Capital International (MSCI) Far East Ex-Japan Index, which tracks the large-cap and mid-cap companies in the same markets that the FEIF invests in. The FEIF’s track record of outperformance in relation to the MSCI index is particularly impressive when considering that the FEIF pool must measure its performance against the high-yield-oriented MSCI index. According to the Financial Times, “One of the key attractions of the Henderson Far East Income Fund compared to the MSCI index is its focus on steady, dividend-paying stocks. This makes the fund much less volatile than the index, reducing sensitivity to the fluctuations of the market.”
The fund is well-positioned to continue outperforming the broader markets. It has a diversified portfolio well-suited to the strong economic conditions in the Asian region and the potential for further appreciation. The portfolio comprises more than 120 stocks across all sectors, including consumer goods, financials, healthcare, industrial goods, technology, and telecommunications. All investments are actively managed by the Henderson Far East Income Fund’s experienced team of managers, who analyze each company’s performance on an ongoing basis.
The FEIF has low volatility and a high dividend yield, making it an attractive option for long-term investors seeking steady capital appreciation and reliable income. The fund is also relatively low-cost, with an expense ratio of 0.84%, compared to an average of 1.19% for similar funds. For investors looking for a relatively safe option in the stock market, the Henderson Far East Income Fund is an excellent choice.