Half Yearly Report

RNS Number : 5016C

Henderson Far East Income Limited

16 April 2013

 



16 April 2013

This announcement contains regulated information.

HENDERSON FAR EAST INCOME LIMITED

Unaudited Results for the half year ended 28 February 2013

Financial Highlights	As at 28 February 2013
Total net assets	£366,683,000
Net asset value per ordinary share	356.5p
Market price per ordinary share	354.0p
Discount	0.7%
Dividends - first interim (paid 28 February 2013)	4.1p
-  second interim (payable 31 May 2013)	4.1p
Performance	Six months to 28 February 2013
Net Asset Value Total Return	23.5%
Share Price Total Return +	25.1%
FTSE All -World Asia Pacific ex Japan Index (Total Return)*+	21.9%
FTSE All - World Asia Pacific Index (Total Return) *+	21.4%
Dividends paid in the period	8.2p

+ 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

•        Net asset value total return of 23.5%

•        Total revenue up 15% on the prior year period 

•        Positive outlook for dividend growth in Asia

I am pleased to report that the Company achieved a net asset value total return of 23.5% over the period under review, which was 1.6% better than the FTSE All -World Asia Pacific ex Japan Index total return of  21.9%. The share price total return for the period was 25.1%. Total revenue increased by 15%. More detail is covered in the Manager's Report.

Dividends

On 30 November 2012, your Company paid a fourth interim dividend of 4.1p per share in respect of the year ended 31 August 2012 making a total of 16.0p for the year, an increase of 6.7% over the previous year. In respect of the current financial year, a first interim dividend of 4.1p per share was paid on 28 February 2013 and a second interim dividend of the same amount has been declared and will be paid on 31 May 2013.

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HENDERSON FAR EAST INCOME LIMITED

Unaudited Results for the half year ended 28 February 2013

INTERIM MANAGEMENT REPORT (continued)

Chairman's Statement

Material Events or Transactions

A total of 1,265,000 new shares were issued in the six months to 28 February 2013 at a premium to net asset value, thereby enhancing the net asset value per share. Your Board will continue to allot shares where it is in the interests of shareholders to do so.

In February of this year the Company renewed its one year revolving multi-currency loan facility with Commonwealth Bank of Australia and increased the maximum amount of the loan to £45 million. At the period end £21.8 million had been drawn down.

In accordance with best practice, your Board conducted an audit review in February and appointed KPMG Channel Islands Limited as Auditor to the Company in place of Ernst & Young LLP.

Outlook

Asian markets rallied strongly over the period led by China, which was pleasing given our significant exposure to that country. Valuations remain attractive and the prospects for dividend growth are strong, thus providing a positive backdrop for the second half of the year. In view of this, your Board is confident that it will be able at least to maintain the level of annual dividend. Nevertheless, the recent escalation of nuclear threats by North Korea, combined with continuing concerns over US economic recovery and European Monetary Union mean that immediate prospects for markets are uncertain.

Overall, your Board remains positive on the economic outlook and revenue generating capability of the region and believes that the company's portfolio is well positioned to take advantage of current and future investment opportunities.

John Russell

Chairman

16 April 2013

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 2012. 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 2012. 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.

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HENDERSON FAR EAST INCOME LIMITED

Unaudited Results for the half year ended 28 February 2013

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

16 April 2013

Portfolio Manager's Report

Market

The Asian markets posted strong returns in the period under review with the FTSE All-World Asia Pacific ex Japan Index returning 21.9% in sterling terms. Although underlying markets were robust, returns were significantly bolstered by the weakness of sterling, which accounted for over 6% of the index return.

The macro factors that have dominated market direction in the last few years combined to produce a positive backdrop for global equities. The US economy continued to show tentative signs of recovery, especially in housing and the much feared 'fiscal cliff' negotiations in January 2013 passed without incident. Even though the growth outlook in Europe remains sluggish, the ECB's liquidity support has kept bond yields low: even an inconclusive Italian election was not enough to derail the optimism. In Japan the sweeping election victory of Shinzo Abe on a growth mandate of targeted inflation and aggressive quantitative easing led to renewed optimism that the world's third largest economy may at last drag itself out of its multi-year deflationary downturn.

