Interim Management Statement

RNS Number : 8957V

Henderson Far East Income Limited

18 December 2013

 



HENDERSON FAR EAST INCOME LIMITED

18 December 2013

HENDERSON FAR EAST INCOME LIMITED

Interim Management Statement

Review of the period from 1 September 2013 to 30 November 2013

MATERIAL EVENTS OR TRANSACTIONS DURING THE PERIOD

Portfolio: During the period there was net disinvestment of £1.5m and the number of holdings in the portfolio remained at 57. The stocks that were sold were: Dexus Property, Cheung Kong, Television Broadcast, Malayan Banking, Asustek Computer, Taiwan Mobile and United Microelectronic.

There are six new stocks in the portfolio: National Australia Bank, Beijing Capital International Airport, Giant Interactive, Sinopec Engineering, Sun Hung Kai Properties and Mizuho Financial.

The allocation to China increased over the period partly through strong stock performance but also due to the acquisition of Beijing Capital International and Giant Interactive. A less positive view on technology resulted in a lower weighting to both Taiwan and technology. For the first time in a while a position was initiated in Japan following some strong results from the banking sector and a more optimistic outlook for the economy. The Japanese Yen position has been hedged back to US dollars reflecting the belief that the positive case for Japan involves a weaker currency.

Over the period one put and one call options were purchased and six put options expired, without take up.

Share Issues: During the period 225,000 shares were issued in three tranches. The proceeds of these issues, net of commission, were £760,695.

Dividends: A fourth interim dividend of 4.40p per Ordinary Share, in respect of the year ending 31 August 2013, was paid on 29 November 2013 to holders registered on 8 November 2013. The ex-dividend date was 6 November 2013.

Discount/Premium:  Over the period the shares moved from a discount of 1.0% to net asset value to a premium of 0.4%.

PERFORMANCE AND FINANCIAL HIGHLIGHTS

Performance to 30 November 2013

	3 months	1 year	3 years	5 years
Net Asset Value Total Return per ordinary share (%)	3.62	6.54	16.79	112.69

Source:   Morningstar Funddata

Financial Position

	at 30 November 2013	at 31 August 2013
Net assets	£333.8m	£325.8m
Net asset value cum income	319.24p	312.2p
Net asset value ex income	315.74p	307.0p
Ordinary share price	320.5p	309.0p
Premium/(Discount)	0.4%	-1.0%
Gearing	6.8%	6.9%
Yield	5.30%	5.50%

THE PORTFOLIO

Top 10 Investments	Country	% of portfolio	% of portfolio
		at 30 November 2013	at 31 August 2013
Bank of China	China	3.0	2.8
Hyundai Motor Taiwan Cement	Korea Taiwan	2.9 2.8	2.6 2.5
SK Telecom SJM Holdings Grand Korea Leisure Shanghai Industrial	Korea Hong Kong Korea China	2.7 2.6 2.5 2.4	2.1 2.2 2.1 2.5
Amcor	Australia	2.3	2.3
Sun Hung Kai Prop	Hong Kong	2.3	-
Sinopec Engineering	China	2.3	-

Geographic Focus	% at 30 November 2013	% at 31 August 2013
China	20.1	17.4
Australia	16.7	16.8
Taiwan	13.4	7.7
Hong Kong	12.3	10.0
South Korea	11.6	10.0
Singapore	8.9	10.3
Thailand	7.6	17.4
Japan	2.2	0.0
India	2.1	1.8
New Zealand	2.0	2.7
The Philippines	1.7	1.8
Indonesia	1.4	1.6
Malaysia	-	2.5

Sector Breakdown	% at 30 November 2013	% at 31 August 2013
Industrials	20.9	15.5
Financials	20.3	16.3
Telecommunications	13.6	16.6
Property	12.4	16.6
Consumer Services	10.3	11.1
Consumer Goods	8.5	6.0
Oil & Gas	6.0	5.7
Technology	6.0	10.2
Health Care	1.9	1.9
Basic Materials	0.1	0.1

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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