Half Yearly Report

RNS Number : 6224B

Henderson Far East Income Limited

18 April 2012

 



18 April 2012

This announcement contains regulated information.

HENDERSON FAR EAST INCOME LIMITED

Unaudited Results for the half year ended 29 February 2012

Financial Highlights	As at 29 February 2012
Total net assets	£309,292,000
Net asset value per ordinary share	304.78p
Market price per ordinary share	302.00p
Discount	(0.9)%
Dividends - first interim (paid 29 February 2012)	3.90p
-  second interim (payable 31 May 2012)	3.90p
Performance	Six months to 29 February 2012
Net Asset Value Total Return	9.01%
Share Price Total Return +	5.38%
FTSE All -World Asia Pacific ex Japan Index (Total Return)*+	6.77%
FTSE All - World Asia Pacific Index (Total Return) *+	6.47%
Dividends paid in the period	7.80p

+ Source: Fundamental Data/Datastream 

* There is no formal benchmark for the Company. These indices are shown purely for comparative purposes.

INTERIM MANAGEMENT REPORT

Chairman's Statement

·     Asian markets have rallied in recent months as European markets stabilise through refinancing

·     China offers yield and growth opportunities

·     Valuations remain attractive

I am pleased to report that over the six months to 29 February 2012 the net asset value total return of the Company was 9.01%, compared to a small decline of 3.4% in the previous six months and well ahead of the 3.09% total return achieved in the six months to 28 February 2011. The share price total return was 5.38% which was also higher than the immediate past periods. Over the six months the FTSE All - World Asia Pacific ex Japan Index rose by 6.77% and the FTSE All -World Asia Pacific Index rose by 6.47% on a total return basis.

Dividends

On 30 November 2011, the Company paid a fourth interim dividend of 3.90p per share in respect of the year ended 31 August 2011, making a total of 15.00p for that year; a significant increase on the 13.60p paid in the previous year. In respect of the current financial year, a first interim dividend, also of 3.90p per share, was paid on 29 February, and I am pleased to report that your Board has declared a second interim dividend of the same amount to be paid on 31 May 2012.

Material Events or Transactions

Your Board has continued to allot new shares on an opportunistic basis as and when issuance enhances the net asset value per share of your Company. In the six months under review the Company issued a further 1,375,000 shares. In February the Company entered into a £30 million revolving multi-currency loan facility with Commonwealth Bank of Australia. The facility was not in use at the period end and at the time of writing the Company remains ungeared.

- MORE -

- 2 -

HENDERSON FAR EAST INCOME LIMITED

Unaudited Results for the half year ended 29 February 2012

INTERIM MANAGEMENT REPORT (continued)

Chairman's Statement

Outlook

Whilst markets have rallied in the opening months of 2012, risks and uncertainties remain. It is still uncertain as to whether the European Union has managed to solve the sovereign debt crisis or has merely deferred that problem to another day, and what effect that may have on the global economy. We continue to believe that Asia offers better growth opportunities than in the west and, while global issues will clearly have an impact, the trend rate of growth continues to be very attractive by comparison.

John Russell

Chairman

18 April 2012

Principal Risks and Uncertainties

The principal risks and uncertainties associated with the Company's business can be divided into the following main areas:

• Investment activity and performance risk

• Financial risk

• Regulatory risk

• Operational risk

Information on these risks and how they are managed is given in the Annual Report and Financial Statements for the year ended 31 August 2011. In the view of the Board these principal risks and uncertainties are as applicable to the remaining six months of the financial year as they were to the six months under review.

Related Party Transactions

Details of related party arrangements are contained in the Annual Report and Financial Statements for the year ended 31 August 2011. Other than fees payable in the ordinary course of business, there have been no material transactions with the related parties during the six month period under review which have materially affected the financial position or performance of the Company.

Directors' Responsibility Statement

The Directors confirm that, to the best of their knowledge:

(a)     the condensed set of financial statements has been prepared in accordance with IAS 34;

(b)     the interim management report includes a fair review of the information required by Disclosure and Transparency Rule 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and

(c)     the interim management report includes a fair review of the information required by Disclosure and Transparency Rule 4.2.8R (disclosure of related party transactions and changes therein).