The most important macro indicator for Asia though came in China. After bottoming at 7.4% in the third quarter of 2012, Chinese GDP growth accelerated to 7.9% in the fourth quarter allaying the fears that China's growth outlook was in terminal decline. The leadership change announced at the party congress in November 2012 and cemented at the Peoples' Congress in March 2013 passed without incident with the hope that new President Xi Jinping would embark on a more aggressive reform agenda than his predecessor.

The improving outlook for Chinese growth was reflected in share prices as the Chinese market outperformed most of its regional peers over the period. The other notable markets were the Philippines and Thailand which continued their strong recent performance rising 41% and 30% respectively in sterling terms.  Malaysia was the major laggard as doubts about the ruling UMNO coalition's ability to hold onto power in the forthcoming election impacted market sentiment.

Returns at the sector level were less predictable with some sectors, including technology exposed to the global cycle performing well while others such as materials and energy languished. The same disparity was evident in the more defensive sectors with healthcare and consumer staples near the top of the list while telecoms and utilities were near the bottom.

- 4 -

HENDERSON FAR EAST INCOME LIMITED

Unaudited Results for the half year ended 28 February 2013

Portfolio Manager's Report (continued)

Performance

The portfolio performed well over the six month period with the total return NAV rising 23.5% in sterling terms. The outperformance was mainly due 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 energy and materials where we only have a modest exposure and India where although we have added a holding over the period we are still materially underweight. The heavy allocation to telecommunications and our underweight position in Australia were detrimental.

High income stocks continue to be in demand in a low interest rate environment but with the growth outlook improving, our exposure to dividend growth was also beneficial. The best performing stocks over the period reflected the strength of both themes with dividend growth companies such as Krung Thai Bank in Thailand, Kangwon Land in South Korea and Wharf in Hong Kong and high yielders such as  Myer Holdings and Suncorp in Australia and SK Telecom in South Korea all producing strong gains.

Revenue

We remain optimistic on the dividend outlook for Asia this year. Last year dividend growth was lower than we expected as some companies chose to preserve cash in an uncertain global environment rather than committing to increased levels of dividend.  With Asian economies on a firm footing and cash generation abundant we expect an improvement in this financial year.

This improvement is borne out in the revenue numbers at the half year stage. Although total revenue increased by a healthy 15% over the last year, income from dividends increased by 29.5% reflecting the improved distribution from the companies we own. Currency gains have further increased these returns and although this factor cannot be relied upon for the full year, the underlying dividend growth gives us confidence. The low levels of volatility in markets provided fewer opportunities to use derivatives and as a result the income derived from this strategy was down year on year.

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.

Strategy

The portfolio retains its emphasis on domestically focused sectors and away from global cyclicals. We believe that the growth in world economies will be focused on emerging markets and in particular Asia in the coming years and that companies exposed to this trend are likely to be able to deliver sustainable cash flow and income. Forecasting 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 stocks where a significant proportion of sales depend on western consumer demand, which in our view will be constrained by ongoing austerity measures.

The demand for yield from both international and domestic investors has pushed valuations in some of the more traditional high income sectors to unattractive levels. Utilities, healthcare and consumer staples are especially rich and we find it increasingly difficult to find suitable investments in these areas. For this reason our weightings in these areas are low or non-existent as we strongly believe that over paying for income can be detrimental to capital performance. We currently find that companies with lower yields and higher dividend growth are more appealing and as a result we have marginally tilted the portfolio towards these areas in recent months.

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HENDERSON FAR EAST INCOME LIMITED

Unaudited Results for the half year ended 28 February 2013

Portfolio Manager's Report (continued)

Although the performance of Chinese shares has improved of late we still believe that the valuation discount to the region is unjustified and as a result we are finding plenty of opportunities for high yield and dividend growth in this market. The weighting in China has not changed over the period although we have added China Construction Bank and property company Evergrande to the portfolio at the expense of Bosideng which we disposed of following a strong period of performance.

