Interim Management Statement

RNS Number : 3482O

Henderson Far East Income Limited

28 June 2010

 



HENDERSON FAR EAST INCOME LIMITED

28 June 2010

HENDERSON FAR EAST INCOME LIMITED

Interim Management Statement

Review of the period from 1 March 2010 to 31 May 2010

MATERIAL EVENTS OR TRANSACTIONS DURING THE PERIOD

Portfolio: During the period there was net investment of £6.7m, and the number of holdings in the portfolio remained at 45. The stocks that were sold were: Guangzhou R & F Properties, Shenzhen Investment, Jinro, KT & G and Singapore Technologies.

There are three new stocks in the portfolio: Shanghai Industrial, Taiwan Semiconductor Manufacturing and Yuanta Financial.

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. Over 60% of the portfolio is exposed to three key themes - Financials/Property (undervalued owing to negative sentiment towards the sector), Industrials (beneficiaries of increased government expending) and telecommunications (offer high and sustainable cash flow and dividend).

Over the period five put and one call options were sold and two expired in April 2010.

Shares Issues: On 4 December 2009 the Company applied for the block listing of 9,150,555 shares. During the period 725,000 shares were issued in five tranches. The proceeds of these issues, net of commission, was £2,238,252.50.

Dividends: A second interim dividend of 3.20p per ordinary Share, in respect of the year ending 31 August 2010, was paid on 28 May 2010 to holders registered on 7 May 2010.

Discount/Premium:  the share price premium to net asset value narrowed over the period to 1.7%.

PERFORMANCE AND FINANCIAL HIGHLIGHTS

Performance to 31 May 2010

	3 months	1 year	3 years*	5 years*
Net Asset Value Total Return per ordinary share (%)	0.01	21.04	24.11	83.95

Source:   Datastream

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

Financial Position

	at 31 May 2010	at 28 February 2010
Net assets	£274m	£272m
Net asset value cum income	288.7p	288.6p
Net asset value ex income	285.6p	288.8p
Ordinary share price	293.5p	300.0p
Premium	1.7%	3.9%
Gearing	0.0%	0.0%
Yield	4.4%	4.2%
Total Expense Ratio	1.19%	1.19%

THE PORTFOLIO

Top 10 Investments	Country	% of portfolio	% of portfolio
		at 31 May 2010	at 28 February 2010
Industrial & Commercial Bank of China	China	3.6	2.6
Bank of China	China	3.4	3.2
Link Reit	Hong Kong	2.9	2.9
Fraser & Neave	Singapore	2.9	2.4
BOC Hong Kong Holdings	Hong Kong	2.8	2.7
SK Telecom	South Korea	2.8	2.7
Kasikornbank	Thailand	2.8	2.4
Telekomunikasi Indonesia	Indonesia	2.7	2.5
KT Corporation	South Korea	2.7	2.6
DBS Group	Singapore	2.6	2.5

Geographic Breakdown	% at 31 May 2010	% at 28 February 2010
China	20.9	18.9
Taiwan	17.5	11.6
Hong Kong	16.2	16.9
Australia	13.4	14.7
Singapore	11.9	13.7
South Korea	8.4	12.7
Thailand	6.7	6.5
Indonesia	2.7	2.6
Philippines	2.3	2.4

Sector Breakdown	% at 31 May 2010	% at 28 February 2010
Financials	28.7	23.8
Industrials	18.1	17.5
Telecommunications	17.8	17.6
Property	12.2	15.4
Technology	9.1	6.3
Oil & Gas	5.6	6.3
Consumer Services	4.5	4.4
Basic Materials	4.3	4.6
Consumer Goods	-	4.2
Options	-0.3	-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]

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