For and on behalf of the Board

John Russell, Chairman

18 April 2012

 MORE -

- 3 -

HENDERSON FAR EAST INCOME LIMITED

Unaudited Results for the half year ended 29 February 2012

Portfolio Manager's Report

·     Asian economies are well positioned

·     Companies are cash rich

·     Focus on domestic sectors over global cyclicals

Market

Asian markets moved higher over the period with the FTSE All -World Asia Pacific ex Japan Index posting a 6.8% return in sterling terms. The start of the period was characterised by continued weakness caused by heightened economic and political uncertainty resonating from Europe and weaker than expected growth from the US. A short lived and unconvincing recovery pushed markets a little higher towards the end of 2011 but only the massive injection of liquidity into the European banking system, through the ECB's Long Term Refinancing Operation ('LTRO') provided the impetus for markets to really move ahead.

Despite the uncertainty in the developed world, Asian economies continued to post solid, albeit slower, economic growth numbers. Chinese GDP slowed to 8.1% in the first quarter of 2012, lower than the 9.2% in the previous quarter and market estimates but in line with government targets. More importantly, inflation fell to 3.4% in March 2012, raising hopes of more accomodating monetary policy in the months ahead. Indonesia, Singapore and The Philippines posted impressive numbers while Australia, South Korea and Taiwan - the more cyclically exposed markets - struggled as global demand slowed. Other economic disappointments were experienced by Thailand, following the extensive flooding and India where the government's need to promote growth is being hampered by political inaction, high inflation and a weak fiscal position.

Performance

The portfolio performed well over the six month period with the NAV total return rising 9% in sterling terms. The outperformance was due mainly to our overweight positions in China and Thailand which were two of the best performing markets. On a relative basis we also benefited from the under performance of Australia, where we only have modest exposure compared to the regional index, and India where we have a zero weighting. The allocation was less impressive at the sector level where the best performers were energy and technology, in which we are underweight relative to the index. On a more positive note our low exposure to materials was beneficial as this was the only sector which posted negative returns over the period.

At the stock level, the performance of Thai telecom stock Advanced Info and Chinese toll road operator Jiangsu Expressway were notable as was that of  Taiwanese construction company CTCI and semiconductor heavy weight TSMC. We were less successful with our holdings in Korea Reinsurance and Kangwon Land although these did particularly well in 2011 as a whole.

Revenue

We are optimistic on the dividend outlook for Asia this year. Companies are cash rich and with the uncertainty that prevails globally we would not be surprised to see dividend growth surprise positively. As with previous years the majority of the company's revenue will be generated in the second half of the financial year reflecting the seasonality of dividend distribution in Asia Pacific.

- MORE -

- 4 -

HENDERSON FAR EAST INCOME LIMITED

Unaudited Results for the half year ended 29 February 2012

Portfolio Manager's Report (continued)

We are confident in the income generating ability of the companies we hold in the portfolio and we believe that revenue generated will be more than sufficient to cover the full year distribution.

The volatility in the final months of 2011 provided some attractive opportunities for option writing and this is reflected in higher revenue from this source compared to the same period last year.

Strategy

The portfolio retains an emphasis on domestically focused sectors and positioning away from global cyclical stocks. We believe that the growth in world economies will be focused on emerging markets and in particular Asia in the coming years and feel that companies exposed to this trend are more likely to be able to deliver sustainable cash flow and income. Forecast pricing for commodities such as iron ore, steel, copper and also energy in the immediate future is extremely difficult and hence the portfolio tends to shy away from these sectors at this point in the cycle. The same can be said for technology where a significant proportion of sales depend on western consumer demand which in our view will be constrained by ongoing austerity measures.

We continue to believe that China offers the best combination of value and growth in Asia. Valuations are attractive and policy will become more favourable as growth slows and inflationary pressure abates. Most importantly, China offers very promising yield opportunities.  The banks, property and industrials all offer attractive valuations and sustainable and growing dividends.

