Interim Management Statement

RNS Number : 9803F

Henderson Far East Income Limited

22 June 2012

 



HENDERSON FAR EAST INCOME LIMITED

22 June 2012

HENDERSON FAR EAST INCOME LIMITED

Interim Management Statement

Review of the period from 1 March 2012 to 31 May 2012

MATERIAL EVENTS OR TRANSACTIONS DURING THE PERIOD

Portfolio: During the period there was net disinvestment of £0.2m, and the number of holdings in the portfolio reduced slightly to 45. The stocks that were sold were: China Construction, Skyworth Digital Holdings, Sun Hung Kai Properties, Mizuho Financial Group, Petronas Chemicals, Yuanta Financial                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             and Kasikornbank.

There are eight new stocks in the portfolio: Bank of China, Cheung Kong Holdings, Indo Tambangraya Megah, Telekomunikasi Indonesia, Telecom Corporation of New Zealand, Semcorp Marine, Taiwan Mobile and Krung Thai Bank.

Tesco Lotus was bought and sold in the period.

Asian markets ended the quarter sharply lower as market sentiment was once again dominated by European political and economic uncertainty. French and Greek elections in the period raised fears that austerity measures would be opposed thus causing further concerns about the European economy and the Eurozone in particular. In addition, company and economic data emanating from Asia was mixed with weaker than expected GDP growth in India and Chinese industrial production and retail sales also disappointing. Against this background, most markets had negative returns over the period. However Asian equity valuations and fundamentals remain attractive with the portfolio remaining overweight in domestic focused companies with little exposure to global cyclicals such as commodities and technology.

Over the period three put options were sold and two put options expired, without take up, in March and April 2012.

Share Issues: During the period 50,000 shares were issued in one tranche. The proceeds of this issue, net of commission, was £152,235.00.

Dividends: A second interim dividend of 3.90p per Ordinary Share, in respect of the year ending 31 August 2012, was paid on 31 May 2012 to holders registered on 4 May 2012. The ex-dividend date was 2 May 2012.

Discount/Premium:  the share price premium to net asset value increased over the period to 2.6%.

PERFORMANCE AND FINANCIAL HIGHLIGHTS

Performance to 31 May 2012

	3 months	1 year	3 years	5 years
Net Asset Value Total Return per ordinary share (%)	-6.01	-2.82	32.24	35.60

Source:   Funddata

Financial Position

	at 31 May 2012	at 29 February 2012
Net assets	£287.6m	£309.2m
Net asset value cum income	283.2p	304.4p
Net asset value ex income	282.1p	304.2p
Ordinary share price	290.5p	302.0p
Premium	2.6%	1.9%
Gearing	0.0%	0.0%
Yield	5.37%	5.17%

THE PORTFOLIO

Top 10 Investments	Country	% of portfolio	% of portfolio
		at 31 May 2012	at 29 February 2012
CTCI Corporation	Taiwan	2.9	2.8
Link Reit	Hong Kong	2.9	2.5
Taiwan Cement	Taiwan	2.8	2.0
Taiwan Semiconductor Manufacturing	Taiwan	2.8	2.6
Bank of China	China	2.7	2.6
Television Broadcasts	Hong Kong	2.7	2.4
China Mobile		2.7	2.6
Industrial & Commercial Bank of China	China	2.7	2.6
Jiangsu Expressway	China	2.7	2.9
Ascendas REIT	Singapore	2.7	2.5

Geographic Breakdown	% at 31 May 2012	% at 29 February 2012
China	22.3	22.5
Australia	15.1	17.7
Singapore	11.8	9.3
Thailand	11.2	10.6
Taiwan	10.7	10.0
Hong Kong	9.5	11.5
South Korea	7.2	8.0
Indonesia	5.5	2.3
New Zealand	2.5	0.0
Malaysia	2.2	3.8
The Philippines	2.0	2.2
Japan	0.0	2.1

Sector Breakdown	% at 31 May 2012	% at 29 February 2012
Telecommunications	17.8	12.1
Financials	17.4	19.6
Industrials	15.7	16.6
Property	13.8	15.2
Consumer Services	10.9	11.0
Basic Materials	6.3	6.5
Oil & Gas	6.1	5.2
Consumer Goods	4.9	6.1
Technology	4.7	5.4
Utilities	2.4	2.3

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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