We also retain our positive view on Thailand despite the market's strong performance. Valuations remain attractive, especially compared to other ASEAN markets, and the continued political stability has led to increased consumer optimism. We also have a large weighting in Singapore which continues to benefit from strong GDP growth fuelled by immigration, tourism, finance and business services.

Of all the traditional yielding sectors telecommunications still offers the best value and we retain a large exposure to this area. In recent months the focus has moved away from the developed market telecoms of Australia, Taiwan and Hong Kong towards the emerging markets of Indonesia, Thailand, The Philippines and China where we feel that the growth prospects justify the current valuations. Recent additions include Singapore Telecommunications which we re-visited following a period of underperformance.

Although we are not positive on the outlook for Australian growth we have added a more domestic bias to our Australian portfolio. We have sold fertilizer company Incitec Pivot and added department store Myer Holdings and media company Seven West Media. Both of these companies are turnaround stories on improving cost efficiencies and are beneficiaries of falling interest rates.

For the first time in a number of years we have initiated a position in India. Overall we still believe the Indian market is expensive but the recent weakness has presented some opportunities and we have added Cairn India to the portfolio. Cairn is an oil and gas company with a strong production profile from its Rajasthan field with some of the lowest lifting costs of any energy company globally. The company is attractively priced with strong cash flow and a growing yield.

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 improving growth outlook in China and the tentative signs of recovery in the US should be positive for Asian economic and equity market growth. Valuations in Asia are attractive relative to their own history and other world markets and companies are cash rich with tremendous potential to increase dividends over time. We will use any market volatility as an opportunity to acquire quality high yielding or high dividend growth companies at attractive prices.

Michael Kerley

Portfolio Manager

16 April 2013

- 6 -

HENDERSON FAR EAST INCOME LIMITED

Unaudited Results for the half year ended 28 February 2013

Investment Portfolio

As at 28 February 2013                                                                           

			Value	% of		Value	% of
			£'000	portfolio		£'000	portfolio
Australia					New Zealand
Suncorp			12,140		Telecom Corp of New Zealand	10,707	2.7
Myer Holdings			9,727
Amcor			9,713		The Philippines
Tabcorp Holdings			8,887		Philippine Long Distance Telephone	7,686	2.0
Santos			7,420
Australia and New Zealand Banking Group			7,343		Singapore
Telstra Corporation			7,213		DBS Group	7,363
Seven West Media			6,313		Ascendas Real Estate	7,332
			68,756	17.5	Capitalmall Trust REIT	7,282
					Singapore Telecommunications	7,251
China					Sembcorp Marine	6,517
Bank of China			10,394		SATS	4,984
Digital China Holdings			9,855			40,729	10.3
MGM China			9,355
Shanghai Industrial			8,831
China Mobile			7,614		South Korea
China Construction Bank			7,128		SK Telecom	11,150
Jiangsu Expressway			6,846		Korean Reinsurance	7,671
Guangzhou R&F Properties			5,225		Kangwon Land	7,603
Evergrande Real Estate			4,701		Hyundai Motor	6,595
China Forestry Holdings			780		Grand Korea Leisure	5,605
			70,729	18.0	Macquarie Korea Infrastructure Fund	4,399
						43,023	10.9
Hong Kong
NWS Holdings			9,281		Taiwan
New World Development			7,954		Asustek Computer	9,460
Wharf Holdings			7,839		Taiwan Semiconductor Manufacturing	7,902
Television Broadcasts			7,285		Catcher Technology*	6,350
Mapletree Greater China			7,227		Asia Cement	6,303
Cheung Kong Holdings			7,063		CTCI Corporation	5,637
			46,649	11.8	HTC Corp*	4,771
					HTC Corp  March 13 put (expiry 01.03.13)	-
India					Catcher Technology March 13 put (expiry 01.03.13)	(2)
Cairn India			7,161	1.8		40,421	10.3
Indonesia					Thailand
Telekomunikasi Indonesia			9,269		Krung Thai Bank	10,063
Indo Tambangraya Megah			5,706		Charoen Pokphand Food	10,035
			14,975	3.8	LPN Development	7,728
					Advanced Information Services	7,640
Malaysia						35,466	9.0
UMW Holdings			7,326	1.9
					Total Investments	393,628	100.0

*The value of the investments shown on the balance sheet has been grossed up to exclude options valued at (£2,000).

