Credit deflation and the reflation cycle to come (part 2)

[Harley]

4 minutes ago, DurhamBorn said:

Iv had it out many times with HL on this sort of thing and others and with family accounts its six figures,but they arent interested.They make more from someone with £80k in funds than from my family.I would guess investment trusts would claim the tax back,it would be interesting to know.I might email Henderson and try to find out.

Six figure divs, wow!!!!

Oh yes, all very different for trusts, etc depending where they are domiciled (e.g. Ireland).  So who keeps it and/or something else to consider when looking at their performance relevant to yours!

[Harley]

50 minutes ago, arrow said:

Double taxation with India. So for a UK resident, India I believe is 10% tax on dividends......

I understand you cannot invest directly in the Indian stock exchange unless you are an Indian national?

[Starsend]

4 minutes ago, DurhamBorn said:

Iv had it out many times with HL on this sort of thing and others and with family accounts its six figures,but they arent interested.They make more from someone with £80k in funds than from my family.I would guess investment trusts would claim the tax back,it would be interesting to know.I might email Henderson and try to find out.

It would be interesting to know.

The charges on Henderson Far East are over 2%. Pretty pricey, brings the divi down to 5.5% which is still pretty respectable I guess.

 

[Harley]

8 minutes ago, Harley said:

 

 

1 hour ago, Lightscribe said:

If the interest rates have to stay at zero or thereabout forever (like we’re told) then why have MBNA sent me this letter about changes to the term and conditions on October 15th?

They seem awfully keen to move the goalposts to link to the base rate.
 

Negative BOE rates?

[Harley]

2 hours ago, Starsend said:

Further thoughts. The article only applies to US citizens receiving dividends from Australia, Singapore and India. 30%, 0% and 20% even held in a retirement account. But do the same rules apply to the UK?

A very good point for folk doing their research.  A lot of stuff out there is US investor centric!

[JMD]

1 hour ago, Starsend said:

The charges on Henderson Far East are over 2%. Pretty pricey, brings the divi down to 5.5% which is still pretty respectable I guess.

 

2% charge? Just being nosey, but which platform are you using?

HL charge 1.1%...

Henderson Far East Income Ltd Share Price (HFEL) Ordinary NPV | HFEL (hl.co.uk)

[arrow]

1 hour ago, DurhamBorn said:

Iv had it out many times with HL on this sort of thing and others and with family accounts its six figures,but they arent interested.They make more from someone with £80k in funds than from my family.I would guess investment trusts would claim the tax back,it would be interesting to know.I might email Henderson and try to find out.

 If interactive brokers had made isas available some years ago, as they said they would at the time, then that would have made hl and the other uk brokers compete. but ib changed their minds. i don't know why.

[DurhamBorn]

4 minutes ago, JMD said:

2% charge? Just being nosey, but which platform are you using?

HL charge 1.1%...

Henderson Far East Income Ltd Share Price (HFEL) Ordinary NPV | HFEL (hl.co.uk)

HL dont charge anything for holding HFEL its an investment trust so like a share just the fund fees.

[Harley]

Fyi, Interactive Investors are offering deals on new/transferred accounts this month for the holders and those referring them.  Plus some sort of family deal.  I've seen such stuff a few times and not sure if the deals are good but just an fyi.

[Harley]

3 hours ago, Lightscribe said:

If the interest rates have to stay at zero or thereabout forever (like we’re told) then why have MBNA sent me this letter about changes to the term and conditions on October 15th?

They seem awfully keen to move the goalposts to link to the base rate.
 

On the subject of negative rates (re. my first reply), I spent some time today comparing brokers and came across this for AJ Bell in their charges section:

I've never seen "cash" included as an item in a charges section before!

[Democorruptcy]

4 hours ago, Democorruptcy said:

Don't forget withholding tax?

 

[harp]

6 hours ago, DurhamBorn said:

Mines gone from £90 to £105 on a two year fix,same here i used them because no smart meter.The Octopus fixed have no early exit charges so if we get a dip can re-fix.My gas is very low as in winter set at 17.5 but electric is the main one.Then again i do have four freezers  ,

My last house before I recently downsized had a pool, sauna and hot tub. The guy who I bought it off was a local developer who lived in it. Some how the electric feeding those things wasn’t wired through the house but direct from under the pavement. Nice! Never told the new owner either 😎

[DoINeedOne]

So at this rate i will be buying miners again

[NogintheNog]

18 hours ago, DurhamBorn said:

Surely they are simply lieing?,because what they are really doing is funding the governments structural deficit,mostly welfare spending and government workers pensions rather than make the government deal with it.

Channel 4 news last night.... Andrew Bailey, the gov, BoE.

At 4 minutes. Question quote, "financing the governments deficit spending was a significant reason for quantitative easing"? - Krishnan Guru-Murphy.

Andrew Bailey - "the evidence would be in financial markets, and it isn't!"

WTF, since 2008 the price of gold in sterling is up nearly three fold, and financial markets bubbling up out of all proportion to planet reality.

Still, I suppose that to be governor of the BoE you gonna need to be a bare faced liar

https://www.channel4.com/news/inflation-spike-bank-of-england-warns-prices-will-rise

[Harley]

1 hour ago, Democorruptcy said:

 

So you ready for the test?!

