Step-by-Step guide to investing: seminar 12

INCOME FROM THE EAST

"After a decade of corporate restructuring and more prudent governance, the Asia Pacific region is now well positioned for high, yet sustainable dividend yields" says Michael Kerley, manager of the hugely successful Henderson Far East Income Trust. Moneybox Man bought in 2007 at 121p a share, and they are now worth 300.5p, with a dividend of 4.10%. But Moneybox Man is thinking of selling. Why? Because they have moved from a discount to a premium, and that is the sensible time to sell. Another reason, though, is that Michael Kerley is manager of the newly-created Henderson New Star Asian Dividend Income Unit Trust. In other words, you can buy the same manager, same expertise, same market, without paying over the odds. Bought through the Alliance platform they will cost only 0.25% initial charge, and all trail commission will be rebated on a monthly basis. (Look back to the seminar on unit trusts, financial advisers, and related villainy).

Worth a look also, is the very successful Scottish Oriental Trust, managed out of Hong Kong by the feisty Sue Rippingale. It's not intentionally an income trust, and the dividend is unclear - over 4% according to Trustnet, but less than 2% according to Citywire - but chairman James Ferguson says in the latest report that dividends flowing into the trust are now around 3%. Both he and Sue are very downbeat about the short term, have a big cash holding, and have squirrelled away around £0.5m this year to support future dividends. This trust is the best in its sector over one year, three years, and five years.h Oriental Trust