- 7-

HENDERSON FAR EAST INCOME LIMITED

Unaudited Results for the half year ended 28 February 2013

Condensed Statement of Comprehensive Income

for the half year ended 28 February 2013                                                                                                 

		Half year ended 28 February 2013 (Unaudited)			Half year ended 29 February 2012 (Unaudited)			Year ended 31 August 2012 (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		6,191	-	6,191	4,779	-	4,779	18,643	-	18,643
Other income, including option premium income		373	-	373	928	-	928	2,220	-	2,220
Gains on investments held at fair value through profit or loss		- _______	66,458 _______	66,458 _______	- _______	22,078 _______	22,078 _______	- _______	9,085 _______	9,085 _______
Total income		6,564 _______	66,458 _______	73,022 _______	5,707 _______	22,078 _______	27,785 _______	20,863 _______	9,085 _______	29,948 _______
Expenses
Management fees		(902)	(902)	(1,804)	(691)	(690)	(1,381)	(1,423)	(1,423)	(2,846)
Other expenses		(184) _______	(184) _______	(368) _______	(171) _______	(171) _______	(342) _______	(379) _______	(379) _______	(758) _______
Profit before finance costs and taxation		5,478	65,372	70,850	4,845	21,217	26,062	19,061	7,283	26,344
Finance costs		(54) _______	(54) _______	(108) _______	(3) _______	(4) _______	(7) _______	(11) _______	(11) _______	(22) _______
Profit before taxation		5,424	65,318	70,742	4,842	21,213	26,055	19,050	7,272	26,322
Taxation Profit for the period and total comprehensive income		(467) _______ 4,957	- ______ 65,318	(467) _______ 70,275	(263) _______ 4,579	- ______ 21,213	(263) _______ 25,792	(1,555) _______ 17,495	- ______ 7,272	(1,555) _______ 24,767
		_______	_______	_______	_______	_______	_______	_______	_______	_______
Earnings per ordinary share basic and diluted (note 2)		4.86p _______	64.09p _______	68.95p _______	4.55p _______	21.08p _______	25.63p _______	17.31p _______	7.19p _______	24.50p ________

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

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.

-8-

HENDERSON FAR EAST INCOME LIMITED

Unaudited Results for the half year ended 28 February 2013

Condensed Statement of Changes in Equity

for the half year ended 28 February 2013

	Half year ended 28 February 2013  (Unaudited)
	Stated capital £'000		Distributable reserve £'000		Other capital reserves £'000		Revenue reserve £'000		Total £'000
Total equity at 31 August 2012	67,727		180,471		37,119		15,183		300,500
Total comprehensive income:     Profit for the period	-		-		65,318		4,957		70,275
Transaction with owners,    recorded directly to equity:
Dividends paid	-		-		-		(8,382)		(8,382)
Shares issued	4,312		-		-		-		4,312
Share issue costs	(22)		-		-		-		(22)
Total equity at 28 February 2013	72,017		180,471		102,437		11,758		366,683
	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	63,470		180,471		29,788		13,660		287,389
Total comprehensive income:     Profit for the period	-		-		21,213		4,579		25,792
Transaction with owners, recorded directly to equity:
Dividends paid	-		-		-		(7,848)		(7,848)
Shares issued	3,977		-		-		-		3,977
Share issue costs	(18)		-		-		-		(18)
Total equity at 29 February 2012	67,429		180,471		51,001		10,391		309,292
	Year ended 31 August 2012 (Audited)
	Stated capital £'000		Distributable reserve £'000		Other capital reserves £'000		Revenue reserve £'000		Total £'000
Total equity at 31 August 2011	63,470		180,471		29,788		13,660		287,389
Total comprehensive income:  Profit for the period	-		-		7,272		17,495		24,767
Transaction with owners, recorded directly to equity:
Dividends paid	-		-		-		(15,972)		(15,972)
Shares issued	4,276		-		-		-		4,276
Share issue costs	(19)		-		-		-		(19)
Liquidation proceeds from predecessor company	-		-		59		-		59
Total equity at 31 August 2012	67,727		180,471		37,119		15,183		300,500

