Interim Management Statement

RNS Number : 1648K

Henderson Far East Income Limited

20 June 2014

 



HENDERSON FAR EAST INCOME LIMITED

20 June 2014

HENDERSON FAR EAST INCOME LIMITED

Interim Management Statement

Review of the period from 1 March 2014 to 31 May 2014

MATERIAL EVENTS OR TRANSACTIONS DURING THE PERIOD

Portfolio: During the period there was net investment of £1.0m and the number of holdings in the portfolio remained at 55. The stocks that were sold were:  Seven West Media, Skyworth Digital Holdings, Sun Hung Kai Properties, Grand Korea Leisure, Kangwon Land.

There are five new stocks in the portfolio:  Mirvac Group, National Australia Bank, Huaneng Power, Cheung Kong Holdings and Malayan Banking.

The transactions reflect changes in performance for individual companies within countries and sectors with little change to overall allocation. Cheung Kong is favoured to Sun Hung Kai within Hong Kong property developers, while Chinese utility Huaneng Power is favoured to TV manufacturer Skyworth Digital. The only significant sub-sector reduction is the removal of exposure to Korean gaming on valuation grounds following strong performance.

Over the period one put option was sold and three put options expired, without take up.

Share Issues: During the period 2,350,000 shares were issued in nineteen tranches. The proceeds of these issues, net of commission, were £7,269,306.

Dividends: A second interim dividend of 4.40p per Ordinary Share, in respect of the year ending 31 August 2014, was paid on 30 May 2014 to holders registered on 9 May 2014. The ex-dividend date was 7 May 2014.

Premium:  the share price premium to net asset value increased over the period from  1.3% to 1.5%.

PERFORMANCE AND FINANCIAL HIGHLIGHTS

Performance to 31 May 2014

	3 months	1 year	3 years	5 years
Net Asset Value Total Return per ordinary share (%)	6.78	-6.70	18.62	60.08

Source:   Morningstar Funddata

Financial Position

	at 31 May 2014	at 28 February 2014
Net assets	£335.0m	£311.3m
Net asset value cum income	311.26p	295.76p
Net asset value ex income	310.60p	294.33p
Ordinary share price	316.00p	299.50p
Premium	1.5%	1.3%
Gearing	4.1%	4.9%
Yield	5.57%	5.78%

THE PORTFOLIO

	Top 10 Investments		Country		% of portfolio		% of portfolio
					at 31 May 2014		at 28 February 2014
	Bank of China		China		3.1		2.9
	Taiwan Semiconductor		Taiwan		2.6		2.5
	Taiwan Cement		Taiwan		2.6		2.9
	Westfield Retail		Australia		2.5		2.5
	SK Telecom		South Korea		2.5		2.5
	Cheung Kong Holdings		Hong Kong		2.5		-
	Petrochina		China		2.4		2.3
	Coal India		India		2.4		1.6
	Hyundai Motor		South Korea		2.3		2.3
	Amcor		Australia		2.3		2.2
Geographic Breakdown				% at 31 May 2014		% at 28 February 2014
China				20.0		18.2
Australia				17.6		15.6
Taiwan				13.4		14.4
Hong Kong				12.2		14.2
Singapore				9.1		9.0
Thailand				7.3		7.3
South Korea				6.3		9.6
India				4.7		3.8
Malaysia				2.2		-
Japan				2.0		2.2
New Zealand				1.8		2.4
Philippines				1.7		1.7
Indonesia				1.7		1.6

Sector Breakdown		% at 31 May 2014	% at 28 February 2014
Financials		22.0	19.9
Industrials		17.8	19.3
Property		17.5	12.8
Telecommunications		12.1	12.4
Technology		9.6	10.1
Oil & Gas		8.6	8.4
Consumer Goods		4.3	6.1
Consumer Services		3.5	9.2
Basic Materials		2.6	1.8
Utilities		2.0	-

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 BNP Paribas Securities Services S.C.A. 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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