A HK citizen....ordinarily resident in Scotland......holding shares in a US beer producer...paying a $0.40 div per share post last month's split.....in his SIPP......who forgot to file his WBEN until.......and the dog ate.....HRMC tax investigation.....Covid.......Mornington Cresent!

How much WHT can he reclaim in this tax year?

[Bobthebuilder]

Nice fat divi from VOD today, tempted to back the van up at this yield.

[Harley]

2 hours ago, JMD said:

2% charge? Just being nosey, but which platform are you using?

HL charge 1.1%...

Henderson Far East Income Ltd Share Price (HFEL) Ordinary NPV | HFEL (hl.co.uk)

As you mentioned this fund......

Now I'm not dissing it at all but trying to assess things as I regularly like to review my approach, etc to various things.  I was particularly interested in this one given it's very high yield (7%+) and geo.  I downloaded its holdings list, etc and took a look (holdings, stock entry points, stock fundamentals, etc).  Not sure all the recent price falls are in there, although the fund value is up since then. 

Anyways, I compared it against VAPX, the Vanguard AsiaPac ETF which I hold.  That currently yields 2.25% so a lot less.  I then compared charts (both seemed to have started at the same time) and noted performance figures from each of the three lows (shared by both).

The performance figures (HFEL v VAPX):

. From inception: -13% v 45%

. 01Sep15: 16% v 79%

. 03Dec18: -10% v 27%

. 02Mar20: 12% v 49%

Need to add the dividends in but I can't see that making up much of the difference?

HFEL is meant to offer both growth and income.  Not easy.  VAPX is just the market indicies.  I won't quibble over fees differentials.  My next step (once better established) should be to measure my "value" portfolio against both.  I use ETFs as a bit of a base and value stocks for more upside.

Have I missed something or done a flawed review?

PS: Ah, spotted one, no China in the Vanguard but comprises 23% in the HFEL, although VFEM (Vanguard Emerging Markets) has a very similar chart pattern/performance to VAPX and is 42% China so all's not lost.

[Harley]

1 minute ago, Bobthebuilder said:

Nice fat divi from VOD today, tempted to back the van up at this yield.

In me sights but haven't got a clear shot quite yet!

[Starsend]

2 hours ago, JMD said:

2% charge? Just being nosey, but which platform are you using?

HL charge 1.1%...

Henderson Far East Income Ltd Share Price (HFEL) Ordinary NPV | HFEL (hl.co.uk)

The 1.1% is the charge levied by the fund themselves? Least I think that's what "Investment charges" means.

HL charge .45%.

The total charges (which include dealing costs) are 2.23% per year averaged out over a five year period. This includes selling in year 5. The average yearly fee will drop a little the longer you hold.

https://www.hl.co.uk/shares/shares-search-results/h/henderson-far-east-income-ltd-ord-npv/costs

 

[Barnsey]

Sums it up with his usual bombastic style...

 

[DurhamBorn]

1 hour ago, NogintheNog said:

Channel 4 news last night.... Andrew Bailey, the gov, BoE.

At 4 minutes. Question quote, "financing the governments deficit spending was a significant reason for quantitative easing"? - Krishnan Guru-Murphy.

Andrew Bailey - "the evidence would be in financial markets, and it isn't!"

WTF, since 2008 the price of gold in sterling is up nearly three fold, and financial markets bubbling up out of all proportion to planet reality.

Still, I suppose that to be governor of the BoE you gonna need to be a bare faced liar

https://www.channel4.com/news/inflation-spike-bank-of-england-warns-prices-will-rise

From 08 the printing was to re-finance the banks,this time its direct fiscal deficit spending.Its incredible ,but this cycle was always going to see that.The big question is how much inflation before they stop.I still think a rate increase but some QE still is an oulier chance.Sunak knows,so a big battle ahead with Boris i expect.

[Starsend]

2 hours ago, DurhamBorn said:

HL dont charge anything for holding HFEL its an investment trust so like a share just the fund fees.

Do you mean aside from the .45% annual management fee?

[Starsend]

Looking a bit closer their total of 2.23% includes "Transaction costs" of £154.09. These are not the buy/sell fees that you pay when you buy the fund (shown under HL charges). I assume that they're the fees (on average) paid by the fund themselves for transactions over the five years, which has got to be a guess surely - not sure how relevant they are.

 

[DurhamBorn]

58 minutes ago, Starsend said:

The 1.1% is the charge levied by the fund themselves? Least I think that's what "Investment charges" means.

HL charge .45%.

The total charges (which include dealing costs) are 2.23% per year averaged out over a five year period. This includes selling in year 5. The average yearly fee will drop a little the longer you hold.

https://www.hl.co.uk/shares/shares-search-results/h/henderson-far-east-income-ltd-ord-npv/costs

 

HL only charge a maximum of £45 a year on an ISA with shares or investment trusts and a maximum of £200 in a SIPP so are very very cheap for larger accounts.They make their money on funds because its 0.45% without a maximum.I dont hold any funds only investment trusts and individual stocks.

[DurhamBorn]

1 hour ago, Starsend said:

Do you mean aside from the .45% annual management fee?

They dont charge that as its an investment trust not a unit trust and im already way over the maximum for charges so adding anything to my accounts results in no extra charge at all apart from the dealing fee.I think my charges are something like 0.04% platform fees.

In an ISA that 0.45% maxes out at £10k as the £45 max fee kicks in,so £20k is 0.225%,£40k 0.1125%

etc etc