We also retain our positive view on Thailand. The severe flooding in northern Thailand and Bangkok impacted GDP and corporate earnings in Q4 2011 and Q1 2012 but we expect the recovery in the second half of 2012 to be quite significant backed by supportive government policy and robust consumer expenditure.

The telecommunications sector was one of the best performers in 2011 and we retain a high weighting to this area. We have made some changes - switching KT Corporation into SK Telecom and switching Singapore Telecom into China Mobile. In some cases the valuations in this sector have become quite stretched and we have marginally reduced our exposure in favour of some oversold domestic cyclical stocks. Property stocks are an example of this and after being cautious through most of last year we have selectively added exposure in this area through the addition of Wharf Holdings in Hong Kong.

Although we are not positive on the outlook for Australian growth we have added a bank to the portfolio for the first time in a number of years. ANZ has an attractive yield and although its domestic Australian business is not exciting we believe the market is undervaluing its growing business in the rest of Asia. The rest of the Australian portfolio has little domestic exposure and favours companies with a large proportion of their earnings from businesses outside of Australia.

Finally, we continue to have zero exposure to India. The market still looks expensive to us despite the recent sell off and we cannot find attractively valued companies which are likely to pay a decent dividend anytime soon. In addition the economic outlook does not look compelling and of the two great growth markets in Asia we prefer China at this time.

- MORE -

- 5 -

HENDERSON FAR EAST INCOME LIMITED

Unaudited Results for the half year ended 29 February 2012

Portfolio Manager's Report (continued)

Outlook

We remain positive on the outlook for the region in the medium to long term but recognise that market direction will be dictated by global factors in the short term. The liquidity injection into European banks has provided a temporary respite but much has to be achieved before stability returns. The stand off between US/Israel and Iran and its impact on the oil price and the strength and sustainability of the US recovery are additional factors that will weigh heavily on sentiment in the months to come. Valuations in Asia are attractive relative to their own history and other world markets and we will use any period of volatility as an opportunity to add to our preferred positions.

Michael Kerley

Portfolio Manager

18 April 2012

 

- MORE -

-6-

HENDERSON FAR EAST INCOME LIMITED

Unaudited Results for the half year ended 29 February 2012

Investment Portfolio

As at 29 February 2012

		Value	% of		Value	% of
		£'000	portfolio		£'000	portfolio
Australia				Malaysia
Telstra Corporation		9,515		UMW Holdings	5,766
Santos		8,701		Petronas Chemicals	5,679
Amcor		8,416			11,445	3.8
Crown		7,502
Incitec Pivot		6,808		The Philippines
Tabcorp Holdings		6,577		Philippine Long Distance Telephone	6,732	2.2
Australia & NZ Banking Group		6,233
		53,752	17.7	Singapore
				Fraser & Neave	7,463
China				Ascendas Real Estate	7,456
Shanghai Industrial		9,338		Capitamall Trust REIT	7,128
Jiangsu Expressway		8,936		DBS Group	6,284
Digital China Holdings		8,196			28,331	9.3
Industrial & Commercial Bank of China		7,851
China Mobile		7,823		South Korea
China Construction Bank		7,510		Korean Reinsurance	7,849
Guangzhou R & F Properties		6,667		Kangwon Land	6,787
Skyworth Digital Holdings		5,713		SK Telecom	6,327
MGM China Holdings*		5,382		Macquarie Korea Infrastructure Fund	3,233
China Forestry Holdings		940			24,196	8.0
Lonking Holdings*		(127)
		68,229	22.5
				Taiwan
Hong Kong				CTCI Corporation	8,568
NWS Holdings		7,702		Taiwan Semiconductor  Manufacturing	8,026
Link REIT		7,512		Yuanta Financial	7,528
Sun Hung Kai Properties		7,346		Taiwan Cement	6,220
Television Broadcasts		7,194			30,342	10.0
Wharf Holdings		5,294
		35,048	11.5	Thailand
				Charoen Pokphand Foods	7,144
				PTT Public Company	7,053
Indonesia				Kasikornbank	6,676
Perushaan Gas Negara		6,938	2.3	Advanced Information Services	6,440
				LPN Development	4,776
Japan					32,089	10.6
Mizuho Financial Group		6,370	2.1
				Total Investments	303,472	100.0

* value adjusted for put options written. The value of the investments shown on the balance sheet has been grossed up to include options valued at £140,000.

