Interim Management Statement

RNS Number : 2081Y

Henderson Far East Income Limited

17 December 2010

 



HENDERSON FAR EAST INCOME LIMITED

17 December 2010

HENDERSON FAR EAST INCOME LIMITED

Interim Management Statement

Review of the period from 1 September 2010 to 30 November 2010

MATERIAL EVENTS OR TRANSACTIONS DURING THE PERIOD

Portfolio: During the period there was net investment of £8.3m, and the number of holdings in the portfolio increased to 50. The stocks that were sold were: China Construction Bank, Petrochina, Shimao Property and Mega Financial.

There are five new stocks in the portfolio: China Railways Construction, Digital China, Kangwon Land, UMW Holdings and PTT.

The portfolio continues to be focused on stocks and sectors that have exposure to domestic Asian growth and away from areas that are reliant on the global cycle with over 60% of the portfolio 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). The portfolio remains overweight China.

Over the period one put and one call option expired in November 2010.

Shares Issues: During the period 1,600,000 shares were issued in 12 tranches. The proceeds of these issues, net of commission, was £5,220,765.00.

Dividends: A fourth interim dividend of 3.60p per ordinary Share, in respect of the year ending 31 August 2010, was paid on 30 November 2010 to holders registered on 5 November 2010.

Discount/Premium:  the share price premium to net asset value increased over the period to 2.7%.

PERFORMANCE AND FINANCIAL HIGHLIGHTS

Performance to 30 November 2010

	3 months	1 year	3 years	5 years*
Net Asset Value Total Return per ordinary share (%)	10.46	19.83	28.83	89.26

Source:   Datastream

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

Financial Position

	at 31 August 2010	at 30 November 2010
Net assets	£284.9m	£313.0m
Net asset value cum income	295.0p	318.8p
Net asset value ex income	293.1p	317.0p
Ordinary share price	298.3p	327.5p
Premium	1.1%	2.7%
Gearing	0.0%	0.0%
Yield	4.43%	4.15%
Total Expense Ratio	1.23%	1.23%

THE PORTFOLIO

Top 10 Investments	Country	% of portfolio	% of portfolio
		at 31 August 2010	at 30 November 2010
BOC Hong Kong Holdings	Hong Kong	2.9	3.2
Bank of China	China	2.7	3.1
Lonking Holdings	China	2.5	3.0
SK Telecom	South Korea	2.6	2.7
Digital China	China	0.0	2.6
Incitec Pivot	Australia	2.4	2.5
Link Reit	Hong Kong	2.7	2.5
Fraser & Neave	Singapore	2.5	2.5
Advanced Information Services	Thailand	2.7	2.5
Chunghwa Telecom	Taiwan	2.3	2.5

Geographic Breakdown	% at 31 August 2010	% at 30 November 2010
China	20.8	20.6
Hong Kong	16.8	17.2
Taiwan	17.7	14.9
Australia	11.7	11.1
Singapore	10.6	10.4
South Korea	8.2	9.3
Thailand	7.3	8.3
Indonesia	4.4	4.4
Philippines	2.5	2.2
Malaysia	0.0	1.6

Sector Breakdown	% at 31 August 2010	% at 30 November 2010
Financials	26.4	22.4
Industrials	16.0	17.3
Telecommunications	17.4	16.4
Property	13.5	10.3
Technology	7.3	9.5
Basic Materials	5.8	6.5
Oil & Gas	6.2	6.4
Consumer Services	4.3	5.6
Consumer Goods	1.2	3.2
Utilities	1.9	2.4

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]

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.

- ENDS -

 

END

 

 

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