Interim Management Statement

Henderson Far East Income Limited
14 January 2008

                             
HENDERSON FAR EAST INCOME LIMITED


14 JANUARY 2008





                       HENDERSON FAR EAST INCOME LIMITED


                          Interim Management Statement


         Review of the period from 1 September 2007 to 31 December 2007



MATERIAL EVENTS OR TRANSACTIONS DURING THE PERIOD


Portfolio:  during the period there was net investment of £ 2.141m, although the
number of holdings in the portfolio decreased from 51 to 48.  The stocks that
were sold were; Advanced Semiconductor Engineering, AMP, Insurance Australia
Group, Sun Hung Kai Properties, United Overseas Bank, Compal Communications,
Compal Electronics, Mega Financial, Taiwan Semiconductor Vanguard International
Semiconductor, Perusahaan Gas Negara, Lite on Technology and Thoresen Thai
Agencies.


There are 10 new stocks in the portfolio; Australia and New Zealand Bank Group,
BOC Hong Kong Holdings, Kowloon Development, KT Corporation, KT & G, DBS Group,
Farglory Land Development, Korea Electric Power, Korea Exchange bank and SK
Telecom



The portfolio is focused on stocks and sectors that have exposure to domestic
Asian growth and away from areas that are reliant on the global cycle. This
theme has been reiterated by changes made over the period especially through the
reduction of exposure to the technology sector.



Over the period three call options were sold or open against stocks held in the
portfolio. In addition two index put options were held, one expired at the end
of December and the other expiring at the end of January 2008.



Dividends:  a Third interim dividend of 2.75p per ordinary Share, in respect of
the period ending 31 August 2007, was paid on 30 November 2007 to holders
registered on 9 November 2007.



Discount:  the share price discount to net asset value widened over the period
from 1.4% to 6.0%.



There are no other material events or transactions to report.



PERFORMANCE AND FINANCIAL HIGHLIGHTS



Performance to 31 December 2007
                                                        4 months   1 year*     3 years*     5 years*
Net Asset Value Total Return per ordinary share            11.2%     26.5%        75.8%    190.7%




Source:   Datastream



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


Financial Position
                                                    at 31 December 2007                  at 31 August 2007
Net assets                                                        £226m                              £205m
Net asset value                                                  290.7p                             261.4p
Ordinary share price                                            273.25p                             257.8p
Discount                                                          -6.0%                              -1.4%
Gearing                                                            0.0%                               1.1%
Yield                                                             4.03%                              4.27%
Total Expense Ratio                                               1.24%                              1.24%





THE PORTFOLIO


Top 10 Investments                        Country             % of portfolio               % of portfolio
                                                          at 31 December 2007           at 31 August 2007
Hang Seng Bank                          Hong Kong                         3.7                         3.0
Philippine Long Distance              Philippines                         3.4                         2.9
Telephone
Singapore Telecommunications            Singapore                         3.0                         2.9
High Tech Computer Corp                    Taiwan                         2.9                         2.4
BOC Hong Kong Holdings                  Hong Kong                         2.9                           -
Westpac Bank                            Australia                         2.8                         2.8
Henderson Land Development              Hong Kong                         2.6                         2.1
Woolworths                              Australia                         2.5                         2.3
Hang Lung Properties                    Hong Kong                         2.5                         2.2
Fairfax Media                           Australia                         2.5                         2.5


Geographic Breakdown                              % at 31 December 2007                % at 31 August 2007
Australia                                                          20.2                               21.7
China                                                               2.3                                4.0
Hong Kong                                                          17.7                               13.4
Indonesia                                                           0.0                                1.6
Malaysia                                                            9.7                                9.5
Philippines                                                         3.4                                2.8
Singapore                                                          10.1                               10.0
South Korea                                                        20.0                               10.4
Taiwan                                                             14.5                               20.5
Thailand                                                            0.0                                2.2
Region                                                              0.1                                0.9
Cash                                                                2.0                                3.0




Sector Breakdown                                  % at 31 December 2007                % at 31 August 2007
Utilities                                                           4.4                                4.0
Telecommunications                                                 12.8                                7.7
Technology                                                          4.6                                8.5
Oil & Gas                                                           4.3                                4.2
Industrials                                                        16.0                               19.7
Financials                                                         38.5                               36.2
Consumer Goods & Services                                          13.0                               10.5
Basic Materials                                                     4.4                                5.3
Options                                                             0.0                                0.9
Cash                                                                2.0                                3.0



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 http://www.itshenderson.com/



For further information, please contact:


Jeremy Hamon                                        James de Sausmarez
Company Secretary                                   Head of Investment Trusts
Telephone: [phone]                             Henderson Global Investors

                                                    Telephone: [phone]
Sarah Gibbons-Cook
Investor Relations and PR Manager
Henderson Global Investors
Telephone: [phone]



                                    - ENDS -


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