- MORE -

- 7 -

HENDERSON FAR EAST INCOME LIMITED

Unaudited Results for the half year ended 29 February 2012

Condensed Statement of Comprehensive Income

for the half year ended 29 February 2012                                                                                          

		Half year ended 29 February 2012 (Unaudited)			Half year ended 28 February 2011 (Unaudited)			Year ended 31 August 2011 (Audited)
		Revenue return £'000	Capital return £'000	Total £'000	Revenue return £'000	Capital return £'000	Total £'000	Revenue return £'000	Capital return £'000	Total £'000
Investment income		4,779	-	4,779	5,093	-	5,093	18,023	-	18,023
Other income, including option premium income		928	-	928	268	-	268	1,532	-	1,532
Gains/(losses) on investments held at fair value through profit or loss		- _______	22,078 _______	22,078 _______	- _______	7,810 _______	7,810 _______	- _______	(8,754) _______	(8,754) _______
Total income		5,707 _______	22,078 _______	27,785 _______	5,361 _______	7,810 _______	13,171 _______	19,555 _______	(8,754) _______	10,801 _______
Expenses
Management fees		(691)	(690)	(1,381)	(797)	(797)	(1,594)	(1,566)	(1,566)	(3,132)
Other expenses		(171) _______	(171) _______	(342) _______	(144) _______	(144) _______	(288) _______	(293) _______	(293) _______	(586) _______
Profit/(loss) before finance costs and taxation		4,845	21,217	26,062	4,420	6,869	11,289	17,696	(10,613)	7,083
Finance costs		(3) _______	(4) _______	(7) _______	(12) _______	(12) _______	(24) _______	(14) _______	(14) _______	(28) _______
Profit/(loss before taxation		4,842	21,213	26,055	4,408	6,857	11,265	17,682	(10,627)	7,055
Taxation Profit/(loss) for the period and total comprehensive income		(263) _______ 4,579	- ______ 21,213	(263) _______ 25,792	(321) _______ 4,087	- _______ 6,857	(321) _______ 10,944	(1,379) _______ 16,303	- _______ (10,627)	(1,379) _______ 5,676
		_______	_______	_______	_______	_______	_______	_______	_______	_______
Earnings/(loss) per ordinary share (note 2)		4.55p _______	21.08p _______	25.63p _______	4.16p _______	6.99p _______	11.15p _______	16.49p _______	(10.75)p _______	5.74p _______

The total column of this statement represents the Condensed Statement of Comprehensive Income of the Company, prepared in accordance with IFRS.

The revenue return and capital return columns are supplementary to this and are prepared under guidance published by the Association of Investment Companies. All items in the above statement derive from continuing operations.

All income is attributable to the equity holders of Henderson Far East Income Limited. There are no minority interests.