- 9-

HENDERSON FAR EAST INCOME LIMITED

 Unaudited Results for the half year ended 28 February 2013

Condensed Balance Sheet

as at 28 February 2013

	28 February 2013 (Unaudited) £'000		29 February 2012 (Unaudited) £'000		31 August 2012 (Audited) £'000
Non current assets
Investments held at fair value through profit or loss	393,630		303,612		311,859
Current assets
Other receivables	12,765		2,715		4,948
Cash and cash equivalents	1,619		3,753		6,076
	14,384		6,468		11,024
Total assets	408,014		310,080		322,883
Current liabilities
Written options Other payables	(2) (19,563)		(140) (648)		(254) (715)
Bank overdrafts	(21,766)		-		(21,414)
	(41,331)		(788)		(22,383)
Net assets	366,683		309,292		300,500
Capital and reserves
Stated capital	72,017		67,429		67,727
Distributable reserve	180,471		180,471		180,471
Retained earnings:
Other capital reserves	102,437		51,001		37,119
Revenue reserve	11,758		10,391		15,183
Total equity	366,683		309,292		300,500
Net asset value per ordinary share (note 3)	356.54p		304.78p		295.82p

The Company does not have any dilutive securities, therefore the basic and diluted returns per share are the same.

- 10-

HENDERSON FAR EAST INCOME LIMITED

Unaudited Results for the half year ended 28 February 2013

Condensed Cash Flow Statement

for the half year ended 28 February 2013

	Half year ended 28 February 2013 (Unaudited) £'000		Half year ended 29 February 2012 (Unaudited) £'000		Year ended 31 August 2012 (Audited) £'000
Net profit before tax	70,742		26,055		26,322
Less gains on investments held at fair value through profit or loss	(66,458)		(22,078)		(9,085)
Purchases of investments	(125,256)		(77,050)		(219,659)
Sales of investments	110,795		78,455		199,661
Decrease in other receivables	-		26		26
Decrease / (increase) in prepayments and accrued income	1,698		767		(1,554)
Increase in amounts due from brokers	(9,515)		(1,042)		(954)
Increase in other payables	86		32		88
Increase in amounts due to brokers	18,771		-		-
Stock dividends included in investment income	(44)		-		(66)
Taxation on investment income	(478)		(349)		(1,630)
Net cash inflow / (outflow) from operating activities	341		4,816		(6,851)
Net cash inflow / (outflow) before use of financing	341		4,816		(6,851)
Net cash (outflow)/inflow from financing	(3,738)		(3,312)		10,335
(Decrease)/increase in cash and cash equivalents	(3,397)		1,504		3,484
Cash and cash equivalents at the start of the period	6,076		2,784		2,784
Exchange movements	(1,060)		(535)		(192)
Cash and cash equivalents at the period end	1,619		3,753		6,076

- 11 -

HENDERSON FAR EAST INCOME LIMITED

Unaudited Results for the half year ended 28 February 2013

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 2012 were prepared in accordance with International Financial Reporting Standards ('IFRS') as adopted by the European Union and the unaudited results for the half year ended 28 February 2013 have been prepared using the same accounting policies. The condensed financial information for the half years ended 28 February 2013 and 29 February 2012 have not been audited.
2.	Earnings per ordinary share
	The earnings per ordinary share figure is based on the net profit after taxation of £70,275,000 (half year ended 29 February 2012: £25,792,000; year ended 31 August 2012: £24,767,000) and on 101,922,995 ordinary shares (half year ended 29 February 2012: 100,613,256; year ended 31 August 2012: 101,077,558) 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 28 February 2013 (Unaudited) £'000		Half year ended 29 February 2012 (Unaudited) £'000		Year ended 31 August 2012 (Audited) £'000
Net revenue gain		4,957		4,579		17,495
Net capital gain		65,318		21,213		7,272
Net total gain		70,275		25,792		24,767
Weighted average number of ordinary shares in issue during the period		101,922,995		100,613,256		101,077,558
		Pence		Pence		Pence
Revenue earnings per ordinary share		4.86		4.55		17.31
Capital earnings per ordinary share		64.09		21.08		7.19
Total earnings per ordinary share		68.95		25.63		24.50

