Interim Management Statement

RNS Number : 6109H

Henderson Far East Income Limited

21 June 2013

 



HENDERSON FAR EAST INCOME LIMITED

21 June 2013

HENDERSON FAR EAST INCOME LIMITED

Interim Management Statement

Review of the period from 1 March 2013 to 31 May 2013

MATERIAL EVENTS OR TRANSACTIONS DURING THE PERIOD

Portfolio: During the period there was net disinvestment of £1.6m, and the number of holdings in the portfolio increased to 54. The stocks that were sold were: MGM China, Indo Tambangraya Magah, Korean Reinsurance, UMW Holdings, Singapore Telecommunications, Asia Cement, Aust & NZ Banking

There are seven new stocks in the portfolio: National Australia Bank, Spreadtrum Communications, SJM Holdings, Malayan Banking, Cleanway, Taiwan Cement, Taiwan Mobile.

Evergrande Real Estate and BTS Rail were bought and sold in the period.

The portfolio remains focused on domestically orientated companies with an emphasis on dividend growth as some of the traditional high yielding sectors and companies have become expensive. The fall in the weighting in Australia and Indonesia is reflective of this change. The weighting in Taiwan has increased to reflect the attractive opportunities that exist in this market.

Over the period three put options were sold and two put options expired, without take up, in March 2013.

Share Issues: During the period 1,500,000 shares were issued in five tranches. The proceeds of these issues, net of commission, was £5,492,897.50.

Dividends: A second interim dividend of 4.10p per Ordinary Share, in respect of the year ending 31 August 2013, was paid on 31 May 2013 to holders registered on 10 May 2013. The ex-dividend date was 8 May 2013.

Discount/Premium:  Over the period, the share price moved from a discount to net asset value of 0.7% to a premium of 0.8%.

PERFORMANCE AND FINANCIAL HIGHLIGHTS

Performance to 31 May 2013

	3 months	1 year	3 years	5 years
Net Asset Value Total Return per ordinary share (%)	0.14	31.05	42.09	61.57

Source:   Morningstar Funddata

Financial Position

	at 31 May 2013	at 28 February 2013
Net assets	£368.4m	£366.7m
Net asset value cum income	353.1p	356.5p
Net asset value ex income	351.4p	355.8p
Ordinary share price	356.0p	354.0p
Premium/(Discount)	0.8%	(0.7%)
Gearing	7.2%	5.9%
Yield	4.55%	4.58%

THE PORTFOLIO

Top 10 Investments	Country	% of portfolio	% of portfolio
		at 31 May 2013	at 28 February 2013
Malayan Banking	Malaysia	2.8	0.0
Asustek Computer	Taiwan	2.7	2.4
Bank of China	China	2.7	2.6
Advanced Information Serv.	Thailand	2.6	1.9
Telecom Corp. of New Zealand	New Zealand	2.5	2.7
Suncorp Group	Australia	2.4	3.1
China Mobile	China	2.4	1.9
National Australia Bank	Australia	2.3	0.0
Digital China Holdings	China	2.3	2.5
Tabcorp Holdings	Australia	2.2	2.3

Geographic Breakdown	% at 31 May 2013	% at 28 February 2013
China	17.4	18.0
Australia	15.7	17.5
Taiwan	15.0	10.3
Hong Kong	14.0	11.8
South Korea	9.7	10.9
Thailand	8.9	9.0
Singapore	8.6	10.3
Malaysia	2.8	1.9
New Zealand	2.6	2.7
The Philippines	1.9	2.0
Indonesia	1.7	3.8
India	1.7	1.8

Sector Breakdown	% at 31 May 2013	% at 28 February 2013
Financials	18.4	16.9
Telecommunications	17.0	17.4
Property	15.2	15.8
Industrials	15.1	11.5
Consumer Services	13.2	13.9
Technology	12.0	9.7
Oil & Gas	5.0	5.4
Consumer Goods	3.9	6.1
Basic Materials	0.2	3.3

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]

Henderson Far East Income Limited is a Jersey fund with its registered office at Liberté House, 19-23 La Motte Street, St Helier, Jersey JE2 4SY and is regulated by the Jersey Financial Services Commission.

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.

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