- MORE -

- 8 -

HENDERSON FAR EAST INCOME LIMITED

Unaudited Results for the half year ended 29 February 2012

Condensed Statement of Changes in Equity

for the half year ended 29 February 2012

	Half year ended 29 February 2012 (Unaudited)
	Stated capital £'000		Distributable reserve £'000		Other capital reserves £'000		Revenue reserve £'000		Total £'000
Total equity at 31 August 2011	63,495		180,471		29,763		13,660		287,389
Total comprehensive income:     Profit for the period	-		-		21,213		4,579		25,792
Transaction with owners, recorded directly to equity:
Shares issued less costs	3,959		-		-		-		3,959
Dividends paid	-		-		-		(7,848)		(7,848)
Total equity at 29 February 2012	67,454		180,471		50,976		10,391		309,292
	Half year ended 28 February 2011 (Unaudited)
	Stated capital £'000		Distributable reserve £'000		Other capital reserves £'000		Revenue reserve £'000		Total £'000
Total equity at 31 August 2010	52,146		180,471		40,390		11,909		284,916
Total comprehensive income:    Profit for the period	-		-		6,857		4,087		10,944
Transactions with owners, recorded directly to equity:
Shares issued less costs	8,317		-		-		-		8,317
Receipt of unclaimed dividends from      predecessor company Dividends paid	- -		- -		- -		10 (7,092)		10 (7,092)
Total equity at 28 February 2011	60,463		180,471		47,247		8,914		297,095
	Year ended 31 August 2011 (Audited)
	Stated capital £'000		Distributable reserve £'000		Other capital reserves £'000		Revenue reserve £'000		Total £'000
Total equity at 31 August 2010	52,146		180,471		40,390		11,909		284,916
Total comprehensive income:     (Loss)/profit for the year	-		-		(10,627)		16,303		5,676
Transaction with owners, recorded directly to equity:
Dividends paid	-		-		-		(14,563)		(14,563)
Receipt of unclaimed dividends from      predecessor company	-		-		-		11		11
Shares issued	11,371		-		-		-		11,371
Issue costs	(22)		-		-		-		(22)
Total equity at 31 August 2011	63,495		180,471		29,763		13,660		287,389

- MORE -

- 9 -

HENDERSON FAR EAST INCOME LIMITED

 Unaudited Results for the half year ended 29 February 2012

Condensed Balance Sheet

as at 29 February 2012

	29 February 2012 (Unaudited) £'000		28 February 2011 (Unaudited) £'000		31 August 2011 (Audited) £'000
Non current assets
Investments held at fair value through profit or loss	303,612		286,833		283,077
Current assets
Other receivables	2,715		1,632		3,043
Cash and cash equivalents	3,753		11,921		3,288
	6,468		13,553		6,331
Total assets	310,080		300,386		289,408
Current liabilities
Written options Other payables	(140) (648)		(589) (2,689)		(813) (702)
Bank overdrafts	-		(13)		(504)
	(788)		(3,291)		(2,019)
Net assets	309,292		297,095		287,389
Capital and reserves
Stated capital	67,454		60,463		63,495
Distributable reserve	180,471		180,471		180,471
Retained earnings:
Other capital reserves	50,976		47,247		29,763
Revenue reserve	10,391		8,914		13,660
Total equity	309,292		297,095		287,389
Net asset value per ordinary share (note 3)	304.78p		299.70p		287.09p

- MORE -

- 10 -

HENDERSON FAR EAST INCOME LIMITED

Unaudited Results for the half year ended 29 February 2012

Condensed Cash Flow Statement

for the half year ended 29 February 2012

	Half year ended 29 February 2012 (Unaudited) £'000		Half year ended 28 February 2011 (Unaudited) £'000		Year ended 31 August 2011 (Audited) £'000
Net profit before tax	26,055		11,265		7,055
(Less)/add (gains)/losses on investments held at fair value through profit or loss	(22,078)		(7,810)		8,754
Net sales/(purchases) of investments	1,405		2,282		(10,049)
Decrease in other receivables	793		1,004		179
(Increase)/decrease in amounts due from brokers	(1,042)		3,210		3,201
Increase/(decrease) in other payables	32		(58)		(37)
Increase in amounts due to brokers	-		2,090		-
Stock dividends included in investment income	-		-		(405)
Taxation on investment income	(349)		(321)		(1,298)
Net cash inflow from operating activities	4,816		11,662		7,400
Net cash inflow before use of financing	4,816		11,662		7,400
Net cash (outflow)/inflow from financing	(3,312)		1,383		(3,632)
Increase in cash and cash equivalents	1,504		13,045		3,768
Cash and cash equivalents at the start of the period	2,784		(1,180)		(1,180)
Exchange movements	(535)		43		196
Cash and cash equivalents at the period end	3,753		11,908		2,784

- MORE -

- 11 -

HENDERSON FAR EAST INCOME LIMITED

Unaudited Results for the half year ended 29 February 2012

Notes:

