Interim Management Statement

RNS Number : 4721E

Henderson Far East Income Limited

21 December 2009

 



HENDERSON FAR EAST INCOME LIMITED

21 December 2009 

HENDERSON FAR EAST INCOME LIMITED

Interim Management Statement 

Review of the period from 1 September 2009 to 30 November 2009 

MATERIAL EVENTS OR TRANSACTIONS DURING THE PERIOD

Portfolio: During the period there was net investment of £6.9m, and the number of holdings in the portfolio remained at 46. The stock that was sold was China Mobile.

There is one new stock in the portfolio, which is KT & G.

The portfolio is focused on stocks and sectors that have exposure to domestic Asian growth and away from areas that are reliant on the global cycle. Over 60% of the portfolio is exposed to three key themes - Financials/Property (undervalued owing to negative sentiment towards the sector), Industrials (beneficiaries of increased government expending) and telecommunications (offer high and sustainable cash flow and dividend).

Share Issues: On 10 March 2009 the Company applied for the block listing of 7,762,261 shares. During the period 1,685,000 shares were issued in seven tranches. The proceeds of these issues, net of commission, was £4,762,194.

Material Events/Transactions: On 4 December 2009 the Company allotted 6,462,943 ordinary shares in the Company at a price of 289.47 pence per share representing the net asset value per share in the Company as at 3 December 2009 plus a premium of 2 per cent. to reflect the costs of issuing the Shares. Following the admission of the Shares to the Official List on 11 December 2009 there were 91,505,564 shares in the Company in issue. Subsequent to the placing, the Company applied for a blocklisting of 9,150,555 shares. No shares have been issued from this blocklisting during the period.

Dividends: A fourth interim dividend of 3.20p per ordinary Share, in respect of the year ending 31 August 2009, was paid on 30 November 2009 to holders registered on 6 November 2009.

Discount/Premium:  the share price premium to net asset value narrowed over the period to 2.73%.

PERFORMANCE AND FINANCIAL HIGHLIGHTS

Performance to 30 November 2009

	3 months	1 year	3 years*	5 years*
Net Asset Value Total Return per ordinary share (%)	5.94	51.66	26.33	40.64

Source: Datastream

* Data prior to December 2006 relates to the previous company, Henderson Far East Income Trust plc. 

Financial Position 

	at 30 November 2009	at 31 August 2009
Net assets	£236m	£215m
Net asset value	277.9p	258.5p
Ordinary share price	285.5p	269.5p
Premium	2.73%	4.4%
Gearing	0.0%	0.0%
Yield	4.34%	4.52%
Total Expense Ratio	1.19%	1.19%

THE PORTFOLIO

Top 10 Investments	Country	% of portfolio	% of portfolio
		at 30 November 2009	at 31 August 2009
Bank of China	China	4.0	3.9
Industrial & Commercial Bank of China	China	3.2	3.0
Kasikornbank	Thailand	2.9	2.8
Telekomunikasi Indonesia	Indonesia	2.6	2.6
BOC Hong Kong Holdings	Hong Kong	2.6	2.6
QBE Insurance	Australia	2.6	2.8
KT & G	Korea	2.5	-
Link Reit	Hong Kong	2.5	2.5
Asustek Computer	Taiwan	2.5	2.2
Singapore Technologies Engineering	Singapore	2.4	2.3

Geographic Breakdown	% at 30 November 2009	% at 31 August 2009
China	21.4	23.5
Hong Kong	17.9	18.2
Taiwan	14.6	15.5
Singapore	13.5	12.5
Australia	11.0	11.5
Thailand	8.9	9.4
South Korea	8.1	4.7
Indonesia	2.6	2.6
Philippines	2.0	2.1

Sector Breakdown	% at 30 November 2009	% at 31 August 2009
Financials	25.2	24.1
Property	17.7	16.9
Telecommunications	17.0	20.1
Industrials	16.6	17.0
Technology	6.6	6.7
Consumer Goods & Services	6.5	4.2
Oil & Gas	6.1	6.2
Basic Materials	4.3	4.8

The objective of Henderson Far East Income Limited is to seek a high level of dividends as well as capital appreciation over the long term, from a diversified portfolio of securities traded on the Pacific, Australasian, Japanese and Indian stock markets (the "Asia Pacific Region").

Further information on the Company, including an up to date NAV and share price information, can be found at www.hendersonfareastincome.com 

For further information, please contact:

Jeremy Hamon Company Secretary Telephone: [phone]	James de Sausmarez Head of Investment Trusts Henderson Global Investors Telephone: [phone]
Sarah Gibbons-Cook Investor Relations and PR Manager Henderson Global Investors Telephone: [phone]

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