3.	Net asset value per ordinary share
	The basic net asset value per ordinary share is based on a net asset value of £366,683,000 (29 February 2012: £309,292,000; 31 August 2012: £300,500,000) and on 102,845,564 (29 February 2012:101,480,564; 31 August 2012: 101,580,564) 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 28 February 2013 were £287,000 (half year ended 29 February 2012: £201,000; year ended 31 August 2012: £517,000). These mainly comprise commission. Sales transaction costs for the half year ended 28 February 2013 were £254,000 (half year ended 29 February 2012: £235,000; year ended 31 August 2012: £524,000).
	- 12 - HENDERSON FAR EAST INCOME LIMITED Unaudited Results for the half year ended 28 February 2013
5.	Share capital
	During the six months under review the Company issued a total of 1,265,000 shares (half year ended 29 February 2012: 1,375,000; year ended 31 August 2012: 1,475,000) for proceeds of £4,290,000 (half year ended 29 February 2012: £3,959,000; year ended 31 August 2012: £4,257,000) net of costs.
6.	Interim dividend
	On 30 November 2012, the Company paid a fourth interim dividend of 4.1p per share in respect of the year ended 31 August 2012. A first interim dividend of 4.1p per share was paid on 28 February 2013. The second interim dividend of 4.1p per share will be paid on 31 May 2013 to shareholders on the register on 10 May 2012. The Company's shares will be quoted ex-dividend on 8 May 2012. Based on the number of shares in issue on 16 April 2013, the cost of this dividend will be £4,217,000.
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 2013. 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 - 13 - HENDERSON FAR EAST INCOME LIMITED Unaudited Results for the half year ended 28 February 2013

INDEPENDENT REVIEW REPORT TO HENDERSON FAR EAST INCOME LIMITED

Introduction

We have been engaged by Henderson Far East Income Limited (the 'Company') to review the condensed set of financial statements in the half-yearly financial report for the six months ended 28 February 2013 which comprises the Condensed Statement of Comprehensive Income, the Condensed Statement of Changes in Equity, the Condensed Balance Sheet, the Condensed Cash Flow Statement 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 the terms of our engagement to assist the Company in meeting the requirements of the Disclosure and Transparency Rules of the UK's Financial Conduct Authority. Our review has been undertaken so that we might state to the Company those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our review work, for this report, or for the conclusions we have reached.

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 reporting in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.

As disclosed in note 1, the annual financial statements of the company are prepared in accordance with IFRSs, as adopted by the EU. 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".

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.

- 14-

HENDERSON FAR EAST INCOME LIMITED

Unaudited Results for the half year ended 28 February 2013

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 28 February 2013 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 Conduct Authority.

Heather J. MacCallum

For and on behalf of

KPMG Channel Islands Limited

Chartered Accountant and Recognised Auditor

37 Esplanade, St Helier

Jersey, JE4 8WQ

16 April 2013

The maintenance and integrity of www.hendersonfareastincome.com is the responsibility of the Directors; the work carried out by the auditors does not involve consideration of these matters and accordingly, KPMG Channel Islands Limited accepts no responsibility for any changes that may have occurred to the financial statements or our review report since 16 April 2013. KPMG Channel Islands Limited has carried out no procedures of any nature subsequent to 16 April 2013 which in any way extends this date.

Legislation in Jersey governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. The directors shall remain responsible for establishing and controlling the process for doing so, and for ensuring that the financial statements are complete and unaltered in any way.

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

 

 

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