1.	Accounting Policies: Basis of preparation
	The condensed interim financial information has been prepared on a going concern basis and in accordance with IAS 34. The Annual Report and Financial Statements for the year ended 31 August 2011 were prepared in accordance with International Financial Reporting Standards ('IFRS') and the unaudited results for the half year ended 29 February 2012 have been prepared using the same accounting policies. The condensed financial information for the half years ended 29 February 2012 and 28 February 2011 have not been audited.
2.	Earnings per ordinary share
	The earnings per ordinary share figure is based on the net profit after taxation of £25,792,000 (half year ended 28 February 2011: £10,944,000; year ended 31 August 2011: £5,676,000) and on 100,613,256 ordinary shares (half year ended 28 February 2011: 98,163,713; year ended 31 August 2011: 98,873,304), being the weighted average number of ordinary shares in issue during each of the periods.
	The earnings per ordinary share detailed above can be further analysed between revenue and capital, as below:

		Half year ended 29 February 2012 (Unaudited) £'000		Half year ended 28 February 2011 (Unaudited) £'000		Year ended 31 August 2011 (Audited) £'000
Net revenue gain		4,579		4,087		16,303
Net capital gain/(loss)		21,213		6,857		(10,627)
Net total gain		25,792		10,944		5,676
Weighted average number of ordinary shares in issue during the period		100,613,256		98,163,713		98,873,304
		Pence		Pence		Pence
Revenue earnings per ordinary share		4.55		4.16		16.49
Capital/(loss) earnings per ordinary share		21.08		6.99		(10.75)
Total earnings per ordinary share		25.63		11.15		5.74

3.	Net asset value per ordinary share
	The basic net asset value per ordinary share is based on a net asset value of £309,292,000 (28 February 2011: £297,095,000; 31 August 2011: £287,389,000) and on 101,480,564 (28 February 2011: 99,130,564; 31 August 2011: 100,105,564) ordinary shares, being the number of ordinary shares in issue at each period end.
4.	Transaction costs
	Purchase transaction costs for the half year ended 29 February 2012 were £201,000 (half year ended 28 February 2011: £159,000; year ended 31 August 2011: £405,000). These mainly comprise commission. Sales transaction costs for the half year ended 29 February 2012 were £235,000 (half year ended 28 February 2011: £253,000; year ended 31 August 2011: £524,000).
	- MORE - - 12 - HENDERSON FAR EAST INCOME LIMITED Unaudited Results for the half year ended 29 February 2012
5.	Share capital
	During the six months under review the Company issued a total of 1,375,000 shares for net proceeds of £3,959,000.
6.	Interim dividend
	On 30 November 2011, the Company paid a fourth interim dividend of 3.90p per share in respect of the year ended 31 August 2011. A first interim dividend of 3.90p per share was paid on 29 February 2012. The second interim dividend of 3.90p per share will be paid on 31 May 2012 to shareholders on the register on 4 May 2012. The Company's shares will be quoted ex-dividend on 2 May 2012. Based on the number of shares in issue on 18 April 2012, the cost of this dividend will be £3,958,000.
7.	Going concern
	The Directors believe that it is appropriate to adopt the going concern basis in preparing the financial statements. The assets of the Company consist mainly of securities that are readily realisable and, accordingly, the Company has adequate financial resources to continue in operational existence for the foreseeable future. In reviewing the position as at the date of this statement, the Board has considered the going concern and liquidity risk: 'Guidance for Directors of UK Companies 2009' issued by the Financial Reporting Council in October 2009
8.	Half Year Report
	The Half Year Report will be available on the Company's website (www.hendersonfareastincome.com) or in hard copy format from the Company's registered office, Liberté House, 19-23 La Motte Street, St Helier, Jersey, JE2 4SY from 24 April 2012. Shareholders will be sent a copy of the Update, an abridged version of the half year results in late April.
9.	General Information
	a)   Company Objective To seek to provide a high level of dividends as well as capital appreciation over the long term, from a diversified portfolio of investments traded on the Pacific, Australasian, Japanese and Indian stock markets ('the Asia Pacific region'). b)    Company Status The Company is a Jersey domiciled closed-end investment company, number 95064, which was incorporated in 2006 and which is listed on the London and New Zealand Stock Exchanges. The ISIN number is JE00B1GXH751. The London Stock Exchange code is HFEL. The Company is a Jersey fund which is regulated by the Jersey Financial Services Commission. c)    Directors, Secretary and Registered Office The Directors of the Company are John Russell (Chairman), David Mashiter, Simon Meredith Hardy, Richard Povey and David Staples. The Secretary is BNP Paribas Securities Services Fund Administration Limited, represented by Jeremy Hamon and which is regulated by the Jersey Financial Services Commission. The registered office is Liberté House, 19-23 La Motte Street, St.Helier, Jersey, JE2 4SY. d)    Website Details of the Company's share price and net asset value, together with general information about the Company, monthly factsheets and data, profiles of the Board, copies of announcements, reports and details of general meetings can be found at www.hendersonfareastincome.com  MORE - -13- HENDERSON FAR EAST INCOME LIMITED Unaudited Results for the half year ended 29 February 2012

INDEPENDENT REVIEW REPORT TO HENDERSON FAR EAST INCOME

LIMITED

Introduction

We have been engaged by the Company to review the condensed set of financial

statements in the half-yearly financial report for the six months ended 29 February 2012

which comprises the Condensed Statement of Comprehensive Income, the Condensed

Balance Sheet, the Condensed Statement of Changes in Equity, the Condensed Statement

of Cash Flows and the related explanatory notes. We have read the other information

contained in the half yearly financial report and considered whether it contains any

apparent misstatements or material inconsistencies with the information in the condensed

set of financial statements.

This report is made solely to the company in accordance with guidance contained in

International Standard on Review Engagements 2410 (UK and Ireland) "Review of

Interim Financial Information Performed by the Independent Auditor of the Entity"

issued by the Auditing Practices Board. To the fullest extent permitted by law, we do not

accept or assume responsibility to anyone other than the company, for our work, for this

report, or for the conclusions we have formed.

Directors' Responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the

directors. The directors are responsible for preparing the half-yearly financial report

in accordance with the Disclosure and Transparency Rules of the United Kingdom's

Financial Services Authority.

As disclosed in note 1, the annual financial statements of the company are prepared in

accordance with IFRSs. The condensed set of financial statements included in this half-

yearly financial report has been prepared in accordance with International Accounting

Standard 34, "Interim Financial Reporting".

-MORE-

-14-

HENDERSON FAR EAST INCOME LIMITED

Unaudited Results for the half year ended 29 February 2012

Our Responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of

financial statements in the half-yearly financial report based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review

Engagements (UK and Ireland) 2410, "Review of Interim Financial Information

Performed by the Independent Auditor of the Entity" issued by the Auditing Practices

Board for use in the United Kingdom. A review of interim financial information consists

of making enquiries, primarily of persons responsible for financial and accounting matters,

and applying analytical and other review procedures. A review is substantially

less in scope that an audit conducted in accordance with International Standards on

Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that

we would become aware of all significant matters that might be identified in an audit.

Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the

condensed set of financial statements in the half-yearly financial report for the six months

ended 29 February 2012 is not prepared, in all material respects, in accordance with

International Accounting Standard 34 and the Disclosure and Transparency Rules of the

United Kingdom's Financial Services Authority.

Ernst & Young LLP

Jersey

Channel Islands

18 April 2012

- MORE -

 -15-

HENDERSON FAR EAST INCOME LIMITED

Unaudited Results for the half year ended 29 February 2012

	For further information please contact:
	Mike Kerley
	Portfolio Manager, Henderson Far East Income Limited
	Telephone: [phone]
	James de Sausmarez
	Director, Head of Investment Trusts, Henderson Global Investors
	Telephone: [phone]
	Sarah Gibbons-Cook
	Investor Relations and PR Manager, Henderson Global Investors
	Telephone: [phone]
	Jeremy Hamon
	BNP Paribas Securities Services Fund Administration Limited, Company Secretary
	Telephone: [phone]

- ENDS -

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

 

END

 

 

IR GGUGACUPPGAR